Innovation indicators: how reliable? J.P.CONTZEN Instituto Superior Técnico Lisbon, February 6th, 2004.

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Presentation transcript:

Innovation indicators: how reliable? J.P.CONTZEN Instituto Superior Técnico Lisbon, February 6th, 2004

How to interpret EC indicators? (1)  The European Commission is publishing since a decade a set of S&T indicators (Professor Antonio Ruberti’s initiative)  They are now dealing also with issues linked to the Knowledge-based economy: investment in the KBE and performance of the KBE. Do these indicators provide a insight in the efficiency of the Innovation process?

How to interpret EC indicators? (2)  Doubts can be formulated about such insight: Component indicators for the composite indicator of investment in the KBE do not take into account the efforts –money and people – involved in the innovation transformation process itself, neither the efforts put in developing markets and applications

KC INPUT PARAMETERS EXTERNAL FACTORS SYSTEM PARAMETERS EXTERNAL CONDITIONS INNOVATION OUTPUTS OTHER INNOVATION INPUTS KC OUTPUT SOCIETAL DEMAND KNOWLEDGE CREATION INT. or EXT. INNOVATION APPLICATIONS IN SOCIETY INT. or EXT.

How to interpret EC indicators? (3) Component indicators for the composite indicator of performance in the KBE mix scientific outputs, education success, patents output with such end products as productivity and facilitators such as E-commerce. Where are indicators such as job creation, creation of enterprises, etc.? Nowhere, there is an attempt to correlate an investment of 5-to 10 years ago with the current performance.

How to interpret EC indicators? (4)  Interpretation of some data in terms of innovation performance are hazardous: For employment in high tech and medium high tech industries as % of total employment, the Czech Republic comes first, followed by Germany, Slovenia, Sweden, Hungary, Ireland, Finland, Slovakia, Italy, all above EU 15 average. Does that mean the Eastern European countries are champions in Innovation or simply they attract FDI?

How to interpret EC indicators? (5) The same applies mutatis mutandis to the value added of high tech and medium high tech industries as % of total gross value added: Ireland is first, Malta is second! Romania does better than Portugal! Again, high tech exports as % of total exports yield results that require further analysis: Malta comes first before Ireland, Luxemburg. UK and France follow For patents, Switzerland is a clear leader. Did this lead translate in success for the Swiss industry?

How to interpret EC indicators? (6)  In summary, great care should be exercised in using such figures  Some indicators do exist that give a clearer picture such as total entrepreneurial activity, business angels prevalence, new venture capital funds raised relative to GDP, investment by institutionals in venture capital.