EUROSTAT METHODOLOGIES AND PRACTICE – INNOVATION STATISTICS AND INDICATORS FOR MONITORING OF EUROPEAN INNOVATION SYSTEM Reni Petkova - EUROSTAT 2-3 October

EUROSTAT METHODOLOGIES AND PRACTICE – INNOVATION STATISTICS AND

INDICATORS FOR MONITORING OF EUROPEAN INNOVATION SYSTEM

Reni Petkova - EUROSTAT

2-3 October 2008 Belgrade


INTRODUCTION

EU LEGAL BASE ON INNOVATION STATISTICS

STANDARDISED APPROACH FOR INNOVATION DATA COLLECTION: CIS - BRIEF HISTORY

HARMONISED METHODOLOGY AND QUESTIONNAIRE FOR CIS 4

INDICATORS FOR MEASUREMENT OF INNOVATION ACTIVITY AT EU LEVEL

SUMMARY RESULTS FROM CIS 3 AND CIS 4


INTRODUCTION

BROAD-BASED INNOVATION STRATEGY FOR EU

Main objectives:

To translate investments in knowledge into economic practice in order to make effective use of it

To foster innovation as a main asset of the EU economy

To lay down a framework for promoting all types of innovation

To encourage the development of innovation- friendly lead markets

EU to become an innovation-based society


INTRODUCTION

Sound statistical basis is needed in order to support the political efforts in the field of innovation. The Community Innovation Survey (CIS) provides this basis, being the main statistical instrument that allows monitoring the progress achieved towards the realization of EU innovation strategy


LEGAL BASE FOR ESTABLISHMENT AND DEVELOPMENT OF HARMONISED STATISTICS ON INNOVATION AT EU LEVEL

Framework legal act: Decision № 1608/2003/EC of the EP and of the Council concerning the production and development of Community Statistics on science and technology

Legal implementation measure: Commission Regulation № 1450/2004 implementing Decision № 1608/2003/EC of the EP and of the Council concerning the production and development of Community statistics on innovation


REQUIREMENTS OF CR № 1450/2004 ON INNOVATION STATISTICS

List of statistical variables to be compiled

Every two years:

1/ Number of innovation active enterprises

2/ Number of innovating enterprises that introduced new or significantly improved products, new to the market

3/ Turnover from innovation, related to new or significantly improved products, new to the market


4/ Turnover from innovation, related to new or significantly improved products, new to the firm, but not new to the market

5/ Number of innovation active enterprises involved in innovation cooperation - by type of cooperation

Every four years:

6/ Innovation expenditure (optional)

7/ Number of innovation active enterprises that indicated highly important effects of innovation - by type of effects


8/ Number of innovation active enterprises that indicated highly important sources of information for innovation - by type of source (optional)

9/ Number of enterprises facing important hampering factors - by type of hampering factors

Beyond the statistics listed above, MS shall compile additional statistics (including their breakdowns) in accordance with the main themes listed in the Oslo Manual. These additional statistics will be decided in close cooperation with MS


Breakdowns of the variables and their measurement units (in absolute value and as a percentage)

Harmonised concepts and definitions to be implemented - the most recent version of Oslo manual

Type of variables on innovation: Obligatory Optional


Economic activities and sectors to be covered - minimum NACE Rev.1.1 sections: C, D, E, I, J; divisions: 51, 72 and groups: 74.2 and 74.3

Breakdowns of the results:

By economic activity at division level (2-digits of NACE Rev.1.1)

By economic activity at section level (1-digit of NACE Rev.1.1.) and by size classes in terms of employees: Small (10 - 49); Medium (50 - 249); Large (above 249)


Data sources to be used by MS - combination of different sources: sample surveys, administrative data or others of equivalent quality

Frequency of data compilation:

Four yearly (CIS) - 7 obligatory and 2 optional variables

Biannual, on each even year (CIS Light) - 5 obligatory variables

Types of data to be transmitted to Eurostat Aggregated statistics - compulsory Individual data records for all units surveyed - voluntary


Deadlines for data transmission to Eurostat: within 18 months after the end of the calendar year of the reference period

