Measuring innovation environment in Africa

7/29/2019 Measuring innovation environment in Africa

1/20

The Third Science with Africa Conference

March 12-15, 2013

Prof. Jari Kuusisto Visiting Scholar

MIT Sloan School of Management

Cambridge USA

Measuring Innovation Environment

in Africa


2/20

Contents

Introduction Innovation based growth

The importance of innovation as a driver of development Opportunities for Africa Innovation and its benefits are widely spread

Evolving nature of innovation What is innovation? Hidden Innovation

African Innovation Index

Systemic approach Towards validated list of indicators Value of innovation index

2


3/20

Introduction Our recent work on innovation research

1. African Innovation Index development 2012-13 - UN2. User innovation indicator development for consumers 2011-13 - MIT

How significant inputs consumer make to innovation? To What extent consumer innovations diffuse on markets? Indicator development for on-going surveys

3. Community Innovation Survey 2012 Finland Statistics Finland What is the scale of user-driven innovation among Finnish businesses?

4. User innovation drivers and obstacles in the public sector? (2012) Education, healthcare and construction samples from Finland

5. 15 country service innovation policy benchmarking study (2012) - EU 12 EU countries, USA, China, Korea

6. Service Innovation survey in Nordic countries Nordic Council7. R&D&I Policy renewal projects in 11-countries,

EU, OECD, Chinese Academy of Science3


4/20

Innovation-based growth

Innovation is seen as the central economic growth driver and akey to improved standards of living

There is on-going intensive race for global innovationadvantage and launch of

1. policies aimed at helping businesses to become moreproductive and innovative, and

2. facilitation the creation of new companies that producehigh-value-added products and services

E.g. by boosting their use of information and communicationstechnologies

4


5/20

Africa can improve

Average normalised scores Global Innovation Index, Insead 2012 Or, is measuring missing some African innovation?

0

100

200

300

400

500

European

Union

Sub-Saharan

Africa

Central and

Southern Asia

Latin America

and the Caribbean

Northern and

Western Asia

South East Asia

and Oceania

EuropeNorthern

America

Institutions

Human capital and research

Infrastructure

Market sophistication

Business sophistication

Knowledge and technology

outputs

Creative outputs

5


6/20

Opportunities for Africa

African innovation space is fairly open for novelties Lighter regulatory environment can be an advantage E.g. mobile money faces less regulatory barriers and Less resistance from established financing industry than in developed

countries Software based innovation tools are increasingly

inexpensive and widely available across the Africa

Need for innovation is clear Improvements in public services are welcome

Old industries need to be renewed e.g. agriculture, distilleries

More new technology based industries

6


7/20

Evolving nature of innovation

As innovation activities keep evolving

Innovation policy needs to develop as well


8/20

Why new type of innovation policy?

Benefits of Innovation are widely spread Today much of the innovation happens outside of the laboratories Benefiting large number of citizens Who have a chance to become active innovators and Changing their lives better Key changes

In addition to technology, innovation in services, organizationsand in the public sector can benefit citizens

Open and user innovation, data innovation can be pursued bylarge and small businesses, user groups, communities and

citizens

8


9/20

What is innovation?

Definitions have expanded over time from a narrow focus ontechnological innovation to a much wider range of activities

The implementation of a new or significantly improvedproduct(that is, a physical good or service),process, a newmarketing

method, or a neworganizational methodin business practices,

workplace organization, or external relations (OECD, 2010)

9


10/20

Innovation in the 21st Century Economy

Innovation includes the design, invention, development and/or implementation

For the purpose of creating new value forcustomers and financial returns for the firm *

the design, invention, development and/or implementation of new or altered products, services,processes, systems, organizational structures, or business models for the purpose of creating new

value for customers and financial returns for the firm* *A recent definition proposed by the US Advisory Committee on Measuring Innovation in the

Twenty-First Century Economy

new or altered products, services, processes, systems, organizational structures, business models

of

10


11/20

Innovation in the 21st Century Economy

Products

Services

Production processes

Organizationalmodels

Business models

Conception Research &Development

Transfer Production/Deployment

Usage

Phase of Development

Type

ofInnovation

Different types of innovations

At various stages of economic process


12/20

Hidden innovation

R&D&Ioutside of

facilities

Innovation

without major

science/

technology

element e.g.

organisational andbusiness model

innovations

Novel

combinations ofexisting

technologies e.g.internet banking

Locallydeveloped

small scaleinnovations

Classical

R&D that appears

in statistics

Some examples of hidden innovation


13/20

African Innovation Index

Ideally, makes use of the latest knowledge oninnovation activities

Captures the African innovation


14/20

African case

A case for African Innovation Index clearly exists Index brings more attention towards new types of

innovation activities that are evolving constantly

Measuring of these novel activities is a challenge Ideally Index provides tools that can assist policy makers Offers advice on how to make most of the existing innovation

potential in African countries

Gives an idea how to develop innovation capacity in differentAfrican countries

14


15/20

Systemic development approach

Review of indexes and indicators Identification of a broad range of

innovation indicators

R&D and non R&D based indicators Discussion and validation in African

context

AFRICAN INNOVATION INDEX Implications & value of the

Index to National policies International policies

15


16/20

16

1.Educa)on

2.InvestmentsinR&D&Iac)vi)es

3.Infrastructure,e.g.ICT,energy,roads

4.Innova)onpolicyenvironment

5.Businessstockwithinnova)onandgrowthpoten)al

6.Foreigndirectinvestments

AfricanInnova,onIndexIndicatorclusters


17/20

17

1. Iden)fica)onofpoten)alindicators2. Availabilityofindicatordataacrossthecountries3. Evalua)onofpoten)alexis)ngindexes4. Expertreviewofindicatorsandindexstructure5. Decisiononindexstructureandindicators6. Liaisonwithstakeholders

Sta,s,calindicatorsselec,on


18/20

18

1.Contributestothesocio-economicdevelopmentandwell-being

acrosstheAfricancon)nent

2.Assistsevidencebasedinnova)onpolicydevelopment

3.Enablescompara)veprofilingofinnova)onenvironmentsacrosstheAfricancon)nent

4.Raisesinnova)onpolicyprofileofinAfrica

5.Mo)vatespoli)ciansforinnova)onpolicydevelopment

6.S)mulatesinnova)onpolicydebateonna)onalandAfrican

con)nentcontext

7.HighlightsAfricaninnova)onpoten)al

Poten,alvalueoftheAfricanInnova,onIndex


19/20

19

Higher education and training Index

The Encyclopedia of Nations, http://www.nationsencyclopedia.com/


20/20

Thank You for Your Attention!

[email protected]

Documents

Measuring innovation environment in Africa