OSLO Manual 2005

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E OF THE EUROPEAN COMMUNITIES \par\pard\sect\sectd\fs24\paperw9080\paperh13040\p
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sb84\sl-276\slmult0 \up0 \expndtw0\charscalex100 AND DEVELOPMENT \par\pard\qj \l
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where the governments of 30 democracies work \line \up0 \expndtw0\charscalex114
together to address the economic, social and environmental challenges of global
isation. \line \up0 \expndtw0\charscalex120 The OECD is also at the forefront of
efforts to understand and to help governments \line \up0 \expndtw0\charscalex12
7 respond to new developments and concerns, such as corporate governance, the \l
ine \up0 \expndtw0\charscalex119 information economy and the challenges of an ag
eing population. The Organisation \line \up0 \expndtw0\charscalex114 provides a
setting where governments can compare policy experiences, seek answers to \line
\up0 \expndtw0\charscalex124 common problems, identify good practice and work to
co-ordinate domestic and \line \up0 \expndtw0\charscalex115 international polic
ies. \par\pard\qj \li1048\ri921\sb72\sl-248\slmult0\fi397 \up0 \expndtw0\charsca
lex124 The OECD member countries are: Australia, Austria, Belgium, Canada, the \
up0 \expndtw0\charscalex122 Czech Republic, Denmark, Finland, France, Germany, G
reece, Hungary, Iceland, \up0 \expndtw0\charscalex121 Ireland, Italy, Japan, Kor
ea, Luxembourg, Mexico, the Netherlands, New Zealand, \up0 \expndtw0\charscalex1
16 Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Tu

rkey, \up0 \expndtw0\charscalex129 the United Kingdom and the United States. The
Commission of the European \up0 \expndtw0\charscalex116 Communities takes part
in the work of the OECD. \par\pard\qj \li1048\ri924\sb71\sl-250\slmult0\fi397 \u
p0 \expndtw0\charscalex116 OECD Publishing disseminates widely the results of th
e Organisation\u8217?s statistics \up0 \expndtw0\charscalex119 gathering and res
earch on economic, social and environmental issues, as well as the \up0 \expndtw
0\charscalex119 conventions, guidelines and standards agreed by its members. \pa
r\pard\qj \li1814\sb0\sl-240\slmult0 \par\pard\qj\li1814\sb0\sl-240\slmult0 \par
\pard\qj\li1814\ri1635\sb139\sl-240\slmult0\fi169 \up0 \expndtw-7\charscalex75 \
ul0\nosupersub\cf13\f14\fs16 This manual has been endorsed by the OECD Committee
for Scientific \up0 \expndtw-6\charscalex72 and Technological Policy (CSTP), t
he OECD Committee on Statistics (CSTAT) \up0 \expndtw-7\charscalex76 and the Eur
ostat Working Party on Science, Technology and Innovation \up0 \expndtw-7\charsc
alex72 Statistics (WPSTI). \par\pard\qj \li3566\sb0\sl-240\slmult0 \par\pard\qj\
li3566\sb0\sl-240\slmult0 \par\pard\qj\li3566\ri3406\sb220\sl-240\slmult0 \up0 \
expndtw0\charscalex60 \ul0\nosupersub\cf7\f8\fs14 Publi en franais sous le titre :
\line \up0 \expndtw0\charscalex61 \ul0\nosupersub\cf8\f9\fs14 Manuel d\u8217?Os
lo 3\ul0\super\cf9\f10\fs16 e\ul0\nosupersub\cf8\f9\fs14 dition \par\pard\ql \li
3104\sb46\sl-161\slmult0 \up0 \expndtw-2\charscalex100 PRINCIPES DIRECTEURS POUR
LE RECUEIL \par\pard\ql \li2582\sb79\sl-161\slmult0 \up0 \expndtw-2\charscalex1
00 ET L\u8217?INTERPRTATION DES DONNES SUR L\u8217?INNOVATION \par\pard\ql \li1048
\sb0\sl-184\slmult0 \par\pard\ql\li1048\sb0\sl-184\slmult0 \par\pard\ql\li1048\s
b0\sl-184\slmult0 \par\pard\ql\li1048\sb0\sl-184\slmult0 \par\pard\ql\li1048\sb0
\sl-184\slmult0 \par\pard\ql\li1048\sb20\sl-184\slmult0 \up0 \expndtw0\charscale
x101 \ul0\nosupersub\cf10\f11\fs16 OECD 2005 \par\pard\qj \li1048\ri906\sb160\sl
-180\slmult0 \up0 \expndtw0\charscalex129 \ul0\nosupersub\cf11\f12\fs12 No repro
duction, copy, transmission or translation of this publication may be made witho
ut written permission. \up0 \expndtw0\charscalex109 Applications should be sent
to OECD Publishing: \ul0\nosupersub\cf12\f13\fs12 rights@oecd.org\ul0\nosupersub
\cf11\f12\fs12 or by fax (33 1) 45 24 13 91. Permission to photocopy a \up0 \ex
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}}\par\pard\sect\sectd\fs24\paperw9080\paperh13040\pard\sb0\sl-240{\bkmkstart Pg
3}{\bkmkend Pg3}\par\pard\ql \li2241\sb0\sl-161\slmult0 \par\pard\ql\li2241\sb0\
sl-161\slmult0 \par\pard\ql\li2241\sb65\sl-161\slmult0 \up0 \expndtw0\charscalex
100 \ul0\nosupersub\cf8\f9\fs14 OSLO MANUAL: GUIDELINES FOR COLLECTING AND INTER
PRETING INNOVATION DATA \par\pard\ql \li3877\sb0\sl-368\slmult0 \par\pard\ql\li3
877\sb0\sl-368\slmult0 \par\pard\ql\li3877\sb0\sl-368\slmult0 \par\pard\ql\li387
7\sb0\sl-368\slmult0 \par\pard\ql\li3877\sb316\sl-368\slmult0 \up0 \expndtw0\cha
rscalex71 \ul0\nosupersub\cf15\f16\fs32 Foreword\par\pard\sect\sectd\sbknone\col
s2\colno1\colw1514\colsr40\colno2\colw7386\colsr160\ql \li1303\sb58\sl-552\slmul
t0 \up0 \expndtw0\charscalex80 \ul0\nosupersub\cf16\f17\fs48 I\par\pard\column \
ql \li1554\sb0\sl-195\slmult0 \par\pard\ql \li20\sb158\sl-195\slmult0 \up0 \expn
dtw0\charscalex63 \ul0\nosupersub\cf17\f18\fs17 t has been long understood that
the generation, exploitation and diffusion of knowledge \par\pard\sect\sectd\sbk
none \qj \li1303\ri1113\sb3\sl-249\slmult0 \up0 \expndtw0\charscalex63 are funda
mental to economic growth, development and the well being of nations. Central \l
ine \up0 \expndtw0\charscalex62 to this is the need for better measures of innov
ation. Over time the nature and landscape \line \up0 \expndtw0\charscalex63 of i
nnovation have changed, and so has the need for indicators to capture those chan
ges \line \up0 \expndtw0\charscalex62 and provide policy makers with appropriate
tools of analysis. A considerable body of work \line \up0 \expndtw-7\charscalex
76 was undertaken during the 1980s and 1990s to develop models and analytical
\line \up0 \expndtw-7\charscalex70 frameworks for the study of innovation. Exper
imentation with early surveys and their \line \up0 \expndtw0\charscalex61 result
s, along with the need for a coherent set of concepts and tools led to the first
edition \line \up0 \expndtw-7\charscalex71 of the Oslo Manual in 1992, which fo
cused on technological product and process (TPP) \line \up0 \expndtw0\charscalex
64 innovation in manufacturing. This became the reference for various large scal
e surveys \line \up0 \expndtw-7\charscalex72 examining the nature and impacts of
innovation in the business sector, such as the \line \up0 \expndtw0\charscalex6
2 European Community Innovation Survey (CIS), currently in its fourth round. Res
ults from \line \up0 \expndtw0\charscalex63 such surveys have driven further ref
inements in the Oslo Manual framework in terms of \line \up0 \expndtw0\charscale
x61 concepts, definitions and methodology leading to a second edition published
in 1997 which, \line \up0 \expndtw0\charscalex61 among other things, expanded co
verage to service sectors. \par\pard\qj \li1303\ri1117\sb52\sl-248\slmult0\fi397
\up0 \expndtw0\charscalex64 Since then, the analysis of results from surveys an
d changing policy needs led to \line \up0 \expndtw-7\charscalex71 the launching
of another revision of the manual, the result of which can be found in \line \up
0 \expndtw0\charscalex62 this third edition. As there has been a growing sense t
hat much of innovation in service \line \up0 \expndtw-7\charscalex72 sectors is
not adequately captured by the TPP concept, it was decided to address the \line
\up0 \expndtw0\charscalex63 question of non technological innovation in this rev
ision. As a result, the scope of what \line \up0 \expndtw-7\charscalex77 is cons
idered an innovation has now been expanded to include two new types: \line \up0
\expndtw-7\charscalex72 marketing and organisational innovation. These are certa
inly new concepts, but they \line \up0 \expndtw-7\charscalex72 have already been
tested in several OECD countries, with promising results. \par\pard\qj \li1303\
ri1118\sb71\sl-250\slmult0\fi397 \up0 \expndtw-7\charscalex77 New to this editio
n is also an effort to address the systemic dimension of \up0 \expndtw-7\charsca
lex73 innovation, through a chapter focusing on innovation linkages. Lessons dra
wn from \up0 \expndtw-7\charscalex74 results of previous surveys have also been

incorporated in order to refine existing \up0 \expndtw-7\charscalex74 concepts a
nd methodological issues, such as the measurement of innovation inputs \up0 \exp
ndtw-7\charscalex70 and outcomes, as well as the improvement of data collection
methods. \par\pard\qj \li1303\ri1117\sb49\sl-252\slmult0\fi397 \up0 \expndtw-7\c
harscalex72 Innovation also occurs outside the OECD region: a growing number of
countries \line \up0 \expndtw-7\charscalex72 in Latin America, Eastern Europe, A
sia and Africa have begun undertaking surveys \line \up0 \expndtw-7\charscalex72
based on the Oslo Manual. Although the design of those surveys was usually inte
nded \line \up0 \expndtw-7\charscalex73 to comply with such standards, many of t
hem have adapted the Oslo methodology to \line \up0 \expndtw-7\charscalex71 take
into account specific user needs and the characteristics of statistical systems
in \line \up0 \expndtw-7\charscalex71 these countries with different economic a
nd social backgrounds. National adaptations \par\pard\li824\sb0\sl-218\slmult0\p
ar\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb37\sl-218\slmult0\fi0\tx8158 \
up0 \expndtw0\charscalex105 \ul0\nosupersub\cf14\f15\fs11 ISBN 92-64-01308-3 - O
ECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\c
f4\f5\fs20 3
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4}{\bkmkend Pg4}\par\pard\ql \li793\sb0\sl-161\slmult0 \par\pard\ql\li793\sb0\sl
-161\slmult0 \par\pard\ql\li793\sb65\sl-161\slmult0 \up0 \expndtw0\charscalex100
\ul0\nosupersub\cf8\f9\fs14 OSLO MANUAL: GUIDELINES FOR COLLECTING AND INTERPRE
TING INNOVATION DATA \par\pard\qj \li1303\sb0\sl-252\slmult0 \par\pard\qj\li1303
\ri1116\sb172\sl-252\slmult0 \up0 \expndtw-7\charscalex72 \ul0\nosupersub\cf17\f
18\fs17 were developed by each country and followed different approaches. For ex
ample, it is \up0 \expndtw-7\charscalex74 widely accepted that diffusion and inc
remental changes to innovation account for \up0 \expndtw0\charscalex64 much of t
he innovation occurring in non OECD countries. Using these rich and diverse \up0
\expndtw0\charscalex64 experiences, an annex has been added to this edition of
the Oslo Manual that draws on \up0 \expndtw-7\charscalex75 some of the lessons l
earned, and provides further guidance for future innovation \up0 \expndtw-7\char
scalex71 surveys in non OECD countries. \par\pard\qj \li1303\ri1118\sb29\sl-252\
slmult0\fi397 \up0 \expndtw-7\charscalex77 The Oslo Manual, developed jointly by
Eurostat and the OECD, is part of a \up0 \expndtw-7\charscalex82 continuously e
volving family of manuals devoted to the measurement and \up0 \expndtw-7\charsc
alex73 interpretation of data relating to science, technology and innovation. Th
is includes \up0 \expndtw-7\charscalex75 manuals, guidelines and handbooks cover
ing R&D (Frascati Manual), globalisation \up0 \expndtw-7\charscalex76 indicators
, patents, the information society, human resources in S&T (Canberra \up0 \expn
dtw-7\charscalex72 Manual), and biotechnology statistics. \par\pard\qj \li1303\r
i1117\sb30\sl-250\slmult0\fi397 \up0 \expndtw-7\charscalex77 Prepared under the
joint aegis of the OECD and the European Commission \line \up0 \expndtw-7\charsc
alex79 (Eurostat), this third edition of the Oslo Manual is the result of a thre
e year \line \up0 \expndtw-7\charscalex74 collaborative process that has involve
d the OECD Working Party of National Experts \line \up0 \expndtw-7\charscalex75
on Science and Technology Indicators (NESTI) and the Eurostat Working Party on \
line \up0 \expndtw-7\charscalex71 Science, Technology and Innovation Statistics
(WPSTI) as well as a number of outside \line \up0 \expndtw-7\charscalex73 expert
s. This manual provides guidelines for collecting and interpreting innovation \l
ine \up0 \expndtw-7\charscalex75 data in an internationally comparable manner. F

inding consensus has sometimes \line \up0 \expndtw-7\charscalex79 meant reaching
compromises and agreeing to conventions. As with other such \line \up0 \expndtw
-7\charscalex79 guidelines, there are known limitations, but each edition of the
Oslo Manual \line \up0 \expndtw-7\charscalex71 constitutes a step forward in ou
r understanding of the innovation process. While this \line \up0 \expndtw0\chars
calex64 ongoing, incremental learning incorporates the lessons of earlier studie
s, the Manual is \line \up0 \expndtw0\charscalex65 also an ambitious tool in whi
ch experimentation and testing are used to challenge the \line \up0 \expndtw0\ch
arscalex65 boundaries of what is understood by innovation. \par\pard\qj \li1303\
ri1113\sb52\sl-248\slmult0\fi397 \up0 \expndtw-7\charscalex75 Many should be
thanked for their valuable contributions. A special \line \up0 \expndtw-7\
charscalex75 acknowledgement goes to experts from Canada, France, Germany, Italy
, Japan, the \line \up0 \expndtw0\charscalex62 Netherlands, Norway and the Unite
d Kingdom who led the work of six focus groups which \line \up0 \expndtw0\charsc
alex61 examined a variety of topics and expressed valuable recommendations for t
he revision. The \line \up0 \expndtw0\charscalex62 drafting of the revised Oslo
Manual was undertaken by Dr. Peter Mortensen and Dr. Carter \line \up0 \expndtw7\charscalex71 Bloch from the Danish Centre for Studies in Research and Research
Policy, under the \line \up0 \expndtw-7\charscalex73 guidance of the OECD and E
urostat. The annex on innovation surveys in developing \line \up0 \expndtw-7\cha
rscalex71 countries was drafted by the UNESCO Institute for Statistics, based on
a proposal and \line \up0 \expndtw0\charscalex100 draft paper by the \ul0\nosup
ersub\cf6\f7\fs17 Red Iberoamericana de Indicadores de Ciencia y Tecnologa \line
\up0 \expndtw0\charscalex63 \ul0\nosupersub\cf17\f18\fs17 (RICYT) and following
a broad process of consultation with many national experts.\par\pard\sect\sectd\
sbknone\cols2\colno1\colw3404\colsr110\colno2\colw5426\colsr160\ql \li1303\sb0\s
l-195\slmult0 \par\pard\ql \li1303\sb49\sl-195\slmult0 \up0 \expndtw0\charscalex
113 \ul0\nosupersub\cf6\f7\fs17 Nobuo Tanaka,\par\pard\ql \li1303\sb55\sl-195\sl
mult0 \up0 \expndtw0\charscalex111 Director for Science,\par\pard\ql \li1303\sb5
6\sl-195\slmult0 \up0 \expndtw0\charscalex113 Technology and Industry,\par\pard\
ql \li1303\sb57\sl-195\slmult0 \up0 \expndtw-2\charscalex100 OECD\par\pard\ql \l
i793\sb0\sl-230\slmult0 \par\pard\ql \li793\sb0\sl-230\slmult0 \par\pard\ql \li7
93\sb0\sl-230\slmult0 \par\pard\ql \li793\sb0\sl-230\slmult0 \par\pard\ql \li793
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laude,\tab \up0 \expndtw0\charscalex110 Fred Gault,\par\pard\ql \li21\sb55\sl-19
5\slmult0 \up0 \expndtw0\charscalex109 Director, Directorate F Chair of NESTI;
\par\pard\qj \li20\ri1141\sb10\sl-250\slmult0\tx1949 \up0 \expndtw0\charscalex11
5 (Social Statistics and
Director, Science, Innovation \up0 \expndtw0\charsca
lex115 Information Society),
and Electronic Information \line \up0 \expndtw0\
charscalex116 Eurostat \tab \up0 \expndtw0\charscalex113 Division, Statistics Ca
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osupersub\cf14\f15\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}

PRETING INNOVATION DATA \par\pard\ql \li3309\sb0\sl-368\slmult0 \par\pard\ql\li3
9\sb0\sl-368\slmult0 \par\pard\ql\li3309\sb316\sl-368\slmult0 \up0 \expndtw0\cha
rscalex67 \ul0\nosupersub\cf15\f16\fs32 Table of Contents \par\pard\li1303\sb0\s
l-195\slmult0\par\pard\li1303\sb158\sl-195\slmult0\fi0\tx7672 \up0 \expndtw0\cha
rscalex117 \ul0\nosupersub\cf17\f18\fs17 Chapter 1.\ul0\nosupersub\cf6\f7\fs17
Objectives and Scope of the Manual . . .\tab \up0 \expndtw0\charscalex117 9\par
\pard\li1303\sb95\sl-195\slmult0\fi85\tx1700\tx7577 \up0 \expndtw0\charscalex117
1.\tab \up0 \expndtw0\charscalex117 Introduction . . .\tab \up0 \expndtw0\char
scalex117 10\par\pard\li1303\sb57\sl-195\slmult0\fi85\tx1700\tx7576 \up0 \expndt
w0\charscalex117 2.\tab \up0 \expndtw0\charscalex117 Factors influencing the sco
pe of the Manual . . .\tab \up0 \expndtw0\charscalex117 14\par\pard\li1303\sb56\
sl-195\slmult0\fi397\tx7576 \up0 \expndtw0\charscalex117 2.1. What is measurabl
e? . . .\tab \up0 \expndtw0\charscalex117 15\par\pard\li1303\sb55\sl-195\slmult0
\fi397\tx7576 \up0 \expndtw0\charscalex117 2.2. What is it of value to measure?
. . .\tab \up0 \expndtw0\charscalex117 15\par\pard\li1303\sb57\sl-195\slmult0\f
i85\tx1700\tx7578 \up0 \expndtw0\charscalex117 3.\tab \up0 \expndtw0\charscalex1
17 Scope of the Manual. . .\tab \up0 \expndtw0\charscalex117 16\par\pard\li1303\
sb56\sl-195\slmult0\fi397\tx7577 \up0 \expndtw0\charscalex117 3.1. Sector cover
age . . .\tab \up0 \expndtw0\charscalex117 16\par\pard\li1303\sb55\sl-195\slmul
t0\fi397\tx7576 \up0 \expndtw0\charscalex117 3.2. Innovation at the level of th
e firm . . .\tab \up0 \expndtw0\charscalex117 16\par\pard\li1303\sb57\sl-195\sl
mult0\fi397\tx7578 \up0 \expndtw0\charscalex117 3.3. Types of innovations . . .
\tab \up0 \expndtw0\charscalex117 16\par\pard\li1303\sb56\sl-195\slmult0\fi397\t
x7576 \up0 \expndtw0\charscalex117 3.4. Diffusion and the degree of novelty . .
.\tab \up0 \expndtw0\charscalex117 17\par\pard\li1303\sb55\sl-195\slmult0\fi85\
tx1700\tx7575 \up0 \expndtw0\charscalex117 4.\tab \up0 \expndtw0\charscalex117 P
roviding data on the key issues . . .\tab \up0 \expndtw0\charscalex117 18\par\pa
rd\li1303\sb57\sl-195\slmult0\fi397\tx7575 \up0 \expndtw0\charscalex117 4.1. In
novation activities and expenditures . . .\tab \up0 \expndtw0\charscalex117 18\p
ar\pard\li1303\sb56\sl-195\slmult0\fi397\tx7577 \up0 \expndtw0\charscalex117 4.2
. Factors influencing innovation . . .\tab \up0 \expndtw0\charscalex117 19\par\
pard\li1303\sb57\sl-195\slmult0\fi397\tx7577 \up0 \expndtw0\charscalex117 4.3.
The innovating firm and the impact of innovation . . .\tab \up0 \expndtw0\charsc
alex117 19\par\pard\li1303\sb55\sl-195\slmult0\fi397\tx7576 \up0 \expndtw0\chars
calex117 4.4. Linkages in the innovation process. . .\tab \up0 \expndtw0\charsc
alex117 20\par\pard\li1303\sb56\sl-195\slmult0\fi85\tx1700\tx7577 \up0 \expndtw0
\charscalex117 5.\tab \up0 \expndtw0\charscalex117 Some survey issues . . .\tab
\up0 \expndtw0\charscalex117 20\par\pard\li1303\sb57\sl-195\slmult0\fi397\tx7575
\up0 \expndtw0\charscalex117 5.1. Approach to data collection . . .\tab \up0 \
expndtw0\charscalex117 20\par\pard\li1303\sb55\sl-195\slmult0\fi85\tx1700 \up0 \
expndtw0\charscalex117 6.\tab \up0 \expndtw0\charscalex117 The relationship betw
een the\ul0\nosupersub\cf17\f18\fs17 Oslo Manual\ul0\nosupersub\cf6\f7\fs17 an
d other international\par\pard\li1303\sb56\sl-195\slmult0\fi397\tx7576 \up0 \exp
ndtw0\charscalex117 standards and related concepts . . .\tab \up0 \expndtw0\char
scalex117 22\par\pard\li1303\sb57\sl-195\slmult0\fi397 \up0 \expndtw0\charscalex
117 6.1. Manuals for the measurement of science and technology\par\pard\li1303\
sb55\sl-195\slmult0\fi794\tx7577 \up0 \expndtw0\charscalex117 activities . . .\
tab \up0 \expndtw0\charscalex117 22\par\pard\li1303\sb56\sl-195\slmult0\fi397\tx
7576 \up0 \expndtw0\charscalex117 6.2. Other standards and classifications . .
tx7576 \up0 \expndtw0\charscalex117 6.3. Other related concepts and surveys . .
tx1700\tx7578 \up0 \expndtw0\charscalex117 7.\tab \up0 \expndtw0\charscalex117 F
inal remark . . .\tab \up0 \expndtw0\charscalex117 25\par\pard\li1303\sb116\sl-1
95\slmult0\fi397\tx7577 \up0 \expndtw0\charscalex117 Notes . . .\tab \up0 \expn
dtw0\charscalex117 25\par\pard\li1303\sb0\sl-195\slmult0\par\pard\li1303\sb42\sl
-195\slmult0\fi0\tx7577 \up0 \expndtw0\charscalex117 \ul0\nosupersub\cf17\f18\fs

17 Chapter 2.\ul0\nosupersub\cf6\f7\fs17 Innovation Theory and Measurement Nee
ds . . .\tab \up0 \expndtw0\charscalex117 27\par\pard\li1303\sb95\sl-195\slmult0
\fi85\tx7577 \up0 \expndtw0\charscalex117 1. Introduction . . .\tab \up0 \exp
ndtw0\charscalex117 28\par\pard\li1303\sb57\sl-195\slmult0\fi85\tx7575 \up0 \exp
ndtw0\charscalex117 2. Economics of innovation . . .\tab \up0 \expndtw0\charsc
alex117 28\par\pard\li1303\sb55\sl-195\slmult0\fi85\tx7577 \up0 \expndtw0\charsc
alex117 3. A measurement framework . . .\tab \up0 \expndtw0\charscalex117 33\p
ar\pard\li1303\sb56\sl-195\slmult0\fi85\tx7576 \up0 \expndtw0\charscalex117 4.
Sectoral and regional aspects of innovation . . .\tab \up0 \expndtw0\charscale
x117 37\par\pard\li1303\sb57\sl-195\slmult0\fi397\tx7577 \up0 \expndtw0\charscal
ex117 4.1. Innovation in services . . .\tab \up0 \expndtw0\charscalex117 38\par
\pard\li1303\sb55\sl-195\slmult0\fi397\tx7579 \up0 \expndtw0\charscalex117 4.2.
Innovation in low- and medium-technology industries . . .\tab \up0 \expndtw0\ch
arscalex117 38\par\pard\li1303\sb56\sl-195\slmult0\fi397\tx7576 \up0 \expndtw0\c
harscalex117 4.3. Innovation in small and medium-sized enterprises . . .\tab \
up0 \expndtw0\charscalex117 39\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\
sb0\sl-218\slmult0\par\pard\li824\sb129\sl-218\slmult0\fi0\tx8158 \up0 \expndtw0
\charscalex105 \ul0\nosupersub\cf14\f15\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN
COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf4\f5\fs20 5
}
TING INNOVATION DATA \par\pard\li1303\sb0\sl-195\slmult0\par\pard\li1303\sb0\sl195\slmult0\par\pard\li1303\sb98\sl-195\slmult0\fi397\tx7577 \up0 \expndtw0\char
scalex117 \ul0\nosupersub\cf6\f7\fs17 4.4. Regional innovation. . .\tab \up0 \e
xpndtw0\charscalex117 39\par\pard\li1303\sb56\sl-195\slmult0\fi397\tx7576 \up0 \
expndtw0\charscalex117 4.5. Globalisation . . .\tab \up0 \expndtw0\charscalex11
7 39\par\pard\li1303\sb57\sl-195\slmult0\fi85\tx7576 \up0 \expndtw0\charscalex11
7 5. Areas for investigation . . .\tab \up0 \expndtw0\charscalex117 40\par\pa
rd\li1303\sb55\sl-195\slmult0\fi397\tx7577 \up0 \expndtw0\charscalex117 5.1. Wh
at can be measured? . . .\tab \up0 \expndtw0\charscalex117 40\par\pard\li1303\sb
56\sl-195\slmult0\fi397\tx7575 \up0 \expndtw0\charscalex117 5.2. Inputs to inno
vation . . .\tab \up0 \expndtw0\charscalex117 41\par\pard\li1303\sb57\sl-195\slm
ult0\fi397\tx7576 \up0 \expndtw0\charscalex117 5.3. Linkages and the role of di
ffusion . . .\tab \up0 \expndtw0\charscalex117 41\par\pard\li1303\sb55\sl-195\sl
mult0\fi397\tx7577 \up0 \expndtw0\charscalex117 5.4. The impact of innovation .
. .\tab \up0 \expndtw0\charscalex117 42\par\pard\li1303\sb56\sl-195\slmult0\fi3
97\tx7576 \up0 \expndtw0\charscalex117 5.5. Incentives and obstacles to innovat
ion . . .\tab \up0 \expndtw0\charscalex117 42\par\pard\li1303\sb57\sl-195\slmult
0\fi397\tx7577 \up0 \expndtw0\charscalex117 5.6. Demand . . .\tab \up0 \expndtw
0\charscalex117 43\par\pard\li1303\sb55\sl-195\slmult0\fi397\tx7577 \up0 \expndt
w0\charscalex117 5.7. Other . . .\tab \up0 \expndtw0\charscalex117 43\par\pard
\li1303\sb0\sl-195\slmult0\par\pard\li1303\sb1\sl-195\slmult0\fi0\tx7577 \up0 \e
xpndtw0\charscalex117 \ul0\nosupersub\cf17\f18\fs17 Chapter 3.\ul0\nosupersub\cf
6\f7\fs17 Basic Definitions . . .\tab \up0 \expndtw0\charscalex117 45\par\pard
\li1303\sb97\sl-195\slmult0\fi85\tx1700\tx7577 \up0 \expndtw0\charscalex117 1.\t
ab \up0 \expndtw0\charscalex117 Introduction . . .\tab \up0 \expndtw0\charscale
x117 46\par\pard\li1303\sb55\sl-195\slmult0\fi85\tx1700\tx7578 \up0 \expndtw0\ch

arscalex117 2.\tab \up0 \expndtw0\charscalex117 Innovation . . .\tab \up0 \expnd
tw0\charscalex117 46\par\pard\li1303\sb56\sl-195\slmult0\fi85\tx1700\tx7577 \up0
\expndtw0\charscalex117 3.\tab \up0 \expndtw0\charscalex117 Main type of innova
tion . . .\tab \up0 \expndtw0\charscalex117 47\par\pard\li1303\sb57\sl-195\slmu
lt0\fi85\tx1700\tx7576 \up0 \expndtw0\charscalex117 4.\tab \up0 \expndtw0\charsc
alex117 Distinguishing between types of innovations . . .\tab \up0 \expndtw0\cha
rscalex117 53\par\pard\li1303\sb55\sl-195\slmult0\fi397\tx7578 \up0 \expndtw0\ch
arscalex117 4.1. Distinguishing between product and process innovations . . .\t
ab \up0 \expndtw0\charscalex117 53\par\pard\li1303\sb56\sl-195\slmult0\fi397 \up
0 \expndtw0\charscalex117 4.2. Distinguishing between product innovations and m
arketing\par\pard\li1303\sb57\sl-195\slmult0\fi794\tx7577 \up0 \expndtw0\charsca
lex117 innovations . . .\tab \up0 \expndtw0\charscalex117 54\par\pard\li1303\sb5
5\sl-195\slmult0\fi397 \up0 \expndtw0\charscalex117 4.3. Distinguishing between
service (product) innovations and\par\pard\li1303\sb56\sl-195\slmult0\fi794\tx7
576 \up0 \expndtw0\charscalex117 marketing innovations . . .\tab \up0 \expndtw0\
charscalex117 54\par\pard\li1303\sb57\sl-195\slmult0\fi397\tx7578 \up0 \expndtw0
\charscalex117 4.4. Distinguishing between process and marketing innovations .
tx7577 \up0 \expndtw0\charscalex117 4.5. Distinguishing between process and org
anisational innovations\tab \up0 \expndtw0\charscalex117 55\par\pard\li1303\sb56
\sl-195\slmult0\fi397 \up0 \expndtw0\charscalex117 4.6. Distinguishing between
marketing and organisational\par\pard\li1303\sb57\sl-195\slmult0\fi794\tx7577 \u
p0 \expndtw0\charscalex117 innovations . . .\tab \up0 \expndtw0\charscalex117 56
\par\pard\li1303\sb55\sl-195\slmult0\fi85\tx1700\tx7576 \up0 \expndtw0\charscale
x117 5.\tab \up0 \expndtw0\charscalex117 Changes which are not considered innova
tions . . .\tab \up0 \expndtw0\charscalex117 56\par\pard\li1303\sb56\sl-195\slmu
lt0\fi397 \up0 \expndtw0\charscalex117 5.1. Ceasing to use a process, a marketi
ng method or an organisation\par\pard\li1303\sb57\sl-195\slmult0\fi794\tx7575 \u
p0 \expndtw0\charscalex117 method, or to market a product. . .\tab \up0 \expndtw
0\charscalex117 56\par\pard\li1303\sb55\sl-195\slmult0\fi397\tx7575 \up0 \expndt
w0\charscalex117 5.2. Simple capital replacement or extension. . .\tab \up0 \ex
pndtw0\charscalex117 56\par\pard\li1303\sb56\sl-195\slmult0\fi397\tx7577 \up0 \e
xpndtw0\charscalex117 5.3. Changes resulting purely from changes in factor pric
es . . .\tab \up0 \expndtw0\charscalex117 56\par\pard\li1303\sb57\sl-195\slmult0
\fi397\tx7576 \up0 \expndtw0\charscalex117 5.4. Customisation . . .\tab \up0 \
expndtw0\charscalex117 56\par\pard\li1303\sb55\sl-195\slmult0\fi397\tx7577 \up0
\expndtw0\charscalex117 5.5. Regular seasonal and other cyclical changes . . .
x7576 \up0 \expndtw0\charscalex117 5.6. Trading of new or significantly improve
d products . . .\tab \up0 \expndtw0\charscalex117 57\par\pard\li1303\sb57\sl-195
\slmult0\fi85\tx1700\tx7578 \up0 \expndtw0\charscalex117 6.\tab \up0 \expndtw0\c
harscalex117 Novelty and diffusion . . .\tab \up0 \expndtw0\charscalex117 57\pa
r\pard\li1303\sb55\sl-195\slmult0\fi85\tx1700\tx7577 \up0 \expndtw0\charscalex11
7 7.\tab \up0 \expndtw0\charscalex117 The innovative firm . . .\tab \up0 \expndt
w0\charscalex117 58\par\pard\li1303\sb56\sl-195\slmult0\fi85\tx1700\tx7575 \up0
\expndtw0\charscalex117 8.\tab \up0 \expndtw0\charscalex117 Collecting data on i
nnovations . . .\tab \up0 \expndtw0\charscalex117 59\par\pard\li1303\sb117\sl-1
dtw0\charscalex117 61\par\pard\li1303\sb0\sl-195\slmult0\par\pard\li1303\sb1\sl195\slmult0\fi0\tx7577 \up0 \expndtw0\charscalex117 \ul0\nosupersub\cf17\f18\fs1
7 Chapter 4.\ul0\nosupersub\cf6\f7\fs17 Institutional Classifications . . .\ta
b \up0 \expndtw0\charscalex117 63\par\pard\li1303\sb95\sl-195\slmult0\fi85\tx757
7 \up0 \expndtw0\charscalex117 1. The approach . . .\tab \up0 \expndtw0\chars
calex117 64\par\pard\li1303\sb57\sl-195\slmult0\fi85\tx7577 \up0 \expndtw0\chars
calex117 2. The units . . .\tab \up0 \expndtw0\charscalex117 64\par\pard\li130
3\sb55\sl-195\slmult0\fi397\tx7577 \up0 \expndtw0\charscalex117 2.1. The primar
y statistical unit . . .\tab \up0 \expndtw0\charscalex117 65\par\pard\li1303\sb5
6\sl-195\slmult0\fi397\tx7576 \up0 \expndtw0\charscalex117 2.2. The secondary s
tatistical unit . . .\tab \up0 \expndtw0\charscalex117 68\par\pard\li793\sb0\sl-
230\slmult0\par\pard\li793\sb170\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charsc

