Measuring Innovation in Europe
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Transcript of Measuring Innovation in Europe
This project is funded by
the European Union
Integrated Innovation Support Programme
Measuring Innovation: The UK Innovation Index
Dr Yannis Pierrakis, 18 Sep2012
This project is funded by
the European Union
A few firms create the majority of new jobs
Source: Vital Growth (NESTA, 2011), based on the ONS Business Structure Database
2002-05 2005-08 2007-10
Firms New jobs
Job creation by existing UK businesses
Firms New jobs
Firms New jobs
This project is funded by
the European Union Definitions of innovation
- "The successful exploitation of new ideas" (UK Department for Business, Regulatory Reform)
- “Innovation activities are all scientific, technological, organisational, financial and commercial steps which actually, or are intended to, lead to the implementation of innovations.” (OECD)
This project is funded by
the European Union Linear model = linear measures
Knowledge creation
What: Basic science + R&D
Where: Universities, industry R&D labs
Knowledge transfer
What: Applied research, development
Where: Spinout companies, start-ups
What: Product manufacture
Where: Industry
Commercialised product Consumption
What: Use/ consumption
Where: Individual consumer
Patents producedR&D
investment
Spin-out companies
created
This project is funded by
the European Union Linear measures = linear policies
Knowledge creation
What: Basic science + R&D
Where: Universities, industry R&D labs
Policy response: R&D tax credit, science budget
Knowledge transfer
What: Applied research, development
Where: Spinout companies, start-ups
Policy response: Lambert agreements, TTOs, KTPs, KTNs
What: Product manufacture
Where: Industry
Policy response: None
Commercialised product Consumption
What: Use/ consumption
Where: Individual consumer
Policy response: None
This project is funded by
the European Union
The UK’s ‘poor performance’ in innovation
•Policy has focused on improving the UK’s ‘poor performance’•The UK lags behind its competitors on traditional indicators
Overall per capita expenditure on R&D Business expenditure on R&D Business levels of innovative activity Extent of patenting activity
This project is funded by
the European Union The ‘UK paradox’
- A poor innovation performance but a strong economic growth
- The structure of the UK economy has changed
- The nature of innovation has changed
- This might suggest that there is a gap between traditional indicators of innovation performance and how innovation really happens in the UK.
- This gulf between practice and measurement reveals that there is an innovation gap.
- Hidden innovation is the innovation that is not captured or recognised by traditional innovation indicators.
This project is funded by
the European Union
Types of hidden innovation
•Based on science and technology but excluded from traditional indicators•Innovation in processes, organisational forms or business models•Innovation from the novel combination of existing technologies and processes•Innovation that takes place ‘under the radar’ of many surveys
This project is funded by
the European Union User-centred innovation
•Traditional, Manufacturer-Centred Innovation Paradigm•Manufacturers identify user needs, develop products at private expense, and profit by protecting and selling what they have developed
•User-Centred Innovation Paradigm•‘Lead users’ innovate to solve their own needs at private expense and then freely reveal their innovations
This project is funded by
the European Union
A gap has opened up between the practice, the theory, the measurement (and subsequently policies) of innovation. This innovation gap can produce a misleading view of national innovation performance.
Nesta has developed expertise in measuring innovation, including a methodology called the innovation index that we are working with countries around the world to apply….
It breaks down what really drives innovation and productivity growth beyond investment in R&D.
New metrics innovation
This project is funded by
the European Union Audiences
Senior economic policymakers in Whitehall and the devolved administrations
Those responsible for the delivery of public services in Whitehall and the devolved administrations
Leaders of institutions who play a leading role in the UK’s ecology of innovation, notably university Vice-Chancellors, educators, business leaders, skills bodies, regulators and investors
Those responsible for regional economic development across the UK
Output must be credible with the private sector and the academic community
This project is funded by
the European Union Objectives
1. Contain clear insights for the main innovation actors in the UK
2. Account for ‘hidden innovation’, open innovation, user-led innovation, absorptive capacity and innovation in public services
3. As far as practicable, be comparable across similar sectors across different countries
4. Produce a series of outputs that are accessible to the media and policymakers
5. Form a framework for a systematic body of work on innovation measurement and recommendations for the improvement of underlying statistics
This project is funded by
the European Union
21.6
27.1
3.8
23.3
16.0
Total 137.4
15.0
30.7
Investment in innovation, ₤bn, 2008
Training & skills development
“Go-to-market”
Design
R&D
Other (copyright, etc)
Software development
Organisational innovation
13.8% of private sector
output
The Index also provides historical innovation investment data going back to 1990
Source: Nesta Innovation Index
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
Training
Org. Development
Design
Software
Go to Market
R&D
% of business output
Software
This project is funded by
the European Union
Investment in intangibles fell during the recession, but by less than tangible investment
This project is funded by
the European Union
Manufacturing, finance and personal services are the most intangible–intensive industries
This project is funded by
the European Union
Manufacturing accounts for more than three–quarters of total R&D investment
This project is funded by
the European Union
This project is funded by
the European Union
This project is funded by
the European Union
This project is funded by
the European Union Innovation Scoreboard