Conceptual framework

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Conceptual framework

• Stefano Tarantola

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challenges

• Three crucial challenges for the scientific
  community to establish a theoretical framewirk of
  good quality
• 1) check the feasibility of the effect of the
  proposed framework in relation to different
  dimensions (technical, economic, social,
  political, cultural) and different scales from
  local (technical coefficients), to large (trend
  analysis and benchmarks to compare trajectories
  of development)

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challenges

• 2) address several legitimate (and often
  contrasting) perspectives found among the
  stakeholders on how to structure the problem
• 3) handle in a credible way the unavoidable
  degree of uncertainty (or genuine ignorance)
  associated to any multi-scale, multi-dimensional
  analysis of complex systems
• (Giampietro et al, 2004)

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The challenge

• To integrate a broad set of (probably
  conflicting) points of view
• And reduce the complexity in a measurable form
• Example non-measurable issues (eg
  sustainability) need to be replaced by
  intermediate objectives whose achievement can be
  observed and measured.

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• essential aspect for the use of a composite
  indicator is
• the existence of a community of peers
  (individuals, regions, countries) willing to
  accept the composite indicator as common
  yardstick and based on their mutual acceptance of
  the theoretical framework.

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• However good is the scientific basis for a given
  composite indicator, its acceptance relies on
  negotiation

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Two examples

• Innovation index 2005
• e-business index for eEurope 2005 and for i2010

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Framework for innovation

• Innovation is identified as the process leading
  to the adoption and diffusion of new
  technologies, aimed at creating new processes,
  products and services.
• Adoption represents the final stage of an
  invention, diffusion focuses on the supply of new
  goods and services to the consumer.
• In this context, Innovation is the mean to
  achieve competitiveness in the framework of the
  revised Lisbon agenda.

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Framework for innovation (2)

• The general framework, the choice of the
  conceptual groups and the selection of the
  indicators have been carried out in consultation
  with a panel of experts from different Member
  States the GSO Group of Senior Officials

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Framework for innovation (3)

• The Summary Innovation Index is composed of two
  main groups, Innovation Input and Innovation
  Output.
• The relevant elements of innovation Input are
  captured by three sub-groups of indicators

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Framework for innovation (4)

• The relevant elements of innovation Input are
  captured by three sub-groups of indicators
• Innovation drivers, to measure the structural
  conditions required for innovation potential
• Knowledge creation, to measure the investments on
  human factors and on RD activities, considered
  as the key elements for a successful
  knowledge-based economy
• Innovation entrepreneurship, to measure the
  efforts towards innovation at the microeconomic
  level

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Framework for innovation (5)

• The relevant elements of innovation Output are
  captured by two sub-groups of indicators
• Application, to measure the performance,
  expressed in terms of labour and business
  activities, and their value added in innovative
  sectors
• Intellectual property, to measure the achieved
  results in terms of successful know how,
  especially referred to high-tech sectors.

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Framework for innovation (6)

• The choice of the indicators for the description
  of the phenomenon of innovation has been based on
  two main criteria
• Policy relevance, with the aim of identifying
  indicators that are meaningful for decisional
  processes and reflective of the political
  orientations (i.e. Lisbon objectives)
• Conceptual resonance in respect to the phenomenon
  object of study in other words ability of the
  formalised model to represent the issue.

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Selection of indicators

• Redundancy when 2 indicators are found to be
  redundant, which means that they give the same
  information, it is recommended to select only
  one.
• Political impact when 2 indicators are highly
  correlated and convey strong political messages,
  they can be both included in the final list.
• Availability indicators which prove to be
  available for a large number of countries, and
  which can be extracted from regularly updated
  databases are recommended.
• First comer privilege when two indicators are
  redundant, it is recommended to select the one
  that was already included in the EIS 2004.

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• Second example e-business index for eEurope 2005
  and for i2010

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Framework for e-business

• Aim definition and calculation of a composite
  indicator to monitor country progress in the
  implementation of the e-Europe 2005 Action
  Plan...
• The Council Resolution in 2003 provided a list of
  the component indicators. Example of a lacking
  conceptual framework

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Framework for e-business

• The list of component indicators adopted by the
  Council is not well structured partially
  overlapping of the category Adoption and Use.
  Some experts have criticised the composition of
  the list
• Some dimensions are missing like eg. connection
  costs, firm management by ICT. Human capital is
  under-represented
• Member States have always expressed skepticism
  about this index
• A modification of the composition of the list
  would have requires negotiations with the Council
  (impossible!)

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Framework for e-business

• A new conceptual framework for e-business has now
  to be established for i2010 European Information
  Society 2010 (ICT phenomena have quick dynamics)
• Negotiations with task forces and working groups
  of policy makers have been (and will be) carried
  out in various areas of information society and
  in various sectors of enterprises (e-business
  W_at_tch)

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Framework for e-business

• Preliminary actions
• Consultations with stakeholders for the
  definition of the Information society strategy up
  to 2010 ? Commission Communication on challenges
• A survey has been carried out by Eurostat among
  policy makers in order to identify core
  indicators for e-business in 2010

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Framework for e-business

• Key policy guidance issue is the revised Lisbon
  process, with a set of guidelines ( COM (2005)
  141 final, 12.4.2005)
• 1. encourage the widespread use of ICT in public
  services, SMEs and households
• 2. fix the necessary framework for the related
  changes in the organisation of work in the
  economy
• 3. promote a strong European industrial presence
  in the key segments of ICT
• 4. encourage the development of strong ICT and
  content industries, and well functioning markets
  
• 5. ensure the security of networks and
  information, as well as convergence and
  interoperability in order to establish an
  information area without frontiers
• 6. encourage the deployment of broad band
  networks

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Framework for e-business

• E-business Capability of a company to engage in
  electronic transactions with the objective of
  increasing business competitiveness
• Adoption efforts made by companies to invest in
  e-business and efforts made by countries to
  remove barriers
• Use The concrete use of e-business tools by
  companies
• Impacts the perceived impacts on the economy due
  to the change in working practices induced by
  e-business.

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General scheme
efficiency
Adoption (efforts, investments)
efficiency

• Investments of the company
• Network presence within enterprises (intranet,
  extranet, EDI)
• Security facilities
• Investments in skills
• Internet literacy
• ICT training courses
• RD for new e-business solutions
• Low barriers to uptake
• Connection costs
• Easy of registering a new business
• Presence of broadband (wireless technology)

Perceived impact (impacts from use)
Use (use of tools)

• Business Use
• High level of basic use
• Ubiquitous/fair adoption
• High level of interaction
• High level of transaction activity
• Interaction B2B, B2C
• Banking
• Orders
• E-purchases
• Selling
• Recruitment on line

• Impact on commerce spending
• E-commerce
• Impact on e-services
• Services offered
• Business reporting costs savings
• perceptions and expectations from company managers

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Framework for e-business

• A fourth group Expectations of economic
  operators
• managers perceptions and actions are major
  drivers of e-business uptake
• measure the efficiency of changes by comparing
  enterprises expected and perceived impacts

EXPECTED IMPACTS
PERCEIVED IMPACTS
USE
ADOPTION