V03 Measuring Innovation and Performance (the micro story)
- Key Konzepts: Indicators and measures of innovation - Innovation and Performance: Some evidence at various levels of analysis - Abilities: Critically evaluate the use of the term "Innoation"
- Key Konzepts: Indicators and measures of innovation - Innovation and Performance: Some evidence at various levels of analysis - Abilities: Critically evaluate the use of the term "Innoation"
Set of flashcards Details
| Flashcards | 27 |
|---|---|
| Language | Deutsch |
| Category | Micro-Economics |
| Level | University |
| Created / Updated | 02.01.2020 / 12.01.2020 |
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Which Company-Sectors are dominating the most...
1. Innovative Companies
2. Profitable companies
3. Valuable Companies
4. Reputable Companies
1. IT and Technology
2. Banks, Oil and Gas
3. Traditional Companies wich Consumer Goods
Are the most innovative companies the most profitable? Name some example companies which are most innovative and profitable and explain why some are not.
Apple / Google: highly innovative and highly profitable
Banks: Most profitable
Some highly innovative companies are not (yet) highly profitable -> innovators need time to reorganize take some risk.
What is the challange being a innovative company?
Balancing stability and change!
Definition of Innovation according to Schmookler
When an enterprise produces a good or service or uses a method or input that is new to it, it makes technical change. The first enterprise to make technical change is an innovator. Its action is innovation.
Definition of Innovation according to OECD
Whats the difference compared to Schmookler's definition?
Scientific and technological innovation may be considered as the transformation of an idea into a new or improved product introduced on the market, into a new or improved operational process used in industry and commerce, or into a new approach to a social service.
Difference: Schmookler has to be an enterprice. Accoring to OECD not.
Key Conzept: First on Market! (otherwise its an invention)
Name 3 different types of innovation
Novelity Difference: Radical vs. Incremental
Input/Output: Product vs. Processs
Scope: Architecture vs. Component
Describe the Innovation Process and 5 activities which are involved including the "most" important element of the innovation process.
"All of the activities which bring about technological change, and the dynamic interaction among them".
Scientific, technological, organisational, financial and commercial activities
R&D is the most important element.
Name 4 categories of innovation-indicators with an example for each.
Name some reasons why Innovation is difficult to measure.
(Smith 2006 - Measuring Innovation)
Innovation is by (simplified) definition "novelity"
- What do we actually mean by new?
- Difficult to distinguish and measure the parameters which leads to this new invention. What factors really matters?
What are the tree basic aspects of innovation according to Steven Kline?
What are the following two important implications for indicator development?
(Smith 2006 - Measuring Innovation)
- Innovation is not a sequential process. Its involving many interactions and feedbacks in knowledge creation.
- Innovation is a learning process involvong multible inputs
- Innovations does not depend on a invention process. Invention can be an initiating factor.
- Novelity implies not just the creation fo completely new products or processes, but relatively small changes in product performance which may have major technological and economic implication.
- Import of non R&D inputs to innovation
Name the main 4 Innoation-Indicators (Categoriess)
(related to Smith 2006 - Measuring Innovation -Fatt)
- R&D Data (Frascati Manual, OECD)
- Patents
- Other public records of innovation:
Bibliometric data (Scientific publications and citations)
Trademark statistics to complements patents - Specific and specialized datasets (Survey tools)
How are the following defined in the paper
- Non-Innovator
- Innovator
- Persistent Innovator
(Cefis, Ciccarelli, (2005) Profit differentials and Innovation)
- Non-Innovator: A firm that has requested for non patent
- Innovator: A firm that has requested for at least one patent (many firms)
- Persistent Innovator: A firm that does not remain for more than 2 years without asking for a patent (only few firms)
R&D Data is collected by the OECD's operating statistical "Frascati Manual".
1. On which data is this Indicator based on?
2. What are the pros?
3. What are the cons?
(Smith 2006 - Measuring Innovation)
1. Input to Innovation only: Data on expenditures / personnel resources -> Econoimc character
2. Pros: Long term record of standardized data collection over many countries
3. Cons: Measures only input to innovation but innovation is guided by many other facotors. R&D intensity of a country is more complex than a number (different industries)
Describe the two different views about the was innovatice activities affect the performace of firms.
