Measuring innovationkey indicators used in the EU context
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1 WORKSHOP ON THE EUROPE 2020 INNOVATION INDICATOR Brussels, 12 July 2013 Measuring innovationkey indicators used in the EU context Richard Deiss (DG RTD) 17 September 2013
2 Europe 2020 Europe 2020 is the EU's growth strategy for the coming decade. In a changing world, we want the EU to become a smart, sustainable and inclusive economy. These three mutually reinforcing priorities should help the EU and the Member States deliver high levels of employment, productivity and social cohesion. Concretely, the Union has set five ambitious objectives - on employment, innovation, education, social inclusion and climate/energy - to be reached by Each Member State has adopted its own national targets in each of these areas. Concrete actions at EU and national levels underpin the strategy. José Manuel Barroso President of the European Commission
3 INDICATORS FOR THE INNOVATION UNION Europe 2020 Indicators Union Scoreboard ERA data monitoring Union Competitiveness report Where do we want to go? Setting the destination: The Driving Seat Where do we stand? Benchmarking: The Dashboard How can we get there? Identifying obstacles and ways: The navigation tool
4 Key tools for measuring innnovation in the EU context Europe 2020 R&D expenditure headline target (3%) Union Scoreboard New Indicator
5 Europe 2020 R&D headline target (3%) 6,0 R&D intensity 2000, 2007, 2011 and 2020 target (1) 5,0 4,0 R&D intensity 3,0 2,0 1,0 0, (4) 2007 (3) 2000 (2) 2020 target
6 Public (government and higher education) R&D expenditure as % of GDP, 2000, 2007, ,6 1,4 1,2 1,0 % 0,8 0,6 0,4 0,2 0, (3) 2007 (2) 2000 (1)
7 Business R&D intensity (BERD as % of GDP), 2000, 2007, ,5 3,0 2,5 2,0 % 1,5 1,0 0,5 0, (3) 2007 (2) 2000 (1)
8 Evolution of R&D intensity, ,5 4,0 South Korea (1) 3,5 Japan (2) R&D intensity 3,0 2,5 2,0 1,5 Germany United States (3) France (4) EU China United Kingdom 1,0 0,
9 Union Scoreboard 2013 Summary Index based on 24 indicators BG RO LV PL LT MT HU SK EL CZ PT ES IT EE CY SI EU FR IE AT UK BE LU NL FI DK DE SE MODEST INNOVATORS MODERATE INNOVATORS INNOVATION FOLLOWERS INNOVATION LEADERS Note: Average performance is measured using a composite indicator building on data for 24 indicators going from a lowest possible performance of 0 to a maximum possible performance of 1.
10 Framework of the Union Scoreboard Summary Index (SII) ENABLERS FIRM ACTIVITIES OUTPUTS Human resources Open, excellent, attractive research systems Finance and support Firm investments Linkages & entrepreneurship Intellectual assets Innovators Economic effects New doctorate graduates International scientific copublications R&D expenditure in the public sector R&D expenditure in the business sector SMEs innovating inhouse PCT patent applications SMEs with product or process innovations Employment in knowledgeintensive activities Population aged with tertiary education Top 10% most cited scientific publications Venture capital investments Non-R&D innovation expenditure Innovative SMEs collaborating with others PCT patent applications in societal challenges SMEs with marketing or organisational innovations MHT contribution to the trade balance Youth with at least upper secondary education Non-EU doctorate students Public-private copublications Community trademarks High-growth innovative firms Knowledgeintensive services exports Community designs Sales of new to market and new to firm innovations License and patent revenues from abroad
