Measuring Science, Technology and Innovation (STI): Definitions from a statistical perspective

1. Measuring Science, Technology and Innovation (STI): Definitionsfrom a statistical perspective National Workshop on Science, Technology and Innovation (STI) Statistics Abu Dhabi, UAE 14 October 2012

2. FRAMEWORKS

3. STI: a linear model? The model Indicators

4. From model to indicators • R&D survey • R&D personnel • R&D Expenditure • Innovation statistics • since 2010 • Administrative data (patents) • Publications databases • High-tech data (trade)

5. A systems approach Innovation is dynamic and complex: Many actors, many linkages Feedback and feed-forward loops  innovation is non-linear

6. Standardisation of indicators YOU ARE HERE Standards Consensus

7. UNESCO methodologies and frameworks • Recommendation concerning the International Standardization of Statistics on Science and Technology, 1978 • UNESCO Manual for Statistics on Scientific and Technological Activities ST-84/WS/12, Paris, 1984 • International Standard Classification of Education - ISCED 1997 and ISCED 2011

8. “Frascati family” of OECD Manuals • Frascati Manual • Oslo Manual • Canberra Manual • Patent Manual

9. Other relevant OECD frameworks • Handbook of Economic Globalisation Indicators • Guide to Measuring the Information Society • Framework for Biotechnology Statistics • Productivity manual

10. DEFINITIONS

11. STA: Definition Scientific and Technological Activities (STA)can be defined as all systematic activities which are closely concerned with: generation, advancement, dissemination, and application of scientific and technical knowledge and applies to: all fields of science and technology i.e. NS and SSH.

12. STA coverage Scientific and technological activities comprise: • Research and experimental development (R&D) • Scientific and technical education and training (STET) • Scientific and technological services (STS)

13. An indicators “framework” STA R&D STET STS

14. Research and Development First edition published in 1963! Sixth edition published in 2002 De facto world standard

15. R&D: Definition Research and experimental development (R&D) comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications. Basic criterion: presence ofan appreciable element of novelty and the resolution of scientific and/or technological uncertainty.

16. R&D covers 3 activities • Basic research (no particular application or use in view) • Applied research(directed primarily towards a specific practical aim or objective) • Experimental development(directed to producing new materials, products or devices)

17. Exclusions Excluded from R&D Education and training Scientific and technological services / Other science and technology activities Other industrial activities Administration and other supporting activities  these will come back

18. An indicators “framework” STA R&D STET STS

19. STET: Definition Scientific and technological education and training at broadly the third level (STET) can be defined as all activities comprising: • Specialized non-university higher education • All university education • Organized lifelong training for scientists and engineers

20. Limits between R&D and teaching and training • Research and teaching very closely linked in higher education • Results of research feed into teaching, and information and experience gained in teaching can often result in an input to research • Difficult to define where education and training of staff and students end and R&D activities begin, and vice versa • Elements of novelty distinguish R&D from routine teaching and other work-related activities

21. Borderline between R&D and education and training at ISCED level 6

22. STS: Definition Scientific and technological services (STS)can be defined as any activities: • Concerned with scientific research and experimental development • Contributing to the generation, dissemination and application of scientific and technical knowledge

23. STS: detailed activities • S&T information and documentation activities provided by libraries, archives, databanks, etc • S&T services provided by museums, botanical and zoological gardens, etc • Translation and editing of S&T publications • Collection of data in the field of NSE. eg. meteorological observations • Activities related to searching oil and minerals resources • Collection of data on human, social, economic and cultural phenomena, by National Statistical Offices • Testing, standardization, and quality control activities by National Bureau of Standards • Extension, advisory services, feasibility studies, etc • Patents and licenses activities by National Patent Office.

