Innovation modes and productivity in the UK

This paper is motivated by the aim to develop appropriate indicators capturing modes of innovation by UK enterprises, examine how such innovation practices vary across regions and industries and explore the extent to which they have an impact on productivity. There is an emphasis on identifying and examining the relevance of non-technological innovation that builds on and extends previous research in this important area. Traditionally, measures of innovation have rested on single indicators such as patenting or R&D, supplemented, by product and process and process innovation outputs. More recently innovations in management, organisational and marketing areas are being brought into the picture and the relevant information collected by innovation surveys. Among indicators of innovation the distinctions between technological and non-technological innovations has often been loosely translated into either activities in manufacturing versus services, or into product and process innovations versus organisational and marketing innovations. While these simplifications of technological and non-technological innovation can be a practically useful, since data is readily available, they do not fully recognize that mixed modes of innovations are adopted by today’s firms; firms whose environments are characterised by increased competition, internationalisation and shorter product life cycles

Product and process innovation and the decision to export.

Using data from the Community Innovation Survey for Belgium in two consecutive periods, this paper explores the relationship between firm-level innovation activities and the propensity to start exporting. To measure innovation, we include indicators of both innovative effort (R&D activities) as well as innovative output (product and process innovation). Our results suggest that the combination of product and process innovation, rather than either of the two in isolation, increases a firm’s probability to enter the export market. After controlling for potential endogeneity of the innovation activities, only firms with a sufficiently high probability to start exporting engage in product and process innovation prior to their entry on the export market, pointing to the importance of self-selection into innovation.Exports; Process innovation; Product innovation; Self-selection;

Product and Process Innovation and the decision to Export: Firm-level evidence for Belgium

Using data from the Community Innovation Survey for Belgium in two consecutive periods, this paper explores the relationship between firm-level innovation activities and the propensity to start exporting. To measure innovation, we include indicators of both innovative effort (R&D activities) as well as innovative output (product and process innovation). Our results suggest that the combination of product and process innovation, rather than either of the two in isolation, increases a firm’s probability to enter the export market. After controlling for potential endogeneity of the innovation activities, only firms with a sufficiently high probability to start exporting engage in product and process innovation prior to their entry on the export market, pointing to the importance of self-selection into innovation.Exports, Product innovation, Process innovation, Self-selection, Firm heterogeneity

Product and process innovation and the decision to export : firm-level evidence for Belgium

Using data from the Community Innovation Survey for Belgium in two consecutive periods, this paper explores the relationship between firm-level innovation activities and the propensity to start exporting. To measure innovation, we include indicators of both innovative effort (R&D activities) as well as innovative output (product and process innovation). Our results suggest that the combination of product and process innovation, rather than either of the two in isolation, increases a firm’s probability to enter the export market. After controlling for potential endogeneity of the innovation activities, only firms with a sufficiently high probability to start exporting engage in product and process innovation prior to their entry on the export market, pointing to the importance of self-selection into innovationexports, product innovation, process innovation, self-selection, firm heterogeneity

Innovation dynamics and the role of infrastructure

This report shows how the role of the infrastructure – standards, measurement, accreditation, design and intellectual property – can be integrated into a quantitative model of the innovation system and used to help explain levels and changes in labour productivity and growth in turnover and employment. The summary focuses on the new results from the project, set out in more detail in Sections 5 and 6. The first two sections of the report provide contextual material on the UK innovation system, the nature and content of the infrastructure knowledge and the institutions that provide it. Mixed modes of innovation, the typology of innovation practices developed and applied here, is constituted of six mixed modes, derived from many variables taken from the UK Innovation Survey. These are: Investing in intangibles Technology with IP innovating Using codified knowledge Wider (managerial) innovating Market-led innovating External process modernising. The composition of the innovation modes, and the approach used to compute them, is set out in more detail in Section 4. Modes can be thought of as the underlying process of innovation, a bundle of activities undertaken jointly by firms, and whose working out generates well known indicators such as new product innovations, R&D spending and accessing external information, that are the partial indicators gathered from the innovation survey itself

Social networks and innovation (handicraft industry in Bantul, Yogyakarta)

