Measuring Science, Technology and Innovation (STI): Definitions from a statistical perspective Regional Workshop on Science, Technology and Innovation (STI) Indicators for Gulf countries Doha, Qatar 15 to 17 October 2012

FRAMEWORKS

STI: a linear model? The model Indicators 3

From model to indicators Inputs (R&D expenditure, Human Resources) Black Box (innovation) Output (patents, publications, high-tech products) R&D survey R&D personnel R&D Expenditure Innovation statistics since 2010 Administrative data (patents) Publications databases High-tech data (trade) 4

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

Standardisation of indicators YOU ARE HERE Standards Consensus

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

“Frascati family” of OECD Manuals Frascati Manual Oslo Manual Canberra Manual Patent Manual

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

DEFINITIONS

all fields of science and technology i.e. NS and SSH. 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. Two major aspects characterise this definition. The first aspect relates to the nature of S&T activities: they concentrate upon, or are closely connected with, the production, the distribution and the utilization of scientific and technical knowledge. It is within the scope of S&T activities that scientific and technical knowledge is created, distributed, collected, modified, transformed, adapted to use and utilized. The second is connected with the fields covered.

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)

An indicators “framework” STA R&D STET STS

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

Research and experimental development (R&D) 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 of an appreciable element of novelty and the resolution of scientific and/or technological uncertainty. From this definition it is evident that the crucial element in identifying R&D is the presence of an element of creativity and innovation. This common character is shared both by scientific research and by experimental development. In order to identify properly these two activities, the essential elements which characterize them are set forth: i) the element of creativity ii) the element of innovation; iii) the use of scientific methods; iv) the generation of new knowledge. A scientific activity may be defined as scientific research only if these four elements are present.

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)

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 Education and training: but PhD research included Other science and technology activities: S&T information services, general purpose data collection, testing, feasibility studies, patent and licence work, policy related studies, routine software development Other industrial activities: (many innovation) acquisition of technology, tooling up, industrial engineering, design, production start up Administration and other supporting activities 17

An indicators “framework” STA R&D STET STS

Specialized non-university higher education All university education 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 The "education and training" activities should be separated from R&D activities and from scientific and technological services. Thus, the research aspects of post-graduate training should be included in R&D. Similarly, activities of university libraries, of scientific museums, or of testing stations and survey work being performed in the institutions of higher education should not be included in the group STET but in the corresponding groups of S&T services. The clinical activities carried out within university clinics, which should be regarded as specialized medical care, should also be excluded.

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

Borderline between R&D and education and training at ISCED level 6 Education and training at level 6 R&D Other activities Teachers 1. Teaching students at level 6. 3. Supervision of R&D projects required for student qualification at level 6 5. Teaching at levels lower than level 6 2. Training students at level 6 in R&D methodology, laboratory work, etc. 4. Supervision of other R&D projects and performance of own R&D projects 6. Other activities Post-graduate students 1. Course work for formal qualification. 2. Performing and writing up independent studies (R&D projects) required for formal qualification 4. Teaching at levels lower than level 6 3. Any other R&D activities 5. Other activities

Concerned with scientific research and experimental development 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 The common denominator of this composite group of scientific activities, which are defined and illustrated below, is the direct or indirect link with R&D, from which they my be distinguished by the fact that they do not have the character of innovation. Therefore my work aiming at establishing new methodologies, procedures and techniques used in these services should be regarded as R&D.

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.

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

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

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 26

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.

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.

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

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

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

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

Personnel data cover only R&D proper 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

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

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?

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.

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.

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

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

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)

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

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)

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

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

And now… Time for the exercise!

CLASSIFICATIONS AND BREAKDOWNS

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

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

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 education institutions 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

Functional distributions Type of activity Fields of science Socio-economic objective