(Cefis, Ciccarelli, (2005) Profit differentials and Innovation)
- Traditional view: Innovations have only a transitory effect on the firm profitability by altering its competitive position in the short-run (temporal monopoly power).
- Second approach: Innovations intrinsically characterize a firm because there are structural differences between innovating and non-innovating firms. Each innovating firm owns technological competencies and capabilities, which together with specific behavioral patterns, enable the firm to face better changes in the market in order to survive or obtain satisfactory profits.
Name a exonomic input and output measure for innovation
(Smith 2006 - Measuring Innovation)
Input: Expenditure on R&D or non-R&D inputs
Output: Sales
What is the Schumpeterian hypothesis?
(Cefis, Ciccarelli, (2005) Profit differentials and Innovation)
Hypothesis that innovaation increases with the size of an organisazion.
Three different kinds of R&D activities.
(Smith 2006 - Measuring Innovation)
- Basic research
- Applied research
- Experimental development
Name the R&D 4 sectors of performance
(Smith 2006 - Measuring Innovation)
- Business enterprise
- Government
- higher education
- private non-profit
What are the advantages of innovators and persistant innovators?
(Cefis, Ciccarelli, (2005) Profit differentials and Innovation)
Profitability
Higher profitability
Higher standard deviation
Survival
Especially young firms
Especially little firms
Export (for high tech sectors, mainly)
Growth (more complex measurement issues)
What does the R&D intensity describe? Explain in this context the BERD and GERD and how it's used to measure a R&D intensity.
(Smith 2006 - Measuring Innovation)
Ratio of R&D expenditures to some measure of output (Category: Relative indicators)
BERD/GDP: Business Expenditure on R&D (industry level)
GERD/GDP: Gross expenditure on R&D (country level)
Explain the concept of the "acquired technology" as a recent modificatio of the R&D indicators.
(Smith 2006 - Measuring Innovation)
Measured by assuming that the R&D embodied in a capital good is equal to the capital good's value multiplied by the R&D intensity of the supplying industry.
Define a "Patent" and name some advantages/disadvantages to use the patent system as an innovation-indicator.
(Smith 2006 - Measuring Innovation)
Public contract between an inventor and a government that grants time-limited monopoly rights to the applicant for the use fo a technical invention.
+ Patents are only granted for inventive technologies with commercial promise
+ Systematically records important information about this invention
+ Long term Data avaliable
+ Data freely avaliable
- Patents are indicator of invention rather than innovation.
Innovation surveys are also a way of creating a innovation-indicator. Name 2 basic types and discribe them.
(Smith 2006 - Measuring Innovation)
Subject approach: Focus on firm-level
Object approach: Focus on significant technological innovations.
Name the most important example of the Object approach and mention one pro/con.
(Smith 2006 - Measuring Innovation)
SPRU database, developped by the Science Policy research Unit at the University of Sussex
+ Technology oriented allowes assessment of the importance of an innovation
- Innoations must pass a test of significance: Some innovations get lost.
1. Name a common practis in the field of "subject approach" innovation-survey.
2. Name the used data-topics
3. Pros/Cons
(Smith 2006 - Measuring Innovation)
1. Oslo Manual (OECD) implementing the Community Innovation Survey (CIS)
2. Topics:
- Input: Expenditure on non R&D-inputs
- Output
- Sources of information
- Collaboration (technological)
3. Pros/Cons:
- + Highly standardized (acc. Oslo Manual)
- - emerging fields pose challenges to the validity of the survey (services, IT, plattforms)
- . does not capture non-technological aspects of innovation
The Oslo Manual and the CIS tried to estimate expenditures on categoriess of innovation activity other than R&D. Name the six main categories.
(Smith 2006 - Measuring Innovation)
- R&D of new products and processes
- Acquisition of machinery and equipment
- Acquisition of external technology
- Industrial design
- Training directely linked to innovation
- Market introduction to innovations
What are the main conclusions of the CIS study?
(Smith 2006 - Measuring Innovation)
- Innovation is prevalent across all sectors of the economy
- Inputs and outputs of innovation are distributed highly asymmetrically
- Collaboration is widespread amon innovating firms
- Relying on more than 11 sources for an innvention does not improve the chance of success.
- R&D is by no means the most important innovation input. In all sectors, scross all countries, investment in capital equipment related to new product introduction is the major component of innovation expenditures.
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