alex105 \ul0\nosupersub\cf4\f5\fs20 6\tab \up0 \expndtw0\charscalex105 \ul0\nosu
persub\cf14\f15\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
PRETING INNOVATION DATA \par\pard\li1303\sb0\sl-195\slmult0\par\pard\li1303\sb0\
sl-195\slmult0\par\pard\li1303\sb98\sl-195\slmult0\fi85\tx7575 \up0 \expndtw0\ch
arscalex116 \ul0\nosupersub\cf6\f7\fs17 3. Classification by main economic act
ivity . . .\tab \up0 \expndtw0\charscalex116 68\par\pard\li1303\sb56\sl-195\slmu
lt0\fi85\tx7576 \up0 \expndtw0\charscalex116 4. Classifications by size . . .\
tab \up0 \expndtw0\charscalex116 71\par\pard\li1303\sb57\sl-195\slmult0\fi85\tx7
577 \up0 \expndtw0\charscalex116 5. Other classifications . . .\tab \up0 \exp
ndtw0\charscalex116 72\par\pard\li1303\sb55\sl-195\slmult0\fi397\tx7578 \up0 \ex
pndtw0\charscalex116 5.1. Type of institution . . .\tab \up0 \expndtw0\charscal
ex116 72\par\pard\li1303\sb56\sl-195\slmult0\fi397\tx7577 \up0 \expndtw0\charsca
lex116 5.2. Other . . .\tab \up0 \expndtw0\charscalex116 72\par\pard\li1303\sb
117\sl-195\slmult0\fi397\tx7576 \up0 \expndtw0\charscalex116 Notes . . .\tab \u
p0 \expndtw0\charscalex116 73\par\pard\li1303\sb0\sl-195\slmult0\par\pard\li1303
\sb40\sl-195\slmult0\fi0\tx7577 \up0 \expndtw0\charscalex116 \ul0\nosupersub\cf1
7\f18\fs17 Chapter 5.\ul0\nosupersub\cf6\f7\fs17 Linkages in the Innovation Pr
ocess . . .\tab \up0 \expndtw0\charscalex116 75\par\pard\li1303\sb97\sl-195\slm
ult0\fi85\tx7577 \up0 \expndtw0\charscalex116 1. Introduction . . .\tab \up0
\expndtw0\charscalex116 76\par\pard\li1303\sb55\sl-195\slmult0\fi85\tx7577 \up0
\expndtw0\charscalex116 2. Inbound diffusion . . .\tab \up0 \expndtw0\charscal
ex116 78\par\pard\li1303\sb56\sl-195\slmult0\fi397\tx7576 \up0 \expndtw0\charsca
lex116 2.1. Types of linkages . . .\tab \up0 \expndtw0\charscalex116 78\par\par
d\li1303\sb57\sl-195\slmult0\fi397\tx7576 \up0 \expndtw0\charscalex116 2.2. Col
lecting data on linkages in the innovation process . . .\tab \up0 \expndtw0\cha
rscalex116 82\par\pard\li1303\sb55\sl-195\slmult0\fi397\tx7577 \up0 \expndtw0\ch
arscalex116 2.3. Other linkage indicators . . .\tab \up0 \expndtw0\charscalex11
6 3. Outbound diffusion . . .\tab \up0 \expndtw0\charscalex116 86\par\pard\li1
303\sb57\sl-195\slmult0\fi85\tx7577 \up0 \expndtw0\charscalex116 4. Knowledge
management . . .\tab \up0 \expndtw0\charscalex116 87\par\pard\li1303\sb115\sl-1
dtw0\charscalex116 88\par\pard\li1303\sb0\sl-195\slmult0\par\pard\li1303\sb41\sl
17 Chapter 6.\ul0\nosupersub\cf6\f7\fs17 Measuring Innovation Activities . . .
\tab \up0 \expndtw0\charscalex116 89\par\pard\li1303\sb96\sl-195\slmult0\fi85\tx
7577 \up0 \expndtw0\charscalex116 1. Introduction . . .\tab \up0 \expndtw0\ch
arscalex116 90\par\pard\li1303\sb56\sl-195\slmult0\fi85\tx7576 \up0 \expndtw0\ch
arscalex116 2. The components and coverage of innovation activities. . .\tab \
up0 \expndtw0\charscalex116 91\par\pard\li1303\sb57\sl-195\slmult0\fi397\tx7577
\up0 \expndtw0\charscalex116 2.1. Research and experimental development . . .\t
ab \up0 \expndtw0\charscalex116 92\par\pard\li1303\sb55\sl-195\slmult0\fi397\tx7
577 \up0 \expndtw0\charscalex116 2.2. Activities for product and process innova
tions. . .\tab \up0 \expndtw0\charscalex116 93\par\pard\li1303\sb56\sl-195\slmul
t0\fi397\tx7577 \up0 \expndtw0\charscalex116 2.3. Activities for marketing and

organisational innovations . . .\tab \up0 \expndtw0\charscalex116 95\par\pard\l
i1303\sb57\sl-195\slmult0\fi397\tx7577 \up0 \expndtw0\charscalex116 2.4. Design
. . .\tab \up0 \expndtw0\charscalex116 96\par\pard\li1303\sb55\sl-195\slmult0\
fi397\tx7577 \up0 \expndtw0\charscalex116 2.5. The borderline between R&D and n
on-R&D innovation activities\tab \up0 \expndtw0\charscalex116 96\par\pard\li1303
\sb56\sl-195\slmult0\fi397\tx7578 \up0 \expndtw0\charscalex116 2.6. The develop
ment and use of software in innovation activities\tab \up0 \expndtw0\charscalex1
16 3. Collecting data on innovation activities . . .\tab \up0 \expndtw0\charsc
alex116 97\par\pard\li1303\sb55\sl-195\slmult0\fi397\tx7577 \up0 \expndtw0\chars
calex116 3.1. Qualitative data on innovation activity . . .\tab \up0 \expndtw0\
charscalex116 99\par\pard\li1303\sb56\sl-195\slmult0\fi397\tx7482 \up0 \expndtw0
\charscalex116 3.2. Quantitative data on innovation activity . . .\tab \up0 \ex
pndtw0\charscalex116 100\par\pard\li1303\sb57\sl-195\slmult0\fi397\tx7482 \up0 \
expndtw0\charscalex116 3.3. Other measurement issues . . .\tab \up0 \expndtw0\
charscalex116 101\par\pard\li1303\sb55\sl-195\slmult0\fi397\tx7480 \up0 \expndtw
0\charscalex116 3.4. Breakdown by type of expenditure . . .\tab \up0 \expndtw0\
charscalex116 101\par\pard\li1303\sb56\sl-195\slmult0\fi397\tx7479 \up0 \expndtw
0\charscalex116 3.5. Breakdown by source of funds. . .\tab \up0 \expndtw0\chars
calex116 102\par\pard\li1303\sb57\sl-195\slmult0\fi397\tx7481 \up0 \expndtw0\cha
rscalex116 3.6. The subject approach \ul0\nosupersub\cf17\f18\fs17 versus\ul0\n
osupersub\cf6\f7\fs17 the object approach . . .\tab \up0 \expndtw0\charscalex1
16 103\par\pard\li1303\sb115\sl-195\slmult0\fi397\tx7483 \up0 \expndtw0\charscal
ex116 Notes . . .\tab \up0 \expndtw0\charscalex116 104\par\pard\li1303\sb0\sl-1
95\slmult0\par\pard\li1303\sb41\sl-195\slmult0\fi0\tx7483 \up0 \expndtw0\charsca
lex116 \ul0\nosupersub\cf17\f18\fs17 Chapter 7.\ul0\nosupersub\cf6\f7\fs17 Obj
ectives, Obstacles and Outcomes of Innovation . . .\tab \up0 \expndtw0\charscale
ex116 1. Introduction . . .\tab \up0 \expndtw0\charscalex116 106\par\pard\li1
303\sb56\sl-195\slmult0\fi85\tx7481 \up0 \expndtw0\charscalex116 2. Objectives
and effects of innovations . . .\tab \up0 \expndtw0\charscalex116 106\par\pard\
li1303\sb57\sl-195\slmult0\fi85\tx7482 \up0 \expndtw0\charscalex116 3. Other m
easures of impacts on enterprise performance . . .\tab \up0 \expndtw0\charscale
x116 109\par\pard\li1303\sb55\sl-195\slmult0\fi397\tx7482 \up0 \expndtw0\charsca
lex116 3.1. Impact on turnover . . .\tab \up0 \expndtw0\charscalex116 109\par\p
ard\li1303\sb56\sl-195\slmult0\fi397\tx7482 \up0 \expndtw0\charscalex116 3.2. T
he impact of process innovations on costs and employment\tab \up0 \expndtw0\char
scalex116 111\par\pard\li1303\sb57\sl-195\slmult0\fi397\tx7481 \up0 \expndtw0\ch
arscalex116 3.3. The impact of innovation on productivity . . .\tab \up0 \expnd
tw0\charscalex116 111\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-21
8\slmult0\par\pard\li824\sb129\sl-218\slmult0\fi0\tx8158 \up0 \expndtw0\charscal
ex105 \ul0\nosupersub\cf14\f15\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITI
ES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf4\f5\fs20 7
}
TING INNOVATION DATA \par\pard\li1303\sb0\sl-195\slmult0\par\pard\li1303\sb0\sl-
195\slmult0\par\pard\li1303\sb98\sl-195\slmult0\fi85\tx7481 \up0 \expndtw0\chars

calex116 \ul0\nosupersub\cf6\f7\fs17 4. Factors hampering innovation activitie
s . . .\tab \up0 \expndtw0\charscalex116 112\par\pard\li1303\sb56\sl-195\slmult
0\fi85\tx7481 \up0 \expndtw0\charscalex116 5. Questions on the appropriability
of innovations. . .\tab \up0 \expndtw0\charscalex116 114\par\pard\li1303\sb0\sl
-195\slmult0\par\pard\li1303\sb42\sl-195\slmult0\fi0\tx7482 \up0 \expndtw0\chars
calex116 \ul0\nosupersub\cf17\f18\fs17 Chapter 8.\ul0\nosupersub\cf6\f7\fs17 S
urvey Procedures . . .\tab \up0 \expndtw0\charscalex116 117\par\pard\li1303\sb95
\sl-195\slmult0\fi85\tx7482 \up0 \expndtw0\charscalex116 1. Introduction . .
tx7482 \up0 \expndtw0\charscalex116 2. Populations . . .\tab \up0 \expndtw0\ch
arscalex116 118\par\pard\li1303\sb55\sl-195\slmult0\fi397\tx7482 \up0 \expndtw0\
charscalex116 2.1. The target population . . .\tab \up0 \expndtw0\charscalex116
118\par\pard\li1303\sb56\sl-195\slmult0\fi397\tx7482 \up0 \expndtw0\charscalex1
16 2.2. The frame population . . .\tab \up0 \expndtw0\charscalex116 119\par\par
d\li1303\sb57\sl-195\slmult0\fi85\tx7482 \up0 \expndtw0\charscalex116 3. Surve
y methods . . .\tab \up0 \expndtw0\charscalex116 119\par\pard\li1303\sb55\sl-195
\slmult0\fi397\tx7481 \up0 \expndtw0\charscalex116 3.1. Mandatory or voluntary
survey . . .\tab \up0 \expndtw0\charscalex116 119\par\pard\li1303\sb56\sl-195\sl
mult0\fi397\tx7481 \up0 \expndtw0\charscalex116 3.2. Census or sample survey .
. .\tab \up0 \expndtw0\charscalex116 120\par\pard\li1303\sb57\sl-195\slmult0\fi3
97\tx7482 \up0 \expndtw0\charscalex116 3.3. Domains . . .\tab \up0 \expndtw0\c
harscalex116 120\par\pard\li1303\sb55\sl-195\slmult0\fi397\tx7480 \up0 \expndtw0
\charscalex116 3.4. Sampling techniques . . .\tab \up0 \expndtw0\charscalex116
121\par\pard\li1303\sb56\sl-195\slmult0\fi397\tx7483 \up0 \expndtw0\charscalex11
6 3.5. Panel data surveys . . .\tab \up0 \expndtw0\charscalex116 122\par\pard\l
i1303\sb57\sl-195\slmult0\fi397\tx7481 \up0 \expndtw0\charscalex116 3.6. Survey
methods and suitable respondents . . .\tab \up0 \expndtw0\charscalex116 122\par
\pard\li1303\sb55\sl-195\slmult0\fi397\tx7482 \up0 \expndtw0\charscalex116 3.7.
The questionnaire . . .\tab \up0 \expndtw0\charscalex116 123\par\pard\li1303\sb
56\sl-195\slmult0\fi397\tx7482 \up0 \expndtw0\charscalex116 3.8. Innovation and
R&D surveys . . .\tab \up0 \expndtw0\charscalex116 125\par\pard\li1303\sb57\sl195\slmult0\fi85\tx7482 \up0 \expndtw0\charscalex116 4. Estimation of results
. . .\tab \up0 \expndtw0\charscalex116 126\par\pard\li1303\sb55\sl-195\slmult0\f
i397\tx7482 \up0 \expndtw0\charscalex116 4.1. Weighting methods . . .\tab \up0
\expndtw0\charscalex116 126\par\pard\li1303\sb56\sl-195\slmult0\fi397\tx7482 \up
0 \expndtw0\charscalex116 4.2. Non-response . . .\tab \up0 \expndtw0\charscalex
116 126\par\pard\li1303\sb57\sl-195\slmult0\fi85\tx7482 \up0 \expndtw0\charscale
x116 5. Presentation of results. . .\tab \up0 \expndtw0\charscalex116 128\par\
pard\li1303\sb55\sl-195\slmult0\fi85\tx7482 \up0 \expndtw0\charscalex116 6. Fr
equency of data collection. . .\tab \up0 \expndtw0\charscalex116 129\par\pard\li
1303\sb116\sl-195\slmult0\fi397\tx7483 \up0 \expndtw0\charscalex116 Notes . . .
x7484 \up0 \expndtw0\charscalex116 References . . .\tab \up0 \expndtw0\charscale
ex116 \ul0\nosupersub\cf17\f18\fs17 Annex A.\ul0\nosupersub\cf6\f7\fs17 Innovat
ion Surveys in Developing Countries . . .\tab \up0 \expndtw0\charscalex116 135\p
ar\pard\li1303\sb176\sl-195\slmult0\fi0\tx7482 \up0 \expndtw0\charscalex116 \ul0
\nosupersub\cf17\f18\fs17 Annex B.\ul0\nosupersub\cf6\f7\fs17 Examples of Inno
vations . . .\tab \up0 \expndtw0\charscalex116 149\par\pard\li1303\sb177\sl-195\
slmult0\fi0 \up0 \expndtw0\charscalex116 List of boxes\par\pard\li1303\sb55\sl-1
95\slmult0\fi0\tx1700\tx7578 \up0 \expndtw0\charscalex116 1.1\tab \up0 \expndtw0
\charscalex116 Structure of the Manual . . .\tab \up0 \expndtw0\charscalex116 1
4\par\pard\li1303\sb56\sl-195\slmult0\fi0\tx1699 \up0 \expndtw0\charscalex116 1.
2\tab \up0 \expndtw0\charscalex116 Manuals and other guidelines for the measurem
ent of scientific\par\pard\li1303\sb57\sl-195\slmult0\fi397\tx7577 \up0 \expndtw
0\charscalex116 and technological activities . . .\tab \up0 \expndtw0\charscale
x116 23\par\pard\li1303\sb55\sl-195\slmult0\fi0\tx1699\tx7482 \up0 \expndtw0\cha
rscalex104 A.1\tab \up0 \expndtw0\charscalex116 \u8220?Front office\u8221? \ul0\
nosupersub\cf17\f18\fs17 vs.\ul0\nosupersub\cf6\f7\fs17 \u8220?back-office\u822
1? . . .\tab \up0 \expndtw0\charscalex116 143\par\pard\li1303\sb176\sl-195\slmul

t0\fi0 \up0 \expndtw0\charscalex116 List of figures\par\pard\li1303\sb57\sl-195\
slmult0\fi0\tx1700\tx7575 \up0 \expndtw0\charscalex116 2.1\tab \up0 \expndtw0\ch
arscalex116 The innovation measurement framework . . .\tab \up0 \expndtw0\charsc
alex116 34\par\pard\li1303\sb175\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex116
List of tables\par\pard\li1303\sb56\sl-195\slmult0\fi0\tx1699 \up0 \expndtw0\ch
arscalex116 4.1\tab \up0 \expndtw0\charscalex117 Industrial classification propo
sed for innovation surveys in the business\par\pard\li1303\sb57\sl-195\slmult0\f
i397\tx7576 \up0 \expndtw0\charscalex116 enterprise sector based on ISIC Rev. 3.
1 and NACE Rev. 1.1 . . .\tab \up0 \expndtw0\charscalex116 69\par\pard\li1303\s
b55\sl-195\slmult0\fi0\tx1700\tx7576 \up0 \expndtw0\charscalex116 5.1\tab \up0 \
expndtw0\charscalex116 Sources for transfers of knowledge and technology . . .\t
ab \up0 \expndtw0\charscalex116 81\par\pard\li1303\sb56\sl-195\slmult0\fi0\tx170
0\tx7482 \up0 \expndtw0\charscalex116 7.1\tab \up0 \expndtw0\charscalex116 Facto
rs relating to the objectives and effects of innovation . . .\tab \up0 \expndtw0
\charscalex116 108\par\pard\li1303\sb57\sl-195\slmult0\fi0\tx1700\tx7480 \up0 \e
xpndtw0\charscalex116 7.2\tab \up0 \expndtw0\charscalex116 Factors hampering inn
ovation activities . . .\tab \up0 \expndtw0\charscalex116 113\par\pard\li793\sb
0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb109\sl-230\s
lmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf4\f5\fs20 8\tab
\up0 \expndtw0\charscalex105 \ul0\nosupersub\cf14\f15\fs11 ISBN 92-64-01308-3 OECD/EUROPEAN COMMUNITIES 2005
}
sl-138\slmult0 \par\pard\ql\li1360\sb0\sl-138\slmult0 \par\pard\ql\li1360\sb32\s
l-138\slmult0 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf11\f12\fs12 ISBN 92
-64-01308-3 \par\pard\qj \li1360\ri4375\sb8\sl-180\slmult0 \up0 \expndtw0\charsc
alex117 Oslo Manual: Guidelines for Collecting and Interpreting \up0 \expndtw0\c
harscalex118 Innovation Data \par\pard\ql \li1360\sb35\sl-138\slmult0 \up0 \expn
dtw0\charscalex113 OECD/European Communities 2005 \par\pard\ql \li3832\sb0\sl-36
8\slmult0 \par\pard\ql\li3832\sb0\sl-368\slmult0 \par\pard\ql\li3832\sb0\sl-368\
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0\nosupersub\cf20\f21\fs32 Chapter 1 \par\pard\ql \li2029\sb0\sl-322\slmult0 \pa
r\pard\ql\li2029\sb0\sl-322\slmult0 \par\pard\ql\li2029\sb166\sl-322\slmult0 \up
0 \expndtw0\charscalex120 \ul0\nosupersub\cf3\f4\fs28 Objectives and Scope of th
e Manual \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\pa
r\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824
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w0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEA
N COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs2
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sl-161\slmult0 \par\pard\ql\li793\sb65\sl-161\slmult0 \up0 \expndtw0\charscalex1
00 \ul0\nosupersub\cf21\f22\fs14 OSLO MANUAL: GUIDELINES FOR COLLECTING AND INTE
RPRETING INNOVATION DATA \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li7
93\sb0\sl-241\slmult0 \par\pard\ql\li793\sb0\sl-241\slmult0 \par\pard\ql\li793\s
b0\sl-241\slmult0 \par\pard\ql\li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb0\s
l-241\slmult0 \par\pard\ql\li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb146\sl241\slmult0 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf22\f23\fs21 1. Introd
uction \par\pard\qj \li1303\ri1177\sb72\sl-250\slmult0\tx1927 \up0 \expndtw0\cha
rscalex107 \ul0\nosupersub\cf23\f24\fs17 1. \tab \up0 \expndtw0\charscalex120 It
is widely accepted that innovation is central to the growth of output \line\up0
\expndtw0\charscalex122 and productivity. However, while our understanding of i
nnovation activities \line \up0 \expndtw0\charscalex121 and their economic impac
t has greatly increased since the first edition of the \line \up0 \expndtw0\char
scalex123 Manual, it is still deficient. For example, as the world economy evolv
es, so \line \up0 \expndtw0\charscalex120 does the process of innovation. Global
isation has led to dramatic increases in \line \up0 \expndtw0\charscalex131 acce
ss to information and new markets for firms. It has also resulted in \line \up0
\expndtw0\charscalex121 greater international competition and in new organisatio
nal forms in order to \line \up0 \expndtw0\charscalex120 manage global supply ch
ains. Owing to advances in technologies and greater \line \up0 \expndtw0\charsca
lex120 flows of information, knowledge is more and more viewed as a central driv
er \line \up0 \expndtw0\charscalex125 of economic growth and innovation. Yet, we
do not fully understand how \line \up0 \expndtw0\charscalex119 these factors af
fect innovation. \par\pard\qj \li1303\ri1176\sb72\sl-248\slmult0\tx1926 \up0 \ex
pndtw0\charscalex106 2. \tab \up0 \expndtw0\charscalex119 In order to develop po
licies that support innovation appropriately, it is \line\up0 \expndtw0\charscal
ex130 necessary to better understand several critical aspects of the innovation
\line \up0 \expndtw0\charscalex119 process, such as innovation activities other
than R&D, the interactions among \up0 \expndtw0\charscalex124 actors and the rel
evant knowledge flows. Policy development also requires \up0 \expndtw0\charscale
x134 further advances in the analysis of innovation, which in turn requires \up0
\expndtw0\charscalex120 obtaining better information. \par\pard\qj \li1303\ri11
77\sb71\sl-250\slmult0\tx1927 \up0 \expndtw0\charscalex107 3. \tab \up0 \expndtw
0\charscalex120 The first edition of the Manual, issued in 1992, and th
e surveys \line\up0 \expndtw0\charscalex128 undertaken using it, including the
Community Innovation Survey (CIS) \line \up0 \expndtw0\charscalex117 organised
by the EU and comparable surveys in Australia and Canada, showed \up0 \expndtw0\
charscalex128 that it is possible to develop and collect data on the
complex and \up0 \expndtw0\charscalex119 differentiated process of innovation.
\par\pard\qj \li1303\ri1177\sb49\sl-252\slmult0\tx1927 \up0 \expndtw0\charscalex
107 4. \tab \up0 \expndtw0\charscalex124 The second edition, issued in 1997,
updated the framework of \line\up0 \expndtw0\charscalex121 concepts, defini
tions and methodology to incorporate survey experience and \line \up0 \expndtw0\
charscalex119 greater understanding of the innovation process and to cover a wid

er range of \line \up0 \expndtw0\charscalex136 industries. It improved the guide
lines for developing internationally \line \up0 \expndtw0\charscalex127 comparab
le innovation indicators for OECD countries and discussed the \line \up0 \expndt
w0\charscalex119 analytical and policy problems for which the indicators have re
levance. \par\pard\qj \li1303\ri1178\sb50\sl-250\slmult0\tx1926 \up0 \expndtw0\c
harscalex106 5. \tab \up0 \expndtw0\charscalex120 Both the first and second edit
ions used the technological product and \line\up0 \expndtw0\charscalex129 proces
s (TPP) definition of innovation. This reflected a focus on firms\u8217? \line
\up0 \expndtw0\charscalex122 technological development of new products and new p
roduction techniques \up0 \expndtw0\charscalex118 and their diffusion to other f
irms. Discussion of organisational innovation and \up0 \expndtw0\charscalex118 n
on-technological innovation was included in an annex. \par\pard\li793\sb0\sl-230
\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par
\pard\li793\sb177\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\no
supersub\cf19\f20\fs20 10\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\
f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
11}{\bkmkend Pg11}\par\pard\ql \li2241\sb0\sl-161\slmult0 \par\pard\ql\li2241\sb
0\sl-161\slmult0 \par\pard\ql\li2241\sb65\sl-161\slmult0 \up0 \expndtw0\charscal
ex100 \ul0\nosupersub\cf21\f22\fs14 OSLO MANUAL: GUIDELINES FOR COLLECTING AND I
NTERPRETING INNOVATION DATA \par\pard\qj \li1303\sb0\sl-250\slmult0 \par\pard\qj
\li1303\ri1177\sb176\sl-250\slmult0\tx1927 \up0 \expndtw0\charscalex109 \ul0\nos
upersub\cf23\f24\fs17 6. \tab \up0 \expndtw0\charscalex125 Since 1992, the numbe
r of countries conducting innovation surveys \line\up0 \expndtw0\charscalex120 h
as grown dramatically: EU countries, other OECD countries such as Canada, \line
\up0 \expndtw0\charscalex134 Australia, New Zealand and Japan, and a large numbe
r of non-OECD \line \up0 \expndtw0\charscalex122 economies, among them several L
atin American countries, Russia and South \line \up0 \expndtw0\charscalex112 Afr
ica. \par\pard\qj \li1303\ri1177\sb70\sl-250\slmult0\tx1926 \up0 \expndtw0\chars
calex108 7. \tab \up0 \expndtw0\charscalex119 This third edition of the Manual d
raws on the large amount of data and \line\up0 \expndtw0\charscalex132 experienc
e resulting from these surveys. It expands the innovation \line \up0 \ex
pndtw0\charscalex130 measurement framework in three important ways. First, it pl
aces greater \line \up0 \expndtw0\charscalex132 emphasis on the role of linkages
with other firms and institutions in the \line \up0 \expndtw0\charscalex121 inn
ovation process. Second, it recognises the importance of innovation in less \lin
e \up0 \expndtw0\charscalex135 R&D -intensive industries , such as services
and low -technology \line \up0 \expndtw0\charscalex123 manufacturing. This edi
tion modifies certain aspects of the framework (such \line \up0 \expndtw0\charsc
alex130 as definitions and relevant activities) to better accommodate the servic
es \line \up0 \expndtw0\charscalex136 sector. Third, the definition of innovatio
n is expanded to include two \line \up0 \expndtw0\charscalex130 additional types
of innovations, organisational innovation and marketing \line \up0 \expndtw0\ch
arscalex120 innovation. Also new to the Manual is an annex on innovation surveys
in non-\line \up0 \expndtw0\charscalex127 OECD countries and reflects the fact
that a growing number of them now \line \up0 \expndtw0\charscalex121 conduct inn
ovation surveys. \par\pard\qj \li1303\ri1177\sb50\sl-251\slmult0\tx1926 \up0 \ex
pndtw0\charscalex106 8. \tab \up0 \expndtw0\charscalex119 Evaluation of linkag
es is expanded because of the importance of \line\up0 \expndtw0\charscale

x123 knowledge flows among firms and other organisations for the development \li
ne \up0 \expndtw0\charscalex119 and diffusion of innovations. This helps to high
light the role of organisational \line \up0 \expndtw0\charscalex123 structures a
nd practices that promote the sharing and use of knowledge and \line \up0 \expnd
tw0\charscalex130 interaction with other firms and public research institutions.
These also \line \up0 \expndtw0\charscalex131 include the forming of closer rel
ationships with suppliers and ongoing \line \up0 \expndtw0\charscalex122 develop
ment of marketing practices to better reach customers. Linkages are \line \up0 \
expndtw0\charscalex119 now addressed in a separate chapter covering a variety of
interactions ranging \line \up0 \expndtw0\charscalex124 from arm\u8217?s-length
exchanges of information to active involvement in joint \line \up0 \expndtw0\ch
arscalex119 innovation projects. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0
\tx1927 \up0 \expndtw0\charscalex107 9. \tab \up0 \expndtw0\charscalex119 While
the second edition of the Manual covered services, it primarily \line\up0 \expnd
tw0\charscalex130 focused on manufacturing industries. However, innovation in se
rvices-\line \up0 \expndtw0\charscalex133 oriented sectors can differ substa
ntially from innovation in many \line \up0 \expndtw0\charscalex128 manufactu
ring-oriented sectors. It is often less formally organised, more \line \up0 \exp
ndtw0\charscalex138 incremental in nature and less technological. In order to es
tablish a \line \up0 \expndtw0\charscalex129 framework that better accommodates
this broad range of industries, this \line \up0 \expndtw0\charscalex119 edition
modifies a number of definitions, terms and concepts. \par\pard\qj \li1303\ri117
0\charscalex117 To identify the full range of changes that firms make
to improve \line\up0 \expndtw0\charscalex124 performance and their success in i
mproving economic outcomes requires a \line \up0 \expndtw0\charscalex123 broader
framework than technological product and process innovation. The \line \up0 \ex
pndtw0\charscalex133 inclusion of marketing and organisational innovations creat
es a more \line \up0 \expndtw0\charscalex120 complete framework, one that is bet
ter able to capture the changes that affect \line \up0 \expndtw0\charscalex120 f
irm performance and contribute to the accumulation of knowledge. \par\pard\li824
slmult0\par\pard\li824\sb19\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\charscalex1
05 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES
2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 11
}
RPRETING INNOVATION DATA \par\pard\qj \li1303\sb0\sl-250\slmult0 \par\pard\qj\li
1303\ri1177\sb176\sl-250\slmult0\tx1927 \up0 \expndtw0\charscalex107 \ul0\nosupe
rsub\cf23\f24\fs17 11. \tab \up0 \expndtw0\charscalex121 The role of organisatio
nal innovation is emphasised by Lam (2005): \line\up0 \expndtw0\charscalex126 \
u8220?Economists assume that organisational change is a response to technical \l
ine \up0 \expndtw0\charscalex135 change, when in fact organisational innovation
could be a necessary \up0 \expndtw0\charscalex125 precondition for technical inn
ovation.\u8221? Organisational innovations are not \up0 \expndtw0\charscalex124
only a supporting factor for product and process innovations; they can also \up0
\expndtw0\charscalex122 have an important impact on firm performance on their o

wn. Organisational \up0 \expndtw0\charscalex128 innovations can improve the qual
ity and efficiency of work, enhance the \up0 \expndtw0\charscalex121 exchange of
information, and improve firms\u8217? ability to learn and utilise new \up0 \ex
pndtw0\charscalex118 knowledge and technologies. \par\pard\qj \li1303\ri1178\sb7
0\sl-250\slmult0\tx1927 \up0 \expndtw0\charscalex107 12. \tab \up0 \expndtw0\cha
rscalex118 Firms may also allocate large amounts of resources to market research
\line\up0 \expndtw0\charscalex129 and the development of new marketing practice
s, such as targeting new \line \up0 \expndtw0\charscalex118 markets or market se
gments and developing new ways of promoting products. \up0 \expndtw0\charscalex1
30 New marketing practices can play a central role in firms\u8217? performance.
\up0 \expndtw0\charscalex122 Marketing practices are also important for the succ
ess of new products, and \up0 \expndtw0\charscalex131 market research and contac
ts with customers can play a crucial role in \up0 \expndtw0\charscalex130 produc
t and process development through demand-led innovation. The \up0 \expndtw0\char
scalex125 inclusion of organisational and marketing innovation also allows for m
ore \up0 \expndtw0\charscalex121 extensive analysis of the interactions between
different types of innovations, \up0 \expndtw0\charscalex120 in particular the i
mportance of implementing organisational changes in order \up0 \expndtw0\charsca
lex120 to benefit from other types of innovations. \par\pard\qj \li1303\ri1178\s
b50\sl-251\slmult0\tx1926 \up0 \expndtw0\charscalex107 13. \tab \up0 \expndtw0\c
harscalex117 Organisational innovations were discussed in the second edition of
the \line\up0 \expndtw0\charscalex118 Manual, and there is now some practical ex
perience with collection of data on \line \up0 \expndtw0\charscalex129 organisat
ional changes. This experience includes specialised surveys on \line \up0 \expnd
tw0\charscalex114 organisational innovation (Wengel \ul0\nosupersub\cf24\f25\fs1
7 et al.\ul0\nosupersub\cf23\f24\fs17 , 2000)and its inclusion in innovation \li
ne \up0 \expndtw0\charscalex120 surveys (\ul0\nosupersub\cf24\f25\fs17 e .g .\u
l0\nosupersub\cf23\f24\fs17 Australian Innovation Survey 2 0 0 3 ) or quest
ions on \line \up0 \expndtw0\charscalex123 organisational changes (the CIS3 sur
vey, the Japanese National Innovation \line \up0 \expndtw0\charscalex134 Survey
2003, among others). This type of data has also been used in \line \up0 \expndt
w0\charscalex125 empirical analysis, for example of the relationship between org
anisational \line \up0 \expndtw0\charscalex115 innovation, ICT investment and pr
oductivity (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 Bry
njolfsson and Hitt, 2000; \line \up0 \expndtw0\charscalex102 OECD, 2004). \par\p
ard\qj \li1303\ri1176\sb50\sl-250\slmult0\fi0\tx1926 \up0 \expndtw0\charscalex10
7 14. \tab \up0 \expndtw0\charscalex117 Marketing innovations are new to th
e Manual. While there is less \line\up0 \expndtw0\charscalex121 experience
with marketing innovations than with organisational innovations, \line \up0 \exp
ndtw0\charscalex137 questions on marketing changes have been included in a numbe
r of \up0 \expndtw0\charscalex120 innovation surveys,\ul0\super\cf25\f26\fs20 1\
ul0\nosupersub\cf23\f24\fs17 and there has been substantial field testing of ma
rketing \up0 \expndtw0\charscalex120 concepts in a number of countries. \par\par
d\qj \li1303\ri1176\sb72\sl-248\slmult0\tx1927 \up0 \expndtw0\charscalex107 15.
\tab \up0 \expndtw0\charscalex126 To achieve a full picture of innovation activi
ties, it is necessary to \line\up0 \expndtw0\charscalex122 include marketing met
hods in the framework. There are at least two reasons \line \up0 \expndtw0\chars
calex118 for including these as a separate category, as opposed to integrating t
hem with \line \up0 \expndtw0\charscalex125 organisational or process innovation
s. First, marketing innovations can be \line \up0 \expndtw0\charscalex130 import
ant for firm performance and the overall innovation process. \line \up0 \
expndtw0\charscalex120 Identifying marketing innovations allows for the analysis
of their impact and \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-23
0\slmult0\par\pard\li793\sb127\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscal
ex105 \ul0\nosupersub\cf19\f20\fs20 12\tab \up0 \expndtw0\charscalex105 \ul0\nos
upersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005

