1. www.uis.unesco.org Introduction to the Oslo Manual: main definitions (Part II) Introduction to the Oslo Manual: main definitions (Part II) ECO - UIS Regional Workshop on Science, Technology and Innovation (STI) Indicators Tehran, Iran 8-10 December 2013 Luciana Marins, UIS

2. www.uis.unesco.org Innovation activities (1)  Innovation activities: all scientific, technological, organisational, financial and commercial steps which (intended to) lead to the implementation of innovations;  Some innovation activities are themselves innovative, others are not novel but necessary;  R&D not directly related to the development of a specific innovation.

3. www.uis.unesco.org Innovation activities (2)  For product and process innovations: Intramural (in-house) R&D; Acquisition of (extramural) R&D; Acquisition of other external knowledge; Acquisition of machinery, equipment and other capital goods; Other preparations for product and process innovations; Market preparations for product innovations; Training.

4. www.uis.unesco.org Innovation activities (3)  Preparations for marketing innovations: Activities related to the development and implementation of new marketing methods; It includes acquisition of other external knowledge and of machinery, equipment, and other capital goods and training; Expenditures for using these methods in daily business are NOT included.

5. www.uis.unesco.org Innovation activities (4)  Preparations for organisational innovations: Activities undertaken for the planning and implementation of new organisation methods; It includes acquisition of other external knowledge and of machinery, equipment, and other capital goods and training.

6. www.uis.unesco.org Kinds of innovation activities  Successful - resulted in the implementation of a new innovation (not necessarily commercially successful);  Ongoing - work in progress, which has not yet resulted in the implementation of an innovation;  Abandoned - before the implementation of an innovation.

7. www.uis.unesco.org Example - innovation activities and expenditures for product and process innovations

8. www.uis.unesco.org Classifying firms by degree of innovativeness  Innovative firm: Implemented an innovation; Not necessarily a commercial success; Innovators;  Innovation-active firm: Had innovation activities, including ongoing or abandoned; Regardless of implementation;  Potentially innovative firm: Innovation efforts but no achieved results; Key element for innovation policy; (Annex).

9. www.uis.unesco.org Innovators & innovation-active firms - P PP Product innovators: Firms 1, 3 & 4; - P PP Process innovators: Firms 2, 3 & 4; - B BB Both product and process innovators: Firms 3 & 4; - F FF Firms with abandoned or ongoing activities: Firms 4 & 5; - F FF Firms with abandoned or ongoing activities only: Firm 5; - P PP Product and process innovation-active firms: Firms 1, 2, 3, 4 & 5; - P PP Product or process non-innovative firms: Firm 6. InnovationFirm1Firm 2Firm 3Firm 4Firm5 6 Product innovation XXX Process innovation XXX Abandoned or ongoing activities XX

10. www.uis.unesco.org Factors influencing innovation  Objectives: Motives for innovating;  Effects: Observed outcomes of innovations (Table 9) ; Impacts on firm performance; Time lag;  Hampering factors: Reasons for not starting innovation activities at all; Factors that slow innovation activity or have a negative effect on expected results.

11. www.uis.unesco.org Linkages  Linkages: connections with other agents;  Source, cost, level of interaction;  Types of external linkages: Open information sources; Acquisition of knowledge and technology; Innovation co-operation.

12. www.uis.unesco.org Sources for transfers of knowledge and technology Open information sources Sources for purchases of knowledge & technology Co- operation partners Internal sources within the enterprise: R&D / Production / Marketing / Distribution * Other enterprises within the enterprise group *** External market and commercial sources: Competitors Other enterprises in the industry Clients or customers Consultants / consultancy firms Suppliers Commercial laboratories ********** ********** ************ Public sector sources: Universities and other higher education institutions Government / public research institutes Private non profit research institutes Specialised (semi) public innovation support services ******** ******** ******** General information sources: Patent disclosures / Professional conferences, meetings, literature and journals / Fairs and exhibitions / Professional associations, trade unions / Other local associations / Informal contacts or networks / Standards or standardisation agencies / Public regulations *

13. www.uis.unesco.org Example - co-operation

14. www.uis.unesco.org Example - hampering factors

15. www.uis.unesco.org Appropriability  Ability of enterprises to appropriate gains from innovation activities: Formal methods: patents, registration of design, trademarks, copyrights, confidentiality agreements, trade secrecy; Informal methods: secrecy that is not covered by legal agreements, complexity of product design, lead time advantage over competitors.

16. www.uis.unesco.org Developing countries  Developing countries  3 rd ed. OM standards, adaptations;  LA: the Bogota Manual (RICYT, 2001);  UIS: Annex (A) to 3 rd ed. OM;  Innovation Surveys in Developing Countries.

17. www.uis.unesco.org Characteristics of innovation in developing countries  Size and structure;  Instability;  Informality;  Particular economic and innovation environments;  Reduced innovation decision-making powers;  Weak innovation systems;  Characteristics of innovation.

18. www.uis.unesco.org Characteristics of innovation in developing countries  Potentially innovative firm;  Measurement priorities - why / what / how: Innovation capabilities (HR, Linkages, ICTs); Expenditure on innovation activities; Organisational innovation.

19. www.uis.unesco.org Adaptations  ICTs in innovation surveys;  Linkages: Agents + Types + Location;  Innovation Activities: Hardware purchase and Software purchase (split); Industrial design and Engineering activities (split); Lease or rental of machinery, equipment and other capital goods; In-house software system development; Reverse engineering;  Human resources and training.

20. www.uis.unesco.org Methodological issues for developing country contexts  Weakness of statistical systems;  Questionnaire design;  Survey application;  Frequency;  Publication;  Difficulties… Lack of appreciation of the importance of innovation; Managers are secretive about finance; Lack of adequate legislative base. Will be discussed later

21. www.uis.unesco.org Thank you! http://www.uis.unesco.org l.marins@unesco.org