1. Pespectives for Engineering and Technology in Portugal” Lisbon, 22 November 1999 Giorgio Sirilli Institute for Studies on Scientific Research and Documentation National Research Council of Italy

2. Definition of research and development (Frascati Manual) R&D is defined as 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. Institute for Studies on Scientific Research and Documentation National Research Council of Italy

3. Technological innovation (Oslo Manual) Technological innovations comprise new products and processes and significant technological changes of products, services and processes. An innovation has been implemented if it has been introduced on the market (product and service innovation) or used within a production process (process innovation). Institute for Studies on Scientific Research and Documentation National Research Council of Italy

4. Technological innovation (Oslo Manual) Innovations involve a series of scientific, technological, organisational, financial and commercial activities. The product or process should be new (or rignificantly improved) to the firm (it does not necessarily have to be new to the relevant market) Institute for Studies on Scientific Research and Documentation National Research Council of Italy

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7. Development of indicators Institute for Studies on Scientific Research and Documentation National Research Council of Italy

9. Innovation expenditure of Italian service firms Institute for Studies on Scientific Research and Documentation National Research Council of Italy

10. Some remarks The very title of the exercise “Engineering and Technology”: what about SCIENCE? The “bloody” economists Manufacturing and services How many R&D performing firms? Large role on the public sector in R&D –the distribution of talents –bootlegging Institute for Studies on Scientific Research and Documentation National Research Council of Italy

11. Some remarks Accountability: a new concept Foresight The Dutch experience Government failures and market failures –some lessons from Italy The final report –how to incorporate the international debate –hot to “sell” it Institute for Studies on Scientific Research and Documentation National Research Council of Italy

12. Main indicators from innovation surveys Number of innovating firms –by sector –by firm size Cost of innovation Percentage of sales due to new products Institute for Studies on Scientific Research and Documentation National Research Council of Italy

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14. Cost of innovation (percentage) - Italy (1990-92) Institute for Studies on Scientific Research and Documentation National Research Council of Italy

15. Service firms which have carried out innovation activities in Italy 1993-1995 (percentage) R&D Design Know-how Software Training Marketing Investment 13.8 18.5 12.7 52.2 28.9 12.2 53.8 Institute for Studies on Scientific Research and Documentation National Research Council of Italy

16. Innovation activities of service firms (percentages) R&D 13.8 Design 18.5 Know-how 12.7 Software 52.2 Training 28.9 Marketing 12.2 Investment 53.8 Total - 23.7 8.1 3.5 14.1 2.6 1.9 46.0 100.0 Firms which have carried out the activity Innovation expenditure Institute for Studies on Scientific Research and Documentation National Research Council of Italy

17. Innovation expenditure (percentages) R&D 23.7 Design 8.1 Know-how 3.5 Software 14.1 Training 2.6 Tooling-up, patents - Marketing 1.9 Investment 46.0 Total 100.0 35.8 7.4 - - - 8.1 1.5 47.2 100.0 Service firms (1993-95) Manufacturing firms (1990-92) Institute for Studies on Scientific Research and Documentation National Research Council of Italy

18. Lessons from the CIS survey (1994-1996) Percentage of innovating firms Germany 83 Austria 81 Ireland 79 Finland 69 Spain 53 Italy 50 Poland 34 Turkey 33 82 64 62 46 - 31 - - Manufacturing firms Service firms Institute for Studies on Scientific Research and Documentation National Research Council of Italy

19. Concluding remarks Innovation can be measured We have learnt a lot from innovation surveys and other indicators Still many challenges ahead of us Institute for Studies on Scientific Research and Documentation National Research Council of Italy

20. Lessons learned Technological innovation is quite a diffused phenomenon There are wide differences across sectors and size of firm Firms rely on a wide range of innovation sources: investment, R&D and software are the major components of firms' innovation expenditure Institute for Studies on Scientific Research and Documentation National Research Council of Italy

21. Lessons learned Major obstacles for introducing technological innovation are of an economic nature - i.e. cost and risk too high Technological information is drawn mainly from outside suppliers of equipment, materials and components as well as from in-house technical departments Internal sources of information are much more important than public research institutions Institute for Studies on Scientific Research and Documentation National Research Council of Italy

22. Some challenges Software Services Organisation Information and communication technologies Biotechnologies Employment Environmental sustainability Institute for Studies on Scientific Research and Documentation National Research Council of Italy

23. Some challenges Further development of theories in the knowledge-based economy Innovation surveys allow to take into account complexity Linkage with other industrial data Risk of too much information The advantage of international comparability (“Big science”) Institute for Studies on Scientific Research and Documentation National Research Council of Italy