1. Working Group on Innovation Indicators and Inclusive Innovation Víctor G. Carreón Rodríguez National Council of Science and Technology Mexico

2. Outline 1.Background 2.Indicators (STI) 3.Inclusive Innovation 4.Next Steps

3. Background Starting point: Set of 32 indicators Agreement: Set of 12 core indicators to measure innovation performance on OAS member countries Based on methodologies recommended by the OECD and used in several innovation surveys European Innovation Scoreboard ESIDET (Mexico) Most countries would be able to estimate these indicators

4. Indicators (STI) 1.Published scientific articles per million inhabitants 2.Patent applications per million inhabitants 3.Proportion of companies with internal innovation (products or processes) 4.Proportion of companies that collaborate with others in innovation activities 5.Proportion of companies with technological innovation 6.Proportion of companies developing marketing / organizational innovations

5. Indicators (STI) 7.Proportion of sales of technologically new products 8.Proportion of sales of technologically improved products 9.Proportion of Technology Balance of Payments to GDP 10.Gross Domestic Expenditure on Research and Development (GERD) as a proportion of GDP 11.ICT expenditure as a share of GDP 12.Researchers per thousand of labour force

6. Indicator Published scientific articles per million inhabitants (AMH) Purpose To know the level of scientific production of researchers affiliated with COUNTRY institutions with international circulation Description Number of scientific articles written by researchers affiliated with COUNTRY institutions and economic units published in indexed journals worldwide per million inhabitants of the COUNTRY Performance Greater and better preparation of the country’s scientists is evident in the increased production of scientific articles of high quality and impact. Availability Data STI institution RecurrenceAnnual Unit of measurement of indicatorNumber of scientific articles per million of inhabitants Range of values 0 ≤ AMH Direction of improvement Ascending

7. AMH (Mexico)

8. Indicator Patent applications per million inhabitants (PMH) Purpose To assess the efforts and results in innovation that result in the generation of knowledge through the number of patents in a given period Description Patent applications in relation to the population size Performance This indicator provides information on the dynamics of innovation activities in COUNTRY as shown by patents requested, relative to the population size of the COUNTRY Availability Data Institute of Industrial Property / Patent Rights RecurrenceAnnual Unit of measurement of indicator Ratio of the number of patents per million inhabitants Range of values 0 ≤ PMH Direction of improvement Ascending

9. PAMH (Mexico)

10. Indicator Proportion of companies with internal innovation (products or processes) (%CIN) Purpose To assess the results of applying innovation through companies’ efforts to introduce to the market any innovation (product or process) Description It considers the sum of companies that have introduced an innovation to the market, developed by its own (internal innovation), relative to all innovative companies Performance This indicator demonstrates the level of expansion of companies’ innovative process Availability Data Census Survey on Research and Technological Development RecurrenceAnnual Unit of measurement of indicator Percentage of companies with internal innovation relative to all companies Range of values 0 ≤ %CIN ≤ 100 Direction of improvement Ascending

11. Indicator Proportion of companies that collaborate with others in innovation activities (%CCI) Purpose This indicator seeks to measure the importance of cooperation for innovation between companies in a given period Description Companies that have maintained some agreement and conducted collaborative activities for innovation with other companies or institutions, relative to total innovative enterprises Performance This indicator provides information on the importance of cooperation for the expansion of the innovative process Availability Data Census Survey on Research and Technological Development RecurrenceAnnual Unit of measurement of indicator Percentage Range of values 0 ≤ %CCI ≤ 100 Direction of improvement Ascending

12. Indicator Proportion of companies with technological innovation (%CTI) Purpose To support the design, monitoring and evaluation of public policies aimed at increasing the pool of innovative companies Description It is the percentage of companies that introduced a product (good or service) to the market or used a new or significantly improved process, relative to all companies Performance This indicator directly demonstrates the level of technological innovation of companies Availability Data Census Survey on Research and Technological Development RecurrenceAnnual Unit of measurement of indicator Percentage Range of values 0 ≤ %CTI ≤ 100 Direction of improvement Ascending

13. Indicator Proportion of companies developing marketing or organizational innovations (%CMOI) Purpose To evaluate the results obtained in terms of marketing and organisational innovation applicable to the market through the effort of companies in this area. Description Percentage of companies undertaking non-technological innovation, i.e. marketing or organisational services, with respect to all companies. Performance This indicator accounts for the proportion of companies that have developed organizational or marketing innovations (non-technological innovation), relative to total companies in a given period Availability Data Census Survey on Research and Technological Development RecurrenceAnnual Unit of measurement of indicator Percentage Range of values 0 ≤ %CMOI ≤ 100 Direction of improvement Ascending

14. Indicator Proportion of sales of technologically brand new products (&STNP) Purpose To evaluate the impact of innovation activities that affect economic development through the percentage of revenue derived from technologically new product innovations Description It refers to the proportion of sales in new products, relative to total sales Performance The percentage of revenue from new products sales highlights the dynamics of this type of products for the company, reflecting on the remuneration derived from investing in innovation Availability Data Census Survey on Research and Technological Development RecurrenceAnnual Unit of measurement of indicator Percentage Range of values 0 ≤ %STNP ≤ 100 Direction of improvement Ascending