}
\li1303\ri1177\sb176\sl-250\slmult0 \up0 \expndtw0\charscalex138 \ul0\nosupersub
\cf23\f24\fs17 their interaction with other types of innovations. Second, a defi
ning \line \up0 \expndtw0\charscalex124 characteristic of marketing innovations
is the orientation towards customers \line \up0 \expndtw0\charscalex135 and mark
ets, with a view to improving sales and market share. These \line \up0 \expndtw0
\charscalex127 economic objectives may differ greatly from those of process inno
vations, \line \up0 \expndtw0\charscalex120 which tend to focus on productive qu
ality and efficiency. Grouping marketing \line \up0 \expndtw0\charscalex132 inno
vations with organisational innovations would also be problematic \line \up0 \ex
pndtw0\charscalex125 because some marketing practices do not fit into concepts o
f organisational \line \up0 \expndtw0\charscalex136 changes and because this wou
ld greatly dilute data on organisational \line \up0 \expndtw0\charscalex121 inno
vations, making it difficult to interpret the results. \par\pard\qj \li1303\ri11
80\sb72\sl-248\slmult0\tx1927 \up0 \expndtw0\charscalex110 16. \tab \up0 \expndt
w0\charscalex123 The Manual\u8217?s definitions and concepts have th
erefore been \line\up0 \expndtw0\charscalex129 adapted, based on survey experi
ence in Australia and other countries, to \line \up0 \expndtw0\charscalex128 inc
lude organisational and marketing innovations in innovation surveys. \line \up0
\expndtw0\charscalex128 The definitions of these types of innovations are still
under development \line \up0 \expndtw0\charscalex129 and are less well establish
ed than the definitions of product and process \line \up0 \expndtw0\charscalex12
4 innovation. \par\pard\qj \li1303\ri1176\sb71\sl-250\slmult0\tx1926 \up0 \expnd
tw0\charscalex107 17. \tab \up0 \expndtw0\charscalex122 The goals and scope of i
nnovation surveys can differ in terms of the \line\up0 \expndtw0\charscalex124 a
spects of innovation to be covered and the level of detail. Furthermore, in \lin
e \up0 \expndtw0\charscalex134 expanding coverage from product and process inno
vation to include \up0 \expndtw0\charscalex119 marketing and organisational inno
vation, surveys can take one of a number of \up0 \expndtw0\charscalex127 approac
hes. For example, they can provide equal coverage of all types of \up0 \expndtw0
\charscalex130 innovation and cover marketing and organisational innovation to s
ome \up0 \expndtw0\charscalex125 extent, while still maintaining product and pro
cess innovations as the core \up0 \expndtw0\charscalex130 innovation types, or t
hey can focus exclusively on product and process \up0 \expndtw0\charscalex119 in
novation. The Manual provides guidelines that can be of use for all types of \up
0 \expndtw0\charscalex122 approaches. In addition, one or more types of innovati
ons can be covered in \up0 \expndtw0\charscalex119 greater detail through specia
lised surveys. \par\pard\qj \li1303\ri1176\sb50\sl-250\slmult0\tx1926 \up0 \expn
dtw0\charscalex107 18. \tab \up0 \expndtw0\charscalex119 The addition of organis
ational and marketing innovations, along with \line\up0 \expndtw0\charscalex127
the use of a broad definition of innovation that includes activities to both \li
ne \up0 \expndtw0\charscalex121 develop and adopt innovations, means that an inc
reasing percentage of firms \up0 \expndtw0\charscalex122 is likely to meet the b
asic requirements for being \u8220?innovative\u8221?. Methods are \up0 \expndtw0
\charscalex120 therefore needed for identifying different types of innovative fi
rms, based on \up0 \expndtw0\charscalex122 the types of innovations that they ha
ve implemented and on their innovative \up0 \expndtw0\charscalex134 capabilities
and activities. It is not enough to know whether firms are \up0 \expndtw0\chars
calex120 innovative or not; it is necessary to know how firms innovate and what
types \up0 \expndtw0\charscalex120 of innovations they implement. \par\pard\li13
03\sb124\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex119 19.\tab \up0 \ex
pndtw0\charscalex120 With these points in mind, the aim of the present chapter i
s to give an\par\pard\li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex11
9 overview of the coverage and contents of the Manual (see Box 1.1).\par\pard\li
824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-2
18\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\p
ar\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li82
4\sb140\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\c
f18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expnd
tw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 13
}
RPRETING INNOVATION DATA \par\pard\ql \li2963\sb0\sl-218\slmult0 \par\pard\ql\li
63\sb78\sl-218\slmult0 \up0 \expndtw0\charscalex120 \ul0\nosupersub\cf26\f27\fs1
9 Box 1.1. Structure of the Manual \par\pard\qj \li1529\ri1412\sb84\sl-240\slmul
t0\fi170 \up0 \expndtw0\charscalex119 \ul0\nosupersub\cf10\f11\fs16 The Manual s
tarts with a general discussion of points that are likely to have \up0 \expndtw0
\charscalex119 some effect on the choice of indicators (Chapter 2): \par\pard\ql
\li1530\ri1412\sb60\sl-240\slmult0\tx1735\tx1735 \up0 \expndtw0\charscalex124 \
ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf10\f11\fs16 An
adequa
te
conceptual
understanding
of
the
structure
and \line\tab \up
0 \expndtw0\charscalex130 characteristics of the innovation process and it
s implications for \line \tab \up0 \expndtw0\charscalex117 policymaking. \par\
pard\qj \li1530\ri2342\sb11\sl-300\slmult0\tx1700 \up0 \expndtw0\charscalex119 \
ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf10\f11\fs16 The key unre
solved problems which further data could clarify. \line\tab \up0 \expndtw0\chars
calex120 It continues with a framework for innovation surveys: \par\pard\qj \li1
530\ri1411\sb50\sl-240\slmult0\tx1735 \up0 \expndtw0\charscalex125 \ul0\nosupers
ub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf10\f11\fs16 Basic definitions of inn
ovation, innovation activities and the innovative \line\tab \up0 \expndtw0\chars
calex116 firm (Chapter 3). \par\pard\ql \li1530\sb107\sl-184\slmult0 \up0 \expnd
tw0\charscalex119 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf10\f11\
fs16 Institutional classifications (Chapter 4). \par\pard\qj \li1530\ri1412\sb
70\sl-240\slmult0\fi170 \up0 \expndtw0\charscalex124 After that, suggestions and
recommendations are made as to the types of \up0 \expndtw0\charscalex121 issues
to be covered in national and international innovation surveys: \par\pard\qj \l
i1530\ri1411\sb60\sl-240\slmult0\tx1735 \up0 \expndtw0\charscalex118 \ul0\nosupe
rsub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf10\f11\fs16 Measuring linkages i
n the innovation process; types of knowledge and \line\tab \up0 \expndtw0
\charscalex118 their sources (Chapter 5). \par\pard\qj \li1530\ri2651\sb11\sl-30
0\slmult0\tx1700 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14 \u96
79?\ul0\nosupersub\cf10\f11\fs16 Innovation activities and their measurement (
Chapter 6). \up0 \expndtw0\charscalex119 \ul0\nosupersub\cf27\f28\fs14 \u9679?\u
l0\nosupersub\cf10\f11\fs16 Objectives, barriers and impacts of innovation (Ch
apter 7). \line\tab \up0 \expndtw0\charscalex120 The Manual also contains two an
nexes: \par\pard\qj \li1530\ri2861\sb1\sl-300\slmult0 \up0 \expndtw0\charscalex1
18 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf10\f11\fs16 Innovati
on surveys in developing economies (Annex A). \up0 \expndtw0\charscalex119 \ul0\
nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf10\f11\fs16 A detailed list
of innovation examples (Annex B). \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pa
rd\ql\li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb187\sl-241\slmult0 \up0 \exp
ndtw0\charscalex121 \ul0\nosupersub\cf22\f23\fs21 2. Factors influencing the sco
pe of the Manual \par\pard\qj \li1303\ri1177\sb73\sl-249\slmult0\tx1926 \up0 \ex
pndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 20. \tab \up0 \expndtw0\chars
calex122 The aim of the Manual is to provide guidelines for the collection and \
line\up0 \expndtw0\charscalex122 interpretation of data on innovation. Innovatio
n data can have many uses and \line \up0 \expndtw0\charscalex125 the Manual is d
esigned to accommodate these various uses. One reason for \line \up0 \expndtw0\c
harscalex124 collecting innovation data is to better understand innovation and i
ts relation \line \up0 \expndtw0\charscalex126 to economic growth. This requires
both knowledge of innovation activities \line \up0 \expndtw0\charscalex125 that
have a direct impact on firm performance (for example through greater \line \up
0 \expndtw0\charscalex135 demand or reduced costs), and of the factors that affe
ct their ability to \line \up0 \expndtw0\charscalex121 innovate. Another purpose
is to provide indicators for benchmarking national \line \up0 \expndtw0\charsca
lex125 performance. This both informs policy making and allows for international
\line \up0 \expndtw0\charscalex129 comparison. There is a need to collect new i
ndicators but also a desire to \line \up0 \expndtw0\charscalex133 maintain exist
ing indicators for comparisons over time. The Manual is \line \up0 \expndtw0\cha
rscalex121 designed to achieve a balance between these different needs. \par\par
d\li1303\sb125\sl-195\slmult0\fi0\tx1926 \up0 \expndtw0\charscalex123 21.\tab \u
p0 \expndtw0\charscalex123 How can one decide on the appropriate scope, structur
e, terminology,\par\pard\li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscale
x124 etc., for internationally comparable data collection? The variety of subjec
ts\par\pard\li1303\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex124 covered
by both specialised and general innovation surveys is evidence that\par\pard\li7
93\sb0\sl-230\slmult0\par\pard\li793\sb159\sl-230\slmult0\fi0\tx4899 \dn4 \expnd
tw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 14\tab \up0 \expndtw0\charscalex
2005
}
}}
}

\cf23\f24\fs17 many types of data are potentially available. Obviously, a survey
covering all \up0 \expndtw0\charscalex135 possible topics would be excessively
cumbersome. Priorities must be \up0 \expndtw0\charscalex138 identified, and topi
cs, industries and survey approaches on which to \up0 \expndtw0\charscalex125 co
ncentrate must be chosen. There are two main issues: what is measurable \up0 \ex
pndtw0\charscalex121 and what is it of value to measure? \par\pard\ql \li1303\sb
0\sl-218\slmult0 \par\pard\ql\li1303\sb59\sl-218\slmult0 \up0 \expndtw-8\charsca
lex78 \ul0\nosupersub\cf28\f29\fs19 2.1. What is measurable? \par\pard\qj \li130
3\ri1178\sb78\sl-248\slmult0\tx1926 \up0 \expndtw0\charscalex109 \ul0\nosupersub
\cf23\f24\fs17 22. \tab \up0 \expndtw0\charscalex121 Innovation is a continuous
process. Firms constantly make changes to \line\up0 \expndtw0\charscalex122 prod
ucts and processes and collect new knowledge, and it is more difficult to \line
\up0 \expndtw0\charscalex133 measure a dynamic process than a static activity. W
ith the objective of \up0 \expndtw0\charscalex124 capturing this process, the Ma
nual presents guidelines for collecting data on \up0 \expndtw0\charscalex135 the
general process of innovation (for example, innovation activities, \up0 \expnd
tw0\charscalex123 expenditures and linkages), the implementation of significant
changes in the \up0 \expndtw0\charscalex118 firm (\ul0\nosupersub\cf24\f25\fs17
i.e.\ul0\nosupersub\cf23\f24\fs17 innovations), the factors that influence inno
vation activities, and the \up0 \expndtw0\charscalex118 outcomes of innovation.
\par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb39\sl-218\slmult0
\up0 \expndtw-8\charscalex73 \ul0\nosupersub\cf28\f29\fs19 2.2. What is it of va
lue to measure? \par\pard\qj \li1303\ri1178\sb76\sl-250\slmult0\tx1926 \up0 \exp
ndtw0\charscalex108 \ul0\nosupersub\cf23\f24\fs17 23. \tab \up0 \expndtw0\charsc
alex121 In constructing innovation indicators, the information needs of policy \
line\up0 \expndtw0\charscalex123 makers and analysts are a paramount considerati
on. Chapter 2 reviews these \line \up0 \expndtw0\charscalex127 needs, which are
part of the broad information system that helps to reduce \line \up0 \expndtw0\c
harscalex123 uncertainty in policy making and which have been influenced, since
the first \line \up0 \expndtw0\charscalex120 edition of the Manual, by developme
nts in the economics of innovation. \par\pard\qj \li1303\ri1177\sb70\sl-250\slmu
lt0\tx1926 \up0 \expndtw0\charscalex106 24. \tab \up0 \expndtw0\charscalex121 In
novation policy has developed as an amalgam of science and \line\up0 \e
xpndtw0\charscalex120 technology policy and industrial policy. It takes as a giv
en that knowledge in \line \up0 \expndtw0\charscalex118 all its forms plays a cr
ucial role in economic progress, and that innovation is a \line \up0 \expndtw0\c
harscalex121 complex and systemic phenomenon. Systems approaches to innovation s
hift \line \up0 \expndtw0\charscalex123 the focus of policy towards an emphasis
on the interplay of institutions and \line \up0 \expndtw0\charscalex129 the inte
ractive processes at work in the creation of knowledge and in its \line \up0 \ex
pndtw0\charscalex124 diffusion and application. The term \u8220?national innovat
ion system\u8221? has been \line \up0 \expndtw0\charscalex124 coined to represen
t this set of institutions and these knowledge flows. This \line \up0 \expndtw0\
charscalex127 theoretical perspective influences the choice of questions to incl
ude in an \line \up0 \expndtw0\charscalex130 innovation survey, and the need, fo
r example, of extensive coverage of \line \up0 \expndtw0\charscalex118 linkages
and knowledge sources. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1926 \u
p0 \expndtw0\charscalex107 25. \tab \up0 \expndtw0\charscalex122 Systems appro
aches complement theories that focus on the \line\up0 \expndtw0\char
scalex123 innovative firm, the reasons for innovating and the activities underta
ken by \line \up0 \expndtw0\charscalex134 firms. The forces that drive innovatio
n at the level of the firm and the \line \up0 \expndtw0\charscalex131 innovation
s that succeed in improving firm performance are of central \line \up0 \expndtw0
\charscalex129 importance for policy making. Questions on the implementat
ion of \line \up0 \expndtw0\charscalex129 innovations, the interaction of diffe
rent types of innovations, and on the \line \up0 \expndtw0\charscalex119 objecti

ves and barriers to innovation are the source of relevant data. \par\pard\li824\
sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\s
lmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb61\sl-218\slmult0\fi0\
tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-013
08-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosu
persub\cf19\f20\fs20 15
}
93\sb232\sl-241\slmult0 \up0 \expndtw0\charscalex120 \ul0\nosupersub\cf22\f23\fs
21 3. Scope of the Manual \par\pard\li1303\sb131\sl-195\slmult0\fi0\tx1926 \up0
\expndtw0\charscalex119 \ul0\nosupersub\cf23\f24\fs17 26.\tab \up0 \expndtw0\cha
rscalex119 For reasons summarised below:\par\pard\qj \li1303\ri1703\sb26\sl-300\
slmult0 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\n
osupersub\cf23\f24\fs17 The Manual covers innovation in the business enterpris
e sector only. \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14 \u9679
?\ul0\nosupersub\cf23\f24\fs17 It deals with innovation at the level of the fi
rm. \par\pard\qj \li1303\ri1178\sb70\sl-240\slmult0\tx1508 \up0 \expndtw0\charsc
alex127 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 It
covers four types of innovations: product, process, organisational and \line\tab
\up0 \expndtw0\charscalex122 marketing. \par\pard\ql \li1303\sb118\sl-195\slmul
t0 \up0 \expndtw0\charscalex116 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupe
rsub\cf23\f24\fs17 It covers diffusion up to \u8220?new to the firm\u8221?. \p
ar\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb49\sl-218\slmult0 \u
p0 \expndtw-8\charscalex78 \ul0\nosupersub\cf28\f29\fs19 3.1. Sector coverage \p
ar\pard\qj \li1303\ri1177\sb76\sl-250\slmult0\tx1926 \up0 \expndtw0\charscalex10
6 \ul0\nosupersub\cf23\f24\fs17 27. \tab \up0 \expndtw0\charscalex124 Innovation
can occur in any sector of the economy, including \line\up0 \expndtw0\
charscalex123 government services such as health or education. The Manual\u8217?
s guidelines, \line \up0 \expndtw0\charscalex126 however, are essentially design
ed to deal with innovations in the business \up0 \expndtw0\charscalex122 enterpr
ise sector alone. This includes manufacturing, primary industries and \up0 \expn
dtw0\charscalex119 the services sector. \par\pard\qj \li1303\ri1177\sb50\sl-250\
slmult0\tx1927 \up0 \expndtw0\charscalex107 28. \tab \up0 \expndtw0\charscalex12
5 Innovation is also important for the public sector. However, less is \line\up0
\expndtw0\charscalex126 known about innovation processes in non-market-oriented
sectors. Much \line \up0 \expndtw0\charscalex118 work remains to be done to stu
dy innovation and develop a framework for the \up0 \expndtw0\charscalex120 colle
ction of innovation data in the public sector.\ul0\super\cf25\f26\fs20 2\ul0\nos
upersub\cf23\f24\fs17 Such work could form the \up0 \expndtw0\charscalex120 bas
is for a separate manual. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\l
i1303\sb59\sl-218\slmult0 \up0 \expndtw-8\charscalex72 \ul0\nosupersub\cf28\f29\
fs19 3.2. Innovation at the level of the firm \par\pard\qj \li1303\ri1178\sb76\s
l-250\slmult0\tx1926 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17
29. \tab \up0 \expndtw0\charscalex119 The Manual is concerned with the collectio
n of innovation data at the \line\up0 \expndtw0\charscalex118 level of the firm.
It does not cover industry- or economy-wide changes such as \line \up0 \expndtw
0\charscalex127 the emergence of a new market, the development of a new source o
f raw \up0 \expndtw0\charscalex123 materials or semi-manufactured goods, or the
reorganisation of an industry. \up0 \expndtw0\charscalex124 Nonetheless, it is p
ossible in some cases to estimate industry- or economy\up0 \expndtw0\charscalex1
27 wide changes , such as the emergence of a new market or industry \
up0 \expndtw0\charscalex117 reorganisation, by aggregating data for individual f
irms. \par\pard\qj \li1303\ri1175\sb49\sl-252\slmult0\tx1927 \up0 \expndtw0\char
scalex107 30. \tab \up0 \expndtw0\charscalex118 The first three chapters of the
Manual use the generic term \u8220?firm\u8221?. The \line\up0 \expndtw0\charscal
ex124 term is given a specific statistical definition in Chapter 4, which deals
with \line \up0 \expndtw0\charscalex120 classifications. The precise definition
used in a study or survey can affect the \line \up0 \expndtw0\charscalex121 resu
lts, as the subsidiaries of multinational corporations may be organised in \line
\up0 \expndtw0\charscalex122 different ways, or a multinational may introduce a
given innovation country \line \up0 \expndtw0\charscalex119 by country, market
by market, or simultaneously throughout the group. \par\pard\ql \li1303\sb0\sl-2
18\slmult0 \par\pard\ql\li1303\sb39\sl-218\slmult0 \up0 \expndtw-8\charscalex74
\ul0\nosupersub\cf28\f29\fs19 3.3. Types of innovations \par\pard\li1303\sb129\s
l-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex125 \ul0\nosupersub\cf23\f24\f
s17 31.\tab \up0 \expndtw0\charscalex125 A firm can make many types of changes i
n its methods of work, its use\par\pard\li1303\sb56\sl-195\slmult0\fi0 \up0 \exp
ndtw0\charscalex126 of factors of production and the types of output that improv
e its productivity\par\pard\li1303\sb57\sl-195\slmult0\fi0 \up0 \expndtw0\charsc
alex126 and /or commercial performance. The Manual defines four types of
\par\pard\li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex126 innovation
s that encompass a wide range of changes in firms\u8217? activities:\par\pard\li
793\sb0\sl-230\slmult0\par\pard\li793\sb210\sl-230\slmult0\fi0\tx4899 \dn4 \expn
dtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 16\tab \up0 \expndtw0\charscale
x105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIE
S 2005
}
\cf23\f24\fs17 product innovations, process innovations, organisational innovati
ons and \up0 \expndtw0\charscalex122 marketing innovations. \par\pard\qj \li1303
\ri1178\sb49\sl-250\slmult0\tx1927 \up0 \expndtw0\charscalex109 32. \tab \up0 \e
xpndtw0\charscalex121 Full definitions of the four types of innovations
can be found in \line\up0 \expndtw0\charscalex121 Chapter 3. Product innovati
ons involve significant changes in the capabilities \line \up0 \expndtw0\charsca
lex127 of goods or services. Both entirely new goods and services and significan
t \line \up0 \expndtw0\charscalex136 improvements to existing products are inclu
ded. Process innovations \line \up0 \expndtw0\charscalex121 represent significan
t changes in production and delivery methods. \par\pard\qj \li1303\ri1177\sb72\s
l-248\slmult0\tx1926 \up0 \expndtw0\charscalex106 33. \tab \up0 \expndtw0\charsc
alex124 Organisational innovations refer to the implementation of new \li
ne\up0 \expndtw0\charscalex130 organisational methods. These can be changes in b

usiness practices, in \line \up0 \expndtw0\charscalex134 workplace organisation
or in the firm\u8217?s external relations. Marketing \line \up0 \expndtw0\charsc
alex123 innovations involve the implementation of new marketing methods. These \
line \up0 \expndtw0\charscalex122 can include changes in product design and pack
aging, in product promotion \line \up0 \expndtw0\charscalex119 and placement, an
d in methods for pricing goods and services. \par\pard\qj \li1303\ri1177\sb71\sl
-250\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex107 34. \tab \up0 \expndtw0\cha
rscalex119 An important concern when expanding the definition of innovation is \
line\up0 \expndtw0\charscalex119 to maintain continuity with the earlier definit
ion of technological product and \line \up0 \expndtw0\charscalex116 process (TPP
) innovation.\ul0\super\cf25\f26\fs20 3\ul0\nosupersub\cf23\f24\fs17 However, t
he decision to include the services sector \line \up0 \expndtw0\charscalex122 re
quires a few minor modifications in the definitions of product and process \line
\up0 \expndtw0\charscalex135 innovation to reflect innovation activities in the
services sector more \line \up0 \expndtw0\charscalex135 adequately and to reduc
e the manufacturing orientation. The revised \line \up0 \expndtw0\charscalex117
definitions (see Chapter 3) remain very comparable to the earlier (TPP) ones. \p
7 35. \tab \up0 \expndtw0\charscalex118 One change is the removal of the
word \u8220?technological\u8221? from the \line\up0 \expndtw0\charscalex129 d
efinitions, as the word raises a concern that many services sector firms \line \
up0 \expndtw0\charscalex124 would interpret \u8220?technological\u8221? to mean
\u8220?using high-technology plant and \line \up0 \expndtw0\charscalex126 equipm
ent\u8221?, and thus not applicable to many of their product and process \line \
up0 \expndtw0\charscalex120 innovations. \par\pard\ql \li1303\sb0\sl-218\slmult0
\par\pard\ql\li1303\sb59\sl-218\slmult0 \up0 \expndtw-8\charscalex74 \ul0\nosup
ersub\cf28\f29\fs19 3.4. Diffusion and the degree of novelty \par\pard\qj \li130
3\ri1177\sb76\sl-250\slmult0\tx1927 \up0 \expndtw0\charscalex107 \ul0\nosupersub
\cf23\f24\fs17 36. \tab \up0 \expndtw0\charscalex124 The Manual deals with chang
es that involve a significant degree of \line\up0 \expndtw0\charscalex116 \ul0\n
osupersub\cf24\f25\fs17 novelty \ul0\nosupersub\cf23\f24\fs17 for the firm. It e
xcludes changes that are minor or lack a sufficient \line \up0 \expndtw0\charsca
lex120 degree of novelty. However, an innovation does not need to be developed b
y \up0 \expndtw0\charscalex119 the firm itself but can be acquired from other fi
rms or institutions through the \up0 \expndtw0\charscalex117 process of diffusio
n. \par\pard\qj \li1303\ri1178\sb50\sl-251\slmult0\fi0\tx1927 \up0 \expndtw0\cha
rscalex107 37. \tab \up0 \expndtw0\charscalex121 Diffusion is the way in which i
nnovations spread, through market or \line\up0 \expndtw0\charscalex131 non-marke
t channels, from their very first implementation to different \line \up0 \expndt
w0\charscalex120 consumers, countries, regions, sectors, markets and firms. With
out diffusion, \up0 \expndtw0\charscalex128 an innovation has no economic impact
. The minimum requirement for a \up0 \expndtw0\charscalex118 change in a firm\u8
217?s products or functions to be considered an innovation is that \up0 \expndtw
0\charscalex120 it is new (or significantly improved) to the firm. Three other c
oncepts for the \up0 \expndtw0\charscalex121 novelty of innovations are discusse
d in Chapter 3: new to the market, new to \up0 \expndtw0\charscalex121 the world
and disruptive innovations. \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\s
b0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb139\sl-218\
slmult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 IS
BN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex1
05 \ul0\nosupersub\cf19\f20\fs20 17
}

rsub\cf23\f24\fs17 38. \tab \up0 \expndtw0\charscalex121 There are two main
reasons for using \u8220?new to the firm\u8221? as the \line\up0 \expndt
w0\charscalex128 minimum requirement of an innovation. First, adoption of innova
tions is \line \up0 \expndtw0\charscalex134 important for the innovation system
as a whole. It involves a flow of \up0 \expndtw0\charscalex122 knowledge to adop
ting firms. Furthermore, the learning process in adopting \up0 \expndtw0\charsca
lex121 an innovation can lead to subsequent improvements in the innovation and t
o \up0 \expndtw0\charscalex122 the development of new products, processes and ot
her innovations. Second, \up0 \expndtw0\charscalex120 the main impact of innovat
ion on economic activity stems from the diffusion \up0 \expndtw0\charscalex133 o
f initial innovations to other firms. Diffusion is captured by covering \up0 \ex
pndtw0\charscalex120 innovations that are new to the firm. \par\pard\qj \li1303\
ri1177\sb72\sl-248\slmult0\fi0\tx1926 \up0 \expndtw0\charscalex107 39. \tab \up0
\expndtw0\charscalex119 Of note, the Manual does not cover the diffusion of a n
ew technology \line\up0 \expndtw0\charscalex134 to other divisions or parts
of a firm after its initial adoption or \line \up0 \expndtw0\charscalex1
19 commercialisation.\ul0\super\cf25\f26\fs20 4\ul0\nosupersub\cf23\f24\fs17 Fo
r example, the first implementation of new production \line \up0 \expndtw0\chars
calex127 technology in one of five factories owned by the same firm is counted a
s \line \up0 \expndtw0\charscalex120 innovation, but implementation of the same
technology in the remaining four \line \up0 \expndtw0\charscalex120 factories is
not. \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb17\sl-241\slmu
lt0 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf22\f23\fs21 4. Providing data
on the key issues \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\s
b21\sl-218\slmult0 \up0 \expndtw-8\charscalex75 \ul0\nosupersub\cf28\f29\fs19 4.
1. Innovation activities and expenditures \par\pard\qj \li1303\ri1178\sb76\sl-25
0\slmult0\tx1926 \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf23\f24\fs17 40.
\tab \up0 \expndtw0\charscalex127 Innovation
activities
include
all
scientific,
technological, \line\up0 \expndtw0\charscalex126 organisational,
financial and commercial steps which actually lead, or are \line \up0 \expndtw0\
charscalex132 intended to lead, to the implementation of innovations. Some of th
ese \up0 \expndtw0\charscalex120 activities may be innovative in their own right
, while others are not novel but \up0 \expndtw0\charscalex120 are necessary to i
mplementation. \par\pard\qj \li1303\ri1177\sb72\sl-248\slmult0\tx1926 \up0 \expn
dtw0\charscalex107 41. \tab \up0 \expndtw0\charscalex123 Innovation comprises a
number of activities that are not included in \line\up0 \expndtw0\charscalex120
R&D, such as later phases of development for preproduction, production and \line
\up0 \expndtw0\charscalex123 distribution, development activities with a lesser
degree of novelty, support \line \up0 \expndtw0\charscalex129 activities such a
s training and market preparation, and development and \line \up0 \expndtw0\char
scalex121 implementation activities for innovations such as new marketing method
s or \line \up0 \expndtw0\charscalex122 new organisational methods which are not
product and process innovations. \line \up0 \expndtw0\charscalex123 Innovation
activities may also include acquisition of external knowledge or \line \up0 \exp
ndtw0\charscalex124 capital goods that is not part of R&D. A detailed breakdown
of innovation \line \up0 \expndtw0\charscalex130 activities and their descriptio
ns, along with measurement issues, can be \line \up0 \expndtw0\charscalex118 fou
nd in Chapter 6. \par\pard\li1303\sb123\sl-195\slmult0\fi0\tx1926 \up0 \expndtw0
\charscalex122 42.\tab \up0 \expndtw0\charscalex122 During a given period, a fir
m\u8217?s innovation activities may be of three\par\pard\li1303\sb57\sl-195\slmu
lt0\fi0 \up0 \expndtw0\charscalex122 kinds:\par\pard\qj \li1303\ri1179\sb70\sl-2

679?\ul0\nosupersub\cf24\f25\fs17 Successful\ul0\nosupersub\cf23\f24\fs17 in
having resulted in the implementation of a new innovation \line\tab \up0 \expndt
w0\charscalex114 (though not necessarily commercially successful). \par\pard\qj
\li1303\ri1178\sb80\sl-240\slmult0\tx1508 \up0 \expndtw0\charscalex110 \ul0\nosu
persub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Ongoing\ul0\nosupers
ub\cf23\f24\fs17 , work in progress, which has not yet resulted in the implement
ation \line\tab \up0 \expndtw0\charscalex110 of an innovation. \par\pard\ql \li1
303\sb118\sl-195\slmult0 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf27\f28\f
s14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Abandoned\ul0\nosupersub\cf23\f24\fs1
7 before the implementation of an innovation. \par\pard\li793\sb0\sl-230\slmult
0\par\pard\li793\sb207\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \u
l0\nosupersub\cf19\f20\fs20 18\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub\
cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
upersub\cf23\f24\fs17 43. \tab \up0 \expndtw0\charscalex130 Expenditures are mea
sured on the basis of the sum of these three \line\up0 \expndtw0\charscalex125 k
inds of activity over a given period of time (see Chapter 6). An alternative \li
ne \up0 \expndtw0\charscalex124 would be to collect information on total expendi
tures on activities related to \line \up0 \expndtw0\charscalex121 individual inn
ovations. Firms have found it difficult to report a full set of data \line \up0
\expndtw0\charscalex122 whichever approach is used, yet this is an essential dat
a set for economic and \line \up0 \expndtw0\charscalex120 policy analysis purpos
es. It is hoped that, with successive exercises, firms will \line \up0 \expndtw0
\charscalex120 find it in their own interest to cost their innovation activities
. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb59\sl-218\slmult
0 \up0 \expndtw-8\charscalex73 \ul0\nosupersub\cf28\f29\fs19 4.2. Factors influe
ncing innovation \par\pard\qj \li1303\ri1178\sb78\sl-248\slmult0\tx1926 \up0 \ex
pndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 44. \tab \up0 \expndtw0\chars
calex122 Enterprises can engage in innovation for a number of reasons. Their \li
ne\up0 \expndtw0\charscalex120 objectives may involve products, markets, efficie
ncy, quality or the ability to \line \up0 \expndtw0\charscalex134 learn and to i
mplement changes. Identifying enterprises\u8217? motives for \line \up0 \expndtw
0\charscalex121 innovating and their importance is of help in examining the forc
es that drive \line \up0 \expndtw0\charscalex121 innovation activities, such as
competition and opportunities for entering new \line \up0 \expndtw0\charscalex12
1 markets. \par\pard\qj \li1303\ri1178\sb72\sl-248\slmult0\tx1926 \up0 \expndtw0
\charscalex107 45. \tab \up0 \expndtw0\charscalex121 Innovation activities can b
e hampered by a number of factors. There \line\up0 \expndtw0\charscalex125 may b
e reasons for not starting innovation activities at all, or there may be \line \
up0 \expndtw0\charscalex128 factors that slow such activities or affect them neg
atively. These include \up0 \expndtw0\charscalex120 economic factors, such as hi
gh costs or lack of demand, factors specific to an \up0 \expndtw0\charscalex121
enterprise, such as lack of skilled personnel or knowledge, and legal factors, \
up0 \expndtw0\charscalex119 such as regulations or tax rules. \par\pard\qj \li13

03\ri1177\sb72\sl-248\slmult0\tx1926 \up0 \expndtw0\charscalex107 46. \tab \up0
\expndtw0\charscalex128 The ability of enterprises to appropriate the gai
ns from their \line\up0 \expndtw0\charscalex122 innovation activities also aff
ects innovation. If, for example, enterprises are \line \up0 \expndtw0\charscale
x123 unable to protect their innovations from imitation by competitors, they wil
l \line \up0 \expndtw0\charscalex124 have less incentive to innovate. On the oth
er hand, if an industry functions \line \up0 \expndtw0\charscalex121 well withou
t formal protection, promoting such protection can slow the flow \line \up0 \exp
ndtw0\charscalex118 of knowledge and technology and lead to higher prices for go
ods and services. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb
39\sl-218\slmult0 \up0 \expndtw-8\charscalex72 \ul0\nosupersub\cf28\f29\fs19 4.3
. The innovating firm and the impact of innovation \par\pard\qj \li1303\ri1177\s
b75\sl-251\slmult0\tx1927 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\
fs17 47. \tab \up0 \expndtw0\charscalex120 The innovative firm (defined in Chapt
er 3) is one that has introduced \line\up0 \expndtw0\charscalex118 an innovation
during the period under review. Such innovations need not have \line \up0 \expn
dtw0\charscalex123 been a commercial success: many innovations fail. Innovative
firms can be \up0 \expndtw0\charscalex120 divided into those that have mainly de
veloped innovations on their own or in \up0 \expndtw0\charscalex120 co-operation
with other firms or public research organisations, and those that \up0 \expndtw
0\charscalex119 have mainly innovated by adopting innovations (for example new e
quipment) \up0 \expndtw0\charscalex123 developed by other firms. Innovative firm
s can also be distinguished by the \up0 \expndtw0\charscalex122 types of innovat
ions they have implemented; they may have implemented a \up0 \expndtw0\charscale
x126 new product or process, or they may have implemented a new marketing \up0 \
expndtw0\charscalex120 method or organisational change. \par\pard\li1303\sb114\s
l-195\slmult0\fi0\tx1926 \up0 \expndtw0\charscalex125 48.\tab \up0 \expndtw0\cha
rscalex125 Impacts of innovations on firm performance range from effects on\par\
pard\li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex126 sales and marke
t share to changes in productivity and efficiency. Important\par\pard\li824\sb0\
sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb180\sl-218\slm
ult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN
92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105
\ul0\nosupersub\cf19\f20\fs20 19
}
1303\ri1177\sb170\sl-253\slmult0 \up0 \expndtw0\charscalex140 \ul0\nosupersub\cf
23\f24\fs17 impacts at industry and national levels are changes in international
\up0 \expndtw0\charscalex125 competitiveness and in total factor productivity,
knowledge spillovers from \up0 \expndtw0\charscalex124 firm-level innovations, a
nd an increase in the amount of knowledge flowing \up0 \expndtw0\charscalex124 t
hrough networks. \par\pard\qj \li1303\ri1178\sb50\sl-250\slmult0\tx1927 \up0 \ex
pndtw0\charscalex109 49. \tab \up0 \expndtw0\charscalex126 The outcomes of pr
oduct innovations can be measured by the \line\up0 \expndtw0\charscalex124
percentage of sales derived from new or improved products (see Chapter 7). \lin
e \up0 \expndtw0\charscalex127 Similar approaches can be used to measure the out

comes of other types of \line \up0 \expndtw0\charscalex131 innovations. Addition
al indicators of the outcomes of innovation can be \line \up0 \expndtw0\charscal
ex122 obtained through qualitative questions on the effects of innovations. \par
\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb59\sl-218\slmult0 \up0
\expndtw-8\charscalex74 \ul0\nosupersub\cf28\f29\fs19 4.4. Linkages in the inno
vation process \par\pard\qj \li1303\ri1177\sb78\sl-248\slmult0\tx1927 \up0 \expn
dtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 50. \tab \up0 \expndtw0\charsca
lex126 The innovative activities of a firm partly depend on the variety and \lin
e\up0 \expndtw0\charscalex130 structure of its links to sources of information,
knowledge, technologies, \line \up0 \expndtw0\charscalex131 practices and human
and financial resources. Each linkage connects the \up0 \expndtw0\charscalex136
innovating firm to other actors in the innovation system: government \up0 \expnd
tw0\charscalex135 laboratories, universities, policy departments, regulators, co
mpetitors, \up0 \expndtw0\charscalex126 suppliers and customers. Innovation surv
eys can obtain information on the \up0 \expndtw0\charscalex124 prevalence and im
portance of different types of linkages, and on the factors \up0 \expndtw0\chars
calex121 that influence the use of specific linkages. \par\pard\qj \li1303\ri111
-3\charscalex100 Three types of external linkages are identified. \ul0\nosupersu
b\cf24\f25\fs17 Open information sources \line\up0 \expndtw0\charscalex127 \ul0\
nosupersub\cf23\f24\fs17 provide openly available information that does not requ
ire the purchase of \line \up0 \expndtw0\charscalex130 technology or intellectua
l property rights, or interaction with the source. \up0 \expndtw-5\charscalex100
\ul0\nosupersub\cf24\f25\fs17 Acquisition of knowledge and technology\ul0\nosup
ersub\cf23\f24\fs17 results from purchases of external \up0 \expndtw0\charscale
x123 knowledge and capital goods (machinery, equipment, software) and services \
up0 \expndtw0\charscalex123 embodied with new knowledge or technology that do no
t involve interaction \up0 \expndtw-1\charscalex100 with the source. \ul0\nosupe
rsub\cf24\f25\fs17 Innovation co-operation\ul0\nosupersub\cf23\f24\fs17 require
s active co-operation with other \up0 \expndtw0\charscalex121 firms or public re
search institutions on innovation activities (and may include \up0 \expndtw0\cha
rscalex121 purchases of knowledge and technology). \par\pard\ql \li793\sb238\sl241\slmult0 \up0 \expndtw0\charscalex123 \ul0\nosupersub\cf22\f23\fs21 5. Some s
urvey issues \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb41\sl
-218\slmult0 \up0 \expndtw-8\charscalex76 \ul0\nosupersub\cf28\f29\fs19 5.1. App
roach to data collection \par\pard\ql \li1303\sb103\sl-218\slmult0 \up0 \expndtw
-8\charscalex75 5.2.1. Choice of the survey approach \par\pard\ql \li1303\sb122\
sl-195\slmult0\tx1926 \up0 \expndtw0\charscalex108 \ul0\nosupersub\cf23\f24\fs17
52. \tab \up0 \expndtw0\charscalex121 There are two main approaches to collecti
ng data on innovations: \par\pard\ql \li1529\ri1178\sb82\sl-248\slmult0\tx2200\t
x1756\tx1756\tx1756\tx1756\tx1756 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\
cf24\f25\fs17 i)\ul0\nosupersub\cf23\f24\fs17 The \tab \up0 \expndtw0\charscal
ex122 \u8220?subject\u8221? approach starts from the innovative behaviour
and \line\tab \up0 \expndtw0\charscalex130 activities of the firm as a whole. T
he idea is to explore the factors \line \tab \up0 \expndtw0\charscalex122 influe
ncing the innovative behaviour of the firm (strategies, incentives \line \tab \u
p0 \expndtw0\charscalex136 and barriers to innovation) and the scope of various
innovation \line \tab \up0 \expndtw0\charscalex128 activities, and above all
to examine the outputs and effects of \line \tab \up0 \expndtw0\charscale
x128 innovation. These surveys are designed to be representative of all \par\par
d\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\
sl-230\slmult0\par\pard\li793\sb37\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\char
scalex105 \ul0\nosupersub\cf19\f20\fs20 20\tab \up0 \expndtw0\charscalex105 \ul0
\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005