11 Performance per dimension Human resources MT PT IT RO BG ES LV HU EL CZ LU PL EU EE CY AT DK DE BE LT NL FR SI SK UK IE FI SE Linkages & entrepreneurship RO BG PL LV HU MT LT ES SK IT PT CZ EL FR EU IE EE SI LU FI CY DE NL AT SE BE DK UK Open, excellent and attractive research systems LV RO PL BG SK LT HU MT CZ EE EL IT CY SI PT EU ES AT FI DE FR IE LU BE SE UK DK NL Intellectual assets RO EL LT SK BG HU PL CZ MT PT LV ES IE CY UK EE SI FR IT BE EU NL LU FI SE AT DE DK Finance and support BG MT EL CY RO HU IT SK IE CZ LV PL PT ES AT SI BE LT EU DE FR LU NL DK UK EE FI SE Innovators BG PL LV RO HU LT UK SK ES MT SI CY CZ FR EU EE IT NL FI DK AT EL SE IE BE PT LU DE Firm investments LV BG RO SK EL ES LU HU PT IT IE PL NL FR MT LT EU CZ BE SI UK AT CY DK EE FI DE SE Economic effects LT LV BG PL EL PT EE MT RO SK AT SI CZ ES IT CY BE HU NL EU FR SE UK LU FI DK DE IE MODEST INNOVATORS MODERATE INNOVATORS INNOVATION FOLLOWERS INNOVATION LEADERS
12 Growth in innovation performance performance LU UK IE AT CY ES EL HU PL RO BG SE DE DK FI NL BE FR SI EE IT PT CZ SK MT LT LV -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Average annual growth in innovation performance
13 The new innovation indicator Communication on indicator adopted on 13 September 2013 A simple composite indicator (4 components) Measuring output-oriented innovation Based on available solid data Successful in robustness tests Producing a useful and meaningful ranking Meeting the European Council request Linked to Union Scoreboard Country analyses will be prepared
14 Four components 1. Technical innovation Patent applications per unit of GDP 2. Skills and economic structure Employment in knowledge-intensive activities (KIA) in business industries as a % of total employment. 3. Competitiveness - a) contribution of the trade balance of high-tech and medium-tech products to the total trade balance, and - b) knowledge-intensive services as a share of the total services exports. 4. Dynamism Employment in fast-growing firms of innovative sectors as a share of employment in all fast growing firms
15 Number of PCT patent applications per billion GDP, PPP PCT FI SE JP CH DE DK NL AT FR EU IS BE NO US UK SI IE EE IT LU HU ES LV CZ TR CY PT HR PL EL SK BG LT MT RO
16 Employment in knowledge-intensive activities in business industries as % of total employment KIA LU CH IE IS UK JP SE US MT DK FI DE NO CY NL BE FR AT SI EU IT HU CZ ES EL EE SK HR PL LV PT LT BG RO TR
17 Contribution of medium and high-tech products to trade balance GOOD JP DE CH SI HU IT FR SK CZ AT ES UK HR IE BE SE US CY NL FI EU MT PL RO PT LT TR EE DK LU BG LV EL IS NO
18 Knowledge-intensive services exports as % of total service exports SERV LU IE DK UK DE EU EL NO IS CY RO US BE EE SE FR FI LV IT CZ PL JP PT NL ES HU BG SI CH AT SK TR MT HR LT
19 Competitiveness of knowledge-intensive sectors Contribution of medium and high-tech products to the trade balance and knowledge-intensives exports as % of total exports COMP JP IE DE UK LU DK EU27 CY FR US BE RO CH IT SE HU CZ SI FI EL ES SK NL EE PL AT PT HR MT LV TR IS BG LT NO
20 Employment in high-growth innovative enterprises as a % of total employment in high-growth enterprises DYN SE DK IE DE FR LU CH FI JP HU BE NO IS NL US EU UK CZ ES AT RO EL SK MT IT SI HR EE PL TR PT CY LT LV BG
21 European Indicator
22 Proposed country grouping Sweden, Germany, Ireland, Luxemb. as top performers
23 STI Indicator Seminar
24 Outlook, next steps Competitiveness Council 27 September European Council discussions on October 2013 Further improvement of geographic scope and time series by Eurostat and in cooperation with OECD. New Commission legal act on business statistics (Eurostat) will improve data availability for fast groiwng enterprises. Possible first update in first quarter 2014 together with IU Scoreboard and IU Competitiveness country profiles
25 Thank you for your attention!
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