This research found most of the handicraft producers have conducted various innovations during last five years. The newest innovations are managerial innovation, marketing innovation and product innovation. Meanwhile, product innovation and managerial innovation are the most important innovations in enhancing the business performance. Based on the actors, innovation in this case could be classified as producer driven innovation. The main information source of product innovation, process innovation, and service innovation is the producer’s experiences itself. The study found that the role of social networks in the process of innovation activities is rather limited. This finding is also supported by a fact that the strongest social network of the producers is only the relation with family and close friend in term of their closeness, trust, and willingness to share information. Regression analysis also indicates the aggregate of social network elements does not influence the number of innovations. Components of social network that still show positive impact on the innovation are only the closeness with business partners and with members of other association. The study also suggest that research on the role of social network or social capital on innovations is need to consider more appropriate indicators of social networks. At the empirical level, differences in location or industry may require different indicators of social networks.social network, innovation, handicraft industry

Adapting RRI public engagement indicators to the Spanish scientific and innovation context: a participatory methodology based on AHP and content analysis

The paradigm proposed by Responsible Research and Innovation in the European Commission policy discourse identifies Public Engagement as a key area for exchange and dialogue among multiple actors following an inclusive and participatory process. Two definite set of indicators have already arisen at European level to monitor Public Engagement activities in the Science and Innovation realm. Our study aims to propose a deliberative participatory process, which involves selected stakeholders, for the adaptation of the European indicators to the specific Spanish scientific and innovation context. The methodological procedure is of exploratory nature and will be based in a combination of, on the one hand, qualitative content analysis techniques for the in-depth study of the deliberative process and the generation of indicators; and, on the other hand, a multi-criteria decision analysis technique such as the Analytic Hierarchy Process for the prioritization of the indicators. The discussion will focus on the procedure to articulate stakeholders' values and use them as the basis for creating a context-based improved list of indicators. Two types of research questions arise: (i) Is the proposed methodology adequate for the adaptation of the European indicators to the Spanish context? (ii) What are the main indicators to monitor and to expand reflection on the public engagement in the Spanish science and innovation

The Organization of Work and Innovative Performance A comparison of the EU-15

It is widely recognised that while expenditures on research and development are important inputs to successful innovation, these are not the only inputs. Further, rather than viewing innovation as a linear process, recent work on innovation in business and economics literatures characterises it as a complex and interactive process involving multiple feedbacks. These considerations imply that relevant indicators for innovation need to do more than capture material inputs such as R&D expenditures and human capital inputs. The main contribution of this paper is to develop EU-wide aggregate measures that are used to explore at the level of national innovation systems the relation between innovation and the organisation of work. In order to construct these aggregate measures we make use of micro data from two European surveys: the third European survey of Working Conditions and the third Community Innovation Survey (CIS-3). Although our data can only show correlations rather than causality they support the view that how firms innovate is linked to the way work is organised to promote learning and problem-solving.National innovation systems, measuring, methodology

Vector Multiplicative Error Models: Representation and Inference

The Multiplicative Error Model introduced by Engle (2002) for positive valued processes is specified as the product of a (conditionally autoregressive) scale factor and an innovation process with positive support. In this paper we propose a multi-variate extension of such a model, by taking into consideration the possibility that the vector innovation process be contemporaneously correlated. The estimation procedure is hindered by the lack of probability density functions for multivariate positive valued random variables. We suggest the use of copulafunctions and of estimating equations to jointly estimate the parameters of the scale factors and of the correlations of the innovation processes. Empirical applications on volatility indicators are used to illustrate the gains over the equation by equation procedure.

Räumliche Verteilung der Innovationsleistung in der Schweiz

Innovation and economic growth are closely linked to each other. Together, they are considered an important determinant of a nation’s wealth. In the light of weak economic growth in Switzerland in the 1990’s, a good deal was spoken and written about these two indicators. In order to develop and implement appropriate actions for increasing innovation activity, accurate information about current activity in this area is essential. Thus, the paper presents an analysis of Switzerland’s innovation activity at a subnational level. For this purpose, the innovation process was divided into three phases: innovation input, innovation throughput, and innovation output. A set of appropriate indicators for each phase was defined. A quantitative analysis of the indicators resulted in indices for each phase, the total of which is referred to as the overall index. The overall index was seen to shed light on an entity’s total innovation activity. The study indicates that on the whole, the economic centres of the country are more innovative than rural regions. However, this was not the case for all phases of the innovation process or for all rural areas