The innovation output indicator 2016
Methodology update - Study
This technical report presents the 2016 update of the Innovation Output Indicator (IOI), the latest scores for the composite index and for the underlying indicators. It also discusses in details how changes in the statistical definition of some of the underlying indicators affect the methodology and results. We recall that the IOI was developed by the European Commission at the request of the European Council in order to benchmark national innovation policies and to monitor the EU’s performance against its main trading partners. The IOI measures the extent to which ideas stemming from... innovative sectors are capable of reaching the market, providing better jobs and making Europe more competitive. It covers technological innovation, skills in knowledge-intensive activities, the competitiveness of knowledge-intensive goods and services, and the innovativeness of fast-growing enterprises. It complements the R&D intensity indicator by focusing on innovation output. It aims to support policy-makers in establishing new or reinforced actions to remove bottlenecks preventing innovators from translating ideas into successful goods and services. The IOI is a composite of four components, chosen for their policy relevance, data quality, international availability, cross-country comparability and robustness. Its four components are: technological innovation as measured by patents (PCT); Employment in knowledge-intensive activities in the business industries as a percentage of total employment (KIABI); the average of the share of medium and high-tech goods and services in a countries export (COMP); and employment dynamism of fast-growing enterprises in innovative sectors (DYN). This 2016 edition of the IOI offers a number of novelties. It expands international coverage to Israel, New Zealand and Brazil (altogether 38 countries are now compared over a 4-year time frame). It implements changes in statistical definitions in national accounts (ESA2010) and international service trade statistics (BPM6), affecting PCT and SERV components, and uses updated innovation coefficients (CIS2010 as opposed to CIS2008) for the DYN scores, and updates scaling coefficients fitting the larger, updated dataset. The report addresses the issue of improving timeliness by using most recent data available for KIABI, GOOD and SERV. Sensitivity analysis highlights that the revision of SERV has the largest impact on outcomes.
- Corporate author(s): Joint Research Centre (European Commission)
- Personal author(s): Vértesy, Dániel; Deiss, Richard Themes: Research policy and organisation
- Subject: competitiveness, economic activity, economic sector, innovation, new technology, research and development, research report