Type of activity Basic research Applied research Experimental development

Fields of science (FoS 2007) 1. Natural Sciences 1.1 Mathematics 1.2 Computer and information sciences 1.3 Physical sciences 1.4 Chemical sciences 1.5 Earth and related environmental sc. 1.6 Biological sciences 1.7 Other natural sciences 2. Engineering and Technology 2.1 Civil engineering 2.2 Electrical, electronic, information eng. 2.3 Mechanical engineering 2.4 Chemical engineering 2.5 Materials engineering 2.6 Medical engineering 2.7 Environmental engineering 2.8 Environmental Biotechnology 2.9 Industrial biotechnology 2.10 Nano-technology 2.11 Other engineering and tech. 3. Medical and Health Sciences 3.1 Basic medicine 3.2 Clinical medicine 3.3 Health sciences 3.4 Health biotechnology 3.5 Other medical sciences 4. Agricultural Sciences 4.1 Agriculture, forestry, and fishery 4.2 Animal and dairy science 4.3 Veterinary sciences 4.4 Agricultural biotechnology 4.5 Other agricultural sciences 5. Social Sciences 5.1 Psychology 5.2 Economics and business 5.3 Educational sciences 5.4 Sociology 5.5 Law 5.6 Political Science 5.7 Social and economic geography 5.8 Media and communications 5.9 Other social sciences 6. Humanities 6.1 History and archaeology 6.2 Languages and literature 6.3 Philosophy, ethics and religion 6.4 Art 6.5 Other humanities

Socio-economic objectives (SEO) (based on NABS 2007) Exploration and exploitation of the earth Environment Exploration and exploitation of space Transport, telecommunication and other infrastructures Energy Industrial production and technology Health Agriculture Education Culture, recreation, religion and mass media Political and social systems, structures and processes General advancement of knowledge Defence

Breakdowns of R&D personnel Sector of performance Occupation Qualification Fields of science Gender Age

R&D personnel by occupation Researchers Technicians and equivalent staff Other supporting staff  More details later

Classification by formal qualification (1) Still based on International Standard Classification of Education (ISCED) 1997 ISCED 6 (PhD level) ISCED 5A (University degrees below PhD level) ISCED 5B (Other tertiary level diplomas) Other qualifications: ISCED 4 (Post-secondary non-tertiary diplomas) ISCED 3 (Secondary education) Other qualifications (<ISCED3) Note: ISCED has been revised …….

Classification by formal qualification (2) ….. ISCED 2011 will be implemented in UIS surveys from 2014 ….. ISCED2011 level 8 (doctoral or eq. = ISCED 1997 level 6) ISCED2011 level 7 (master or eq. = ISCED 1997 level 5A) ISCED2011 level 6 (bachelor or eq. = ISCED 1997 level 5A) ISCED2011 level 5 (other tertiary diplomas = ISCED 1997 level 5B) Other qualifications: ISCED2011 level 4 (Post-secondary non-tertiary diplomas = ISCED 1997 level 4) ISCED2011 level 3 (Upper secondary education = ISCED 1997 level 3) Other qualifications; < ISCED2011 level 3 (= below ISCED 1997 level 3) Note: in 2013 countries may start implementing new ISCED …

Classification by age Under 25 years 25-34 years 35-44 years 65 years and more

Breakdowns of R&D expenditure Sector of performance Source of funds Type of activity Type of costs (current vs. capital cost) Fields of science Socio-economic objective

Can be found in the supporting document REFERENCES Can be found in the supporting document

Manuals (1) Frascati Manual: http://213.253.134.43/oecd/pdfs/browseit/9202081E.PDF (E) http://213.253.134.43/oecd/pdfs/browseit/9202082E.PDF (F) Oslo Manual: http://213.253.134.43/oecd/pdfs/browseit/9205111E.PDF (E) http://213.253.134.43/oecd/pdfs/browseit/9205112E.PDF (F) Canberra Manual: http://www.oecd.org/dataoecd/34/0/2096025.pdf (E) Patent Statistics Manual: http://browse.oecdbookshop.org/oecd/pdfs/browseit/9209021E.PDF (E) http://browse.oecdbookshop.org/oecd/pdfs/browseit/9209022E.PDF (F) 61

Manuals (2) OECD Guide to Measuring the Information Society: Biotechnology framework: http://www.oecd.org/dataoecd/5/48/34935605.pdf (E) http://www.oecd.org/dataoecd/16/6/35878269.pdf (F) Handbook on Economic Globalisation Indicators: http://browse.oecdbookshop.org/oecd/pdfs/browseit/9205061E.PDF (E) http://browse.oecdbookshop.org/oecd/pdfs/browseit/9205062E.PDF (F) Measuring Productivity: http://www.oecd.org/dataoecd/59/29/2352458.pdf (E) 62

Thank you! http://www.uis.unesco.org r.pathirage@unesco.org