M ain problems when trying to define innovation indicators. Examples of indicators activities

1. Main problems when trying to define innovation indicators. Examples of indicators activities in NACs. Tallinn/Estonia Mart Repnau Metropolis, Helsinki TG April 26, 2003

2. Lack of respective studies / data • ASSESSING INNOVATION CAPACITIES OF THE CENTRAL AND EAST EUROPEAN COUNTRIES IN THE ENLARGED EUROPEAN INNOVATION SYSTEM. By Slavo Radosevic, reader at University College London, School of Slavonic and East European Studies • ESTONIAN INNOVATION POLICY IN A COMPARATIVE PERSPECTIVE: OPTIONS AND PRIORITIES WITH A VIEW TO EU ACCESSION. By Alasdair Reid, ADE S.A. (Belgium) • No local studies: Estonian Institute for Future Studies has just started innovation survey of Southern Estonia as a part of Tartu Regional Innovation Strategy. • From EU viewpoint Estonia is one region. • Regional statistics in Estonia does not cover many aspects of innovation indicators

3. Limited role of indicators • No institution has been assigned to monitor innovation indicators and/or innovation situation/environment. • National R&D Strategy (Knowledge-based Estonia) defines: Teadus- ja arendustegevuse olukorda iseloomustatakse järgmiste näitajate abil: teadus- ja arendustegevuse maht ja struktuur, inimkapital, patenteerimisaktiivsus ja edukus rahvusvahelises koostöös. Teadus- ja arendustegevuse mahu ja struktuuri näitajateks on valdkonda investeeritud vahendid ning nende jaotumine alusuuringute, rakendusuuringute ning arendustegevuse vahel, samuti investeeringute jaotus avaliku ja erasektori vahel. Inimkapitali indikaatoriteks on teadlaste ja inseneride osatähtsus tööjõus.

4. EU approach to NIC much wider

5. Knowledge-based Estonia Strategy • Objectives: • Updating pool of knowledge – “raising the quality and level of scientific research” – focus on three technology areas; • Increasing the competitiveness of enterprises – precondition “integration mechanism between research and business sector”. • Main targets related to: • Increasing level of expenditure on R&D – notably business expenditure – how realistic? • Better balance between basic and applied research activities. External critique of Estonian Innovation Policy by A.Reid

6. From R&D to NIC (I) Conclusions by Slavo Radosevic • Productivity depends not only on R&D but also on absorptive, diffusion and demand capacities • Potential of Estonia to ‘cohesion EU’ income levels is very high but not to the EU average ….. unless we see improvements in NIC • Big gap between NIC and current levels of productivity • How to complement exclusively high tech orientation of Estonian innovation policy with orientation to skills, productivity and production capabilities • There is huge scope for enterprise and low tech/medium tech oriented innovation policy in addition to current high-tech efforts

7. From R&D to NIC (II) Policy / management implications by Slavo Radosevic • Ordering of policy priorities: R&D, absorptive capacities, diffusion, demand. • R&D: size and orientation • Diffusion: Quality improvements! • Absorptive capacities: skills and vocational training • NIS: How to expand firm cooperation beyond value chain?