}
\cf23\f24\fs17 industries so that the results can be grossed up and comparisons
made \up0 \expndtw0\charscalex123 between industries. \par\pard\ql \li1530\ri112
6\sb49\sl-250\slmult0\tx2172\tx1756\tx1756\tx1756\tx1756 \up0 \expndtw-7\charsca
lex96 \ul0\nosupersub\cf24\f25\fs17 ii)\ul0\nosupersub\cf23\f24\fs17 The \tab \
up0 \expndtw0\charscalex117 \u8220?object\u8221? approach involves the colle
ction of data about specific \line\tab \up0 \expndtw0\charscalex120 innovati
ons (usually a \u8220?significant innovation\u8221? of some kind or a firm\u8217
?s \line \tab \up0 \expndtw0\charscalex122 main innovation). The approach involv
es collecting some descriptive, \line \tab \up0 \expndtw0\charscalex124 quantita
tive and qualitative data about the particular innovation at the \line \tab \up0
\expndtw0\charscalex121 same time that data is sought about the firm. \par\pard
\qj \li1303\ri1177\sb70\sl-250\slmult0\tx1926 \up0 \expndtw0\charscalex107 53. \
tab \up0 \expndtw0\charscalex126 From the point of view of current economic deve
lopment, it is the \line\up0 \expndtw0\charscalex121 differential success of fir
ms that shapes economic outcomes and is of policy \line \up0 \expndtw0\charscale
x127 significance. This favours a subject-based approach, although innovation \l
ine \up0 \expndtw0\charscalex122 surveys can combine both approaches by includin
g general questions on the \line \up0 \expndtw0\charscalex122 firm and specific
questions on a single innovation. It is the subject, the firm, \line \up0 \expnd
tw0\charscalex126 that is important, and this is the approach has been chosen as
the basis for \line \up0 \expndtw0\charscalex120 these guidelines. \par\pard\ql
\li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb39\sl-218\slmult0 \up0 \expndt
w-8\charscalex76 \ul0\nosupersub\cf28\f29\fs19 5.2.2. Survey methods \par\pard\q
j \li1303\ri1177\sb76\sl-250\slmult0\tx1927 \up0 \expndtw0\charscalex107 \ul0\no
supersub\cf23\f24\fs17 54. \tab \up0 \expndtw0\charscalex118 To achieve intern
ational comparability of subject-based innovation \line\up0 \expndtw0\charsc
alex119 surveys, it is important to harmonise survey methods. Guidelines are giv
en in \line \up0 \expndtw0\charscalex117 Chapter 8. \par\pard\qj \li1303\ri1177\
sb72\sl-248\slmult0\tx1927 \up0 \expndtw0\charscalex107 55. \tab \up0 \expndtw0\
charscalex120 The target population for innovation surveys concerns statistical
units \line\up0 \expndtw0\charscalex116 (innovators and non-innovators, R&D perf
ormers and non-R&D performers) in \line \up0 \expndtw0\charscalex123 the busines
s enterprise sector, including both goods-producing and services \line \up0 \exp
ndtw0\charscalex123 sectors. Innovative activities take place in small and mediu
m-sized units as \line \up0 \expndtw0\charscalex122 well as in large units. To c
apture innovation activities in these smaller units, \line \up0 \expndtw0\charsc
alex123 the target population should include, at a minimum, all statistical unit
s with \line \up0 \expndtw0\charscalex129 at least ten employees. In the case of
sample surveys, the sample frames \line \up0 \expndtw0\charscalex119 should cor
respond as closely as possible to the target population. \par\pard\qj \li1303\ri
1177\sb71\sl-250\slmult0\tx1926 \up0 \expndtw0\charscalex107 56. \tab \up0 \expn
dtw0\charscalex120 In order to ensure a satisfactory response rate, the
questionnaire \line\up0 \expndtw0\charscalex131 should be as short as possible
and questions and instructions should be \line \up0 \expndtw0\charscalex126 clea
rly formulated. This may involve expressing the formal definitions in \up0 \expn
dtw0\charscalex122 Chapter 3 in ways that are appropriate and meaningful to resp
ondents in the \up0 \expndtw0\charscalex122 industry concerned. \par\pard\qj \li
1303\ri1177\sb50\sl-250\slmult0\tx1926 \up0 \expndtw0\charscalex106 57. \tab \up
0 \expndtw0\charscalex127 In the data collection phase, particular attention sho

uld be paid to \line\up0 \expndtw0\charscalex120 checking the reliability and co
nsistency of data and to follow-up or reminder \line \up0 \expndtw0\charscalex12
3 procedures. International comparability of the resulting data will be further
\up0 \expndtw0\charscalex135 improved by adopting uniform methods of imputing mi
ssing values, \up0 \expndtw0\charscalex119 weighting factors, methods for presen
ting results, etc. \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\
b0\sl-218\slmult0\par\pard\li824\sb27\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\c
harscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN CO
MMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 21
}
RPRETING INNOVATION DATA \par\pard\qj \li793\sb0\sl-240\slmult0 \par\pard\qj\li7
93\ri2342\sb234\sl-240\slmult0 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf22
\f23\fs21 6. The relationship between the\ul0\nosupersub\cf29\f30\fs21 Oslo Man
ual\ul0\nosupersub\cf22\f23\fs21 and other \up0 \expndtw0\charscalex108 interna
tional standards and related concepts \par\pard\ql \li1303\sb0\sl-218\slmult0 \p
ar\pard\ql\li1303\sb41\sl-218\slmult0 \up0 \expndtw-8\charscalex75 \ul0\nosupers
ub\cf28\f29\fs19 6.1. Manuals for the measurement of science and technology acti
vities \par\pard\qj \li1303\ri1177\sb76\sl-250\slmult0\tx1927 \up0 \expndtw0\cha
rscalex109 \ul0\nosupersub\cf23\f24\fs17 58. \tab \up0 \expndtw0\charscalex120 T
wo basic families of S&T indicators are directly relevant to the \line
\up0 \expndtw0\charscalex123 measurement of innovation: resources devoted to R&D
and patent statistics. \line \up0 \expndtw0\charscalex134 In addition, bibliome
trics and several other types of indicators provide \line \up0 \expndtw0\charsca
lex123 complementary information, although information is not always available a
t \line \up0 \expndtw0\charscalex119 the firm level. \par\pard\qj \li1303\ri1178
\sb50\sl-250\slmult0\tx1926 \up0 \expndtw0\charscalex109 59. \tab \up0 \expndtw0
\charscalex119 R&D data are collected through national surveys according
to the \line\up0 \expndtw0\charscalex108 guidelines laid down in the \ul0\nosu
persub\cf24\f25\fs17 Frascati Manual\ul0\nosupersub\cf23\f24\fs17 (OECD, 2002).
These data have \line \up0 \expndtw0\charscalex135 proved valuable in many stud
ies: for example, the effects of R&D on \line \up0 \expndtw0\charscalex123 produ
ctivity have been estimated by econometric techniques, at the country, \line \up
0 \expndtw0\charscalex120 sector and firm levels. These data have two main limit
ations. First, R&D is an \line \up0 \expndtw0\charscalex120 input. Although it i
s obviously related to technical change, it does not measure \line \up0 \expndtw
0\charscalex121 it. Second, R&D does not encompass all the efforts of firms and
governments \line \up0 \expndtw0\charscalex120 in this area, as there are other
sources of technical change, such as learning by \line \up0 \expndtw0\charscalex
120 doing, which are not covered by this narrow definition. \par\pard\qj \li1303
\ri1116\sb71\sl-249\slmult0\tx1926 \up0 \expndtw0\charscalex109 60. \tab \up0 \e
xpndtw0\charscalex123 A patent is a legal property right to an invention, which
is granted by \line\up0 \expndtw0\charscalex130 national patent offices. A paten
t gives its owner sole rights (for a certain \line \up0 \expndtw0\charscalex125
duration) to exploit the patented invention; at the same time it discloses the \
line \up0 \expndtw0\charscalex128 details of the patent as a way to allow broade
r social use of the discovery. \line \up0 \expndtw0\charscalex129 Patent statist
ics are increasingly used in various ways as indicators of the \line \up0 \expnd
tw0\charscalex121 output of research activities. The number of patents granted t
o a given firm or \line \up0 \expndtw0\charscalex120 country may reflect its tec
hnological dynamism; examination of the growth of \line \up0 \expndtw0\charscale
x131 patent classes can give some indication of the direction of technological \
line \up0 \expndtw0\charscalex125 change. The drawbacks of patents as innovation
indicators are well-known. \line \up0 \expndtw0\charscalex120 Many innovations
are not patented, and some are covered by multiple patents; \line \up0 \expndtw0
\charscalex122 many patents have no technological or economic value, and others
have very \line \up0 \expndtw-4\charscalex100 high value (see the \ul0\nosupersu
b\cf24\f25\fs17 Patent Manual\ul0\nosupersub\cf23\f24\fs17 , OECD, 1994). \par\p
ard\qj \li1303\ri1177\sb72\sl-248\slmult0\tx1926 \up0 \expndtw0\charscalex107 61
. \tab \up0 \expndtw0\charscalex125 These two basic families of statistics are c
omplemented by several \line\up0 \expndtw0\charscalex126 others: statistics on s
cientific publications (bibliometrics), publications in \line \up0 \expndtw0\cha
rscalex132 trade and technical journals (\u8220?LBIO\u8221? or literature-based
indicators of \line \up0 \expndtw0\charscalex130 innovation output), skilled hu
man resources, the technology balance of \line \up0 \expndtw0\charscalex124 paym
ents, globalisation indicators, and activity in high-technology sectors \line \u
p0 \expndtw0\charscalex124 (investment, employment, external trade). Moreover, s
ome information on \line \up0 \expndtw0\charscalex119 innovation and innovative
activities can be drawn indirectly from many other \line \up0 \expndtw0\charscal
ex119 sources, such as business surveys or education statistics. \par\pard\li130
3\sb119\sl-195\slmult0\fi0\tx1926 \up0 \expndtw0\charscalex122 62.\tab \up0 \exp
ndtw0\charscalex123 The globalisation process affects innovation in a num
ber of ways,\par\pard\li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex
123 through increases in international competition, in flows of goods, services
and\par\pard\li1303\sb57\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex123 knowled
ge across national boundaries, and in international interactions.\par\pard\li793
\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb54\sl-230
\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 2
2\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-0130
8-3 - OECD/EUROPEAN COMMUNITIES 2005
}
\cf23\f24\fs17 Multinational enterprises (MNEs) play a key role in this process.
The \ul0\nosupersub\cf24\f25\fs17 Handbook \up0 \expndtw-6\charscalex100 on Eco
nomic Globalisation Indicators\ul0\nosupersub\cf23\f24\fs17 (OECD, 2005) discus
ses issues relating to \up0 \expndtw-7\charscalex100 globalisation and provides
a set of relevant globalisation indicators. \par\pard\qj \li1303\ri1177\sb72\sl248\slmult0\tx1927 \up0 \expndtw0\charscalex109 63. \tab \up0 \expndtw0\charscal
ex124 Wherever possible, the Manual draws on the concepts and \l
ine\up0 \expndtw0\charscalex126 classifications set out in other volumes in the

set of OECD manuals for the \line \up0 \expndtw0\charscalex119 measurement of sc
ientific and technological activities (see Box 1.2), especially \line \up0 \expn
dtw0\charscalex100 the \ul0\nosupersub\cf24\f25\fs17 Frascati Manual\ul0\nosuper
sub\cf23\f24\fs17 on the resources devoted to R&D (OECD, 2002). This remark \li
ne \up0 \expndtw0\charscalex119 applies particularly to a number of questions on
R&D and other S&T activities \line \up0 \expndtw0\charscalex119 recommended for
inclusion in innovation surveys in Chapter 6 and 7. \par\pard\ql \li1303\sb0\sl
-218\slmult0 \par\pard\ql\li1303\sb59\sl-218\slmult0 \up0 \expndtw-8\charscalex7
5 \ul0\nosupersub\cf28\f29\fs19 6.2. Other standards and classifications \par\pa
rd\qj \li1303\ri1178\sb78\sl-248\slmult0\fi397 \up0 \expndtw0\charscalex137 \ul0
\nosupersub\cf23\f24\fs17 Because of the need to place innovation in a wider con
text, both \up0 \expndtw0\charscalex133 conceptually and in terms of databases,
United Nations guidelines and \up0 \expndtw0\charscalex129 classifications are u
sed as far as possible, notably the System of National \up0 \expndtw0\charscalex
117 Accounts - SNA (CEC \ul0\nosupersub\cf24\f25\fs17 et al.\ul0\nosupersub\cf23
\f24\fs17 , 1994) and the International Standard Industrial \up0 \expndtw0\chars
calex119 Classification - ISIC Rev. 3.1 (UN, 2002) and, as this is a joint OECD/
Eurostat \up0 \expndtw0\charscalex133 Manual, the corresponding European standar
ds, notably the Statistical \up0 \expndtw0\charscalex129 Classification of Eco
nomic Activities in the European Community -\line \up0 \expndtw0\charscale
x108 NACE Rev. 1.1 - series 2E. \par\pard\ql \li1590\sb0\sl-218\slmult0 \par\par
d\ql\li1590\sb0\sl-218\slmult0 \par\pard\ql\li1590\sb201\sl-218\slmult0 \up0 \ex
pndtw0\charscalex124 \ul0\nosupersub\cf26\f27\fs19 Box 1.2. Manuals and other gu
idelines for the measurement \par\pard\ql \li2612\sb1\sl-196\slmult0 \up0 \expnd
tw0\charscalex121 of scientific and technological activities \par\pard\qj \li153
0\ri1352\sb88\sl-240\slmult0\fi170 \up0 \expndtw-6\charscalex71 \ul0\nosupersub\
cf13\f14\fs16 Proposed Standard Practice for Surveys of Research and Experimenta
l Development \up0 \expndtw-7\charscalex71 - Frascati Manual\ul0\nosupersub\cf10
\f11\fs16 , sixth edition (OECD, 2002). \par\pard\qj \li1530\ri1353\sb60\sl-240\
slmult0\fi170 \up0 \expndtw-6\charscalex72 \ul0\nosupersub\cf13\f14\fs16 OECD Pr
oposed Guidelines for Collecting and Interpreting Technological Innovation \up0
\expndtw-7\charscalex72 Data - Oslo Manual\ul0\nosupersub\cf10\f11\fs16 , third
edition (OECD/EU/Eurostat, 2005). \par\pard\qj \li1530\ri1413\sb60\sl-240\slmul
t0\fi170 \up0 \expndtw0\charscalex105 \u8220?Using Patent Data as Science and Te
chnology Indicators - \ul0\nosupersub\cf13\f14\fs16 Patent Manual\ul0\nosupersub
\cf10\f11\fs16 \u8221? \up0 \expndtw0\charscalex100 (OECD, GD 1994). \par\pard\q
j \li1530\ri1413\sb60\sl-240\slmult0\fi170 \up0 \expndtw-1\charscalex100 \u8220?
The Measurement of Human Resources Devoted to S&T - \ul0\nosupersub\cf13\f14\fs1
6 Canberra Manual\ul0\nosupersub\cf10\f11\fs16 \u8221? \up0 \expndtw-1\charscale
x100 (OECD/ EU/Eurostat, GD 1995). \par\pard\qj \li1530\ri1424\sb60\sl-240\slmul
t0\fi170 \up0 \expndtw0\charscalex123 \u8220?Proposed Standard Method of Compili
ng and Interpreting Technology \up0 \expndtw-3\charscalex100 Balance of Payments
Data -\ul0\nosupersub\cf13\f14\fs16 TBP Manual\ul0\nosupersub\cf10\f11\fs16 \u
8221? (OECD, GD 1992). \par\pard\qj \li1700\ri2741\sb11\sl-300\slmult0 \up0 \exp
ndtw-7\charscalex79 \ul0\nosupersub\cf13\f14\fs16 Handbook on Economic Globalisa
tion Indicators\ul0\nosupersub\cf10\f11\fs16 (OECD, 2005). \up0 \expndtw-7\char
scalex80 \ul0\nosupersub\cf13\f14\fs16 Measuring Productivity Manual\ul0\nosuper
sub\cf10\f11\fs16 (OECD, 2001). \par\pard\qj \li1700\ri1850\sb1\sl-300\slmult0
\up0 \expndtw-7\charscalex76 \ul0\nosupersub\cf13\f14\fs16 A Guide for Informati
on Society Measurements and Analysis\ul0\nosupersub\cf10\f11\fs16 (OECD, 2005)
\up0 \expndtw-7\charscalex77 \ul0\nosupersub\cf13\f14\fs16 A Framework for Biote
chnology Statistics\ul0\nosupersub\cf10\f11\fs16 (OECD, 2005). \par\pard\li824\
lmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\p
ard\li824\sb214\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosu
persub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn
4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 23
}
}}
{\shp {\*\shpinst\shpleft1303\shptop6522\shpright7767\shpbottom11296\shpfhdr0\sh
pbxpage\shpbypage\shpwr3\shpwrk0\shpfblwtxt1\shpz158\shplid1
}
1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb36\sl-218\slmult0 \up0 \expndtw-8\
charscalex76 \ul0\nosupersub\cf28\f29\fs19 6.3. Other related concepts and surve
ys \par\pard\qj \li1303\ri1178\sb76\sl-250\slmult0\tx1927 \up0 \expndtw0\charsca
lex109 \ul0\nosupersub\cf23\f24\fs17 64. \tab \up0 \expndtw0\charscalex124 As no
ted above, there are other ways of examining changes in firms \line\up0 \expndtw
0\charscalex123 that improve their productivity and performance. A few of the mo
st relevant \line \up0 \expndtw0\charscalex137 intangible investments are examin
ed: the generation and adoption of \up0 \expndtw0\charscalex132 information and
communication technology (ICT), biotechnology and \up0 \expndtw0\charscalex122
knowledge management. \par\pard\qj \li1303\ri1117\sb70\sl-250\slmult0\fi0\tx1927
\up0 \expndtw0\charscalex109 65. \tab \up0 \expndtw-7\charscalex87 \ul0\nosuper
sub\cf24\f25\fs17 Information and communication technology\ul0\nosupersub\cf2
3\f24\fs17 covers both hardware and \line\up0 \expndtw0\charscalex126 softw
are. Their development and diffusion is believed to have had a major \line \up0
\expndtw0\charscalex131 impact on the pattern of production and employment in a
wide range of \up0 \expndtw0\charscalex129 industries. In the case of hardware i
t may be interesting not only to know \up0 \expndtw0\charscalex122 when a compan
y first introduces a technologically new or improved piece of \up0 \expndtw0\cha
rscalex122 ICT equipment but also the proportion of ICT in its total stock of eq
uipment, \up0 \expndtw0\charscalex131 including subsequent purchases of further
machines of the same model. \up0 \expndtw0\charscalex127 Mapping the development
, production, adaptation and use of software is a \up0 \expndtw0\charscalex134 m
ore complex matter, as these activities are carried out throughout the \up0 \exp
ndtw0\charscalex126 economy. Surveys have been conducted both on uses of ICT and
on R&D \up0 \expndtw0\charscalex117 activity in firms developing ICT products.
109 66. \tab \up0 \expndtw0\charscalex108 While less pervasive than ICT, \ul
0\nosupersub\cf24\f25\fs17 biotechnology\ul0\nosupersub\cf23\f24\fs17 is als
o increasingly \line\up0 \expndtw0\charscalex136 expected to have a large econo
mic impact, through increasing use of \line \up0 \expndtw0\charscalex120 biotech
nology to produce products and processes. A number of biotechnology \line \up0 \
expndtw0\charscalex128 surveys have been conducted, primarily on developers of b
iotechnology. \line \up0 \expndtw0\charscalex116 However, some surveys have also
examined biotechnology users (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub
\cf23\f24\fs17 Statistics \line \up0 \expndtw0\charscalex116 Canada, 1999). \pa

r\pard\qj \li1303\ri1177\sb49\sl-251\slmult0\fi0\tx1927 \up0 \expndtw0\charscale
x109 67. \tab \up0 \expndtw0\charscalex101 \ul0\nosupersub\cf24\f25\fs17 Knowled
ge management\ul0\nosupersub\cf23\f24\fs17 involves activities related to the c
apture, use \line\up0 \expndtw0\charscalex125 and sharing of knowledge by the or
ganisation. It is an important part of the \line \up0 \expndtw0\charscalex121 in
novation process. A number of surveys have been conducted on knowledge \line \up
0 \expndtw0\charscalex126 management practices in recent years.\ul0\super\cf25\f
26\fs20 5\ul0\nosupersub\cf23\f24\fs17 They cover policies and strategies, \lin
e \up0 \expndtw0\charscalex130 leadership, knowledge capture, training and commu
nications, as well as \line \up0 \expndtw0\charscalex125 reasons for using knowl
edge management practices and the reasons behind \line \up0 \expndtw0\charscalex
130 the development of such practices. In addition, questions on knowledge \line
\up0 \expndtw0\charscalex121 management have been included in innovation survey
s.\ul0\super\cf25\f26\fs20 6 \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1
927 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 68. \tab \up0 \ex
pndtw0\charscalex100 \ul0\nosupersub\cf24\f25\fs17 Intangible investment\ul0\nos
upersub\cf23\f24\fs17 covers expenditures on non-routine marketing, \line\up0 \
expndtw0\charscalex134 training, software and some other similar items, in addit
ion to current \line \up0 \expndtw0\charscalex125 expenditure on R&D. It covers
current expenditure on innovation but also \line \up0 \expndtw0\charscalex124 co
mprises elements that are not part of current innovation expenditure (for \line
\up0 \expndtw0\charscalex125 example, all of a firm\u8217?s training and marketi
ng expenditure in general, not \line \up0 \expndtw0\charscalex130 simply trainin
g or marketing in connection with the implementation of \line \up0 \expndtw0\cha
rscalex120 innovations). It does not cover tangible investment such as capital i
nnovation \line \up0 \expndtw0\charscalex122 expenditure, which includes capital
expenditure on R&D, the acquisition of \line \up0 \expndtw0\charscalex122 other
machinery and equipment related to innovations. \par\pard\li793\sb0\sl-230\slmu
\li793\sb57\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\nosupers
ub\cf19\f20\fs20 24\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs
11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
NTERPRETING INNOVATION DATA \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\
li793\sb232\sl-241\slmult0 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf22\f23
\fs21 7. Final remark \par\pard\qj \li1303\ri1177\sb71\sl-251\slmult0\tx1927 \up
0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 69. \tab \up0 \expndtw0\
charscalex126 The Manual is based on a consensus of views on the demand for
\line\up0 \expndtw0\charscalex124 innovation indicators and the underlying polic
y needs and economic theory, \line \up0 \expndtw0\charscalex121 on the definitio
ns and coverage of innovation and on the lessons to be learned \line \up0 \expnd
tw0\charscalex124 from previous surveys. Managed jointly by OECD and Eurostat, i
t has been \line \up0 \expndtw0\charscalex127 written for and by experts from so
me 30 countries that collect and analyse \line \up0 \expndtw0\charscalex132 inno
vation data. Finding consensus has sometimes meant reaching \line \up0 \e
xpndtw0\charscalex126 compromises and agreeing to conventions. Furthermore, the

complexity of \line \up0 \expndtw0\charscalex123 the innovation process itself m
akes it difficult to establish absolutely precise \line \up0 \expndtw0\charscale
x123 guidelines. Nevertheless, the goal of the Manual is to provide a robust set
of \line \up0 \expndtw0\charscalex122 guidelines that can be used to produce me
aningful indicators of innovation. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\
pard\ql\li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb81\sl-218\slmult0 \up0 \
expndtw-8\charscalex88 \ul0\nosupersub\cf28\f29\fs19 Notes \par\pard\qj \li1401\
ri1193\sb97\sl-200\slmult0\tx1587\tx1587 \up0 \expndtw0\charscalex122 \ul0\nosup
ersub\cf30\f31\fs15 1. Experience covers the inclusion in innovation surveys of
questions on marketing \line\tab \up0 \expndtw0\charscalex125 changes (the CIS3
survey, the Japanese National Innovation Survey 2003 and \line \tab \up0 \expnd
tw0\charscalex120 others). In addition, the Intangible Assets Survey 2004 in Fra
nce included all four \par\pard\qj \li1587\ri1193\sb6\sl-193\slmult0 \up0 \expnd
tw0\charscalex121 types of innovations (\ul0\nosupersub\cf31\f32\fs15 i.e.\ul0\n
osupersub\cf30\f31\fs15 marketing, organisational, product and process) along \
line \up0 \expndtw0\charscalex126 with a number of other questions on marketing
practices. The CIS4 survey, in \line \up0 \expndtw0\charscalex123 progress at th
e time of publication of the Manual, also included all four types of \line \up0
\expndtw0\charscalex123 innovations. \par\pard\ql \li1401\sb125\sl-172\slmult0 \
up0 \expndtw0\charscalex116 2. Earl (2003) is an example of early work in this a
rea. \par\pard\qj \li1401\ri1194\sb85\sl-200\slmult0\tx1587\tx1587 \up0 \expndtw
0\charscalex117 3. \u8220?Technological product and process (TPP) innovatio
ns comprise implemented \line\tab \up0 \expndtw0\charscalex132 technologically
new products and processes and significant technological \line \tab \up0 \expnd
tw0\charscalex128 improvements in products and processes . A TPP innovati
on has been \par\pard\qj \li1587\ri1194\sb17\sl-180\slmult0 \up0 \expndtw0\cha
rscalex119 implemented if it has been introduced on the market (product innovati
on) or used \line \up0 \expndtw0\charscalex114 within a production process (proc
ess innovation).\u8221? (OECD/Eurostat, 1997, 130.) \par\pard\qj \li1401\ri1195\s
b104\sl-200\slmult0\tx1587 \up0 \expndtw0\charscalex117 4. An exception would be
an establishment-level survey, which could collect data on \line\tab \up0 \expn
dtw0\charscalex117 the first introduction of an innovation into each establishme
nt. \par\pard\qj \li1401\ri1193\sb117\sl-180\slmult0\tx1587 \up0 \expndtw0\chars
calex119 5. See Foray and Gault (2003). In addition, a Eurostat pilot survey
on knowledge \line\tab \up0 \expndtw0\charscalex117 management will be conducte
d in 2006. \par\pard\qj \li1401\ri1193\sb104\sl-200\slmult0\tx1587 \up0 \expndtw
0\charscalex115 6. For example, the CIS3 survey in France, the J-NIS 2003
survey in Japan, and \line\tab \up0 \expndtw0\charscalex115 the 2003 Innova
tion Survey in Australia. \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\
sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmul
t0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\
li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl
-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0
\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li
824\sb0\sl-218\slmult0\par\pard\li824\sb190\sl-218\slmult0\fi0\tx8040 \up0 \expn
dtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROP
EAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\f
s20 25
}
26}{\bkmkend Pg26}\pard\par\pard\sect\sectd\fs24\paperw9080\paperh13040\pard\sb0
\sl-240{\bkmkstart Pg27}{\bkmkend Pg27}\par\pard\ql \li1360\sb0\sl-138\slmult0 \
par\pard\ql\li1360\sb0\sl-138\slmult0 \par\pard\ql\li1360\sb0\sl-138\slmult0 \pa
r\pard\ql\li1360\sb32\sl-138\slmult0 \up0 \expndtw0\charscalex107 \ul0\nosupersu
b\cf11\f12\fs12 ISBN 92-64-01308-3 \par\pard\qj \li1360\ri4375\sb8\sl-180\slmult
0 \up0 \expndtw0\charscalex117 Oslo Manual: Guidelines for Collecting and Interp
reting \up0 \expndtw0\charscalex118 Innovation Data \par\pard\ql \li1360\sb35\sl
-138\slmult0 \up0 \expndtw0\charscalex113 OECD/European Communities 2005 \par\pa
rd\ql \li3832\sb0\sl-368\slmult0 \par\pard\ql\li3832\sb0\sl-368\slmult0 \par\par
pndtw0\charscalex69 \ul0\nosupersub\cf20\f21\fs32 Chapter 2 \par\pard\ql \li1424
b166\sl-322\slmult0 \up0 \expndtw0\charscalex123 \ul0\nosupersub\cf3\f4\fs28 Inn
ovation Theory and Measurement Needs \par\pard\li824\sb0\sl-218\slmult0\par\pard
i824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\
8\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\pa
\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb16\sl-218\slm
ult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN
}
}}
}}

}
}}
}
}}
}}
}
rscalex107 \ul0\nosupersub\cf23\f24\fs17 71. \tab \up0 \expndtw0\charscalex119 \
u8220?The knowledge-based economy\u8221? is an expression coined to describe \li
ne\up0 \expndtw0\charscalex124 trends in advanced economies towards greater depe
ndence on knowledge, \line \up0 \expndtw0\charscalex121 information and high ski
ll levels, and the increasing need for ready access to \up0 \expndtw0\charscalex
125 all of these by the business and public sectors. Knowledge and technology \u
p0 \expndtw0\charscalex122 have become increasingly complex, raising the importa
nce of links between \up0 \expndtw0\charscalex123 firms and other organisations

as a way to acquire specialised knowledge. A \up0 \expndtw0\charscalex120 parall
el economic development has been the growth of innovation in services \up0 \expn
dtw0\charscalex120 in advanced economies. \par\pard\qj \li1303\ri1177\sb50\sl-25
0\slmult0\tx1926 \up0 \expndtw0\charscalex107 72. \tab \up0 \expndtw0\charscalex
123 Both innovation research and policy discussions emphasise the \line\u
p0 \expndtw0\charscalex117 importance of taking a broad perspective on innovatio
n. A \u8220?knowledge-based\u8221? \line \up0 \expndtw0\charscalex118 view focus
es on the interactive processes through which knowledge is created \line \up0 \e
xpndtw0\charscalex122 and exchanged both within and outside firms and other orga
nisations. Many \line \up0 \expndtw0\charscalex121 knowledge-intensive industrie
s, such as high-technology manufacturing and \line \up0 \expndtw0\charscalex130
business services, have grown strongly in many developed economies. \line \up0 \
expndtw0\charscalex127 Furthermore, a wide range of manufacturing and services i
ndustries have \line \up0 \expndtw0\charscalex129 increased their use of knowled
ge-intensive technologies for production \line \up0 \expndtw0\charscalex116 proc
esses and service provision. While R&D plays a vital role in the innovation \lin
e \up0 \expndtw0\charscalex127 process, much innovation activity is not R&D-base
d, yet relies on highly \line \up0 \expndtw0\charscalex135 skilled workers, on i
nteractions with other firms and public research \line \up0 \expndtw0\charscalex
123 institutions, and on an organisational structure that is conducive to learni
ng \line \up0 \expndtw0\charscalex117 and exploiting knowledge. \par\pard\qj \li
0 \expndtw0\charscalex121 The aim of this chapter is to examine theories
and research on \line\up0 \expndtw0\charscalex128 innovation and policy issu
es that are influenced by these theories, and to \line \up0 \expndtw0\charscalex
120 discuss how and to what extent innovation surveys can provide data on these
\up0 \expndtw0\charscalex119 issues. Innovation theory informs the design both o
f policy and measurement, \up0 \expndtw0\charscalex119 and empirical analysis of
data adds to our understanding of innovation, policy \up0 \expndtw0\charscalex1
19 evaluation and the formation of new policy initiatives. \par\pard\ql \li793\s
b0\sl-241\slmult0 \par\pard\ql\li793\sb17\sl-241\slmult0 \up0 \expndtw0\charscal
ex118 \ul0\nosupersub\cf22\f23\fs21 2. Economics of innovation \par\pard\qj \li1
ub\cf23\f24\fs17 74. \tab \up0 \expndtw0\charscalex119 Research on innovation sp
ans a number of disciplines, with economic \line\up0 \expndtw0\charscalex121 app
roaches alone adopting several different theoretical perspectives, each of \line
\up0 \expndtw0\charscalex118 which offers significant insights. While these can
be presented as alternatives, \line \up0 \expndtw0\charscalex123 they can also
be seen as complementary. This section evaluates the various \line \up0 \expndtw
0\charscalex123 theoretical approaches to innovation and assesses their implicat
ions for \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\pa
r\pard\li793\sb207\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\n
osupersub\cf19\f20\fs20 28\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18
\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}