24. Other related scientific and technological activities • Scientific and technical information services • General purpose data collection • Testing and standardisation • Feasibility studies • Specialised health care • Patent and licence work • Policy-related studies • Routine software development

25. An indicators “framework” Admin and other sup. activities STA R&D STET Innovation + Other industrial activities STS

26. Innovation: the Oslo Manual Jointly with the EC Part of the Frascati family Used for CIS and national innovation surveys 1st edition 1992 2nd edition 1997  coverage expanded to services 3rd edition 2005  including non-technological innovation

27. Innovation: definition (Oslo Manual 2005) The implementation of: • New or significantly improved product (good or service); or • New process; or • New marketing method; or • New organisational method.

28. Innovation activities Innovation activities are defined as: • all steps which actually, or are intended to, lead to the implementation of innovations. • some innovation activities are themselves innovative, others are not novel activities but are necessary for the implementation of innovations.

29. Examples: product and process innovation • Food products with new functional characteristics (margarine that reduces blood cholesterol levels, yoghurts produced using new types of cultures, etc.) • Products with significantly reduced energy consumption (energy efficient refrigerators, etc.) • The introduction of smart cards and multipurpose plastic cards • A new, self-service bank office

30. Examples: marketing and organisational innovation • Implementation of a fundamentally new design of bottles for a body lotion intended to give the product a distinctively exclusive look • Implementation of a personalised information system, e.g. obtained from loyalty cards, to tailor the presentation of products to the specific needs of individual customers • First-time introduction of an integrated monitoring system for firm activities (production, finance, strategy, marketing) • First-time introduction of quality control standards for suppliers and subcontractors

31. Included Prototypes Pilot plant Excluded After-sales service & troubleshooting Patent and licence work Routine tests Data collection Public inspection control, enforcement of standards, regulations Borderline between R&D and other industrial activities Divided • Industrial design and drawing • Industrial engineering and tooling up • Trial production

32. Borderline between experimental and pre-production development Included: • To make further technical improvements on the product or process Excluded: • To develop markets, to do pre-production planning or to get a production or control system working smoothly

33. Problems at the borderline between R&D administration and indirect supporting activities Administration • Personnel data cover only R&D proper • Management, administration and clerical activities included only when these contribute directly to R&D projects and are undertaken exclusively for R&D • Expenditure data cover the full cost of R&D, including the indirect supporting activities which are treated as overheads Service or indirect support activities (e.g. transportation, storage, cleaning, repair, maintenance and security) • Excluded from personnel data but included in expenditure data as overhead

34. Clinical trials • Clinical trial phases 1, 2 and 3 included in R&D • Phase 4 clinical trials excluded from R&D, except if they bring about a further scientific or technological advance

35. Criteria for distinguishing R&D from related activities • Basic criterion: an appreciable element of novelty and the resolution of scientific and/or technological uncertainty. • Supplementary criteria: • What are the objectives of the project? • What is new or innovative about this project? • What staff is working on the project? • What methods are being used? • Under what programme is the project funded? • How general are the findings or results of the project likely to be? • Does the project fall more naturally into another scientific, technological or industrial activity?

36. Examples: distinguishing R&D and related activities • In the field of medicine, routine autopsy on the causes of death is the practice of medical care and is not R&D;special investigation of a particular mortality to establish the side effects of certain cancer treatments is R&D. Similarly, routine tests such as blood and bacteriological tests carried out for doctors are not R&D, whereas a special programme of blood tests in connection with the introduction of a new drug is R&D. • The keeping of daily records of temperatures or of atmospheric pressure is not R&D but the operation of a weather forecasting service or general data collection. The investigation of new methods of measuring temperature is R&D, as are the study and development of new systems and techniques for interpreting the data.

37. Examples: distinguishing R&D and related activities (cont.) • R&D activities in the mechanical engineering industry often have a close connection with design and drawing work. In small and medium-size enterprises (SMEs) in this industry, there is usually no special R&D department, and R&D problems are mostly dealt with under the general heading “design and drawing”. If calculations, designs, working drawings and operating instructions are made for the setting up and operating of pilot plants and prototypes, they should be included in R&D. If they are carried out for the preparation, execution and maintenance of production standardisation(e.g. jigs, machine tools) or to promote the sale of products (e.g. offers, leaflets, catalogues of spare parts), they should be excluded from R&D.

