Measuring Innovation

Professor Sunil Mani

Centre for Development Studies

Trivandrum-695011

Kerala, India

Outline

• Conventional and new indicators

• Use of indicators to measure effectiveness of innovation policy instruments.

Indicators for measuring the performance of an

NSI The exponential growth of S&T indicators at the international level

Decades 50s and 60s 70s 80s 90s

Main indicators used Re&D Re&D Re&D Re&DPatents Patents PatentsTechnological balance Technological balance Technological balanceof payments of payments of payments

High-tech products High-tech productsand sectors and sectorsBibliometrics BibliometricsHuman resources Human resources

Innovation surveys Innovation surveysInnovations mentioned intechnical literatureSurveys of productiontechnologiesGovernment support toindustrial technologyIntangible investmentIndicators of informationand communication technologiesInput-Output matrixes *Productivity *Venture capital *Mergers and acquisitions *

* Indicators mutuated from economic analysis.

Indicators for measuring the performance of an

NSI • 1. Conventional• a. Input for technology generation: R&D expenditure• b. Output of technology generation: Patents data• C. Technology balance of payments• d. Publications

• 2. Non-Conventional• a. Growth of contract research• b. Growth of technology based enterprises• C. Growth of Indian MNCs • c. Growth of new technology-based industtries• d. Incremental innovations• e. Innovation surveys

GERD to GDP Ratio: China and India compared to OECD and

other emerging economies, 2004

Industrial R&D in India, 1991-2003

(Value in Rs Millions)

India: Industrial R&D is increasingly dominated by those

by the pharmaceutical sector

Patents granted to inventors from China and India in the US, 1991-

2004

Share of Domestic Inventors in Chinese and Indian patents in the

US

0

10

20

30

40

50

60

70

80

90

Share of domestic inventors

in total US patents

India 79 85 74 67 63

China 61 50 54 56 59

2001 2002 2003 2004 2005

Share of Individually Owned Patents in Total US Patents

Granted to Chinese and Indian inventors

The top 15 emphasized patents by Chinese inventors in the US

The top 15 emphasized patents by Indian Inventors

Trends in R&D expenditure in the Indian pharmaceutical industry

Rs in Millions

Public sector Private sector Small scale Total Growth Rate (%)1988-89 46.06 501.651 16.733 564.4441989-90 54.158 579.674 32.272 666.104 18.011990-91 118.934 598.727 38.211 755.872 13.481991-92 168.312 756.592 52.763 977.667 29.341992-93 79.652 1053.509 58.653 1191.814 21.901993-94 71.416 1217.206 85.479 1374.101 15.291994-95 57.813 1600.268 153.832 1811.913 31.861995-96 48.432 1938.869 179.111 2166.412 19.561996-97 44.402 2618.954 2663.356 22.941997-98 46.318 2828.556 2874.874 7.941998-99 49.018 3725.958 3774.976 31.31

Recent R&D investments by leading Indian pharmaceutical companies

2001-02 2003-04 R&D R&D

Intensity (%)

R&D R&D Intensity

(%) 1. Ranbaxy

77

3.6

276

6.1

2. Dr Reddy’s Laboratory

111

7.1

226

13.0

3. Sun Pharma

34

4.4

108

10.2

4. Cadila Health Care

42

7.1

88

7.6

5. Wokhardt 30 4.4 60 6.2 6. Cipla

22

3.5

57

2.9

7. Nicolas Piramal 10 1.2 56 4.4 8. Lupin 54 5.6 46 3.7

9. Aurobindo Pharma 13 1.3 46 3.5

10. Torrent Pharma 22 5.1 40 8.9

11. Glenmark Pharma 12 4.7 37 9.8

12. Biocon India 7 4.4 23 4.4

13. USV Ltd 12 3.3 21 0.4

14. Alembic 14 2.3 20 3.2

15. IPCA Labs 8 1.8 17 2.6

16. Sushan 9 2.3 11 4.0

17. Cadila Pharma 9 2.3 10 2.4

18. Unichem 10 3.3 8 2.2

Total 496 4.0 1150 4.7

Source: Lok Sabha Unstarred Question no: 1916, http://164.100.24.208/lsq14/quest.asp?qref=19536 (accessed on March 15 2006)

Trends in disembodied technology imports

(millions of US $)

0

100

200

300

400

500

600

700

800

Dir

ect

cost

of

tech

no

log

y im

po

rts

(mil

ion

s o

f U

S $

)

-60

-40

-20

0

20

40

60

80

100

Gro

wth

Rat

e (%

)

Total cost of technology import(Millions of US $)

395 319 170 323 291 417 471 317 166 250 312 235 361 352 444 712 729

Growth Rate (%) -19, -46, 90, -9,9 43, 12, -32, -47, 50, 24, -24, 53, -2,4 26, 60, 2,3

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

Indian MNCs are on the increase

Interpretation of the results from innovation surveys

• Response rate-generality of the results

• Use of innovation survey data:

– Innovation activities and expenditures

– Source of information on innovation

– Barriers to innovation