\cf23\f24\fs17 policy and data collection. The goal is to ensure that the design
of innovation \line \up0 \expndtw0\charscalex122 surveys results in obtaining d
ata that are relevant for both theory and policy. \par\pard\qj \li1303\ri1176\sb
49\sl-250\slmult0\tx1927 \up0 \expndtw0\charscalex107 75. \tab \up0 \expndtw0\ch
arscalex125 These theories address a number of innovation policy
and \line\up0 \expndtw0\charscalex119 measurement issues, such as why firms inn
ovate, what forces drive innovation, \line \up0 \expndtw0\charscalex119 and whic
h factors hinder it. Related issues are the internal functioning of firms \up0 \
expndtw0\charscalex131 and the types of business practices used to promote innov
ation. Another \up0 \expndtw0\charscalex121 important issue is the nature of kno
wledge, how it is accumulated, and how it \up0 \expndtw0\charscalex120 flows bet
ween actors. A final issue is how innovation processes develop at the \up0 \expn
dtw0\charscalex117 industry, regional or national levels. \par\pard\qj \li1303\r
i1177\sb70\sl-250\slmult0\tx1926 \up0 \expndtw0\charscalex107 76. \tab \up0 \exp
ndtw0\charscalex125 The work of Joseph Schumpeter has greatly influenced theorie
s of \line\up0 \expndtw0\charscalex125 innovation. He argued that economic devel
opment is driven by innovation \line \up0 \expndtw0\charscalex128 through a dyna
mic process in which new technologies replace the old, a \up0 \expndtw0\charscal
ex123 process he labelled \u8220?creative destruction\u8221?. In Schumpeter\u821
7?s view, \u8220?radical\u8221? \up0 \expndtw0\charscalex133 innovations create
major disruptive changes, whereas \u8220?incremental\u8221? \up0 \expndtw0\char
scalex120 innovations continuously advance the process of change. Schumpeter (19
34) \up0 \expndtw0\charscalex117 proposed a list of five types of innovations: \
par\pard\ql \li1710\sb96\sl-195\slmult0 \up0 \expndtw0\charscalex113 \ul0\nosupe
rsub\cf24\f25\fs17 i)\ul0\nosupersub\cf23\f24\fs17 Introduction of new products
. \par\pard\qj \li1615\ri3409\sb39\sl-300\slmult0\fi47 \up0 \expndtw0\charscalex
112 \ul0\nosupersub\cf24\f25\fs17 ii)\ul0\nosupersub\cf23\f24\fs17 Introduction
of new methods of production. \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf24
\f25\fs17 iii)\ul0\nosupersub\cf23\f24\fs17 Opening of new markets. \par\pard\q
l \li1615\sb107\sl-195\slmult0 \up0 \expndtw0\charscalex113 \ul0\nosupersub\cf24
\f25\fs17 iv)\ul0\nosupersub\cf23\f24\fs17 Development of new sources of supply
for raw materials or other inputs. \par\pard\ql \li1663\sb106\sl-195\slmult0 \u
p0 \expndtw0\charscalex116 \ul0\nosupersub\cf24\f25\fs17 v)\ul0\nosupersub\cf23\
f24\fs17 Creation of new market structures in an industry. \par\pard\qj \li1303
\ri1177\sb82\sl-248\slmult0\fi0\tx1926 \up0 \expndtw0\charscalex106 77. \tab \up
0 \expndtw0\charscalex126 It is crucial to know why firms innovate. The ultimate
reason is to \line\up0 \expndtw0\charscalex123 improve firm performance, for ex
ample by increasing demand or reducing \line \up0 \expndtw0\charscalex121 costs.
A new product or process can be a source of market advantage for the \up0 \expn
dtw0\charscalex119 innovator. In the case of productivity-enhancing process inno
vations, the firm \up0 \expndtw0\charscalex120 gains a cost advantage over its c
ompetitors, allowing a higher mark-up at the \up0 \expndtw0\charscalex118 prevai
ling market price or, depending on the elasticity of demand, the use of a \up0 \
expndtw0\charscalex123 combination of lower price and higher mark-up than its co
mpetitors to gain \up0 \expndtw0\charscalex121 market share and increase profits
. In the case of product innovation, the firm \up0 \expndtw0\charscalex119 can g
ain a competitive advantage by introducing a new product, which allows \up0 \exp
ndtw0\charscalex119 it to increase demand and mark-ups. \par\pard\qj \li1303\ri1
178\sb74\sl-246\slmult0\tx1926 \up0 \expndtw0\charscalex106 78. \tab \up0 \expnd
tw0\charscalex123 Firms can also increase demand through product differentiation
, by \line\up0 \expndtw0\charscalex128 targeting new markets and by influencing
demand for existing products. \line \up0 \expndtw0\charscalex120 Changes in orga
nisational methods can improve the efficiency and quality of \up0 \expndtw0\char
scalex120 their operations, thereby increasing demand or reducing costs. \par\pa
rd\qj \li1303\ri1177\sb71\sl-250\slmult0\tx1926 \up0 \expndtw0\charscalex107 79.
\tab \up0 \expndtw0\charscalex117 Innovation can also improve performance
by increasing the firm\u8217?s \line\up0 \expndtw0\charscalex126 ability to i
nnovate. For example, improving the capabilities of production \line \up0 \expnd
tw0\charscalex122 processes can make it possible to develop a new range of produ

cts, and new \up0 \expndtw0\charscalex120 organisational practices can improve t
he firm\u8217?s ability to gain and create new \up0 \expndtw0\charscalex120 know
ledge that can be used to develop other innovations. \par\pard\li824\sb0\sl-218\
slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb117\sl-218\slmult0\fi
0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-0
1308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\no
supersub\cf19\f20\fs20 29
}
rsub\cf23\f24\fs17 80. \tab \up0 \expndtw0\charscalex123 A Schumpeterian persp
ective tends to emphasise innovation as \line\up0 \expndtw0\charscalex132 m
arket experiments and to look for large, sweeping changes that \line \u
p0 \expndtw0\charscalex132 fundamentally restructure industries and markets. Mai
nstream or neo\up0 \expndtw0\charscalex126 classical economics views innovation
in terms of asset creation as well as \up0 \expndtw0\charscalex119 market experi
ments. In this view, innovation is an aspect of business strategy, \up0 \expndtw
0\charscalex131 or part of the set of investment decisions to create capacity fo
r product \up0 \expndtw0\charscalex120 development or to improve efficiency. Rec
ent developments have centred on \up0 \expndtw0\charscalex118 the idea of \u8220
?sunk costs\u8221?, irrecoverable commitments of resources to enter new \up0 \ex
pndtw0\charscalex123 markets or to create competitive advantages by repositionin
g production or \up0 \expndtw0\charscalex116 output in the value chain (Sutton,
1992, 1998). \par\pard\qj \li1303\ri1176\sb50\sl-251\slmult0\tx1927 \up0 \expndt
w0\charscalex107 81. \tab \up0 \expndtw0\charscalex119 Appropriation is an impor
tant factor in innovation, given that research \line\up0 \expndtw0\charscalex110
results and new technologies often have aspects of a \ul0\nosupersub\cf24\f25\f
s17 public good\ul0\nosupersub\cf23\f24\fs17 , as the costs \line \up0 \expndtw0
\charscalex127 of making them available to many users are low compared
to their \up0 \expndtw0\charscalex120 development costs. Once disseminated, us
ers cannot be denied further access \up0 \expndtw0\charscalex122 to such an inno
vation. In such cases, the firm cannot capture all the benefits \up0 \expndtw0\c
harscalex137 generated by its innovation, which lessens the incentive to invest
in \up0 \expndtw0\charscalex118 innovation activities. Therefore, the ability to
protect innovations will have an \up0 \expndtw0\charscalex118 important influen
ce on innovation activity. \par\pard\qj \li1303\ri1176\sb50\sl-251\slmult0\tx192
6 \up0 \expndtw0\charscalex106 82. \tab \up0 \expndtw0\charscalex113 Other work,
notably in industrial organisation theory (\ul0\nosupersub\cf24\f25\fs17 e.g.\u
l0\nosupersub\cf23\f24\fs17 Tirole, 1995), \line\up0 \expndtw0\charscalex119 ha
s emphasised the significance of competitive positioning. Firms innovate to \lin
e \up0 \expndtw0\charscalex120 defend their existing competitive position as wel
l as to seek new competitive \line \up0 \expndtw0\charscalex119 advantages. A fi
rm may take a reactive approach and innovate to avoid losing \line \up0 \expndtw
0\charscalex118 market share to an innovative competitor. Or it may take a proac
tive approach \line \up0 \expndtw0\charscalex121 to gain a strategic market posi
tion relative to its competitors, for example by \line \up0 \expndtw0\charscalex

130 developing and then trying to enforce higher technical standards for the \li
ne \up0 \expndtw0\charscalex119 products it produces. \par\pard\qj \li1303\ri117
0\charscalex126 The decision to innovate often takes place under great uncertain
ty \line\up0 \expndtw0\charscalex127 (Rosenberg, 1994). Future developments in
knowledge and technology, \line \up0 \expndtw0\charscalex124 markets, product de
mand and potential uses for technologies can be highly \line \up0 \expndtw0\char
scalex123 unpredictable, although the level of uncertainty will vary by sector,
the life \line \up0 \expndtw0\charscalex122 cycle of a product and many other fa
ctors. The adoption of new products or \line \up0 \expndtw0\charscalex120 proces
ses or the implementation of new marketing or organisational methods \line \up0
\expndtw0\charscalex122 are also fraught with uncertainty. Furthermore, the sear
ch for and collection \line \up0 \expndtw0\charscalex118 of relevant information
can be very time-consuming and costly. \par\pard\qj \li1303\ri1178\sb49\sl-252\
4 Uncertainty can lead firms to hesitate to implement significant \line\
up0 \expndtw0\charscalex121 changes, even as they face a volatile environment th
at increases pressures to \line \up0 \expndtw0\charscalex123 introduce new produ
cts, seek new markets and introduce new technologies, \up0 \expndtw0\charscalex1
33 practices and organisational methods into their production processes. \up0 \e
xpndtw0\charscalex131 Uncertainty can also make it more difficult for firms to o
btain external \up0 \expndtw0\charscalex119 funding for their innovation project
s. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\pard
\li793\sb0\sl-230\slmult0\par\pard\li793\sb137\sl-230\slmult0\fi0\tx4899 \dn4 \e
xpndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 30\tab \up0 \expndtw0\charsc
alex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNI
TIES 2005
}
upersub\cf23\f24\fs17 85. \tab \up0 \expndtw0\charscalex116 Literature on organi
sational innovation (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\
fs17 Lam, 2005) focuses on the \line\up0 \expndtw0\charscalex136 role of organi
sational structures, learning processes and adaptation to \line \up0 \expndtw0\c
harscalex132 changes in technology and the environment (the latter includ
es the \up0 \expndtw0\charscalex122 institutional framework and markets). \par\
pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1926 \up0 \expndtw0\charscalex107 8
6. \tab \up0 \expndtw0\charscalex117 A firm\u8217?s organisational structure can
affect the efficiency of innovation \line\up0 \expndtw0\charscalex122 activitie
s, with some structures better suited to particular environments. For \line \up0
\expndtw0\charscalex127 example, a greater degree of organisational integration
may improve the \up0 \expndtw0\charscalex134 co-ordination, planning and implem
entation of innovation strategies. \up0 \expndtw0\charscalex132 Organisational
integration can work particularly well in industries \up0 \expndtw0\charsc
alex127 characterised by incremental changes in knowledge and technologies. A \u
p0 \expndtw0\charscalex127 looser, more flexible form of organisation, which all

ows workers greater \up0 \expndtw0\charscalex121 autonomy to make decisions and
define their responsibilities, might be more \up0 \expndtw0\charscalex118 effect
ive in generating more radical innovations. \par\pard\qj \li1303\ri1177\sb72\sl248\slmult0\tx1926 \up0 \expndtw0\charscalex106 87. \tab \up0 \expndtw0\charscal
ex119 Organisational learning depends on practices and routines, patterns of \li
ne\up0 \expndtw0\charscalex131 interaction both within and outside the firm, and
the ability to mobilise \line \up0 \expndtw0\charscalex126 individual tacit kno
wledge and promote interaction. Such learning can be \up0 \expndtw0\charscalex12
0 encouraged through careful design of practices, routines and relationships, or
\up0 \expndtw0\charscalex129 through a more flexible, fluid organisation i
n which individuals are \up0 \expndtw0\charscalex118 encouraged to develop new
ideas and ways of doing things. \par\pard\qj \li1303\ri1176\sb72\sl-249\slmult0
\tx1926 \up0 \expndtw0\charscalex107 88. \tab \up0 \expndtw0\charscalex114 Marke
ting theories (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17
Hunt, 1983) focus on consumer behaviour, \line\up0 \expndtw0\charscalex12
0 market exchanges between buyers and sellers, and normative approaches. As \lin
e \up0 \expndtw0\charscalex121 both buyers and sellers are heterogeneous, firms
face the daunting challenge \line \up0 \expndtw0\charscalex122 of matching their
products to demand. The heterogeneity of consumers also \line \up0 \expndtw0\ch
arscalex134 means that product differentiation is often as important for capturi
ng \line \up0 \expndtw0\charscalex121 demand as the development of new products.
Demand may depend not only \line \up0 \expndtw0\charscalex138 on the objective
characteristics of products, but also on their social \line \up0 \expndtw0\chars
calex134 characteristics and image, and firms can use these last two features to
\line \up0 \expndtw0\charscalex121 influence demand for their products. Normati
ve marketing theories focus on \line \up0 \expndtw0\charscalex119 the implementa
tion of marketing practices. An example is the Marketing Mix \line \up0 \expndtw
0\charscalex121 Model (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f
24\fs17 Perreault and McCarthy, 2005) that focuses on the \u8220?4 Ps\u8221?
of \line \up0 \expndtw0\charscalex121 marketing: product, price, promotion and p
lacement. \par\pard\qj \li1303\ri1175\sb72\sl-248\slmult0\tx1927 \up0 \expndtw0\
charscalex107 89. \tab \up0 \expndtw0\charscalex117 \ul0\nosupersub\cf24\f25\fs1
7 Product\ul0\nosupersub\cf23\f24\fs17 involves changes in product design and p
ackaging that are \line\up0 \expndtw0\charscalex120 intended to change or enhanc
e the product\u8217?s appeal or to target a new market \line \up0 \expndtw0\char
scalex114 or market segment. \ul0\nosupersub\cf24\f25\fs17 Price\ul0\nosupersub\
cf23\f24\fs17 involves the use of pricing methods to market goods \line \up0 \e
xpndtw0\charscalex110 or services. \ul0\nosupersub\cf24\f25\fs17 Promotion\ul0\n
osupersub\cf23\f24\fs17 involves promotional efforts made by firms to improve \
line \up0 \expndtw0\charscalex121 their products\u8217? image or to increase awa
reness of their products. The final P, \line \up0 \expndtw0\charscalex112 \ul0\n
osupersub\cf24\f25\fs17 placement\ul0\nosupersub\cf23\f24\fs17 , involves both t
he types of sales channels that firms choose to sell \line \up0 \expndtw0\charsc
alex128 their products and how these sales channels are designed in order to bes
t \line \up0 \expndtw0\charscalex121 market their products. \par\pard\li1303\sb1
23\sl-195\slmult0\fi0\tx1926 \up0 \expndtw0\charscalex122 90.\tab \up0 \expndtw0
\charscalex122 The diffusion of new knowledge and technology is a central part o
f\par\pard\li1303\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex123 innovatio
n. The diffusion process often involves more than the mere adoption\par\pard\li8
24\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb170\sl218\slmult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs1
1 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charsca
lex105 \ul0\nosupersub\cf19\f20\fs20 31

}
1303\ri1179\sb170\sl-253\slmult0\fi0 \up0 \expndtw0\charscalex120 \ul0\nosupersu
b\cf23\f24\fs17 of knowledge and technology, as adopting firms learn from and bu
ild on new \up0 \expndtw0\charscalex120 knowledge and technology. Theories of di
ffusion (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 Hall,
2005) focus on \up0 \expndtw0\charscalex121 factors that affect firms\u8217? dec
isions to adopt new technologies, their access to \up0 \expndtw0\charscalex117 n
ew knowledge and their absorptive ability. \par\pard\qj \li1303\ri1178\sb49\sl-2
51\slmult0\tx1926 \up0 \expndtw0\charscalex106 91. \tab \up0 \expndtw0\charscale
x115 Sociological views on the diffusion of new technologies (\ul0\nosupersub\c
f24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 Rogers, \line\up0 \expndtw0\char
scalex123 1995) highlight firms\u8217? attributes that influence their decisions
to adopt new \line \up0 \expndtw0\charscalex133 knowledge or technologies, such
as the relative advantage of the new \line \up0 \expndtw0\charscalex127 technol
ogy, its compatibility with existing ways of doing things, its \line \u
p0 \expndtw0\charscalex128 complexity, and the ease with which the firm is able
to evaluate the new \line \up0 \expndtw0\charscalex128 technology. Economic view
s on diffusion tend to focus on the costs and \line \up0 \expndtw0\charscalex122
benefits of adopting new technologies. These potential benefits can often be \l
ine \up0 \expndtw0\charscalex119 strategic, so as to keep up with or gain an adv
antage over competitors. \par\pard\qj \li1303\ri1177\sb49\sl-252\slmult0\tx1926
\up0 \expndtw0\charscalex107 92. \tab \up0 \expndtw0\charscalex120 Access to kno
wledge and technology can depend to a large extent on \line\up0 \expndtw0\charsc
alex119 the connections between firms and organisations. This is particularly th
e case \line \up0 \expndtw0\charscalex115 for the \ul0\nosupersub\cf24\f25\fs17
tacit\ul0\nosupersub\cf23\f24\fs17 knowledge that is held in the minds of peopl
e, or for information \up0 \expndtw0\charscalex128 that is held in the \u8220?ro
utines\u8221? of organisations. Direct interaction with the \up0 \expndtw0\chars
calex121 people with tacit knowledge or with access to routines is required in o
rder to \up0 \expndtw0\charscalex118 gain access to these types of knowledge. \p
7 93. \tab \up0 \expndtw0\charscalex116 Much knowledge is \ul0\nosupersub\cf24\f
25\fs17 codified\ul0\nosupersub\cf23\f24\fs17 and can be accessed and used with
out \line\up0 \expndtw0\charscalex118 direct interaction with the source. Transf
ers of codified knowledge comprise a \line \up0 \expndtw0\charscalex119 large sh
are of technology diffusion, and efforts to promote the codification of \line \u
p0 \expndtw0\charscalex129 knowledge can have important impacts on productiv
ity, growth and \line \up0 \expndtw0\charscalex133 innovation. An example is
work on the establishment of technology \line \up0 \expndtw0\charscalex123 stan
dards. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1926 \up0 \expndtw0\cha
rscalex107 94. \tab \up0 \expndtw0\charscalex116 Even for information that is op
enly available, finding it can be a serious \line\up0 \expndtw0\charscalex117 ch
allenge, in particular since searching for new information can be very costly. \
line \up0 \expndtw0\charscalex125 Thus, ease of communication, effective channel
s of information and skills \line \up0 \expndtw0\charscalex130 transmission, wit
hin and between organisations, are very important for \line \up0 \expndtw0\chars
calex117 diffusion. \par\pard\qj \li1303\ri1178\sb72\sl-248\slmult0\tx1926 \up0
\expndtw0\charscalex107 95. \tab \up0 \expndtw0\charscalex115 Evolutionary appro
aches (Nelson and Winter, 1982) view innovation as \line\up0 \expndtw0\charscale
x121 a path-dependent process whereby knowledge and technology are developed \li
ne \up0 \expndtw0\charscalex120 through interaction between various actors and o
ther factors. The structure of \line \up0 \expndtw0\charscalex122 such interacti

on affects the future path of economic change. As an example, \line \up0 \expndt
w0\charscalex121 market demand and the opportunities for commercialisation influ
ence which \line \up0 \expndtw0\charscalex119 products are developed and which t
echnologies are successful. \par\pard\qj \li1303\ri1177\sb72\sl-248\slmult0\tx19
26 \up0 \expndtw0\charscalex107 96. \tab \up0 \expndtw0\charscalex120 Closely li
nked to the evolutionary approach is the view of innovation \line\up0 \expndtw0\
charscalex124 as a system. The systems of innovation approach (Lundvall, 1992; N
elson, \line \up0 \expndtw0\charscalex124 1993) studies the influence of externa
l institutions, broadly defined, on the \line \up0 \expndtw0\charscalex122 innov
ative activities of firms and other actors. It emphasises the importance \line \
up0 \expndtw0\charscalex128 of the transfer and diffusion of ideas, skills, know
ledge, information and \line \up0 \expndtw0\charscalex128 signals of many kinds.
The channels and networks through which this \par\pard\li793\sb0\sl-230\slmult0
\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb7\sl-230\slmult0\fi0\tx4899
\dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 32\tab \up0 \expndtw0
\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN
COMMUNITIES 2005
}
\cf23\f24\fs17 information circulates are embedded in a social, political and cu
ltural \up0 \expndtw0\charscalex123 background that guides and constrains innova
tion activities and capabilities. \up0 \expndtw0\charscalex130 Innovation is v
iewed as a dynamic process in which knowledge is \up0 \expndtw0\charscal
ex124 accumulated through learning and interaction. These concepts were initiall
y \up0 \expndtw0\charscalex132 introduced in terms of national systems of innova
tion, but they are also \up0 \expndtw0\charscalex122 applicable to regional and
international systems. \par\pard\qj \li1303\ri1177\sb49\sl-252\slmult0\tx1927 \u
p0 \expndtw0\charscalex109 97. \tab \up0 \expndtw0\charscalex120 Systems approac
hes to innovation shift the focus of policy towards an \line\up0 \expndtw0\chars
calex124 emphasis on the interplay of institutions and look at interactive proce
sses in \line \up0 \expndtw0\charscalex128 the creation, diffusion and applicati
on of knowledge. They emphasise the \up0 \expndtw0\charscalex132 importance of t
he conditions, regulations and policies in which markets \up0 \expndtw0\charscal
ex123 operate and hence the role of governments in monitoring and seeking to fin
e \up0 \expndtw0\charscalex120 tune this overall framework. \par\pard\ql \li793\
sb0\sl-241\slmult0 \par\pard\ql\li793\sb17\sl-241\slmult0 \up0 \expndtw0\charsca
lex123 \ul0\nosupersub\cf22\f23\fs21 3. A measurement framework \par\pard\qj \li
1303\ri1177\sb72\sl-250\slmult0\tx1926 \up0 \expndtw0\charscalex109 \ul0\nosuper
sub\cf23\f24\fs17 98. \tab \up0 \expndtw0\charscalex127 These different theo
ries form the basis for the innovation \line\up0 \expndtw0\charscale
x125 measurement framework used in the Manual. They highlight, among other \line
\up0 \expndtw0\charscalex132 things, the driving forces behind innovation, the
importance not only of \line \up0 \expndtw0\charscalex127 products and processes
but also of marketing and organisational practices, \line \up0 \expndtw0\charsc
alex121 the role of linkages and diffusion, and the view of innovation as a syst
em. \par\pard\qj \li1303\ri1177\sb72\sl-248\slmult0\tx1926 \up0 \expndtw0\charsc
alex107 99. \tab \up0 \expndtw0\charscalex120 The link between innovation an
d economic change is of central \line\up0 \expndtw0\charscalex133 interest.
Through innovation, new knowledge is created and diffused, \line \up0 \expndtw0
\charscalex131 expanding the economy\u8217?s potential to develop new products a
nd more \line \up0 \expndtw0\charscalex125 productive methods of operation. Such
improvements depend not only on \line \up0 \expndtw0\charscalex120 technologica
l knowledge, but also on other forms of knowledge that are used \line \up0 \expn
dtw0\charscalex130 to develop product, process, marketing and organisational inn
ovations. \line \up0 \expndtw0\charscalex134 Specific types of innovation can di
ffer greatly in their impact on firm \line \up0 \expndtw0\charscalex123 performa
nce and on economic change. For this reason, it is important to be \line \up0 \e
xpndtw0\charscalex135 able to identify the implementation and impacts of differe
nt types of \line \up0 \expndtw0\charscalex119 innovation. \par\pard\qj \li1303\
ri1176\sb71\sl-250\slmult0\tx1927 \up0 \expndtw0\charscalex107 100. \tab \up0 \e
xpndtw0\charscalex118 Figure 2.1 depicts this framework from the perspective of
the firm, the \line\up0 \expndtw0\charscalex120 target of innovation surveys. Ot
her models of the innovation process, such as \line \up0 \expndtw0\charscalex121
Kline and Rosenberg\u8217?s chain-link model (Kline and Rosenberg, 1986) or the
\line \up0 \expndtw0\charscalex126 innovation dynamo (OECD/Eurostat, 1997), p
rovide a useful theoretical \line \up0 \expndtw0\charscalex127 overview for inno
vation processes but are less adapted to guiding survey \line \up0 \expndtw0\cha
rscalex122 design. The framework used in the Manual thus represents an integrati
on of \line \up0 \expndtw0\charscalex134 insights from various firm-based theori
es of innovation with those of \line \up0 \expndtw0\charscalex121 approaches tha
t view innovation as a system. The main characteristics of the \line \up0 \expnd
tw0\charscalex117 framework described are: \par\pard\ql \li1303\sb96\sl-195\slmu
lt0 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosup
ersub\cf23\f24\fs17 Innovation in the firm. \par\pard\ql \li1303\sb126\sl-195\
slmult0 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\n
osupersub\cf23\f24\fs17 Linkages with other firms and public research institut
ions. \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\p
ard\li824\sb0\sl-218\slmult0\par\pard\li824\sb129\sl-218\slmult0\fi0\tx8040 \up0
\expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD
/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19
\f20\fs20 33
}
2248\sb0\sl-195\slmult0 \par\pard\ql\li2248\sb141\sl-195\slmult0 \up0 \expndtw0\
charscalex123 \ul0\nosupersub\cf23\f24\fs17 Figure 2.1. The innovation measureme
nt framework \par\pard\ql \li3215\sb0\sl-161\slmult0 \par\pard\ql\li3215\sb0\sl161\slmult0 \par\pard\ql\li3215\sb0\sl-161\slmult0 \par\pard\ql\li3215\sb0\sl-16
1\slmult0 \par\pard\ql\li3215\sb30\sl-161\slmult0 \up0 \expndtw0\charscalex108 \
ul0\nosupersub\cf32\f33\fs14 Infrastructure and institutional framework \par\par
d\ql \li3787\sb0\sl-161\slmult0 \par\pard\ql\li3787\sb0\sl-161\slmult0 \par\pard
\ql\li3787\sb0\sl-161\slmult0 \par\pard\ql\li3787\sb0\sl-161\slmult0 \par\pard\q

l\li3787\sb0\sl-161\slmult0 \par\pard\ql\li3787\sb0\sl-161\slmult0 \par\pard\ql\
li3787\sb0\sl-161\slmult0 \par\pard\ql\li3787\sb12\sl-161\slmult0 \up0 \expndtw0
\charscalex106 The Firm \par\pard\li3071\sb0\sl-161\slmult0\par\pard\li3071\sb0\
sl-161\slmult0\par\pard\li3071\sb18\sl-161\slmult0\fi89\tx4483 \up0 \expndtw0\ch
arscalex112 \ul0\nosupersub\cf33\f34\fs14 Product\tab \up0 \expndtw0\charscalex1
12 Process\par\pard\li3071\sb9\sl-161\slmult0\fi0\tx4398 \up0 \expndtw0\charscal
ex112 innovations\tab \up0 \expndtw0\charscalex112 innovations\par\pard\li3071\s
b0\sl-161\slmult0\par\pard\li3071\sb132\sl-161\slmult0\fi44\tx4313 \up0 \expndtw
0\charscalex112 Marketing\tab \up0 \expndtw0\charscalex112 Organisational\par\pa
rd\li3071\sb9\sl-161\slmult0\fi0\tx4398 \up0 \expndtw0\charscalex112 innovations
\tab \up0 \expndtw0\charscalex112 innovations\par\pard\qj \li6412\sb0\sl-160\slm
ult0 \par\pard\qj\li6412\sb0\sl-160\slmult0 \par\pard\qj\li6412\sb0\sl-160\slmul
t0 \par\pard\qj\li6412\ri1924\sb45\sl-160\slmult0 \up0 \expndtw0\charscalex106 \
ul0\nosupersub\cf32\f33\fs14 Innovation \line \up0 \expndtw0\charscalex107 polic
ies \par\pard\ql \li4181\sb160\sl-161\slmult0 \up0 \expndtw0\charscalex103 Educa
tion and \par\pard\li2015\sb19\sl-161\slmult0\fi0\tx4138 \dn2 \expndtw0\charscal
ex106 Other firms\tab \up0 \expndtw0\charscalex106 public research\par\pard\ql \
li4405\sb0\sl-160\slmult0 \up0 \expndtw0\charscalex106 system \par\pard\ql \li42
b0\sl-161\slmult0 \par\pard\ql\li4233\sb0\sl-161\slmult0 \par\pard\ql\li4233\sb1
54\sl-161\slmult0 \up0 \expndtw0\charscalex105 Demand \par\pard\qj \li1303\sb0\s
l-320\slmult0 \par\pard\qj\li1303\sb0\sl-320\slmult0 \par\pard\qj\li1303\ri3092\
sb48\sl-320\slmult0 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14 \
u9679?\ul0\nosupersub\cf23\f24\fs17 The institutional framework in which firms
operate. \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0
\nosupersub\cf23\f24\fs17 The role of demand. \par\pard\qj \li1303\ri1178\sb36
\sl-253\slmult0\tx1926 \up0 \expndtw0\charscalex107 101. \tab \up0 \expndtw0\cha
rscalex117 Innovation in firms refers to planned changes in a firm\u8217?s activ
ities with \line\up0 \expndtw0\charscalex124 a view to improving the firm\u8217?
s performance. Drawing on the discussion of \line \up0 \expndtw0\charscalex120 i
nnovation theory above, the concept of innovation used in the Manual refers \up0
\expndtw0\charscalex120 to changes characterised by the following features: \pa
r\pard\ql \li1303\ri1176\sb48\sl-252\slmult0\tx1508\tx1508\tx1508\tx1508\tx1508
\up0 \expndtw0\charscalex110 \ul0\nosupersub\cf24\f25\fs17 a)\ul0\nosupersub\cf2
3\f24\fs17 Innovation is associated with \ul0\nosupersub\cf24\f25\fs17 uncertai
nty\ul0\nosupersub\cf23\f24\fs17 over the outcome of innovation \line\tab \up0
\expndtw0\charscalex128 activities. It is not known beforehand what the result o
f the innovation \line \tab \up0 \expndtw0\charscalex113 activities will be, \ul
0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 whether R&D will r
esult in the successful development \line \tab \up0 \expndtw0\charscalex120 of a
marketable product or how much time and resources will be needed to \line \tab
\up0 \expndtw0\charscalex120 implement a new production process, marketing or or
ganisational method \line \tab \up0 \expndtw0\charscalex117 and how successful t
hey will be. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult
}
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NTERPRETING INNOVATION DATA \par\pard\ql \li1303\sb0\sl-253\slmult0 \par\pard\ql
\li1303\ri1174\sb170\sl-253\slmult0\tx1508\tx1508\tx1508 \up0 \expndtw0\charscal
ex109 \ul0\nosupersub\cf24\f25\fs17 b)\ul0\nosupersub\cf23\f24\fs17 Innovation
involves \ul0\nosupersub\cf24\f25\fs17 investment\ul0\nosupersub\cf23\f24\fs
17 . Relevant investment can include \line\tab \up0 \expndtw0\charscalex
121 acquisition of fixed and intangible assets as well as other activities (such
as \line \tab \up0 \expndtw0\charscalex133 salaries, or purchase of material or
services) that may yield potential \line \tab \up0 \expndtw0\charscalex124 retu
rns in the future. \par\pard\ql \li1303\ri1116\sb50\sl-250\slmult0\tx1508\tx1508
\tx1508\tx1508\tx1508\tx1508\tx1508 \up0 \expndtw0\charscalex60 \ul0\nosupersub\
cf24\f25\fs17 c) \tab \up0 \expndtw0\charscalex115 \ul0\nosupersub\cf23\f24\fs17
Innovation is subject to \ul0\nosupersub\cf24\f25\fs17 spillovers\ul0\nosupersu
b\cf23\f24\fs17 . The benefits of creative innovation are \line\tab \up0 \expndt
w0\charscalex130 rarely fully appropriated by the inventing firm. Firms that inn
ovate by \line \tab \up0 \expndtw0\charscalex122 adopting the innovation can ben
efit from knowledge spillovers or from the \line \tab \up0 \expndtw0\charscalex1
28 use of the original innovation. For some innovation activities, imitation \li
ne \tab \up0 \expndtw0\charscalex125 costs are substantially lower than developm
ent costs, so that an effective \line \tab \up0 \expndtw0\charscalex131 appropri
ation mechanism to provide an incentive to innovate may be \line \tab \up0 \expn
dtw0\charscalex122 required. \par\pard\ql \li1303\ri1116\sb70\sl-250\slmult0\tx1
508\tx1508\tx1508\tx1508\tx1508\tx1508 \up0 \expndtw-7\charscalex89 \ul0\nosuper
sub\cf24\f25\fs17 d)\ul0\nosupersub\cf23\f24\fs17 Innovation involves the \ul
0\nosupersub\cf24\f25\fs17 utilisation of new knowledge\ul0\nosupersub\cf23\
f24\fs17 or a \ul0\nosupersub\cf24\f25\fs17 new use or \line\tab \up0 \exp
ndtw-7\charscalex97 combination of existing knowledge\ul0\nosupersub\cf23\f24\fs
17 . New knowledge may either be generated by \line \tab \up0 \expndtw0\charscal
ex123 the innovating firm in the course of its innovation activities (\ul0\nosup
ersub\cf24\f25\fs17 i.e.\ul0\nosupersub\cf23\f24\fs17 through \line \tab \up0 \
expndtw0\charscalex129 intramural R&D) or acquired externally through vari
ous channels \line \tab \up0 \expndtw0\charscalex129 (\ul0\nosupersub\cf24\f25\
fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 purchase of new technology). The use of
new knowledge or the \line \tab \up0 \expndtw0\charscalex123 combination of exis
ting knowledge requires innovative efforts that can be \line \tab \up0 \expndtw0
\charscalex123 distinguished from standardised routines. \par\pard\ql \li1303\ri
1117\sb50\sl-251\slmult0\tx1508\tx1508\tx1508\tx1508\tx1508\tx1508\tx1508\tx1508
\up0 \expndtw0\charscalex63 \ul0\nosupersub\cf24\f25\fs17 e) \tab \up0 \expndtw
0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 Innovation aims at improving a fir
m\u8217?s performance by gaining a \ul0\nosupersub\cf24\f25\fs17 competitive \li
ne\tab \up0 \expndtw0\charscalex109 advantage \ul0\nosupersub\cf23\f24\fs17 (or
simply maintaining competitiveness) by shifting the demand \line \tab \up0 \expn
dtw0\charscalex119 curve of the firm\u8217?s products (\ul0\nosupersub\cf24\f25\
fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 increasing product quality, offering new
\line \tab \up0 \expndtw0\charscalex117 products or opening up new markets or g
roups of customers) or a firm\u8217?s cost \line \tab \up0 \expndtw0\charscalex1
22 curve (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 reduc
ing unit costs of production, purchasing, distribution or \line \tab \up0 \expnd
tw0\charscalex118 transaction), or by improving the firm\u8217?s ability to inno
vate (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 increasin
g \line \tab \up0 \expndtw0\charscalex121 the ability to develop new products or
processes or to gain and create new \line \tab \up0 \expndtw0\charscalex115 kno
wledge). \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1926 \up0 \expndtw0\c
harscalex107 102. \tab \up0 \expndtw0\charscalex125 There are two main options o
pen to a firm that wants to change its \line\up0 \expndtw0\charscalex120 product

s, capabilities or production, marketing and organisational systems. It \line \u
p0 \expndtw0\charscalex121 can invest in creative activities to develop innovati
ons in house, either alone \up0 \expndtw0\charscalex137 or in conjunction with e
xternal partners, or it can adopt innovations \up0 \expndtw0\charscalex121 devel
oped by other firms or institutions as part of a diffusion process. These \up0 \
expndtw0\charscalex137 two options offer countless combinations, as when a firm
adopts an \up0 \expndtw0\charscalex119 organisational innovation developed by an
other firm and adjusts it to function \up0 \expndtw0\charscalex120 with its own
work routines, or when it adapts new manufacturing technology \up0 \expndtw0\cha
rscalex121 to its production line, or when it introduces a new component obtaine
d from \up0 \expndtw0\charscalex133 a supplier into a consumer product. Both the
creation and adoption of \up0 \expndtw0\charscalex123 innovations can involve e
ither intensive learning and interaction with other \up0 \expndtw0\charscalex119
actors, or minimal external linkages. \par\pard\li1303\sb114\sl-195\slmult0\fi0
\tx1927 \up0 \expndtw0\charscalex125 103.\tab \up0 \expndtw0\charscalex126 The
specific innovation activities that firms can use to develop or\par\pard\
li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex125 acquire innovations
include R&D and/or many other activities that are\par\pard\li1303\sb56\sl-195\sl
mult0\fi0 \up0 \expndtw0\charscalex125 summarised below.\par\pard\li824\sb0\sl-2
18\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb170\sl-218\slmult0
\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-6
4-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0
\nosupersub\cf19\f20\fs20 35
}
rsub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 R&D: R&D is defined in
the \ul0\nosupersub\cf24\f25\fs17 Frascati Manual\ul0\nosupersub\cf23\f24\fs17
(OECD, 2002) and includes the \line\tab \up0 \expndtw0\charscalex104 following:
\par\pard\qj \li1710\ri1178\sb49\sl-250\slmult0\tx1870\tx1870 \up0 \expndtw0\ch
arscalex118 \ul0\nosupersub\cf24\f25\fs17 i)\ul0\nosupersub\cf23\f24\fs17 The
firm can engage in basic and applied research to acquire new \line\tab \
up0 \expndtw0\charscalex130 knowledge and direct research towards specific
inventions or \line \tab \up0 \expndtw0\charscalex120 modifications of existin
g techniques. \par\pard\ql \li1663\ri1177\sb74\sl-246\slmult0\tx1870\tx1870\tx18
70 \up0 \expndtw0\charscalex119 \ul0\nosupersub\cf24\f25\fs17 ii)\ul0\nosupersub
\cf23\f24\fs17 It can develop new product or process concepts or other new meth
ods \line\tab \up0 \expndtw0\charscalex131 to assess whether they are feasible a
nd viable, a stage which may \line \tab \up0 \expndtw0\charscalex117 involve: \u
l0\nosupersub\cf24\f25\fs17 a)\ul0\nosupersub\cf23\f24\fs17 development and tes
ting; and \ul0\nosupersub\cf24\f25\fs17 b)\ul0\nosupersub\cf23\f24\fs17 further
research to modify \line \tab \up0 \expndtw0\charscalex118 designs or technical
functions. \par\pard\ql \li1303\ri1177\sb75\sl-246\slmult0\tx1508\tx1508\tx1508
\up0 \expndtw0\charscalex120 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupers
ub\cf23\f24\fs17 Other innovative activity: The firm can engage in many non-R&
D activities \line\tab \up0 \expndtw0\charscalex124 that can be part of innovati

