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IKINET Limitations of regional innovation indicators

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innovation policy per se to strengthen EU as a knowledge-based economy ... but also on cooperation, exchange of experience and establishment of trans-regional networks ... – PowerPoint PPT presentation

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Title: IKINET Limitations of regional innovation indicators


1
IKINET Limitations of regional innovation
indicators
  • Warsaw, 24 May 2006

2
  • Growing importance attached to development of
    indicators to monitor need for policy action and
    effectiveness of policy measures already
    implemented
  • As regards innovation, EU policy consists of two
    strands
  • innovation policy per se to strengthen EU as a
    knowledge-based economy
  • cohesion policy to achieve more balanced pattern
    of regional development

3
  • EU innovation policy - increased emphasis on
    policy action at regional level to take account
    of regional strengths, weaknesses and ambitions
  • but also on cooperation, exchange of experience
    and establishment of trans-regional networks

4
  • EU cohesion policy progressively re-oriented
    towards Lisbon objectives and especially towards
    promotion of innovation
  • Recognition that capacity to innovate varies
    widely across EU regions, especially after
    enlargement, reflecting wide differences in
    access to knowledge and ability to exploit it

5
  • If weaker regions are to develop, two necessary
    sets of conditions
  • they need a suitable endowment of basic
    infrastructure (transport, telecommunications,
    energy, environmental facilities)
  • and a labour force with appropriate skills and
    training

6
  • There is a need for
  • access to new technology
  • efficient dissemination of new knowledge and its
    effective use
  • creation of networks and clusters to encourage
    cooperation and realise economies
  • strengthening of RD capacity
  • establishment of effective links with global
    centres of technological excellence

7
  • Indicators at present focus on national rather
    than regional circumstances (European Innovation
    Scoreboard)
  • But differences between regions within countries
    as important as between Member States
  • Output as well as inputs indicators are included,
    but latter easier to measure, eg
  • RD expenditure by sector
  • RD personnel by sector

8
Output indicators used have a number of
defects patents registered at EPO under-record
patent activity in new Member States especially
Number of patent applications per million inhabitants, 2000-2002 Number of patent applications per million inhabitants, 2000-2002
Top 25 regions 450
Bottom 25 regions 2.4
Slaskie 2.9
Mazowieckie 8.7
9
And are biased in favour of manufacturing
relative to service enterprises
10
  • There are also a number of context indicators
  • Education attainment levels of work force
  • Participation in lifelong learning
  • Employment in high/medium tech manufacturing and
    high tech services
  • Innovating enterprises

11
  • Problems in both defining the relevant indicators
    to use and in their timeliness
  • latest data on RD expenditure by region are for
    2002 for a number of countries Poland, the
    Czech Republic, Hungary and Spain
  • but for 2001 for some - Germany, France and the
    Netherlands
  • for 2000 for Italy an for 1999 for UK and Greece
  • latest CIS is for 2000 and not split by region

12
  • Apart from being dated and incomplete, these
    indicators do not capture main aspects in case
    of developing regions, capacity to absorb and
    diffuse innovations
  • It is widely argued that regions need to
    undertake some RD to be able to absorb new ideas
    and integrate them into the production process
  • But question is how much?

13
There are big differences between EU regions in
terms of RD expenditure relative to GDP
14
  • Are these big differences between regions
    justifiable?
  • Is expenditure in many lagging regions too low to
    enable them to absorb new knowledge?
  • How much higher does it need to be?

15
  • Some of the context indicators are clearly
    relevant as regards absorption capacity
  • - education levels in particular, especially
    number with tertiary qualifications
  • These also vary widely across regions

16
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17
  • Number of workers with upper secondary education
    also important and also differs between regions

18
but difficulty in interpreting the differences
19
  • Importance of employment high and medium-tech
    manufacturing relevant as well
  • But again need to interpret the differences
    carefully

20
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21
  • IKINET concerned with the transmission process
  • with the means by which new technology or
    knowledge is transmitted between enterprises and
    regions
  • Objective to develop new and more suitable
    indicators

22
  • A number of potential transmission mechanisms
    explored through case studies and questionnaires
  • supplier-customer relations
  • supplier-supplier relations
  • university/research centres-enterprise relations
  • worker movements between enterprises and regions

23
  • Concern not only to collect data but to gain a
    better understanding of knowledge generation
  • and its transmission across enterprises and
    regions
  • Identification of aspects which could be
    monitored eg links between enterprises and
    research centres
  • And also identification of existing data which
    could be used to monitor developments

24
  • Two principal examples
  • LFS, or administrative records, to measure
    movements of qualified workers between jobs

25
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26
  • Secondly, data from Dublin Foundation to measure
    influx of foreign-owned enterprises into
    medium-tech manufacturing and creation of jobs

27
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