38. Identifying R&D in software development • Completion must be dependent on a scientific and/or technological advance • Aim of the project must be the systematic resolution of a scientific and/or technological uncertainty • In addition to the software that is part of an overall R&D project, the R&D associated with software as an end product should also be classified as R&D

39. R&D in software This is not to be counted as R&D: • Business application software and information system development using known methods and existing software tools • Support for existing systems • Converting and/or translating computer languages • Adding user functionality to application programmes • Debugging of systems • Adaptation of existing software • Preparation of user documentation

40. Examples of R&D in software • R&D producing new theorems and algorithms in the field of theoretical computer science • Development of information technology at the level of operating systems, programming languages, data management, communications software and software development tools • Development of Internet technology • Research into methods of designing, developing, deploying or maintaining software • Software development that produces advances in generic approaches for capturing, transmitting, storing, retrieving, manipulating or displaying information • Experimental development aimed at filling technology knowledge gaps as necessary to develop a software programme or system • R&D on software tools or technologies in specialised areas of computing (image processing, geographic data presentation, character recognition, artificial intelligence and other areas)

41. Criteria for identifying R&D in services • Links with public research laboratories • The involvement of staff with PhDs, or PhD students • The publication of research findings • The construction of prototypes or pilot plants

42. Examples of R&D in banking and insurance • Mathematical research relating to financial risk analysis • Development of risk models for credit policy • Experimental development of new software for home banking • Development of techniques for investigating consumer behaviour for the purpose of creating new types of accounts and banking services • Research to identify new risks or new characteristics of risk that need to be taken into consideration in insurance contracts • Research on social phenomena with an impact on new types of insurance (health, retirement, etc.), such as on insurance cover for non-smoker • R&D related to electronic banking and insurance, Internet-related services and e-commerce applications • R&D related to new or significantly improved financial services (new concepts for accounts, loans, insurance and saving instruments)

43. Examples of R&D in other service activities • Analysis of the effects of economic and social change on consumption and leisure activities • Development of new methods for measuring consumer expectations and preferences • Development of new survey methods and instruments • Development of tracking and tracing procedures (logistics) • Research into new travel and holiday concepts • Launch of prototype and pilot stores

44. Summary Admin and other sup. activities STA R&D STET Innovation + Other industrial activities STS

45. CLASSIFICATIONS AND BREAKDOWNS

46. Sectoring for R&D statistics • Framework for analysing the flows of funds between funding and performing entities • Facilitates data collection • Following standard classifications of economic activities. • Most reliable way of building up national aggregates • Questionnaires and survey methods per sector • Shows differences in the level and direction of R&D • Relate R&D to other statistical series

47. Sectors of economy • Business enterprise sector • Government sector • Higher education sector • Private non-profit sector • Abroad (only as source of funds)

48. Institutional classification • Business enterprise • All firms, enterprises whose primary activity is the market production of goods or services for sale • Private non-profit institutions mainly serving business • Public enterprises • Government • All government departments, offices, research institutions, etc • Non-profit institutions (NPI) controlled and mainly financed by government • Excludes public enterprises • Higher education • All universities, colleges of technology and other post-secondary educationinstitutions • Clinics, experimental stations operating under the direct control of or administered by or associated with higher education institutions • Private non-profit • Non-market, private non-profit institutions serving households; also private individuals or households • Abroad (only as source of fund) • All institutions and individuals located outside the political borders of a country • International organisations (except business enterprises) within the country’s borders

49. Functional distributions • Type of activity • Fields of science • Socio-economic objective

50. Type of activity • Basic research • Applied research • Experimental development