on. These activities can strengthen capabilities \line \tab \up0 \expndtw0\chars
calex127 that enable the development of innovations or the ability to successful
ly \line \tab \up0 \expndtw0\charscalex121 adopt innovations developed by other
firms or institutions: \par\pard\ql \li1615\ri1179\sb73\sl-248\slmult0\tx1870\tx
1870\tx1870\tx1870\tx1870 \up0 \expndtw0\charscalex118 \ul0\nosupersub\cf24\f25\
fs17 iii)\ul0\nosupersub\cf23\f24\fs17 It can identify new concepts for p
roducts, processes, marketing \line\tab \up0 \expndtw0\charscalex127 methods o
r organisational changes: \ul0\nosupersub\cf24\f25\fs17 a)\ul0\nosupersub\cf23\f
24\fs17 via its marketing side and \line \tab \up0 \expndtw0\charscalex128 rela
tions with users; \ul0\nosupersub\cf24\f25\fs17 b)\ul0\nosupersub\cf23\f24\fs17
via the identification of opportunities for \line \tab \up0 \expndtw0\charscale
x121 commercialisation resulting from its own or others\u8217? basic or strategi
c \line \tab \up0 \expndtw0\charscalex117 research; \ul0\nosupersub\cf24\f25\fs1
7 c)\ul0\nosupersub\cf23\f24\fs17 via its design and development capabili
ties; \ul0\nosupersub\cf24\f25\fs17 d)\ul0\nosupersub\cf23\f24\fs17 by \line \
tab \up0 \expndtw0\charscalex118 monitoring competitors; and \ul0\nosupersub\cf2
4\f25\fs17 e)\ul0\nosupersub\cf23\f24\fs17 by using consultants. \par\pard\ql \
li1615\ri1178\sb74\sl-246\slmult0\tx1870\tx1870\tx1870 \up0 \expndtw0\charscalex
118 \ul0\nosupersub\cf24\f25\fs17 iv)\ul0\nosupersub\cf23\f24\fs17 It can buy t
echnical information, paying fees or royalties for patented \line\tab \up0 \expn
dtw0\charscalex122 inventions (which usually require research and development wo
rk to \line \tab \up0 \expndtw0\charscalex123 adapt and modify the invention to
its own needs), or buy know-how \line \tab \up0 \expndtw0\charscalex119 and skil
ls through engineering, design or other consultancy services. \par\pard\ql \li16
63\ri1178\sb71\sl-250\slmult0\tx1870\tx1870 \up0 \expndtw0\charscalex116 \ul0\no
supersub\cf24\f25\fs17 v)\ul0\nosupersub\cf23\f24\fs17 Human skills can be deve
loped (through internal training) or purchased \line\tab \up0 \expndtw0\charscal
ex118 (by hiring); tacit and informal learning - \u8220?learning by doing\u8221?
- may also \line \tab \up0 \expndtw0\charscalex114 be involved. \par\pard\qj \l
rsub\cf24\f25\fs17 vi\ul0\nosupersub\cf23\f24\fs17 ) It can invest in equipm
ent, software or intermediate inputs that \line\tab \up0 \expndtw0\charscal
ex118 embody the innovative work of others. \par\pard\ql \li1538\ri1174\sb24\sl280\slmult0\fi43\tx1870 \up0 \expndtw0\charscalex111 \ul0\nosupersub\cf24\f25\fs
17 vii)\ul0\nosupersub\cf23\f24\fs17 It can reorganise management systems and i
ts overall business activities. \line \up0 \expndtw0\charscalex108 \ul0\nosupers
ub\cf24\f25\fs17 viii)\ul0\nosupersub\cf23\f24\fs17 It can develop new meth
ods of marketing and selling its goods and \line\tab \up0 \expndtw0\chars
calex108 services. \par\pard\qj \li1303\ri1177\sb65\sl-250\slmult0\tx1926 \up0 \
expndtw0\charscalex107 104. \tab \up0 \expndtw0\charscalex126 All these innova
tion activities have as their end objective the \line\up0 \expndtw0\chars
calex119 improvement of the firm\u8217?s performance. They can be intended to de
velop and \line \up0 \expndtw0\charscalex128 implement new products and processe
s, new methods of promoting and \up0 \expndtw0\charscalex133 selling the firm\u8
217?s products and/or changes in the firm\u8217?s organisational \up0 \expndtw0\
charscalex121 practices and structure. \par\pard\li793\sb0\sl-230\slmult0\par\pa
lt0\par\pard\li793\sb87\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \
ul0\nosupersub\cf19\f20\fs20 36\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub
\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}

upersub\cf23\f24\fs17 105. \tab \up0 \expndtw0\charscalex126 The general ins
titutional environment determines the broad \line\up0 \expndtw0\charscal
ex122 parameters within which firms operate. The component elements include: \pa
r\pard\ql \li1303\ri1116\sb49\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw-7\chars
calex84 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 The
\ul0\nosupersub\cf24\f25\fs17 basic educational system for the general pop
ulation\ul0\nosupersub\cf23\f24\fs17 , which determines \line\tab \up0 \expndtw
0\charscalex136 minimum educational standards in the workforce and the domestic
\line \tab \up0 \expndtw0\charscalex123 consumer market. \par\pard\ql \li1303\sb
116\sl-195\slmult0 \up0 \expndtw-7\charscalex85 \ul0\nosupersub\cf27\f28\fs14 \u
9679?\ul0\nosupersub\cf23\f24\fs17 The \ul0\nosupersub\cf24\f25\fs17 universit
y system\ul0\nosupersub\cf23\f24\fs17 . \par\pard\qj \li1303\ri4117\sb2\sl-320\s
lmult0 \up0 \expndtw-7\charscalex78 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\no
supersub\cf23\f24\fs17 The \ul0\nosupersub\cf24\f25\fs17 specialised technical
training system\ul0\nosupersub\cf23\f24\fs17 . \up0 \expndtw-7\charscalex79 \ul
0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 The \ul0\nosup
ersub\cf24\f25\fs17 science and research base\ul0\nosupersub\cf23\f24\fs17 . \pa
r\pard\qj \li1303\ri1119\sb30\sl-260\slmult0\tx1508 \up0 \expndtw-7\charscalex96
\ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Common po
ols of codified knowledge\ul0\nosupersub\cf23\f24\fs17 , such as publicati
ons, technical, \line\tab \up0 \expndtw-7\charscalex96 environmental and manage
ment standards. \par\pard\ql \li1303\ri1110\sb30\sl-273\slmult0\tx1508\tx1508 \u
p0 \expndtw-6\charscalex100 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub
\cf24\f25\fs17 Innovation policies\ul0\nosupersub\cf23\f24\fs17 and other gov
ernment policies that influence innovation by firms. \up0 \expndtw-7\charscalex9
4 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Legislati
ve and macroeconomic settings\ul0\nosupersub\cf23\f24\fs17 such as patent law,
taxation, corporate \line\tab \up0 \expndtw0\charscalex132 governance rules and
policies relating to interest and exchange rates, \line \tab \up0 \expndtw0\char
scalex121 tariffs, and competition. \par\pard\ql \li1303\ri1108\sb22\sl-280\slmu
lt0\tx1508 \up0 \expndtw-7\charscalex94 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul
0\nosupersub\cf23\f24\fs17 The \ul0\nosupersub\cf24\f25\fs17 communications in
frastructure\ul0\nosupersub\cf23\f24\fs17 , including roads and telecommunicatio
n networks. \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf27\f28\fs14 \u9679?\u
l0\nosupersub\cf24\f25\fs17 Financial institutions\ul0\nosupersub\cf23\f24\fs1
7 which determine, for example, the ease of access to \line\tab \up0 \expndtw0\
charscalex100 venture capital. \par\pard\qj \li1303\ri1176\sb74\sl-240\slmult0\t
x1508 \up0 \expndtw0\charscalex104 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nos
upersub\cf24\f25\fs17 Market accessibility\ul0\nosupersub\cf23\f24\fs17 , incl
uding possibilities for the establishment of close \line\tab \up0 \expndtw0\char
scalex104 relations with customers as well as matters such as size and ease of a
ccess. \par\pard\qj \li1303\ri1117\sb80\sl-240\slmult0\tx1508 \up0 \expndtw-7\ch
arscalex86 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17
Industry structure and the competitive environment\ul0\nosupersub\cf23\f24\fs17
, including the existence of \line\tab \up0 \expndtw-7\charscalex86 supplier fir
ms in complementary sectors. \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql
\li793\sb19\sl-241\slmult0 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf22\f23
\fs21 4. Sectoral and regional aspects of innovation \par\pard\qj \li1303\ri1175
\sb92\sl-250\slmult0\tx1927 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf23\f2
4\fs17 106. \tab \up0 \expndtw0\charscalex121 Innovation processes differ grea
tly from sector to sector in terms of \line\up0 \expndtw0\charscalex116 develo
pment, rate of technological change, linkages and access to knowledge, as \line

\up0 \expndtw0\charscalex139 well as in terms of organisational structures and i
nstitutional factors \up0 \expndtw0\charscalex114 (\ul0\nosupersub\cf24\f25\fs17
e.g.\ul0\nosupersub\cf23\f24\fs17 Malerba, 2005). Some sectors are characteris
ed by rapid change and radical \up0 \expndtw0\charscalex114 innovations, others
by smaller, incremental changes. \par\pard\qj \li1303\ri1173\sb50\sl-251\slmult0
\fi0\tx1926 \up0 \expndtw0\charscalex105 107. \tab \up0 \expndtw0\charscalex117
In high-technology sectors, R&D plays a central role in innovation \lin
e\up0 \expndtw0\charscalex131 activities, while other sectors rely to a greater
degree on the adoption of \line \up0 \expndtw0\charscalex123 knowledge and techn
ology. Differences in innovation activity across sectors \line \up0 \expndtw0\ch
arscalex121 (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 wh
ether mainly incremental or radical innovations) also place different \line \up0
\expndtw0\charscalex120 demands on the organisational structure of firms, and i
nstitutional factors such \line \up0 \expndtw0\charscalex120 as regulations and
intellectual property rights can vary greatly in their role and \line \up0 \expn
dtw0\charscalex116 importance. It is important to take these differences into ac
count when designing \line \up0 \expndtw0\charscalex117 policy. They are also im
portant for measurement, both when collecting data that \line \up0 \expndtw0\cha
rscalex131 allow for analysis across sectors and regions and when ensuring that
the \line \up0 \expndtw0\charscalex116 measurement framework is applicable to a
broad range of industries. \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0
\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb199\sl-218\sl
mult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN
}
charscalex75 \ul0\nosupersub\cf28\f29\fs19 4.1. Innovation in services \par\pard
\qj \li1303\ri1178\sb74\sl-253\slmult0\tx1926 \up0 \expndtw0\charscalex107 \ul0\
nosupersub\cf23\f24\fs17 108. \tab \up0 \expndtw0\charscalex118 The importance o
f innovation in the services sector and of the services \line\up0 \expndtw0\char
scalex122 sector\u8217?s contribution to economic growth is increasingly recogni
sed and has \line \up0 \expndtw0\charscalex121 led to a number of studies on inn
ovation in services (de Jong \ul0\nosupersub\cf24\f25\fs17 et al\ul0\nosupersub\
cf23\f24\fs17 ., 2003; \up0 \expndtw0\charscalex112 Hauknes, 1998; Howells and T
ether, 2004; also Miles, 2005). \par\pard\qj \li1303\ri1176\sb48\sl-252\slmult0\
tx1926 \up0 \expndtw0\charscalex107 109. \tab \up0 \expndtw0\charscalex117 The
services sector is diverse. Howells and Tether (2004) classify \line\up0
\expndtw0\charscalex131 services into four groups: services dealing mainly with
goods (such as \line \up0 \expndtw0\charscalex120 transport and logistics), th
ose dealing with information (such as call centres), \up0 \expndtw0\charscalex12
2 knowledge-based services, and services dealing with people (such as health \up
0 \expndtw0\charscalex125 care ) . While this diversity should be kept in
mind , several general \up0 \expndtw0\charscalex119 characteristics apply to
most services. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1926 \up0 \exp

ndtw0\charscalex107 110. \tab \up0 \expndtw0\charscalex127 A key element of serv
ices is the distinction between products and \line\up0 \expndtw0\charscalex130 p
rocesses is often blurred, with production and consumption occurring \line \up0
\expndtw0\charscalex120 simultaneously. Development of processes can be more inf
ormal for services \up0 \expndtw0\charscalex122 than for goods, with an initial
phase consisting of search, idea gathering and \up0 \expndtw0\charscalex118 comm
ercial evaluation, followed by implementation. \par\pard\qj \li1303\ri1178\sb70\
sl-250\slmult0\tx1926 \up0 \expndtw0\charscalex107 111. \tab \up0 \expndtw0\char
scalex121 Innovation activity in services also tends to be a continuous process,
\line\up0 \expndtw0\charscalex121 consisting of a series of incremental changes
in products and processes. This \line \up0 \expndtw0\charscalex123 may occasion
ally complicate the identification of innovations in services in \up0 \expndtw0\
charscalex121 terms of single events, \ul0\nosupersub\cf24\f25\fs17 i.e.\ul0\nos
upersub\cf23\f24\fs17 as the implementation of a significant change in \up0 \ex
pndtw0\charscalex121 products, processes or other methods. \par\pard\ql \li1303\
sb0\sl-218\slmult0 \par\pard\ql\li1303\sb39\sl-218\slmult0 \up0 \expndtw-8\chars
calex73 \ul0\nosupersub\cf28\f29\fs19 4.2. Innovation in low- and medium-technol
ogy industries \par\pard\qj \li1303\ri1174\sb79\sl-246\slmult0\tx1927 \up0 \expn
dtw0\charscalex103 \ul0\nosupersub\cf23\f24\fs17 112. \tab \up0 \expndtw0\charsc
alex115 Innovation in low- and medium-technology industries (LMTs) often
\line\up0 \expndtw0\charscalex117 receives less attention than innovation in hig
h-technology industries. However, \line \up0 \expndtw0\charscalex114 innovation
in LMTs can have a substantial impact on economic growth, owing to \up0 \expndtw
0\charscalex114 the weight of these sectors in the economy. \par\pard\qj \li1303
\ri1174\sb72\sl-249\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex107 113. \tab \u
p0 \expndtw0\charscalex120 LMTs are generally characterised by incremental
innovation and \line\up0 \expndtw0\charscalex129 adoption. As such, innovation
activities are often focused on production \line \up0 \expndtw0\charscalex118 e
fficiency, product differentiation and marketing (Von Tunzelmann and Acha, \line
\up0 \expndtw0\charscalex117 2005). An important aspect of innovation in these
industries is the fact that it is \line \up0 \expndtw0\charscalex121 more comple
x than the simple adoption of new technologies. In many cases, \line \up0 \expnd
tw0\charscalex123 innovation activities in LMTs involve the incorporation of hig
h-technology \line \up0 \expndtw0\charscalex130 products and technologies. Promi
nent examples are the use of ICT and \line \up0 \expndtw0\charscalex113 biotechn
ology (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 in food
processing) in the development of new products and \line \up0 \expndtw0\charscal
ex118 production processes. LMTs use and application of advanced technologies ca
n \line \up0 \expndtw0\charscalex131 place new demands on the skills of their wo
rkforce and can affect their \line \up0 \expndtw0\charscalex127 organisational s
tructure and their interactions with other firms and public \line \up0 \expndtw0
\charscalex116 research institutions. \par\pard\li793\sb0\sl-230\slmult0\par\par
}

\li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb36\sl-218\slmult0 \up0 \expndtw
-8\charscalex73 \ul0\nosupersub\cf28\f29\fs19 4.3. Innovation in small and mediu
m-sized enterprises \par\pard\qj \li1303\ri1174\sb74\sl-253\slmult0\tx1927 \up0
\expndtw0\charscalex105 \ul0\nosupersub\cf23\f24\fs17 114. \tab \up0 \expndtw0\c
harscalex118 Small and medium-sized enterprises (SMEs) are of necessity
more \line\up0 \expndtw0\charscalex132 specialised in their activities. This inc
reases the importance of efficient \line \up0 \expndtw0\charscalex114 interactio
n with other firms and public research institutions for R&D, exchange of \line \
up0 \expndtw0\charscalex114 knowledge and, potentially, for commercialisation an
d marketing activities. \par\pard\qj \li1303\ri1174\sb47\sl-253\slmult0\tx1927 \
up0 \expndtw0\charscalex109 115. \tab \up0 \expndtw0\charscalex116 Finance can b
e a determining factor for innovation in SMEs, which often \line\up0 \expndtw0\c
harscalex116 lack internal funds to conduct innovation projects and have much mo
re difficulty \line \up0 \expndtw0\charscalex122 obtaining external funding than
larger firms. Surveys can provide data on the \line \up0 \expndtw0\charscalex11
5 degree to which financial constraints affect the ability of SMEs to innovate.
\up0 \expndtw-8\charscalex75 \ul0\nosupersub\cf28\f29\fs19 4.4. Regional innovat
ion \par\pard\qj \li1303\ri1177\sb76\sl-250\slmult0\tx1926 \up0 \expndtw0\charsc
alex109 \ul0\nosupersub\cf23\f24\fs17 116. \tab \up0 \expndtw0\charscalex121 The
notion that regional factors can influence the innovative capacity \line\up0 \e
xpndtw0\charscalex124 of firms has led to increasing interest in analysing innov
ation at the regional \line \up0 \expndtw0\charscalex122 level. Regional differe
nces in levels of innovation activity can be substantial, \line \up0 \expndtw0\c
harscalex124 and identifying the main characteristics and factors that promote i
nnovation \line \up0 \expndtw0\charscalex124 activity and the development of spe
cific sectors at regional level can help in \line \up0 \expndtw0\charscalex127 u
nderstanding innovation processes and be valuable for the elaboration of \line \
up0 \expndtw0\charscalex111 policy. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmu
lt0\tx1926 \up0 \expndtw0\charscalex109 117. \tab \up0 \expndtw0\charscalex122 A
s a parallel to national innovation systems, regional innovation \line\u
p0 \expndtw0\charscalex127 systems may develop. The presence, for example, of lo
cal public research \line \up0 \expndtw0\charscalex130 institutions, large dynam
ic firms, industry clusters, venture capital and a \up0 \expndtw0\charscalex138
strong entrepreneurial environment can influence the innovative \up0 \expn
dtw0\charscalex121 performance of regions. These create the potential for contac
ts with suppliers, \up0 \expndtw0\charscalex126 customers, competitors and publi
c research institutions. Infrastructure also \up0 \expndtw0\charscalex121 plays
an important role. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\s
5. Globalisation \par\pard\qj \li1303\ri1177\sb78\sl-248\slmult0\tx1927 \up0 \ex
pndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 118. \tab \up0 \expndtw0\char
scalex129 National systems of innovation build on the idea that many of the \lin
e\up0 \expndtw0\charscalex124 factors that influence innovation activities are n
ational, such as institutional \line \up0 \expndtw0\charscalex125 factors, cultu
re and values. At the same time, it is also clear that innovation \up0 \expndtw0
\charscalex123 processes are, in many ways, international. Technology and knowle
dge flow \up0 \expndtw0\charscalex131 across borders. Firms interact with foreig
n firms and universities. Many \up0 \expndtw0\charscalex123 markets, in terms of
firms and their competitors, are global. The Internet has \up0 \expndtw0\charsc
alex125 greatly enhanced opportunities for communicating and doing business with
\up0 \expndtw0\charscalex122 firms in other countries. \par\pard\qj \li1303\ri1
dtw0\charscalex126 Multinational enterprises are a central factor in globalisati
on. Their \line\up0 \expndtw0\charscalex136 activities transcend national bounda
ries as they involve international \line \up0 \expndtw0\charscalex119 transfers
of capital, knowledge and technology. \par\pard\li1303\sb108\sl-195\slmult0\fi0\
tx1927 \up0 \expndtw0\charscalex123 120.\tab \up0 \expndtw0\charscalex124 The g

lobalisation process is also a powerful driving force for\par\pard\li130
3\sb57\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex124 innovation. International
competition forces firms to increase their efficiency\par\pard\li824\sb0\sl-218
\pard\li824\sb66\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nos
upersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \d
n4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 39
}
23\f24\fs17 and develop new products. Globalisation can also change the industri
al \up0 \expndtw0\charscalex127 structure of economies, pushing them to develop
new industries and adapt \up0 \expndtw0\charscalex122 their institutional framew
orks. \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb17\sl-241\slmu
lt0 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf22\f23\fs21 5. Areas for inve
stigation \par\pard\qj \li1303\ri1177\sb93\sl-249\slmult0\tx1926 \up0 \expndtw0\
charscalex109 \ul0\nosupersub\cf23\f24\fs17 121. \tab \up0 \expndtw0\charscalex1
24 It is essential to feed the policy debate with relevant information and \line
\up0 \expndtw0\charscalex121 analysis of many aspects of innovation. Ideally, a
comprehensive information \line \up0 \expndtw0\charscalex132 system should be co
nstructed that covers all types of factors relevant to \line \up0 \expndtw0\char
scalex131 innovation policy and research. It would place governments in a strong
\line \up0 \expndtw0\charscalex127 position to deal appropriately with specific
policy issues that may arise. In \line \up0 \expndtw0\charscalex120 practice, o
nly parts of such a system can be covered by indicators, while other \line \up0
\expndtw0\charscalex132 parts call for qualitative information. Moreover, as pol
icy and indicator \line \up0 \expndtw0\charscalex123 analysts are well aware, in
dicators only occasionally relate neatly to a single \line \up0 \expndtw0\charsc
alex122 factor or issue; more often than not they relate to a range of matters a
nd only \line \up0 \expndtw0\charscalex121 partially to each. Any broad informat
ion or monitoring system will need to be \line \up0 \expndtw0\charscalex130 supp
lemented with case studies or specialised surveys when specific, in-\line \up0 \
expndtw0\charscalex122 depth analysis is required. \par\pard\ql \li1303\sb0\sl-2
\ul0\nosupersub\cf28\f29\fs19 5.1. What can be measured? \par\pard\qj \li1303\ri
1177\sb75\sl-251\slmult0\tx1927 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf2
3\f24\fs17 122. \tab \up0 \expndtw0\charscalex121 Innovation surveys can prov
ide a breadth of information on the \line\up0 \expndtw0\charscalex120 inno
vation process at the firm level. They can identify motives and obstacles \line
\up0 \expndtw0\charscalex129 to innovation, changes in the way firms operate, th
e kinds of innovation \up0 \expndtw0\charscalex119 activity that they engage in,
and the types of innovations that they implement. \up0 \expndtw0\charscalex131
In terms of the innovation process as a system, innovation surveys can \up0 \exp
ndtw0\charscalex121 provide information on firms\u8217? linkages with other acto
rs in the economy and \up0 \expndtw0\charscalex135 on the methods they use to pr
otect their innovations. These areas are \up0 \expndtw0\charscalex118 discussed

in greater detail below. \par\pard\qj \li1303\ri1176\sb48\sl-253\slmult0\tx1926
\up0 \expndtw0\charscalex107 123. \tab \up0 \expndtw0\charscalex121 There are al
so limitations to the types of data that can be obtained by \line\up0 \expndtw0\
charscalex119 innovation surveys. First, analysis will often require additional
economic data \line \up0 \expndtw0\charscalex132 on the firm, so that data from
innovation surveys will often need to be \up0 \expndtw0\charscalex120 combined w
ith other information sources. \par\pard\qj \li1303\ri1176\sb50\sl-250\slmult0\t
x1927 \up0 \expndtw0\charscalex107 124. \tab \up0 \expndtw0\charscalex120 Second
, innovation is a continuous process, and therefore difficult to \line\up0 \expn
dtw0\charscalex129 measure, particularly for firms whose innovation activi
ty is mainly \line \up0 \expndtw0\charscalex117 characterised by small, increm
ental changes as opposed to single, well-defined \line \up0 \expndtw0\charscalex
127 projects to implement significant changes. Innovations are defined in the \l
ine \up0 \expndtw0\charscalex119 Manual as significant changes, with the intenti
on of distinguishing significant \line \up0 \expndtw0\charscalex115 changes from
routine, minor changes. However, it is important to recognise that \line \up0 \
expndtw0\charscalex115 an innovation can also consist of a series of minor incre
mental changes. \par\pard\li1303\sb123\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\
charscalex116 125.\tab \up0 \expndtw0\charscalex117 Third, information on innova
tion expenditures is normally not specified\par\pard\li1303\sb56\sl-195\slmult0\
fi0 \up0 \expndtw0\charscalex117 in firms\u8217? financial accounts, making it d
ifficult for firms to calculate them. While\par\pard\li793\sb0\sl-230\slmult0\pa
\sb70\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf1
9\f20\fs20 40\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISB
N 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
\cf23\f24\fs17 this does not preclude measuring innovation expenditures, these d
ifficulties \line \up0 \expndtw0\charscalex118 should be taken into account both
in survey design and subsequent analysis. \par\pard\qj \li1303\ri1177\sb47\sl-2
52\slmult0\tx1926 \up0 \expndtw0\charscalex109 126. \tab \up0 \expndtw0\charscal
ex126 Fourth, it is difficult for surveys to capture the timing of innovation \l
ine\up0 \expndtw0\charscalex122 activities, their implementation and their impac
t. Expenditures on innovation \line \up0 \expndtw0\charscalex124 activities are
intended to yield potential returns in the future. The outputs of \up0 \expndtw0
\charscalex123 these activities, from the development and implementation of inno
vations to \up0 \expndtw0\charscalex126 improvements in innovative capacity to i
mpacts on performance, are often \up0 \expndtw0\charscalex120 not observable dur
ing the review period. \par\pard\qj \li1303\ri1174\sb48\sl-253\slmult0\tx1927 \u
p0 \expndtw0\charscalex109 127. \tab \up0 \expndtw0\charscalex116 Finally, innov
ation surveys are not well placed to provide information on \line\up0 \expndtw0\
charscalex120 the general institutional environment, such as the education syste
m, the labour \line \up0 \expndtw0\charscalex126 market and financial systems, w
ith the exception of how these institutional \up0 \expndtw0\charscalex116 factor

s are experienced by the respondent firms. \par\pard\ql \li1303\sb0\sl-218\slmul
t0 \par\pard\ql\li1303\sb38\sl-218\slmult0 \up0 \expndtw-8\charscalex74 \ul0\nos
upersub\cf28\f29\fs19 5.2. Inputs to innovation \par\pard\qj \li1303\ri1178\sb74
\sl-252\slmult0\tx1926 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs1
7 128. \tab \up0 \expndtw0\charscalex121 A broad understanding of the distr
ibution of innovation activities \line\up0 \expndtw0\charscalex120 across ind
ustries is of obvious importance for innovation policy. An important \line \up0
\expndtw0\charscalex122 goal is to understand the role of R&D and non-R&D inputs
in the innovation \line \up0 \expndtw0\charscalex119 process and how R&D may be
interrelated with other innovation inputs. Better \line \up0 \expndtw0\charscal
ex124 information on the prevalence of non-R&D innovation inputs is particularly
\line \up0 \expndtw0\charscalex119 important for many services as they make use
of R&D less frequently. \par\pard\qj \li1303\ri1177\sb49\sl-252\slmult0\tx1926
\up0 \expndtw0\charscalex109 129. \tab \up0 \expndtw0\charscalex124 Innovation
activities can lead both to the development and \line\up0 \expndt
w0\charscalex126 implementation of innovations over the short term and to improv
ements in \line \up0 \expndtw0\charscalex133 the innovative capacity of the firm
. The firm learns by developing and \up0 \expndtw0\charscalex129 implementing in
novations, gaining valuable inputs from interactions and \up0 \expndtw0\charscal
ex134 marketing activity, and improving its innovative capacity through \
up0 \expndtw0\charscalex121 organisational changes. \par\pard\qj \li1303\ri1177\
sb48\sl-253\slmult0\tx1926 \up0 \expndtw0\charscalex107 130. \tab \up0 \expndtw0
\charscalex120 Innovation surveys can provide both qualitative and quantitative
data \line\up0 \expndtw0\charscalex129 on firms\u8217? innovation inputs. Collec
ting quantitative data poses practical \line \up0 \expndtw0\charscalex136 diffic
ulties, especially when firms have many divisions, but data on \line \up0 \expnd
tw0\charscalex120 innovation inputs are one of the most useful outputs of innova
tion surveys. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb38\s
l-218\slmult0 \up0 \expndtw-8\charscalex73 \ul0\nosupersub\cf28\f29\fs19 5.3. Li
nkages and the role of diffusion \par\pard\qj \li1303\ri1176\sb78\sl-248\slmult0
\tx1926 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 131. \tab \up
0 \expndtw0\charscalex120 Innovation surveys can provide data for us
e in analyses of \line\up0 \expndtw0\charscalex119 technological change an
d productivity growth based on tracking flows of new \line \up0 \expndtw0\charsc
alex120 knowledge and technologies from one industry to another. An example is t
he \line \up0 \expndtw0\charscalex127 use of ICTs in a wide variety of products.
How do firms incorporate new \line \up0 \expndtw0\charscalex121 knowledge and i
nnovations that have been developed elsewhere? Also, what \line \up0 \expndtw0\c
harscalex118 is the relative weight of diffusion compared to creative innovation
? \par\pard\li1303\sb123\sl-195\slmult0\fi0\tx1926 \up0 \expndtw0\charscalex127
132.\tab \up0 \expndtw0\charscalex127 A separate but related issue concerns
interactions both among\par\pard\li1303\sb57\sl-195\slmult0\fi0 \up0 \expndt
w0\charscalex128 organisations and between organisations and their surroundings.
Systems\par\pard\li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex128 ap
proaches often highlight linkages as the most vital area for promoting\par\pard\
li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb60\s
s11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\chars
calex105 \ul0\nosupersub\cf19\f20\fs20 41
}