15. Indicator Proportion of sales of technologically improved products (%STIP) Purpose To assess the impact of innovation activities that affect economic development through the percentage of revenue from innovations arising from substantially modified products Description: This indicator refers to the proportion of sales revenue for significantly improved products on the market to the total sales revenue. Performance The percentage of sales revenue for significantly improved products shows the dynamics of this calibre of products on the market. This indicator reflects a type of remuneration arising from investing in innovation. Availability Data Census Survey on Research and Technological Development RecurrenceAnnual Unit of measurement of indicator Percentage Range of values 0 ≤ %STIP) ≤ 100 Direction of improvement Ascending

16. Indicator Proportion of Technology Balance of Payments to GDP (%TBP) Purpose To evaluate the involvement of concepts included in international transactions on industrial property rights and those relating to the provision of technical services, relative to Gross Domestic Product (GDP) Description Quantifies total transactions of the Technology Balance of Payments (BPT). It considers the sum of income and expenditures of the BPT, divided by the value of GDP Performance This indicator, in comparison with other countries, reveals the importance of purchases and sales of intangibles related to technological knowledge for the country Availability Data Census Survey on Research and Technological Development RecurrenceAnnual Unit of measurement of indicator Percentage Range of values 0 ≤ %TBP ≤ 100 Direction of improvement Ascending

17. Indicator Gross Domestic Expenditure on Research and Development as a proportion of GDP (%GERD) Purpose To measure the country’s effort for supporting activities of R&D Description Level of national expenditure on research and development as a proportion of GDP. The indicator is considered an input in terms of funding levels, which would give further impetus to the activities of R&D. Performance RTD expenditure represents one of the greatest drivers of economic growth in a knowledge-based economy Availability Data Ministry of Finance STI Institution RecurrenceAnnual Unit of measurement of indicator Percentage Range of values 0 ≤ %GERD ≤ 100 Direction of improvement Ascending

18. %GERD (Mexico)

19. Indicator ICT expenditure as a share of GDP (%EICT) Purpose To assess the incorporation of ICTs in companies and government agencies, as they are considered fundamental tools in a knowledge-based economy Description Expenditure (public and private) on information and communications technologies (ICTs), which includes the purchase of hardware, software and specialised services related to ICTs Performance Provides information on the dynamics of the use of ICTs by companies, measured in terms of expenditure in proportion to the level of economic activity quantified by GDP. Availability Data Ministry of Finance, STI Institution Survey on Information and Communications Technology RecurrenceAnnual Unit of measurement of indicatorPercentage of Expenditure in ICT, relative to GDP Range of values 0 ≤ (%EICT) ≤ 100 Direction of improvement Ascending

20. Indicator Researchers per thousand of Labour Force (RTLF) Purpose The purpose of measurement is to account for the human resource pool dedicated to research, relative to the working capacity of the COUNTRY Description It integrates the total number of researchers in the country, and the proportion is obtained relative to the economically active population Performance It captures one of the main components of innovation promotion or creation of any society, i.e., the high- level human capital Availability Data Census Survey on Research and Technological Development RecurrenceAnnual Unit of measurement of indicatorResearchers per thousand labour force Range of values0 ≤ RTLF Direction of improvementAscending

21. RTLF (Mexico)

22. Innovation not designed for profit or economic growth of countries, yet improves the quality of life for its citizens Innovation that, even though is not “strategic or sustainable”, contributes to social welfare and equality by reducing the gap in knowledge, skills, opportunities and access to goods and services Innovation that reduces poverty, is inclusive of the poor and the marginalized, and reduces social problems Inclusive Innovation

23. Inclusive Innovation Development Index (IIDI) Components to consider for an index 1.Proportion of Budget allocated to intermediary institutions that bridge gaps to improve the lives of those at the base of the pyramid (Government, Academe, Enterprises, Non-Profit Organizations or Development Agencies) 2.Proportion of projects received and approved from active researchers that work with marginalized communities to build their capabilities 3.Proportion of Low Cost Technology patents 4.Proportion of Patents that reduce costs, which are not introduced to the market IIDI

24. Once the following is determined 1.Cut-off point of the pyramid (poverty line) 2.Type of commodity of the innovation (food, housing, transportation, clothing,) 3.Its affordability to be acquired by the poor 4.Its qualification as inclusive innovation 5.That it is acquirable in the market RATIO: Inclusive innovation commodities with respect to total innovation commodities

25. Example TopicProject Social communication of science Poverty Abatement Knowledge Economy Study for the promotion of science in marginalized elementary schools Determinants of poverty, marginalization and social gap in states and municipalities. Articulation of Innovation Systems in Rural Areas Digital gap in higher education

26. Collect comments from the participants in the Working Group regarding the set of indicators on innovation Distribute the final version of indicators Approval of the set of indicators by members of the Working Group Send to all countries the set of indicators Workshop to define the methodology for estimating these indicators on innovation Next Steps

27. Develop some studies on inclusive innovation for the OAS Develop a set of indicators for inclusive innovation Discussion and approval of this new set of indicators Next Steps