Confidential data provision

Standard transmission format for delivery of data to Eurostat

For aggregated data - excel

For individual data - CSV file

Transmission media - eDAMIS


Quality evaluation of innovation data by MS and Eurostat - Quality reports

Standard survey questionnaire for the CIS carried out every four years - shall cover the main themes listed in the Oslo Manual

Methodological recommendations for the CIS - shall at least cover the target population, the survey methodology (including regional aspects), the harmonised survey questionnaire, the collection, processing and transmission of the data and data quality requirements


STANDARDISED APPROACH FOR INNOVATION DATA COLLECTION

COMMUNITY INNOVATION SURVEY - BRIEF HISTORY

Before establishment of EU legal base (under gentleman agreement with the MS)

CIS 1

Conducted in 1993 for reference period (1990 - 1992) Coverage - limited to the manufacturing sector Invalidated EU totals and averages Only separate results published for each country


CIS 2

Conducted in 1997 for reference period (1994 - 1996)

Coverage - manufacturing sector and selected services

Questionnaire - two different questionnaires used for manufacturing and services

Methodology based on the 1997 revision of the Oslo manual (2nd edition)

Calculation of EU averages


CIS 3


Coverage - manufacturing sector and entire service sector

Questionnaire - common standard questionnaire for both manufacturing and service sector

Harmonised methodological recommendations

Transmission of aggregated and micro data to Eurostat


CIS light


Limited to the main indicators on innovation

Carried out in several countries

Transmission of aggregated and micro data to Eurostat


After establishment of EU legal base

CIS 4


Compulsory for the MS - in line with CR № 1450/2004

Went beyond 1997 Oslo manual (2nd edition) including organizational and marketing innovations

Transmission of aggregated data (compulsory) and micro data (voluntary) to Eurostat


CIS 2006 (light)


Compulsory for the MS - in line with CR № 1450/2004

Methodology based on 2005 Oslo manual (3rd edition)

Included on voluntary basis pilot modules on organizational and marketing innovations and knowledge management

Transmission of aggregated data (compulsory) and micro data (voluntary) to Eurostat


CIS 2008 Currently at final preparatory stage

Will be conducted in 2009 for reference period (2006 - 2008)

Questionnaire will include:

‘One-off’ module on eco-innovation

Industrial design as a separate innovation activity

Revised and expanded versions of questions on organisational and marketing innovation

Innovation objectives instead innovation effects

Questions on hampering factors and intellectual property will be dropped

Implementation of NACE Rev. 2


HARMONISED METHODOLOGICAL RECOMMENDATIONS FOR CIS4

TARGET POPULATION

Core coverage (obligatory):

Mining and quarrying (NACE 10-14)

Manufacturing (NACE 15-37)

Electricity, gas and water supply (NACE 40-41)

Wholesale trade (NACE 51)

Transport, storage and communication (NACE 60-64)

Financial intermediation (NACE 65-67)

Computer and related activities (NACE 72)

Architectural and engineering activities (NACE 74.2)

Technical testing and analysis (NACE 74.3)


Additional (non-core) coverage (voluntary)in descending priority order:

Research and development (NACE 73)

Construction (NACE 45) Motor trade (NACE 50) Retail trade (NACE 52) Legal, accounting, market research, consultancy and management services (NACE 74.1) Advertising (NACE 74.4) Labour recruitment and provision of personnel (NACE 74.5)

Investigation and security activities (NACE 74.6) Industrial cleaning services (NACE 74.7)


TARGET POPULATION

Size-classes - minimum all enterprises with 10 employees or more Statistical unit - the enterprise

Observation period - 2002-2004 inclusive; the reference period - year 2004

SURVEY METHODOLOGY

Sampling frame - official, up-to-date, statistical business register

Type of survey - census, sample survey or a combination of both


SURVEY METHODOLOGY

Stratification variables: - Economic activities (NACE Rev.1.1 at 2-digits; NACE 74 at 3-digits) - Enterprise size (number of employees) - Regional aspects

Sample size - to meet the precision levels requiredfor 5 basic indicators (listed below)