23\f24\fs17 innovation activity. It is important to determine both the types of
interaction \up0 \expndtw0\charscalex121 and the main sources of external knowle
dge. \par\pard\qj \li1303\ri1177\sb48\sl-251\slmult0\tx1926 \up0 \expndtw0\chars
calex109 133. \tab \up0 \expndtw0\charscalex125 These interactions can consist o
f informal contacts and information \line\up0 \expndtw0\charscalex129 flows, or
more formal collaboration on innovation projects. They include \line \up0 \expnd
tw0\charscalex123 adjustments in the value chain, such as closer relationships w
ith suppliers or \line \up0 \expndtw0\charscalex132 users , or research on m
arket demand or on the potential uses for \line \up0 \expndtw0\charscalex
124 technologies. Firms may have close relationships with other firms within an
\line \up0 \expndtw0\charscalex125 industry cluster or be part of looser network
s. They may draw on published \line \up0 \expndtw0\charscalex136 work from publi
c research institutions or work directly with them on \line \up0 \expndtw0\chars
calex119 collaborative projects. \par\pard\qj \li1303\ri1176\sb49\sl-252\slmult0
\tx1926 \up0 \expndtw0\charscalex109 134. \tab \up0 \expndtw0\charscalex122 Inno
vation surveys can highlight the specific kinds of information of \line\up0 \exp
ndtw0\charscalex122 use for innovation and the types of institutions and transmi
ssion mechanisms \line \up0 \expndtw0\charscalex135 that are available to firms.
These include data on information sources, \up0 \expndtw0\charscalex127 knowled
ge and technology flows, and collaborative partners as well as on \up0 \expndtw0
\charscalex135 barriers to innovation owing to a lack of information, for exampl
e on \up0 \expndtw0\charscalex121 technologies or markets. \par\pard\ql \li1303\
sb0\sl-218\slmult0 \par\pard\ql\li1303\sb39\sl-218\slmult0 \up0 \expndtw-8\chars
calex73 \ul0\nosupersub\cf28\f29\fs19 5.4. The impact of innovation \par\pard\qj
upersub\cf23\f24\fs17 135. \tab \up0 \expndtw0\charscalex120 Of particular inter
est to innovation policy is the effect of innovation on \line\up0 \expndtw0\char
scalex133 output, productivity and employment, both at the national level and fo
r \line \up0 \expndtw0\charscalex122 specific sectors and regions. Better inform
ation on the conditions for success \up0 \expndtw0\charscalex130 could help impr
ove policies aimed at achieving the economic and social \up0 \expndtw0\charscale
x120 benefits of innovation. \par\pard\qj \li1303\ri1177\sb70\sl-250\slmult0\tx1
926 \up0 \expndtw0\charscalex109 136. \tab \up0 \expndtw0\charscalex122 Innovati
on surveys can provide both qualitative and quantitative data \line\up0 \expndtw
0\charscalex126 on the outcomes of innovations. In addition, survey data can ver
y useful as \line \up0 \expndtw0\charscalex122 input to subsequent empirical ana
lyses of the impacts of innovation. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par
\pard\ql\li1303\sb39\sl-218\slmult0 \up0 \expndtw-8\charscalex75 \ul0\nosupersub
\cf28\f29\fs19 5.5. Incentives and obstacles to innovation \par\pard\qj \li1303\
ri1176\sb78\sl-248\slmult0\tx1926 \up0 \expndtw0\charscalex107 \ul0\nosupersub\c
f23\f24\fs17 137. \tab \up0 \expndtw0\charscalex120 Many policies for support
ing innovation would benefit from the \line\up0 \expndtw0\charscalex122 ide
ntification of the main forces that drive firms\u8217? innovation activity. Thes
e \line \up0 \expndtw0\charscalex119 forces can be market-related, concerned wit
h increasing quality or efficiency, \line \up0 \expndtw0\charscalex120 or involv
e adapting the firm\u8217?s organisation to better fit its needs. Information \l
ine \up0 \expndtw0\charscalex132 on the objectives of innovation is readily obta
ined through innovation \line \up0 \expndtw0\charscalex117 surveys. \par\pard\qj
\li1303\ri1177\sb71\sl-250\slmult0\tx1926 \up0 \expndtw0\charscalex107 138. \ta
b \up0 \expndtw0\charscalex119 Obstacles to innovation are significant for polic
y as well, since a good \line\up0 \expndtw0\charscalex127 proportion of governme
nt measures are, in one way or another, aimed at \line \up0 \expndtw0\charscalex
119 overcoming them. Many obstacles - skill shortages, problems of competence, \
up0 \expndtw0\charscalex129 finance and appropriation - are relatively straight

forward to assess with \up0 \expndtw0\charscalex119 survey methods. \par\pard\li
fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 42\tab \up
0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OEC
D/EUROPEAN COMMUNITIES 2005
}
-8\charscalex79 \ul0\nosupersub\cf28\f29\fs19 5.6. Demand \par\pard\qj \li1303\r
i1177\sb76\sl-250\slmult0\tx1926 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf
23\f24\fs17 139. \tab \up0 \expndtw0\charscalex122 Demand factors shape innov
ation activity in a number of ways. \line\up0 \expndtw0\charscalex131 Dema
nd affects the development of new products, as firms modify and \line \up0 \expn
dtw0\charscalex122 differentiate products to increase sales and market share. De
mand factors can \line \up0 \expndtw0\charscalex131 force firms to improve their
production and supply processes in order to \line \up0 \expndtw0\charscalex122
reduce costs and lower prices. In many cases, they are also the main driver of \
line \up0 \expndtw0\charscalex125 innovation. Firms often spend substantial reso
urces on researching demand \line \up0 \expndtw0\charscalex128 and can adopt mar
keting measures to influence or create demand for their \line \up0 \expndtw0\cha
rscalex133 products. Market factors determine the commercial success of specific
\line \up0 \expndtw0\charscalex126 technologies or products and affect the path
of technological change. They \line \up0 \expndtw0\charscalex121 may also deter
mine whether or not firms innovate. If firms do not believe that \line \up0 \exp
ndtw0\charscalex123 there is sufficient demand for new products in their market,
they may decide \line \up0 \expndtw0\charscalex121 either not to innovate or to
delay innovation activities. \par\pard\qj \li1303\ri1177\sb50\sl-251\slmult0\tx
1927 \up0 \expndtw0\charscalex109 140. \tab \up0 \expndtw0\charscalex127 Both t
he measurement and analysis of the role of demand in \line\up0 \expndtw
0\charscalex122 innovation are problematic. It is very difficult to isolate dema
nd effects from \line \up0 \expndtw0\charscalex123 supply, and little is known a
bout how to measure demand effects in surveys. \line \up0 \expndtw0\charscalex11
9 Nevertheless, some aspects of demand may be covered in a survey, such as the \
line \up0 \expndtw0\charscalex122 extent to which innovations in products and se
rvices, and in the way they are \line \up0 \expndtw0\charscalex133 provided, are
driven through articulated customer requirements, or are \line \up0 \expndtw0\c
harscalex121 supply-driven. The nature of customers and users is also a demand f
actor that \line \up0 \expndtw0\charscalex128 the innovating firm takes into acc
ount. Some information can be obtained \line \up0 \expndtw0\charscalex130 throug
h innovation surveys in terms of the importance of market-related \line \up0 \ex
pndtw0\charscalex119 factors (both positive and negative) on innovation activity
0 \up0 \expndtw-8\charscalex80 \ul0\nosupersub\cf28\f29\fs19 5.7. Other \par\par
d\ql \li1303\sb123\sl-218\slmult0 \up0 \expndtw-8\charscalex78 5.7.1. Human reso
urces \par\pard\qj \li1303\ri1176\sb76\sl-250\slmult0\tx1927 \up0 \expndtw0\char

scalex109 \ul0\nosupersub\cf23\f24\fs17 141. \tab \up0 \expndtw0\charscalex125 M
uch innovation knowledge is embodied in people and their skills, \line\up0 \expn
dtw0\charscalex124 and appropriate skills are needed to make intelligent use of
external sources \line \up0 \expndtw0\charscalex120 or codified knowledge. The r
ole of human capital in innovation is important at \line \up0 \expndtw0\charscal
ex128 both the firm and the aggregate level. Some issues of interest here are th
e \line \up0 \expndtw0\charscalex136 quality of the education system and how wel
l it matches the needs of \line \up0 \expndtw0\charscalex121 innovative firms an
d other organisations; what efforts firms make to invest in \line \up0 \expndtw0
\charscalex137 the human capital of their employees; whether innovation activity
is \line \up0 \expndtw0\charscalex126 hampered by shortages of qualified person
nel; whether there are sufficient \line \up0 \expndtw0\charscalex121 opportuniti
es for worker training; and how adaptive the workforce is in terms \line \up0 \e
xpndtw0\charscalex123 of the structure of the labour market and mobility across
regions and sectors. \line \up0 \expndtw0\charscalex123 However, methods for mea
suring the role of human capital in innovation are \line \up0 \expndtw0\charscal
ex129 not well developed, and limited information is available from innovation \
line \up0 \expndtw0\charscalex119 surveys. \par\pard\li824\sb0\sl-218\slmult0\pa
\slmult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 I
SBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex
}
charscalex75 \ul0\nosupersub\cf28\f29\fs19 5.7.2. Laws and regulations \par\pard
\qj \li1303\ri1177\sb74\sl-252\slmult0\tx1926 \up0 \expndtw0\charscalex109 \ul0\
nosupersub\cf23\f24\fs17 142. \tab \up0 \expndtw0\charscalex123 Laws and regul
ations are part of the framework in which firms \line\up0 \expndtw0\char
scalex122 operate. Well-designed regulations and standards can provide a strong
signal \line \up0 \expndtw0\charscalex123 to support and guide innovative activi
ties. They affect access to information, \up0 \expndtw0\charscalex122 property r
ights, tax and administrative burdens (in particular for small firms) \up0 \expn
dtw0\charscalex128 and environmental standards. All are important for innovation
policy, but \up0 \expndtw0\charscalex119 policy needs can vary greatly from sec
tor to sector. \par\pard\qj \li1303\ri1176\sb49\sl-252\slmult0\tx1926 \up0 \expn
dtw0\charscalex109 143. \tab \up0 \expndtw0\charscalex119 For example, policies
that reduce administrative barriers for SMEs can \line\up0 \expndtw0\charscalex1
35 have a significant effect on innovation activity in smaller firms. Clear \lin
e \up0 \expndtw0\charscalex122 intellectual property rights are also vital for i
mproving incentives to innovate \up0 \expndtw0\charscalex132 in some industries.
Innovation surveys can provide data on these issues \up0 \expndtw0\charscalex13
4 through questions on obstacles to innovation and on the appropriation \up0 \ex
pndtw0\charscalex120 methods used by innovative firms. \par\pard\li793\sb0\sl-23
i793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb77\sl
-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs
20 44\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-6401308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
0\sl-138\slmult0 \par\pard\ql\li1360\sb0\sl-138\slmult0 \par\pard\ql\li1360\sb32
\sl-138\slmult0 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf11\f12\fs12 ISBN
92-64-01308-3 \par\pard\qj \li1360\ri4375\sb8\sl-180\slmult0 \up0 \expndtw0\char
scalex117 Oslo Manual: Guidelines for Collecting and Interpreting \up0 \expndtw0
\charscalex118 Innovation Data \par\pard\ql \li1360\sb35\sl-138\slmult0 \up0 \ex
pndtw0\charscalex113 OECD/European Communities 2005 \par\pard\ql \li3832\sb0\sl368\slmult0 \par\pard\ql\li3832\sb0\sl-368\slmult0 \par\pard\ql\li3832\sb0\sl-36
ul0\nosupersub\cf20\f21\fs32 Chapter 3 \par\pard\ql \li3349\sb0\sl-322\slmult0 \
par\pard\ql\li3349\sb0\sl-322\slmult0 \par\pard\ql\li3349\sb166\sl-322\slmult0 \
up0 \expndtw0\charscalex119 \ul0\nosupersub\cf3\f4\fs28 Basic Definitions \par\p
ard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb
0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slm
ult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\par
\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\
lmult0\par\pard\li824\sb16\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\charscalex10
5 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2
}
}}
}}
}
}}
}
}}
}}
}
uction \par\pard\qj \li1303\ri1178\sb70\sl-252\slmult0\fi0\tx1870 \up0 \expndtw0
\charscalex109 \ul0\nosupersub\cf23\f24\fs17 144. \tab \up0 \expndtw0\charscalex
129 Based on the concepts presented in Chapter 2, this chapter aims to \line\up0
\expndtw0\charscalex121 provide concise definitions for types of innovations, i
nnovation activities and \line \up0 \expndtw0\charscalex127 innovative firms.\ul
0\super\cf25\f26\fs20 1\ul0\nosupersub\cf23\f24\fs17 Given the complexity of th
e innovation process and the \up0 \expndtw0\charscalex131 variations in the way
innovation occurs in firms, conventions have to be \up0 \expndtw0\charscalex135
adopted in order to provide operational definitions that can be used in \up0 \ex
pndtw0\charscalex121 standardised surveys of firms. \par\pard\qj \li1303\ri1177\
\charscalex124 The Manual distinguishes innovation in four areas: product, proce
ss, \line\up0 \expndtw0\charscalex125 marketing and organisational. Product and
process innovations are familiar \line \up0 \expndtw0\charscalex132 concepts in
the business sector, and were the sole focus of the previous \line \up0 \expndtw
0\charscalex124 editions of the Manual, in which organisational changes were cov
ered in an \line \up0 \expndtw0\charscalex127 annex and marketing innovations we
re not addressed. Both organisational \line \up0 \expndtw0\charscalex128 and mar
keting innovations are extensively discussed in this edition of the \line \up0 \
expndtw0\charscalex126 Manual. Marketing and organisational innovations are fami
liar concepts to \line \up0 \expndtw0\charscalex123 firms in some countries and
have been included in some innovation surveys, \line \up0 \expndtw0\charscalex12
7 although their definitions are generally not as well established as those for
\line \up0 \expndtw0\charscalex122 products and processes. The definitions of th
ese new types of innovations for \line \up0 \expndtw0\charscalex123 use in surve
ys are still under development, in much the same way as product \line \up0 \expn
dtw0\charscalex109 and process innovations were in the first edition of the \ul0
\nosupersub\cf24\f25\fs17 Oslo Manual\ul0\nosupersub\cf23\f24\fs17 . \par\pard\q
l \li793\sb238\sl-241\slmult0 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf22\
f23\fs21 2. Innovation \par\pard\qj \li1303\ri1118\sb92\sl-250\slmult0\fi0\tx187
0 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 146. \tab \up0 \exp
ndtw0\charscalex60 \ul0\nosupersub\cf24\f25\fs17 An innovation is the implem
entation of a new or significantly improved \line\up0 \expndtw0\charscalex
64 product (good or service), or process, a new marketing method, or a new organ
isational \line \up0 \expndtw0\charscalex64 method inbusiness practices, workpla
ce organisation or external relations\ul0\nosupersub\cf23\f24\fs17 . \par\pard\q
j \li1303\ri1178\sb49\sl-252\slmult0\tx1870 \up0 \expndtw0\charscalex109 147. \t
ab \up0 \expndtw0\charscalex125 This broad definition of an innovation encompass
es a wide range of \line\up0 \expndtw0\charscalex122 possible innovations. An in
novation can be more narrowly categorised as the \line \up0 \expndtw0\charscalex
121 implementation of one or more types of innovations, for instance product and
\line \up0 \expndtw0\charscalex136 process innovations. This narrower definitio
n of product and process \line \up0 \expndtw0\charscalex131 innovations can be r

elated to the definition of technological product and \line \up0 \expndtw0\chars
calex108 process innovation used in the second edition of the \ul0\nosupersub\cf
24\f25\fs17 Oslo Manual\ul0\nosupersub\cf23\f24\fs17 . \par\pard\qj \li1303\ri11
42\sb50\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex109 148. \tab \up0 \expnd
tw0\charscalex123 The minimum requirement for an innovation is that the
product, \line\up0 \expndtw0\charscalex123 process, marketing method or organis
ational method must be \ul0\nosupersub\cf24\f25\fs17 new (or \line \up0 \expndt
w-2\charscalex100 significantly improved)to the firm\ul0\nosupersub\cf23\f24\fs1
7 . This includes products, processes and \up0 \expndtw0\charscalex124 methods t
hat firms are the first to develop and those that have been adopted \up0 \expndt
w0\charscalex121 from other firms or organisations. \par\pard\li793\sb0\sl-230\s
lmult0\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb147\sl-230\slmult0\fi0
\tx4899 \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 46\tab \up0 \
expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/E
UROPEAN COMMUNITIES 2005
}
upersub\cf23\f24\fs17 149. \tab \up0 \expndtw-7\charscalex71 \ul0\nosupersub\cf2
4\f25\fs17 Innovation activities are all scientific, technological, organisation
al, financial \line\up0 \expndtw0\charscalex64 and commercial steps which actual
ly, or are intended to, lead to the implementation of \line \up0 \expndtw0\chars
calex64 innovations. Some innovation activities are themselves innovative, other
s are not novel \line \up0 \expndtw-7\charscalex78 activities but are necessary
for the implementation of innovations. Innovation \line \up0 \expndtw0\charscale
x64 activities also include R&D that is not directly related to the development
of a specific \line \up0 \expndtw0\charscalex64 innovation. \par\pard\qj \li1303
\ri1177\sb50\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex107 \ul0\nosupersub\
cf23\f24\fs17 150. \tab \up0 \expndtw0\charscalex124 A common feature of an
innovation is that it must have been \line\up0 \expndtw0\charscalex106 \u
l0\nosupersub\cf24\f25\fs17 implemented\ul0\nosupersub\cf23\f24\fs17 . A new or
improved product is implemented when it is introduced \line \up0 \expndtw0\chars
calex120 on the market. New processes, marketing methods or organisational metho
ds \line \up0 \expndtw0\charscalex136 are implemented when they are brought into
actual use in the firm\u8217?s \line \up0 \expndtw0\charscalex120 operations. \
par\pard\qj \li1303\ri1177\sb70\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex1
07 151. \tab \up0 \expndtw0\charscalex126 Innovation activities vary greatly in
their nature from firm to firm. \line\up0 \expndtw0\charscalex128 Some firms e
ngage in well-defined innovation projects, such as the \line \up0 \expndtw
0\charscalex126 development and introduction of a new product, whereas others pr
imarily \line \up0 \expndtw0\charscalex122 make continuous improvements to their
products, processes and operations. \line \up0 \expndtw0\charscalex131 Both typ
es of firms can be innovative: an innovation can consist of the \line \up0 \expn
dtw0\charscalex132 implementation of a single significant change, or of a series
of smaller \line \up0 \expndtw0\charscalex121 incremental changes that together
constitute a significant change. \par\pard\qj \li1303\ri1118\sb42\sl-260\slmult

0\tx1870 \up0 \expndtw0\charscalex107 152. \tab \up0 \expndtw-7\charscalex74 \ul
0\nosupersub\cf24\f25\fs17 An innovative firm is one that has implemented an inn
ovation during the \line\up0 \expndtw-7\charscalex72 period under review\ul0\nos
upersub\cf23\f24\fs17 . \par\pard\qj \li1303\ri1177\sb49\sl-250\slmult0\tx1870 \
up0 \expndtw0\charscalex107 153. \tab \up0 \expndtw0\charscalex120 The broad def
inition of an innovative firm may not be appropriate for \line\up0 \expndtw0\cha
rscalex120 all policy and research needs. More narrow definitions can be useful
in many \line \up0 \expndtw0\charscalex124 cases (see sections 7 and 8 of this c
hapter), particularly for comparisons of \up0 \expndtw0\charscalex121 innovation
across sectors, firm size categories or countries. An example of a \up0 \expndt
w0\charscalex118 more narrow definition is a product or process innovator. \par\
54. \tab \up0 \expndtw-7\charscalex74 \ul0\nosupersub\cf24\f25\fs17 A product/pr
ocess innovative firm is one that has implemented a new or \line\up0 \expndtw-7\
charscalex79 significantly improved product or process during the period under r
eview.\ul0\nosupersub\cf23\f24\fs17 This \line \up0 \expndtw0\charscalex132 def
inition, which includes all firms that have implemented a product or \up0 \expnd
tw0\charscalex124 process innovation, is similar to the definition of the TPP in
novative firm in \up0 \expndtw0\charscalex120 the previous edition of the Manual
. \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb17\sl-241\slmult0
\up0 \expndtw0\charscalex121 \ul0\nosupersub\cf22\f23\fs21 3. Main type of innov
ation \par\pard\qj \li1303\ri1116\sb72\sl-250\slmult0\tx1870 \up0 \expndtw0\char
scalex109 \ul0\nosupersub\cf23\f24\fs17 155. \tab \up0 \expndtw-4\charscalex100
Four types of innovations are distinguished: \ul0\nosupersub\cf24\f25\fs17 produ
ct innovations, process \line\up0 \expndtw-7\charscalex83 innovations, marketin
g innovations\ul0\nosupersub\cf23\f24\fs17 and \ul0\nosupersub\cf24\f25\fs17
organisational innovations\ul0\nosupersub\cf23\f24\fs17 . This \line \up0 \ex
pndtw0\charscalex129 classification maintains the largest possible degree of con
tinuity with the \up0 \expndtw0\charscalex125 previous definition of technologic
al product and process innovation used in \up0 \expndtw0\charscalex129 the seco
nd edition of the Manual . Product innovations and process \up0 \expndtw
0\charscalex134 innovations are closely related to the concept of technological
product \up0 \expndtw0\charscalex123 innovation and technological process innova
tion. Marketing innovations and \up0 \expndtw0\charscalex125 organisational inno
vations broaden the range of innovations covered by the \up0 \expndtw0\charscale
x120 Manual as compared to the previous definition. \par\pard\li824\sb0\sl-218\s
lmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb97\sl-218\slmult0\fi0\
}
rsub\cf23\f24\fs17 156. \tab \up0 \expndtw-7\charscalex73 \ul0\nosupersub\cf24\f
25\fs17 A product innovation isthe introduction of a good or service that is new
or \line\up0 \expndtw-7\charscalex76 significantly improved with respect to its

characteristics or intended uses. This \line \up0 \expndtw-7\charscalex77 inclu
des significant improvements in technical specifications, components and \line \
up0 \expndtw-7\charscalex71 materials, incorporated software, user friendliness
or other functional characteristics. \par\pard\qj \li1303\ri1178\sb48\sl-252\slm
ult0\tx1870 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 157. \tab
\up0 \expndtw0\charscalex118 Product innovations can utilise new knowledge or t
echnologies, or can \line\up0 \expndtw0\charscalex119 be based on new uses or co
mbinations of existing knowledge or technologies. \line \up0 \expndtw0\charscale
x130 The term \u8220?product\u8221? is used to cover both goods and services. P
roduct \up0 \expndtw0\charscalex128 innovations include both the introduction of
new goods and services and \up0 \expndtw0\charscalex121 significant improvement
s in the functional or user characteristics of existing \up0 \expndtw0\charscale
x118 goods and services. \par\pard\qj \li1303\ri1177\sb49\sl-252\slmult0\fi0\tx1
870 \up0 \expndtw0\charscalex107 158. \tab \up0 \expndtw0\charscalex119 \ul0\nos
upersub\cf24\f25\fs17 New\ul0\nosupersub\cf23\f24\fs17 products are goods and s
ervices that differ significantly in their \line\up0 \expndtw0\charscalex125 cha
racteristics or intended uses from products previously produced by the \line \up
0 \expndtw0\charscalex125 firm. The first microprocessors and digital cameras we
re examples of new \line \up0 \expndtw0\charscalex129 products using new technol
ogies. The first portable MP3 player, which \line \up0 \expndtw0\charscalex130 c
ombined existing software standards with miniaturised hard -drive \line \u
p0 \expndtw0\charscalex117 technology, was a new product combining existing tech
nologies. \par\pard\qj \li1303\ri1178\sb48\sl-253\slmult0\tx1870 \up0 \expndtw0\
charscalex107 159. \tab \up0 \expndtw0\charscalex120 The development of a new us
e for a product with only minor changes \line\up0 \expndtw0\charscalex129 to its
technical specifications is a product innovation. An example is the \line \up0
\expndtw0\charscalex122 introduction of a new detergent using an existing chemic
al composition that \line \up0 \expndtw0\charscalex118 was previously used as an
intermediary for coating production only. \par\pard\qj \li1303\ri1129\sb49\sl-2
51\slmult0\tx1870 \up0 \expndtw0\charscalex107 160. \tab \up0 \expndtw-4\charsca
lex100 \ul0\nosupersub\cf24\f25\fs17 Significant improvements \ul0\nosupersub\cf
23\f24\fs17 to existing products can occur through changes \line\up0 \expndtw0\c
harscalex136 in materials , components and other characteristics that enh
ance \line \up0 \expndtw0\charscalex124 performance. The introduction of ABS bra
king, GPS (Global Positioning \line \up0 \expndtw0\charscalex120 System) naviga
tional systems, or other subsystem improvements in cars is an \line \up0 \expndt
w0\charscalex120 example of a product innovation consisting of partial changes o
r additions to \line \up0 \expndtw0\charscalex125 one of a number of integrated
technical subsystems. The use of breathable \line \up0 \expndtw0\charscalex120 f
abrics in clothing is an example of a product innovation involving the use of \l
ine \up0 \expndtw0\charscalex120 new materials that improves the performance of
the product. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870 \up0 \expndt
w0\charscalex107 161. \tab \up0 \expndtw0\charscalex120 Product innovations in s
ervices can include significant improvements \line\up0 \expndtw0\charscalex120 i
n how they are provided (for example, in terms of their efficiency or speed), \l
ine \up0 \expndtw0\charscalex126 the addition of new functions or characteristic
s to existing services, or the \line \up0 \expndtw0\charscalex119 introduction o
f entirely new services. Examples are significant improvements \line \up0 \expnd
tw0\charscalex120 in Internet banking services, such as greatly improved speed a
nd ease of use, \line \up0 \expndtw0\charscalex121 or the addition of home pickup and drop-off services that improve customer \line \up0 \expndtw0\charscalex12
9 access for rental cars. Providing on-site rather than remote management \line
\up0 \expndtw0\charscalex124 contact points for outsourced services is an exampl
e of an improvement in \line \up0 \expndtw0\charscalex116 service quality. \par\
pard\li1303\sb123\sl-195\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex126 162.\ta
b \up0 \expndtw0\charscalex126 Design is an integral part of the development and
implementation of\par\pard\li1303\sb57\sl-195\slmult0\fi0 \up0 \expndtw0\charsc
alex126 product innovations. However, design changes that do not involve a\par\p
ard\li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex127 significant chan
ge in a product\u8217?s functional characteristics or intended uses\par\pard\li1

303\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex127 are \ul0\nosupersub\cf2
4\f25\fs17 not\ul0\nosupersub\cf23\f24\fs17 product innovations. However, they
can be marketing innovations, as\par\pard\li793\sb0\sl-230\slmult0\par\pard\li79
3\sb230\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\nosupersub\c
f19\f20\fs20 48\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 I
SBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
\li1303\ri1179\sb158\sl-260\slmult0\fi0 \up0 \expndtw0\charscalex123 \ul0\nosupe
rsub\cf23\f24\fs17 discussed below. Routine upgrades\ul0\super\cf25\f26\fs20 2\u
l0\nosupersub\cf23\f24\fs17 or regular seasonal changes are also not \up0 \expn
dtw0\charscalex123 product innovations. \par\pard\qj \li1303\ri1117\sb49\sl-250\
slmult0\fi0\tx1870 \up0 \expndtw0\charscalex109 163. \tab \up0 \expndtw0\charsca
lex64 \ul0\nosupersub\cf24\f25\fs17 A process innovation is the implementation o
f a new or significantly improved \line\up0 \expndtw-7\charscalex77 production o
r delivery method. This includes significant changes in techniques, \line \up0 \
expndtw-7\charscalex72 equipment and/or software. \par\pard\qj \li1303\ri1178\sb
70\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\f
s17 164. \tab \up0 \expndtw0\charscalex128 Process innovations can be intend
ed to decrease unit costs of \line\up0 \expndtw0\charscalex127 production o
r delivery, to increase quality, or to produce or deliver new or \line \up0 \exp
ndtw0\charscalex120 significantly improved products. \par\pard\qj \li1303\ri1178
\sb48\sl-253\slmult0\tx1870 \up0 \expndtw0\charscalex109 165. \tab \up0 \expndtw
0\charscalex124 Production methods involve the techniques, equipment and softwar
e \line\up0 \expndtw0\charscalex123 used to produce goods or services. Examples
of new production methods are \line \up0 \expndtw0\charscalex122 the implementat
ion of new automation equipment on a production line or the \line \up0 \expndtw0
\charscalex122 implementation of computer-assisted design for product developmen
t. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870 \up0 \expndtw0\charsca
lex109 166. \tab \up0 \expndtw0\charscalex119 Delivery methods concern the l
ogistics of the firm and encompass \line\up0 \expndtw0\charscalex122 equipm
ent, software and techniques to source inputs, allocate supplies within \line \u
p0 \expndtw0\charscalex119 the firm, or deliver final products. An example of a
new delivery method is the \up0 \expndtw0\charscalex123 introduction of a bar-co
ded or active RFID (Radio Frequency Identification) \up0 \expndtw0\charscalex120
goods-tracking system. \par\pard\qj \li1303\ri1177\sb70\sl-250\slmult0\tx1870 \
up0 \expndtw0\charscalex109 167. \tab \up0 \expndtw0\charscalex119 Process innov
ations include new or significantly improved methods for \line\up0 \expndtw0\cha
rscalex120 the creation and provision of services. They can involve significant
changes in \line \up0 \expndtw0\charscalex137 the equipment and software used in
services-oriented firms or in the \line \up0 \expndtw0\charscalex122 procedures
or techniques that are employed to deliver services. Examples are \line \up0 \e
xpndtw0\charscalex130 the introduction of GPS tracking devices for transp
ort services, the \line \up0 \expndtw0\charscalex131 implementation of a new r
eservation system in a travel agency, and the \line \up0 \expndtw0\charscalex122
development of new techniques for managing projects in a consultancy firm. \par

\pard\qj \li1303\ri1177\sb49\sl-252\slmult0\tx1870 \up0 \expndtw0\charscalex109
168. \tab \up0 \expndtw0\charscalex122 Process innovations also cover ne
w or significantly improved \line\up0 \expndtw0\charscalex127 techniques,
equipment and software in ancillary support activities, such as \line \up0 \expn
dtw0\charscalex122 purchasing, accounting, computing and maintenance. The implem
entation of \up0 \expndtw0\charscalex125 new or significantly improved informati
on and communication technology \up0 \expndtw0\charscalex121 (ICT) is a process
innovation if it is intended to improve the efficiency and/or \up0 \expndtw0\cha
rscalex121 quality of an ancillary support activity. \par\pard\qj \li1303\ri1117
-7\charscalex73 \ul0\nosupersub\cf24\f25\fs17 A marketing innovation is the impl
ementation of a new marketing method \line\up0 \expndtw-7\charscalex75 involving
significant changes in product design or packaging, product placement, \line \u
p0 \expndtw-7\charscalex70 product promotion or pricing. \par\pard\qj \li1303\ri
3\f24\fs17 170. \tab \up0 \expndtw0\charscalex120 Marketing innovations are aime
d at better addressing customer needs, \line\up0 \expndtw0\charscalex118 opening
up new markets, or newly positioning a firm\u8217?s product on the market, \lin
e \up0 \expndtw0\charscalex118 with the objective of increasing the firm\u8217?s
sales. \par\pard\li1303\sb113\sl-195\slmult0\fi0\tx1870 \up0 \expndtw0\charscal
ex122 171.\tab \up0 \expndtw0\charscalex123 The distinguishing feature of a
marketing innovation compared to\par\pard\li1303\sb56\sl-195\slmult0\fi0 \up
0 \expndtw0\charscalex123 other changes in a firm\u8217?s marketing instruments
is the implementation of a\par\pard\li1303\sb57\sl-195\slmult0\fi0 \up0 \expndtw
0\charscalex123 marketing method not previously used by the firm. It must be par
t of a new\par\pard\li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex123
marketing concept or strategy that represents a significant departure from the\p
4\sb180\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\c
f18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expnd
tw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 49
}
23\f24\fs17 firm\u8217?s existing marketing methods. The new marketing method ca
n either be \up0 \expndtw0\charscalex131 developed by the innovating firm o
r adopted from other firms or \up0 \expndtw0\charscalex119 organisations. N
ew marketing methods can be implemented for both new and \up0 \expndtw0\charscal
ex119 existing products. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870
\up0 \expndtw0\charscalex107 172. \tab \up0 \expndtw0\charscalex100 Marketing i
nnovations include significant changes in \ul0\nosupersub\cf24\f25\fs17 pro
duct design \line\up0 \expndtw0\charscalex118 \ul0\nosupersub\cf23\f24\fs17 tha
t are part of a new marketing concept. Product design changes here refer to \lin
e \up0 \expndtw0\charscalex130 changes in product form and appearance that do no
t alter the product\u8217?s \line \up0 \expndtw0\charscalex119 functional or use
r characteristics. They also include changes in the packaging \line \up0 \expndt
w0\charscalex122 of products such as foods, beverages and detergents, where pack
aging is the \line \up0 \expndtw0\charscalex124 main determinant of the product\
u8217?s appearance. An example of a marketing \line \up0 \expndtw0\charscalex120
innovation in product design is the implementation of a significant change in \
line \up0 \expndtw0\charscalex127 the design of a furniture line to give it a ne
w look and broaden its appeal. \line \up0 \expndtw0\charscalex120 Innovations in
product design can also include the introduction of significant \line \up0 \exp
ndtw0\charscalex118 changes in the form, appearance or taste of food or beverage
products, such as \line \up0 \expndtw0\charscalex124 the introduction of new fl
avours for a food product in order to target a new \line \up0 \expndtw0\charscal
ex119 customer segment. An example of a marketing innovation in packaging is the
\line \up0 \expndtw0\charscalex119 use of a fundamentally new bottle design for
a body lotion, which is intended \line \up0 \expndtw0\charscalex119 to give the
product a distinctive look and appeal to a new market segment. \par\pard\qj \li
1303\ri1177\sb50\sl-250\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex107 173. \ta
b \up0 \expndtw-2\charscalex100 New marketing methods in \ul0\nosupersub\cf24
\f25\fs17 product placement\ul0\nosupersub\cf23\f24\fs17 primarily involve
the \line\up0 \expndtw0\charscalex122 introduction of new sales channels. Sales
channels here refer to the methods \line \up0 \expndtw0\charscalex131 used to s
ell goods and services to customers, and not logistics methods \line \up0 \expnd
tw0\charscalex134 (transport, storing and handling of products) which deal mainl
y with \line \up0 \expndtw0\charscalex122 efficiency. Examples of marketing inno
vations in product placement are the \line \up0 \expndtw0\charscalex127 introduc
tion for the first time of a franchising system, of direct selling or \line \up0
\expndtw0\charscalex136 exclusive retailing, and of product licensing. Innovati
ons in product \line \up0 \expndtw0\charscalex124 placement can also involve the
use of new concepts for the presentation of \line \up0 \expndtw0\charscalex121
products. An example is the introduction of salesrooms for furniture that are \l
ine \up0 \expndtw0\charscalex119 redesigned according to themes, allowing custom
ers to view products in fully \line \up0 \expndtw0\charscalex119 decorated rooms
. \par\pard\qj \li1303\ri1177\sb70\sl-250\slmult0\tx1870 \up0 \expndtw0\charscal
ex107 174. \tab \up0 \expndtw0\charscalex104 New marketing methods in \ul0\nosup
ersub\cf24\f25\fs17 product promotion\ul0\nosupersub\cf23\f24\fs17 involve the
use of new \line\up0 \expndtw0\charscalex118 concepts for promoting a firm\u8217
?s goods and services. For example, the first use \line \up0 \expndtw0\charscale
x120 of a significantly different media or technique - such as product placement
in \line \up0 \expndtw0\charscalex121 movies or television programmes, or the u
se of celebrity endorsements - is a \line \up0 \expndtw0\charscalex119 marketing
innovation. Another example is branding, such as the development \line \up0 \ex
pndtw0\charscalex118 and introduction of a fundamentally new brand symbol (as di
stinguished from \line \up0 \expndtw0\charscalex121 a regular update of the bran
d\u8217?s appearance) which is intended to position the \line \up0 \expndtw0\cha
rscalex132 firm\u8217?s product on a new market or give the product a new image.
The \line \up0 \expndtw0\charscalex118 introduction of a personalised informati
on system, \ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 obta
ined from loyalty \line \up0 \expndtw0\charscalex120 cards, to tailor the presen
tation of products to the specific needs of individual \line \up0 \expndtw0\char
scalex120 customers can also be considered a marketing innovation. \par\pard\li7
}
\li1303\ri1177\sb174\sl-251\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex107 \ul0
\nosupersub\cf23\f24\fs17 175. \tab \up0 \expndtw0\charscalex108 Innovations in
\ul0\nosupersub\cf24\f25\fs17 pricing\ul0\nosupersub\cf23\f24\fs17 involve
the use of new pricing strategies to \line\up0 \expndtw0\charscalex129 mar
ket the firm\u8217?s goods or services. Examples are the first use of a new \lin
e \up0 \expndtw0\charscalex130 method for varying the price of a good or service
according to demand \up0 \expndtw0\charscalex114 (\ul0\nosupersub\cf24\f25\fs17
e.g.\ul0\nosupersub\cf23\f24\fs17 when demand is low, the price is low) or the
introduction of a new method \up0 \expndtw0\charscalex118 which allows customer
s to choose desired product specifications on the firm\u8217?s \up0 \expndtw0\ch
arscalex132 Web site and then see the price for the specified product. New prici
ng \up0 \expndtw0\charscalex122 methods whose sole purpose is to differentiate p
rices by customer segments \up0 \expndtw0\charscalex120 are not considered innov
ations. \par\pard\qj \li1303\ri1177\sb50\sl-251\slmult0\tx1870 \up0 \expndtw0\ch
arscalex107 176. \tab \up0 \expndtw0\charscalex121 Seasonal, regular and other r
outine changes in marketing instruments \line\up0 \expndtw0\charscalex121 are ge
nerally \ul0\nosupersub\cf24\f25\fs17 not\ul0\nosupersub\cf23\f24\fs17 marketin
g innovations. For such changes to be marketing \line \up0 \expndtw0\charscalex1
19 innovations, they must involve marketing methods not previously used by the \
up0 \expndtw0\charscalex117 firm. For example, a significant change in a product
\u8217?s design or packaging that \up0 \expndtw0\charscalex125 is based on a mar
keting concept that has already been used by the firm for \up0 \expndtw0\charsca
lex132 other products is not a marketing innovation, nor is the use of existing
\up0 \expndtw0\charscalex127 marketing methods to target a new geographical mark
et or a new market \up0 \expndtw0\charscalex112 segment (\ul0\nosupersub\cf24\f2
5\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 socio-demographic group of clients). \
09 177. \tab \up0 \expndtw-7\charscalex72 \ul0\nosupersub\cf24\f25\fs17 An organ
isational innovation is the implementation of a new organisational \line\up0 \ex
pndtw-7\charscalex70 method in the firm\u8217?s business practices, workplace or
ganisation or external relations. \par\pard\qj \li1303\ri1177\sb49\sl-250\slmult
0\tx1870 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 178. \tab \u
p0 \expndtw0\charscalex124 Organisational innovations can be intended to i
ncrease a firm\u8217?s \line\up0 \expndtw0\charscalex120 performance by reduci
ng administrative costs or transaction costs, improving \line \up0 \expndtw0\cha
rscalex121 workplace satisfaction (and thus labour productivity), gaining access
to non-\line \up0 \expndtw0\charscalex118 tradable assets (such as non-codified
external knowledge) or reducing costs of \line \up0 \expndtw0\charscalex118 sup
plies. \par\pard\qj \li1303\ri1177\sb70\sl-250\slmult0\tx1870 \up0 \expndtw0\cha
rscalex107 179. \tab \up0 \expndtw0\charscalex120 The distinguishing features of
an organisational innovation compared \line\up0 \expndtw0\charscalex135 to othe
r organisational changes in a firm is the implementation of an \line \up0 \expnd
tw0\charscalex128 organisational method (in business practices, workplace organ
isation or \up0 \expndtw0\charscalex123 external relations) that has not been us
ed before in the firm and is the result \up0 \expndtw0\charscalex119 of strategi
c decisions taken by management. \par\pard\qj \li1303\ri1178\sb50\sl-250\slmult0
\tx1870 \up0 \expndtw0\charscalex107 180. \tab \up0 \expndtw-3\charscalex100 Org
anisational
innovations
in \ul0\nosupersub\cf24\f25\fs17
business
pr
actices\ul0\nosupersub\cf23\f24\fs17
involve
the \line\up0 \expndtw0\char
scalex123 implementation of new methods for organising routines and procedures f
or \line \up0 \expndtw0\charscalex121 the conduct of work. These include, for ex
ample, the implementation of new \line \up0 \expndtw0\charscalex127 practices to

