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The Innovation Index Project

The Innovation Index Project. Brainstorming on measuring innovation on education OECD, 11 June 2009. Why a new Innovation Index for the UK?.  DIUS White Paper: A new innovation index is needed. Aims & Timetable. Private Sector Index Update. Innovation growth accounting (18 months)

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The Innovation Index Project

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  1. The Innovation Index Project Brainstorming on measuring innovation on education OECD, 11 June 2009

  2. Why a new Innovation Index for the UK?  DIUS White Paper: A new innovation index is needed

  3. Aims & Timetable

  4. Private Sector Index Update • Innovation growth accounting (18 months) • Imperial College and ONS (Jonathan Haskel and Tony Clayton) • Firm-level innovation performance (7 months) • University of Warwick (Stephen Roper, Jim Love and John Bryson) • Wider/Framework Conditions (7 months) • GHK, Technopolis and Manchester University (Manchester Institute of Innovation Research) • Measuring user-led innovation (7 months) • CENTRIM, MIT and EIM (Steve Flowers, Eric von Hippel and Jeroen de Jong)

  5. 1. Innovation growth accounting • Main indicators: • Investment in innovation, going beyond R&D • Contribution of investment in innovation to labour productivity growth, distinguishing between different types of investment • Total Factor Productivity (TFP) growth, accounting for the role of intangibles. • Process: • Focus on software, R&D, design spending, financial services, marketing, human capital and organisational capital • Exploit labour force survey data to build measures of investment • Run extended R&D survey and conduct industry fora • Test assumptions underlying metrics and growth accounting

  6. 2. Firm-level innovation performance • Main indicators: • Sector-specific indicators of innovation activity • Innovation capabilities map (per sector and innovation process stage) • 6 areas of the UK economy in 2009 (10 sectors): legal services, consultancy services, accountancy services (as part of knowledge intensive business services); software and IT services; architecture and design (as part of creative services); aerospace, automotive (as part of high-value manufacturing); construction; and energy production. • Process: • Implement a peer review process with industry practitioners to validate indicator choice (sector-specific) • Run firm survey to collect data on the selected indicators

  7. 3.Wider/Framework Conditions • Main indicators: • Indicators for the most important drivers of innovation activity outside the firm/organization • It may include, among others, skills, entrepreneurship and growth, finance, “demand”, intellectual property rights, collaboration and competition • Process: • Develop selection criteria to choose among potential frameworks and different indicators • Compile data based on existing sources on the selected indicators at a national and regional level • Consider the distinctive role that specific conditions have for some industries

  8. 4. Measuring user-led innovation • Main indicators • Indicators for user innovation by firms and individual end consumers • Process: • Undertake a firm level survey to measure user innovation in UK firms • Undertake two surveys on end consumers to measure the involvement of UK end-consumers in the innovation process

  9. 5. The Public Sector/Services: Work so far • Commissioning two scoping projects on public sector innovation – LSE, Technopolis • Engaging with and advising on other initiatives in the UK and internationally including: • National Audit Office study • NHS Innovation metrics project • OECD revision of ‘Oslo Manual’ • UKIPO measurement of intangible assets • Nordic Initiative • Organising OECD-DIUS-Nordic-NESTA conference to share thinking and developing international co-operation

  10. Determining parameters: some choices

  11. Health innovation metrics: DH/NHS approach

  12. What’s relevant to measure? Characteristics of an innovative public sector • Culture of continuous improvement that incentivises public bodies, their staff and stakeholders to innovate • Openness to innovative ideas and able to source innovations from outside and within • Making decisions and allocating funding quickly to develop, trial and test innovations • Identifying what works and comparing with existing delivery methods • Allocating funding to scale and rolling out successful innovations with support for adopters • Closing down unsuccessful innovation projects

  13. Adoption of innovation Outcomes Inputs Outputs of innovation activity Wider Conditions Within the Index conceptual framework: generic indicators for the public sector

  14. Proposedpublic sector outputs • A set of input, output, adoption and outcome indicators that measure some or all dimensions of public sector innovation processes • A methodology piloted by NESTA for capturing public sector innovation data that can be later adopted by others • Depending on progress on the private sector components of the Index, additional outputs such as work on framework conditions and public sector productivity

  15. Next steps – Phase 1 2009-10

  16. Next steps – Phase 2 2010 -11

  17. innovationindex@nesta.org.uk www.innovationindex.org.uk

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