Sample selection and allocation - random sampling techniques, optimum allocation


COLLECTING AND PROCESSING OF DATA

SAS programs for processing the data - provided by Eurostat

Survey questionnaire - harmonised survey questionnaire for all NACE Rev.1.1 sectors

Data collection - mainly by mail, might be combined with other surveys

Data editing - data quality checks at micro- and macro-level, checking routines of the SAS programs


DATA QUALITY

Response rates - efforts to minimise unit (and item) non-response; at least two reminder letters

Unit non-response and non-response survey - If non-respondents exceed 30%, non-response survey in at least 10% of the non-respondents should be carriedout aiming to determine if the non-respondents are innovators or not

Item non-response - should be kept at a minimum by asking the enterprises for the additional information needed


Imputation - by SAS application

For metric variables - weighted mean within the stratum is applied

For ordinal, nominal and percentage variables – nearest-neighbour imputation technique is used

Weighting and calibration - software packages to derive calibrated weights (CLAN, CALMAR, CALJACK)


Precision of results - determined 95% confidence intervals for 5 indicators

1/ Percentage of innovation active enterprises

2/ Percentage of innovators that introduced new or improved products to the market

3/ New or improved products, as a percentage of total turnover

4/ Percentage of innovation active enterprises involved in innovation cooperation

5/ Total turnover per employees


TRANSMISSION OF DATA

Types of data to be transmitted - aggregated data (compulsory); micro data (voluntary)

Output tabulation scheme - developed by Eurostat in cooperation with MS

Transmission tools - eDamis

Deadlines - 18 months after the end of the reference period


CIS 4 HARMONISED QUESTIONNAIRE

CIS 4 harmonised questionnaire includes all variables defined in CR № 1450/2004 (obligatory and optional) plus some additional highly required variables (voluntary)

CIS 4 questionnaire comprises 11 sections:

1/ General information about the enterprise

2/ Product innovation

3/ Process innovation

4/ Ongoing or abandoned innovation activities

5/ Innovation activities and expenditures


CIS 4 HARMONISED QUESTIONNAIRE

6/ Sources of information and co-operation for innovation activities

7/ Effects of innovation

8/ Factors hampering innovation activity

9/ Intellectual property right

10/ Organisational and marketing innovations

11/ Basic economic information on the enterprise (turnover, employees)


INDICATORS FOR MEASUREMENT OF INNOVATION ACTIVITY AT EU LEVEL PRODUCT AND PROCESS INNOVATION INDICATORS

By type of innovation activity

Product innovators only

Process innovators only

Product and process

Enterprises with only ongoing and/or abandoned innovation activity





PRODUCT AND PROCESS INNOVATION INDICATORS

By location of innovation development

Enterprises with product innovation activity developed

Mainly by the enterprise or enterprise group By the enterprise together with other enterprises or institution Mainly by other enterprises or institutions

Enterprises with process innovation activity developed

Mainly by the enterprise or enterprise group By the enterprise together with other enterprises or institution Mainly by other enterprises or institutions


PRODUCT AND PROCESS INNOVATION INDICATORS

By type of product innovation

Enterprises that have new or significantly improved products Only new to the firm New to the market

Turnover of: Unchanged or marginally modified products New or significantly improved products only new to the firm New or significantly improved products new to the market


INNOVATION ACTIVITY AND EXPENDITURE INDICATORS Enterprises, engaged in:

Intramural (in-house) R&D - (Continuous R&D / Occasional R&D)

Extramural R&D

Acquisition of machinery, equipment and software

Acquisition of other external knowledge

Training

Market introduction of innovations

Other preparations


INNOVATION ACTIVITY AND EXPENDITURE INDICATORS

Total innovation expenditure in 2004:

Intramural (in-house) R&D - (Continuous R&D / Occasional R&D)

Extramural R&D

Acquisition of machinery, equipment and software

Acquisition of other external knowledge


INNOVATION ACTIVITY AND EXPENDITURE INDICATORS

Enterprises that received public funding from:

Local or regional authorities

Central government

The European Union (EU)

From the 5th or 6th Framework Programme


OTHER INDICATORS COMPILED FOR ENTERPRISES WITH INNOVATION ACTIVITY

Enterprises indicating high importance of selected sources of information for innovation activities (Internal sources, Market sources, Institutional sources, Other sources)

