Workshop on European Composite Indicators

1
Workshop on European Composite Indicators
Scoreboards Innovation Modes

• Complex Indicators from
• CIS-3

2
Problem

• The CIS 3 indicators for the percentage of firms
  with innovative activity tells us not much about
  how firms innovate and can be misleading
• innovative firms (1998-2000)
• Germany 62
• Iceland 55
• Portugal 46
• Finland 45
• Source Innovation in Europe,
  Eurostat, 2004

3
Therefore

• Develop complex indicators (using several CIS 3
  questions) that can provide more information on
  the innovative activities of firms
• This work builds on the work of Arundel (2000)
  and Tether (2001)
• Not without difficulties the more questions
  included in constructing an indicator, the more
  item non-response can become a problem.

4
The approach

• We used the CIS 3 micro-data available at
  Eurostat in exploiting up to 11 questions at
  micro-data level, e.g.
• Firm had an ongoing or abandoned innovation
  activity
• How was the products/process innovation
  developed
• Types of engagement in R D
• The most significant market of the firm etc.

5
Indicators for innovation modes

• Based on the responses to these questions, the
  firms were classified to 4 innovation modes
• Two axes one for creative innovation activities
  and one for innovation as a diffusion process
• Note there is no optimal distribution of
  innovation modes.
• Caution Experimental approach

6
Four innovation modes

• Strategic innovators creative, in-house
  activities a core business strategy
• Intermittent innovators some creative
  activities, but only when necessary
• Technology modifiers adapt technology acquired
  from external sources
• Technology adopters acquire technology
  off-the-shelf.

7
Examples (1)
8
Examples (2)
9
More possibilities

• In general the CIS 3 tabulated data seems to be
  sufficient, the CIS 3 micro-data seems to be
  under-exploited
• Therefore Eurostat will produce an anomyized
  micro-data set on the CIS 3 data which should be
  ready for release very soon
• This micro-data set will allow similar data
  production as shown in the example

10
The future

• The CIS 4 is upcoming with the following
  expectations better quality, faster results,
  more details on economic activities (Nace
  2-digit)
• But the data collection is more based on
  tabulated data the exact amount of micro-data
  sets which we will have is not yet clear

11
The future

• The CIS 2006 will be prepared from 2006 onwards
• Attention the new Eurostat/OECD Oslo Manual 2005
  is to be used, covering new types of innovation
  (organisational and marketing innovation)
• In the medium term micro-data linking with
  surrounding surveys (SBS, ICT, etc.) could be
  envisaged

12
Conclusion

• More analysis and complex/composite indicator
  building can be done on the base of the CIS 3
• Further improvements on innovation statistics can
  be expected in the years to come