Enterprises with innovation co-operation by the type of partner and its location

Enterprises indicating the most valuable type of co-operation partners

Enterprises indicating high (observed) effect of selected effects of innovation activities (Product oriented effects, Process oriented effects, Other effects)


INDICATORS COMPILED FOR BOTH ENTERPRISES WITH AND WITHOUT INNOVATION ACTIVITY

Enterprises with abandoned or seriously delayed innovation activity

Enterprises indicating the high importance of selected factors hampering innovation activity (Cost factors, Knowledge factors, Market factors)

Enterprises indicating the high importance of selected reasons for not innovating (Due to prior innovations, Because of no demand for innovations)


INDICATORS COMPILED FOR BOTH ENTERPRISES WITH AND WITHOUT INNOVATION ACTIVITY

Enterprises used selected protection methods of intellectual property rights (Applied for a patent, Registered a trademark, Registered an industrial design, Claimed copyright)

Enterprises which introduced organisational and/or marketing innovations

Enterprises indicating highly important effects of organisational innovation


INDICATORS FOR MEASUREMENT OF INNOVATION ACTIVITY AT EU LEVEL

All indicators compiled on innovation are broken down by economic activities (NACE Rev.1.1) and size classes (by number of employees)

National aggregated CIS 4 data are sent to Eurostat in standard output tabulation scheme, containing 18 Tables in Excel workbook. Data validation rules are in place within the tables

CIS 4 aggregated and micro data are received electronically via eDAMIS from 29 countries: 25 MS;2 CC (BG, RO) and 2 Others (IS, NO)


QUALITY EVALUATION OF INNOVATION DATA

Quality Reports produced by MS cover six quality criteria and cost/burden issue:

Relevance

Accuracy

Timelines and Punctuality

Accessibility and Clarity

Comparability

Coherence

Cost and Burden

2- 3 October 2008 Belgrade

QUALITY INDICATORS

Data availability rate; Coefficient of variance; Coverage errors; Measurement errors; Processing errors; Non-response (unit, item); Imputation rate; Coherence with Structural business statistics (SBS); Time spent for production of innovation data (response burden); Cost of innovation statistics

Example for quality indicator on coherence of data originating from SBS and CIS 4: Differences between data on turnover for all enterprises in NACE C ‘Mining and quarrying’

SBS turnover as a % of CIS 4 turnover, NACE C ‘Mining and quarrying’ - reference year 2004



INNOVATION DATA DISSEMINATION AND PUBLICATIONS

Eurostat data base NewCronos

Aggregated data for CIS 2, CIS 3, CIS 4 and CIS light are stored into NewCronos

Data availability for 29 countries: 25 MS; 2 CC (BG, RO)and 2 Others (IS, NO)

All data are available free of charge on the Eurostat webpage, theme Science and technology

http://epp.eurostat.cec.eu.int/portal/page?_pageid=1090,30070682,1090_30298591&_dad=portal&_schema=PORTAL







INNOVATION DATA DISSEMINATION AND PUBLICATIONS

Anonymised micro data on innovation are available on CD for further scientific research

It is also possible to access the non-anonymised micro data via the SAFE Centre at the premises of Eurostat in Luxembourg

The description of the micro data and ways to access these one are available on our website at the following link:

http://epp.eurostat.ec.europa.eu/portal/page?_pageid

=1913,47567825,1913_57936852&_dad=portal&_schema=PORTAL

http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1913,47567825,1913_57936852&_dad=portal&_schema=PORTAL






EUROSTAT PUBLICATIONS

News release

Statistics in Focus

Pocket books

Statistical books

All R&D data and publications can be downloaded in electronic from without charges, through the Eurostat homepage http://epp.eurostat.ec.europa.eu

http://epp.eurostat.ec.europa.eu/


SUMMARY RESULTS FROM CIS 3 AND CIS 4




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EUROSTAT METHODOLOGIES AND PRACTICE – INNOVATION STATISTICS AND INDICATORS FOR MONITORING OF EUROPEAN INNOVATION SYSTEM Reni Petkova - EUROSTAT 2-3 October