improve learning and knowledge sharing within the firm. An \line \up0 \expndtw0
\charscalex126 example is the first implementation of practices for codifying kn
owledge, \par\pard\qj \li1303\ri1177\sb10\sl-250\slmult0 \up0 \expndtw0\charscal
ex118 \ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 establish
ing databases of best practices, lessons and other knowledge, so \line \up0 \exp
ndtw0\charscalex125 that they are more easily accessible to others. Another exam
ple is the first \line \up0 \expndtw0\charscalex130 implementation of practices
for employee development and improving \line \up0 \expndtw0\charscalex119 worker
retention, such as education and training systems. Other examples are \line \up
0 \expndtw0\charscalex130 the first introduction of management systems for gener
al production or \line \up0 \expndtw0\charscalex124 supply operations, such as s
upply chain management systems, business re-\line \up0 \expndtw0\charscalex120 e
ngineering, lean production, and quality-management systems. \par\pard\li824\sb0
lt0\par\pard\li824\sb199\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\charscalex105
\ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 200
}
rsub\cf23\f24\fs17 181. \tab \up0 \expndtw-3\charscalex100 Innovations in \ul0\
nosupersub\cf24\f25\fs17 workplace organisation\ul0\nosupersub\cf23\f24\fs17
involve the implementation of \line\up0 \expndtw0\charscalex126 new methods
for distributing responsibilities and decision making among \line \up0 \expndtw0
\charscalex124 employees for the division of work within and between firm activi
ties (and \line \up0 \expndtw0\charscalex120 organisational units), as well as n
ew concepts for the structuring of activities, \line \up0 \expndtw0\charscalex12
8 such as the integration of different business activities. An example of an \li
ne \up0 \expndtw0\charscalex138 organisational innovation in workplace organ
isation is the first \line \up0 \expndtw0\charscalex123 implementation of an
organisational model that gives the firm\u8217?s employees \line \up0 \expndtw0\
charscalex119 greater autonomy in decision making and encourages them to contrib
ute their \line \up0 \expndtw0\charscalex118 ideas. This may be achieved through
the decentralisation of group activity and \line \up0 \expndtw0\charscalex123 m
anagement control or the establishment of formal or informal work teams \line \u
p0 \expndtw0\charscalex118 in which individual workers have more flexible job re
sponsibilities. However, \line \up0 \expndtw0\charscalex120 organisational innov
ations may also involve the centralisation of activity and \line \up0 \expndtw0\
charscalex126 greater accountability for decision making. An example of organisa
tional \line \up0 \expndtw0\charscalex122 innovation in the structuring of busin
ess activities is the introduction for the \line \up0 \expndtw0\charscalex134 fi
rst time of build-to-order production systems (integrating sales and \line \up0
\expndtw0\charscalex137 production) or the integration of engineering and devel
opment with \line \up0 \expndtw0\charscalex119 production. \par\pard\qj \li1303\
xpndtw0\charscalex104 New organisational methods in a firm\u8217?s \ul0\nosupers

ub\cf24\f25\fs17 external relations\ul0\nosupersub\cf23\f24\fs17 involve the \l
ine\up0 \expndtw0\charscalex118 implementation of new ways of organising relatio
ns with other firms or public \line \up0 \expndtw0\charscalex126 institutions, s
uch as the establishment of new types of collaborations with \line \up0 \expndtw
0\charscalex132 research organisations or customers, new methods of integration
with \line \up0 \expndtw0\charscalex120 suppliers, and the outsourcing or subcon
tracting for the first time of business \line \up0 \expndtw0\charscalex130 activ
ities in production, procuring, distribution, recruiting and ancillary \line \up
0 \expndtw0\charscalex117 services. \par\pard\qj \li1303\ri1176\sb50\sl-250\slmu
lt0\tx1870 \up0 \expndtw0\charscalex107 183. \tab \up0 \expndtw0\charscalex120 C
hanges in business practices, workplace organisation or external \line\up
0 \expndtw0\charscalex122 relations that are based on organisational methods alr
eady in use in the firm \line \up0 \expndtw0\charscalex129 are not organisationa
l innovations. Nor is the formulation of managerial \line \up0 \expndtw0\charsca
lex124 strategies in itself an innovation. However, organisational changes that
are \line \up0 \expndtw0\charscalex124 implemented in response to a new manageri
al strategy are an innovation if \line \up0 \expndtw0\charscalex126 they represe
nt the first implementation of a new organisational method in \line \up0 \expndt
w0\charscalex119 business practices, workplace organisation or external relation
s. For example, \line \up0 \expndtw0\charscalex119 the introduction of a written
strategy document to improve the efficient use of \line \up0 \expndtw0\charscal
ex120 the firm\u8217?s knowledge is not, by itself, an innovation. Innovation oc
curs when \line \up0 \expndtw0\charscalex119 the strategy is implemented through
the use of new software and practices for \line \up0 \expndtw0\charscalex123 do
cumenting information in order to encourage knowledge sharing among \line \up0 \
expndtw0\charscalex118 different divisions. \par\pard\qj \li1303\ri1177\sb50\sl250\slmult0\tx1870 \up0 \expndtw0\charscalex107 184. \tab \up0 \expndtw0\charsca
lex112 Mergers with, or the acquisition of, other firms are \ul0\nosuper
sub\cf24\f25\fs17 not\ul0\nosupersub\cf23\f24\fs17 considered \line\up0 \expn
dtw0\charscalex119 organisational innovations, even if a firm merges with or acq
uires other firms \line \up0 \expndtw0\charscalex131 for the first time. Mergers
and acquisitions may involve organisational \up0 \expndtw0\charscalex131 innova
tions, however, if the firm develops or adopts new organisation \up0 \expndtw0\c
harscalex120 methods in the course of the merger or acquisition. \par\pard\li793
0\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20
}
\fs21 4. Distinguishing between types of innovations \par\pard\qj \li1303\ri1178
4\fs17 185. \tab \up0 \expndtw0\charscalex125 It is important for survey purpose
s to be able to distinguish between \line\up0 \expndtw0\charscalex124 innovation
types in borderline cases. However, many innovations may have \line \up0 \expnd
tw0\charscalex129 characteristics that span more than one type of innovation. It
can be both \line \up0 \expndtw0\charscalex122 difficult and misleading, in ter
ms of types of innovation activities undertaken \line \up0 \expndtw0\charscalex1
19 by firms, to categorise these innovations as a single type. This section prov
ides \line \up0 \expndtw0\charscalex119 guidelines for distinguishing between th
e different types of innovations. \par\pard\qj \li1303\ri1176\sb49\sl-251\slmult
0\tx1870 \up0 \expndtw0\charscalex109 186. \tab \up0 \expndtw0\charscalex126 Col
lecting data on the different characteristics of an innovation that \line\up0 \e
xpndtw0\charscalex124 spans several innovation types will rarely create problems
for interpretation \line \up0 \expndtw0\charscalex119 and, in fact, will usuall
y improve the quality of the results. For example, a firm \line \up0 \expndtw0\c
harscalex124 that introduces a new product which also requires the development o
f a new \line \up0 \expndtw0\charscalex121 process is clearly both a product and
a process innovator. The same is true for \line \up0 \expndtw0\charscalex130 a
firm that introduces a new marketing method in order to market a new \line \up0
\expndtw0\charscalex124 product, or a firm that adopts for the first time a new
organisational method \line \up0 \expndtw0\charscalex120 in the course of the in
troduction of a new process technology. \par\pard\ql \li1303\sb0\sl-218\slmult0
\par\pard\ql\li1303\sb39\sl-218\slmult0 \up0 \expndtw-8\charscalex76 \ul0\nosupe
rsub\cf28\f29\fs19 4.1. Distinguishing between product and process innovations \
09 \ul0\nosupersub\cf23\f24\fs17 187. \tab \up0 \expndtw0\charscalex122 With res
pect to goods, the distinction between products and processes \line\up0 \expndtw
0\charscalex135 is clear. With respect to services, however, it may be less clea
r, as the \line \up0 \expndtw0\charscalex121 production, delivery and consumptio
n of many services can occur at the same \up0 \expndtw0\charscalex121 time. Some
distinguishing guidelines are: \par\pard\qj \li1303\ri1176\sb79\sl-240\slmult0\
tx1508 \up0 \expndtw0\charscalex123 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\no
supersub\cf23\f24\fs17 If the innovation involves new or significantly improve
d characteristics of \line\tab \up0 \expndtw0\charscalex123 the service offered
to customers, it is a product innovation. \par\pard\ql \li1303\ri1176\sb72\sl-25
0\slmult0\tx1508\tx1508 \up0 \expndtw0\charscalex127 \ul0\nosupersub\cf27\f28\fs
14 \u9679?\ul0\nosupersub\cf23\f24\fs17 If the innovation involves new or
significantly improved methods, \line\tab \up0 \expndtw0\charscalex137 equip
ment and/or skills used to perform the service, it is a process \line \tab \up0
\expndtw0\charscalex121 innovation. \par\pard\ql \li1303\ri1177\sb48\sl-253\slmu
lt0\tx1508\tx1508\tx1508 \up0 \expndtw0\charscalex124 \ul0\nosupersub\cf27\f28\f
s14 \u9679?\ul0\nosupersub\cf23\f24\fs17 If the innovation involves si
gnificant improvements in both the \line\tab \up0 \expndtw0\charscalex12
2 characteristics of the service offered and in the methods, equipment and/or \l
ine \tab \up0 \expndtw0\charscalex135 skills used to perform the service, it is
both a product and a process \line \tab \up0 \expndtw0\charscalex121 innovation.
\par\pard\qj \li1303\ri1178\sb48\sl-252\slmult0 \up0 \expndtw0\charscalex126 In
many cases, a service innovation may be only of one type. For example, \line \u
p0 \expndtw0\charscalex131 firms can offer a new service or new characteristics
of a service without \line \up0 \expndtw0\charscalex134 significantly changing t
he method of providing the service. Likewise, \line \up0 \expndtw0\charscalex123
significant process improvements, for instance to reduce delivery costs, may \l
ine \up0 \expndtw0\charscalex137 make no difference to the characteristics of th
e service that is sold to \line \up0 \expndtw0\charscalex123 customers. \par\par
li824\sb167\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupers
ub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \e
xpndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 53

}
1303\ri1688\sb214\sl-240\slmult0 \up0 \expndtw-8\charscalex75 \ul0\nosupersub\cf
28\f29\fs19 4.2. Distinguishing between product innovations and marketing \up0 \
expndtw-8\charscalex76 innovations \par\pard\qj \li1303\ri1176\sb72\sl-250\slmul
t0\tx1870 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 188. \tab \
up0 \expndtw0\charscalex120 The main distinguishing factor for product and marke
ting innovations \line\up0 \expndtw0\charscalex123 is a significant change in th
e product\u8217?s functions or uses. Goods or services \line \up0 \expndtw0\char
scalex136 which have significantly improved functional or user characteristics \
line \up0 \expndtw0\charscalex125 compared to existing products are product inno
vations. On the other hand, \line \up0 \expndtw0\charscalex119 the adoption of a
new marketing concept that involves a significant change in \line \up0 \expndtw
0\charscalex121 the design of an existing product is a marketing innovation but
not a product \line \up0 \expndtw0\charscalex120 innovation, as long as the func
tional or user characteristics of the product are \line \up0 \expndtw0\charscale
x119 not significantly changed. As an example, clothes produced using new fabric
s \line \up0 \expndtw0\charscalex131 with improved performance (breathable, wat
erproof, etc.) are product \line \up0 \expndtw0\charscalex120 innovations, but t
he first introduction of a new shape for clothes intended for \line \up0 \expndt
w0\charscalex118 a new group of customers or to give the product a higher degree
of exclusivity \line \up0 \expndtw0\charscalex120 (and thus allow for a higher
mark-up compared to the previous version of the \line \up0 \expndtw0\charscalex1
20 product), is a marketing innovation. \par\pard\qj \li1303\ri1178\sb50\sl-250\
23 In some cases innovations can be considered both product and \line\u
p0 \expndtw0\charscalex122 marketing innovations, if firms implement changes to
existing products that \line \up0 \expndtw0\charscalex123 involve both significa
nt changes in the functions or uses of the product and \up0 \expndtw0\charscalex
119 significant changes in the product\u8217?s form and appearance or packaging
which \up0 \expndtw0\charscalex119 are part of a new marketing concept. \par\par
d\qj \li1303\sb0\sl-220\slmult0 \par\pard\qj\li1303\ri1875\sb55\sl-220\slmult0 \
up0 \expndtw-8\charscalex74 \ul0\nosupersub\cf28\f29\fs19 4.3. Distinguishing be
tween service (product) innovations and \up0 \expndtw-8\charscalex75 marketing i
nnovations \par\pard\qj \li1303\ri1177\sb73\sl-253\slmult0\tx1870 \up0 \expndtw0
121 The main distinguishing factor for service innovations and marketing \line\u
p0 \expndtw0\charscalex128 innovations is whether the innovation involves a mark
eting method or a \line \up0 \expndtw0\charscalex120 service (\ul0\nosupersub\cf
24\f25\fs17 i.e.\ul0\nosupersub\cf23\f24\fs17 a product). Firms will generally
be able to distinguish between \up0 \expndtw0\charscalex120 their sales/marketin
g methods and their products. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx
1870 \up0 \expndtw0\charscalex107 191. \tab \up0 \expndtw0\charscalex123 The dis
tinction may depend on the nature of the firm\u8217?s business. An \line\up0 \ex
pndtw0\charscalex124 example is an innovation involving Internet sales. For a fi
rm that produces \line \up0 \expndtw0\charscalex134 and sells goods, the introdu
ction of e-commerce for the first time is a \line \up0 \expndtw0\charscalex121 m
arketing innovation in product placement. Firms that are in the business of \lin
e \up0 \expndtw0\charscalex114 e-commerce (\ul0\nosupersub\cf24\f25\fs17 e.g. \u
l0\nosupersub\cf23\f24\fs17 \u8220?auction\u8221? firms, Web site providers that

allow other firms to \line \up0 \expndtw0\charscalex120 advertise or sell their
products, firms arranging the sale of travel tickets, etc.) \line \up0 \expndtw
0\charscalex127 are offering \u8220?sales services\u8221?. For these firms, a s
ignificant change in the \line \up0 \expndtw0\charscalex135 characteristics or c
apabilities of their Web site is a product (service) \line \up0 \expndtw0\chars
calex119 innovation. \par\pard\qj \li1303\ri1178\sb70\sl-250\slmult0\tx1870 \up0
\expndtw0\charscalex107 192. \tab \up0 \expndtw0\charscalex118 Some innovation
s are both product and marketing innovations, for \line\up0 \expndtw0\cha
rscalex124 example, if a firm implements a new sales and customer service operat
ion, \line \up0 \expndtw0\charscalex123 introducing both a new way of marketing
its products (direct selling) while \line \up0 \expndtw0\charscalex125 also offe
ring additional services (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf2
3\f24\fs17 repair) and product information to \line \up0 \expndtw0\charscalex12
1 customers. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult
0\par\pard\li793\sb67\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul
0\nosupersub\cf19\f20\fs20 54\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub\c
f18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
-8\charscalex75 \ul0\nosupersub\cf28\f29\fs19 4.4. Distinguishing between proces
s and marketing innovations \par\pard\qj \li1303\ri1178\sb74\sl-252\slmult0\tx18
pndtw0\charscalex123 Both process and marketing innovations can involve new meth
ods of \line\up0 \expndtw0\charscalex124 moving information or goods, but their
purposes differ. Process innovations \line \up0 \expndtw0\charscalex136 involve
production and delivery methods and other ancillary support \line \up0 \expndtw0
\charscalex124 activities aimed at decreasing unit costs or increasing product q
uality, while \line \up0 \expndtw0\charscalex125 marketing innovations aim at in
creasing sales volumes or market share, the \line \up0 \expndtw0\charscalex122 l
atter through changes in product positioning or reputation. \par\pard\qj \li1303
\ri1176\sb50\sl-250\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex109 194. \tab \u
p0 \expndtw0\charscalex124 Borderline cases can arise for marketing innovations
that involve the \line\up0 \expndtw0\charscalex121 introduction of new sales cha
nnels. For example, innovations that involve the \line \up0 \expndtw0\charscalex
126 introduction of a new sales channel (\ul0\nosupersub\cf24\f25\fs17 i.e.\ul0
\nosupersub\cf23\f24\fs17 a new way of selling goods and \line \up0 \expndtw0\c
harscalex123 services to customers) may also include the implementation of new l
ogistics \line \up0 \expndtw0\charscalex130 methods (\ul0\nosupersub\cf24\f25\f
s17 i.e.\ul0\nosupersub\cf23\f24\fs17 the transport, storage and handling of pr
oducts). If these \line \up0 \expndtw0\charscalex123 innovations are aimed both
at increasing sales and reducing unit distribution \line \up0 \expndtw0\charscal
ex123 costs, they should be considered both process and marketing innovations. \
par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb39\sl-218\slmult0 \
up0 \expndtw-8\charscalex75 \ul0\nosupersub\cf28\f29\fs19 4.5. Distinguishing be
tween process and organisational innovations \par\pard\qj \li1303\ri1176\sb76\sl

-250\slmult0\tx1870 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 1
95. \tab \up0 \expndtw0\charscalex123 Distinguishing between process and org
anisational innovations is \line\up0 \expndtw0\charscalex124 perhaps the most
frequent borderline case for innovation surveys since both \line \up0 \expndtw0\
charscalex123 types of innovation attempt - among other things - to decrease cos
ts through \line \up0 \expndtw0\charscalex136 new and more efficient concepts of
production, delivery and internal \line \up0 \expndtw0\charscalex136 organisati
on. Many innovations thus contain aspects of both types of \line \up0 \expndtw0\
charscalex122 innovation. For example, the introduction of new processes may als
o involve \line \up0 \expndtw0\charscalex134 the first use of new organisat
ional methods such as group working. \line \up0 \expndtw0\charscalex128 Organisa
tional innovations such as the first introduction of a total quality \line \up0
\expndtw0\charscalex127 management system may involve significant improvements i
n production \line \up0 \expndtw0\charscalex125 methods, such as new production
logistic systems, to avoid certain types of \line \up0 \expndtw0\charscalex123 f
laws or new and more efficient information systems based on new software \line \
up0 \expndtw0\charscalex119 and new ICT equipment. \par\pard\qj \li1303\ri1178\s
b49\sl-252\slmult0\tx1870 \up0 \expndtw0\charscalex109 196. \tab \up0 \expndtw0\
charscalex126 A starting point for distinguishing process and/or organisa
tional \line\up0 \expndtw0\charscalex124 innovations is the type of activity: pr
ocess innovations deal mainly with the \line \up0 \expndtw0\charscalex132 implem
entation of new equipment, software and specific techniques or \up0 \expndtw0\ch
arscalex123 procedures, while organisational innovations deal primarily with peo
ple and \up0 \expndtw0\charscalex123 the organisation of work. Guidelines for di
stinguishing the two in borderline \up0 \expndtw0\charscalex119 cases are as fol
lows: \par\pard\ql \li1303\ri1177\sb50\sl-250\slmult0\tx1508\tx1508 \up0 \expndt
w0\charscalex119 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\f
s17 If the innovation involves new or significantly improved productio
n or \line\tab \up0 \expndtw0\charscalex122 supply methods that are intended to
decrease unit costs or increase product \line \tab \up0 \expndtw0\charscalex119
quality, it is a process innovation. \par\pard\ql \li1303\ri1176\sb70\sl-250\sl
mult0\tx1508\tx1508 \up0 \expndtw0\charscalex118 \ul0\nosupersub\cf27\f28\fs14 \
u9679?\ul0\nosupersub\cf23\f24\fs17 If the innovation involves the first use o
f new organisational methods in the \line\tab \up0 \expndtw0\charscalex119 firm\
u8217?s business practices, workplace organisation or external relations, it is
\line \tab \up0 \expndtw0\charscalex119 an organisational innovation. \par\pard\
calex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUN
ITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 55
}
1303\ri1177\sb176\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw0\charscalex120 \ul0
\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 If the innovati
on involves both new or significantly improved production or \line\tab \up0 \exp
ndtw0\charscalex131 supply methods and the first use of organisation methods, it

is both a \line \tab \up0 \expndtw0\charscalex122 process and an organisational
innovation. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb59\sl
-218\slmult0 \up0 \expndtw-8\charscalex75 \ul0\nosupersub\cf28\f29\fs19 4.6. Dis
tinguishing between marketing and organisational innovations \par\pard\qj \li130
3\ri1177\sb76\sl-250\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex109 \ul0\nosupe
rsub\cf23\f24\fs17 197. \tab \up0 \expndtw0\charscalex125 Borderline cases m
ay arise for innovations that involve the \line\up0 \expndtw0\charsc
alex123 introduction for the first time of both marketing and organisational met
hods. \line \up0 \expndtw0\charscalex138 As noted above, if an innovation has ch
aracteristics of both types of \line \up0 \expndtw0\charscalex130 innovations, t
hen it is both a marketing innovation and an organisational \line \up0 \expndtw0
\charscalex123 innovation. However, organisational innovations that involve sale
s activities \line \up0 \expndtw0\charscalex122 (\ul0\nosupersub\cf24\f25\fs17 e
.g.\ul0\nosupersub\cf23\f24\fs17 the integration of sales with other department
s), but do not involve the \line \up0 \expndtw0\charscalex122 introduction of ne
w marketing methods, are not marketing innovations. \par\pard\ql \li793\sb238\sl
-241\slmult0 \up0 \expndtw0\charscalex124 \ul0\nosupersub\cf22\f23\fs21 5. Chang
es which are not considered innovations \par\pard\qj \li1303\ri1197\sb137\sl-220
\slmult0 \up0 \expndtw-8\charscalex74 \ul0\nosupersub\cf28\f29\fs19 5.1. Ceasing
to use a process, a marketing method or an organisation \up0 \expndtw-8\charsca
lex75 method, or to market a product \par\pard\qj \li1303\ri1177\sb74\sl-252\slm
ult0\tx1869 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 198. \tab
\up0 \expndtw0\charscalex122 It is not an innovation to stop doing something, e
ven if it improves a \line\up0 \expndtw0\charscalex124 firm\u8217?s performance.
For example, it is not an innovation when a television \line \up0 \expndtw0\cha
rscalex126 manufacturer ceases to produce and sell a combined television and DVD
\up0 \expndtw0\charscalex126 player, or a property development agency or constr
uction company stops \up0 \expndtw0\charscalex122 building retirement villages.
Similarly, ceasing to use a certain marketing or \up0 \expndtw0\charscalex122 or
ganisational method is not an innovation. \par\pard\ql \li1303\sb0\sl-218\slmult
0 \par\pard\ql\li1303\sb39\sl-218\slmult0 \up0 \expndtw-8\charscalex74 \ul0\nosu
persub\cf28\f29\fs19 5.2. Simple capital replacement or extension \par\pard\qj \
li1303\ri1178\sb74\sl-253\slmult0\tx1870 \up0 \expndtw0\charscalex107 \ul0\nosup
ersub\cf23\f24\fs17 199. \tab \up0 \expndtw0\charscalex121 The purchase of ide
ntical models of installed equipment, or minor \line\up0 \expndtw0\charscale
x126 extensions and updates to existing equipment or software, are not process \
line \up0 \expndtw0\charscalex121 innovations. New equipment or extensions must
both be new to the firm and \up0 \expndtw0\charscalex118 involve a significant i
mprovement in specifications. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\
ql\li1303\sb38\sl-218\slmult0 \up0 \expndtw-8\charscalex74 \ul0\nosupersub\cf28\
f29\fs19 5.3. Changes resulting purely from changes in factor prices \par\pard\q
j \li1303\ri1177\sb76\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex107 \ul0\no
supersub\cf23\f24\fs17 200. \tab \up0 \expndtw0\charscalex122 A change in the pr
ice of a product or in the productivity of a process \line\up0 \expndtw0\charsca
lex120 resulting exclusively from changes in the price of factors of production
is not \line \up0 \expndtw0\charscalex126 an innovation. For example, an innovat
ion does not occur when the same \up0 \expndtw0\charscalex119 model of PC is con
structed and sold at a lower price simply because the price \up0 \expndtw0\chars
calex119 of computer chips falls. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\p
ard\ql\li1303\sb39\sl-218\slmult0 \up0 \expndtw-8\charscalex78 \ul0\nosupersub\c
f28\f29\fs19 5.4. Customisation \par\pard\li1303\sb135\sl-195\slmult0\fi0\tx1870
\up0 \expndtw0\charscalex126 \ul0\nosupersub\cf23\f24\fs17 201.\tab \up0 \expnd
tw0\charscalex126 Firms engaged in custom production make single and often compl
ex\par\pard\li1303\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex126 items ac
cording to customers\u8217? orders. Unless the one-off item displays\par\pard\li
1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex127 significantly differen
t attributes from products that the firm has previously\par\pard\li1303\sb57\sl195\slmult0\fi0 \up0 \expndtw0\charscalex126 made, it is not a product innovatio
n.\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb224\sl-230\slmult0\fi0\tx4
899 \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 56\tab \up0 \expn

EAN COMMUNITIES 2005
}
upersub\cf23\f24\fs17 202. \tab \up0 \expndtw0\charscalex121 Note that the above
concerns product changes from customisation and \line\up0 \expndtw0\charscalex1
29 not the implementation of customised production itself. For example, the \lin
e \up0 \expndtw0\charscalex125 integration of production, sales and delivery ope
rations is an organisational \line \up0 \expndtw0\charscalex121 innovation. \par
\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb38\sl-218\slmult0 \up0
\expndtw-8\charscalex75 \ul0\nosupersub\cf28\f29\fs19 5.5. Regular seasonal and
other cyclical changes \par\pard\qj \li1303\ri1176\sb75\sl-251\slmult0\tx1870 \
up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 203. \tab \up0 \expndt
w0\charscalex122 In certain industries such as clothing and footwear there are s
easonal \line\up0 \expndtw0\charscalex119 changes in the type of goods or servic
es provided which may be accompanied \line \up0 \expndtw0\charscalex128 by chang
es in the appearance of the products concerned. These types of \line \up0 \expnd
tw0\charscalex132 routine changes in design are generally neither product nor ma
rketing \line \up0 \expndtw0\charscalex121 innovations. For example, the introdu
ction of the new season\u8217?s anoraks by a \line \up0 \expndtw0\charscalex124
clothing manufacturer is not a product innovation unless the anoraks have, \line
\up0 \expndtw0\charscalex119 for example, a lining with significantly improved
characteristics. However, if \line \up0 \expndtw0\charscalex119 the occasion of
seasonal changes is used for a fundamental change in product \line \up0 \expndtw
0\charscalex121 design that is part of a new marketing approach used for the fir
st time by the \line \up0 \expndtw0\charscalex121 firm, this should be considere
d a marketing innovation. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\l
i1303\sb39\sl-218\slmult0 \up0 \expndtw-8\charscalex73 \ul0\nosupersub\cf28\f29\
fs19 5.6. Trading of new or significantly improved products \par\pard\qj \li1303
cf23\f24\fs17 204. \tab \up0 \expndtw0\charscalex123 The situation for new produ
cts is complicated in the goods-handling \line\up0 \expndtw0\charscalex124 servi
ces and distributive trades (wholesale and retail distribution, transport \line
\up0 \expndtw0\charscalex120 and storage). Trading of new or improved products i
s generally not a product \line \up0 \expndtw0\charscalex129 innovation for the
wholesaler, retail outlet or transport and storage firm. \line \up0 \expndtw0\ch
arscalex118 However, if such a firm begins to deal with a new line of goods (\ul
0\nosupersub\cf24\f25\fs17 i.e.\ul0\nosupersub\cf23\f24\fs17 types of \line \up
0 \expndtw0\charscalex135 goods that the firm has not previously sold) then this
activity is to be \line \up0 \expndtw0\charscalex119 considered a product innov
ation, as the firm is offering a new service. \par\pard\ql \li793\sb0\sl-241\slm
ult0 \par\pard\ql\li793\sb17\sl-241\slmult0 \up0 \expndtw0\charscalex118 \ul0\no
supersub\cf22\f23\fs21 6. Novelty and diffusion \par\pard\qj \li1303\ri1179\sb72
7 205. \tab \up0 \expndtw0\charscalex120 By definition, all innovations must con

tain a degree of novelty. Three \line\up0 \expndtw0\charscalex120 concepts for t
he novelty of innovations are discussed below: new to the firm, \line \up0 \expn
dtw0\charscalex120 new to the market, and new to the world. \par\pard\qj \li1303
\ri1178\sb70\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex107 206. \tab \up0 \
expndtw0\charscalex119 The developer of the innovation, discussed in Chapter 5,
is also related \line\up0 \expndtw0\charscalex129 to novelty and diffusion and e
stablishes whether innovations are mainly \line \up0 \expndtw0\charscalex132 dev
eloped within enterprises themselves or in co-operation with other \up0 \expndtw
0\charscalex134 enterprises or public research institutions, or whether they are
mainly \up0 \expndtw0\charscalex120 developed outside the enterprise. \par\pard
\qj \li1303\ri1178\sb50\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex107 207.
\tab \up0 \expndtw0\charscalex123 As noted above, the minimum entry level for an
innovation is that it \line\up0 \expndtw0\charscalex100 must be \ul0\nosupersu
b\cf24\f25\fs17 new to the firm\ul0\nosupersub\cf23\f24\fs17 . A product
, process , marketing method or \line \up0 \expndtw0\charscalex123 organisat
ional method may already have been implemented by other firms, \up0 \expndtw0\ch
arscalex120 but if it is new to the firm (or in case of products and processes:
significantly \up0 \expndtw0\charscalex120 improved), then it is an innovation f
or that firm.\ul0\super\cf25\f26\fs20 3 \par\pard\li824\sb0\sl-218\slmult0\par\p
199\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\
f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\
charscalex105 \ul0\nosupersub\cf19\f20\fs20 57
}
rsub\cf23\f24\fs17 208. \tab \up0 \expndtw-7\charscalex95 The concepts \ul0\nosu
persub\cf24\f25\fs17 new to the market\ul0\nosupersub\cf23\f24\fs17 and \ul0\no
supersub\cf24\f25\fs17 new to the world\ul0\nosupersub\cf23\f24\fs17 concern wh
ether or \line\up0 \expndtw0\charscalex129 not a certain innovation has already
been implemented by other firms, or \line \up0 \expndtw0\charscalex126 whether t
he firm is the first in the market or industry or worldwide to have \line \up0 \
expndtw0\charscalex120 implemented it. Firms that first develop innovations can
be considered drivers \line \up0 \expndtw0\charscalex123 of the process of innov
ation. Many new ideas and knowledge originate from \line \up0 \expndtw0\charscal
ex126 these firms, but the economic impact of the innovations will depend on the
\line \up0 \expndtw0\charscalex130 adoption of the innovations by other firms.
Information on the degree of \line \up0 \expndtw0\charscalex121 novelty can be u
sed to identify the developers and adopters of innovations, to \line \up0 \expnd
tw0\charscalex121 examine patterns of diffusion, and to identify market leaders
and followers. \par\pard\qj \li1303\ri1178\sb72\sl-248\slmult0\tx1870 \up0 \expn
dtw0\charscalex107 209. \tab \up0 \expndtw0\charscalex121 Innovations are new
to the market when the firm is the first to \line\up0 \expndtw0\charsc
alex123 introduce the innovation on its market. The market is simply defined as
the \line \up0 \expndtw0\charscalex117 firm and its competitors and it can inclu
de a geographic region or product line. \up0 \expndtw0\charscalex119 The geograp

hical scope of new to the market is thus subject to the firm\u8217?s own \up0 \e
xpndtw0\charscalex133 view of its operating market and thus may include both dom
estic and \up0 \expndtw0\charscalex121 international firms. \par\pard\qj \li1303
expndtw0\charscalex120 An innovation is new to the world when the firm
is the first to \line\up0 \expndtw0\charscalex134 introduce the innovation f
or all markets and industries, domestic and \line \up0 \expndtw0\charscalex130 i
nternational. New to the world therefore implies a qualitatively greater \up0 \e
xpndtw0\charscalex120 degree of novelty than new to the market. While many surve
ys may find that \up0 \expndtw0\charscalex131 questions on new to the market are
sufficient to examine the degree of \up0 \expndtw0\charscalex120 novelty for in
novations, new to the world provides an option for surveys that \up0 \expndtw0\c
harscalex120 wish to examine novelty in greater detail. \par\pard\qj \li1303\ri1
dtw0\charscalex117 A related concept is a radical or disruptive innovation. It c
an be defined \line\up0 \expndtw0\charscalex134 as an innovation that has a sign
ificant impact on a market and on the \line \up0 \expndtw0\charscalex119 economi
c activity of firms in that market. This concept focuses on the impact \up0 \exp
ndtw0\charscalex128 of innovations as opposed to their novelty. The impact can,
for example, \up0 \expndtw0\charscalex127 change the structure of the market, cr
eate new markets or render existing \up0 \expndtw0\charscalex124 products obsole
te (Christensen, 1997). However, it might not be apparent \up0 \expndtw0\chars
calex125 whether an innovation is disruptive until long after it has been introd
uced. \up0 \expndtw0\charscalex126 This makes it difficult to collect data on di
sruptive innovations within the \up0 \expndtw0\charscalex117 period reviewed in
an innovation survey. \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\
sb17\sl-241\slmult0 \up0 \expndtw0\charscalex118 \ul0\nosupersub\cf22\f23\fs21 7
. The innovative firm \par\pard\qj \li1303\ri1175\sb92\sl-250\slmult0\tx1870 \up
0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 212. \tab \up0 \expndtw0
\charscalex125 The innovative status of a firm can be defined in several ways. T
he \line\up0 \expndtw0\charscalex131 basic definition of an innovative firm (se
e Section 2) is a firm that has \line \up0 \expndtw0\charscalex121 implemented a
t least one innovation, while a product or process innovator is \line \up0 \expn
dtw0\charscalex136 defined as a firm that has implemented either a product or a
process \line \up0 \expndtw0\charscalex119 innovation. \par\pard\li1303\sb108\sl
-195\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex122 213.\tab \up0 \expndtw0\cha
rscalex122 Further ways of classifying an innovative firm are possible, dependin
g\par\pard\li1303\sb57\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex123 on policy
or research needs. They can be used to specify the percentage of\par\pard\li130
3\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex123 firms (by size class, sec
tor, country or other factor) that introduces each of the\par\pard\li793\sb0\sl230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb44\sl-230\slmult0
\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 58\tab \u
p0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OE
CD/EUROPEAN COMMUNITIES 2005
}

\cf23\f24\fs17 four types of innovations, or the share of firms that have implem
ented \up0 \expndtw0\charscalex125 combinations of innovations, such as product
and marketing innovations or \up0 \expndtw0\charscalex126 process and organisati
onal innovations. Classification by innovative status \up0 \expndtw0\charscalex1
27 can also include other information, for example about the developer of the \u
p0 \expndtw0\charscalex123 innovation, which may be used to identify firms that
only adopt product and \up0 \expndtw0\charscalex120 process innovations develope
d by other firms. \par\pard\qj \li1303\ri1178\sb50\sl-250\slmult0\tx1870 \up0 \e
xpndtw0\charscalex109 214. \tab \up0 \expndtw0\charscalex123 Firms may have i
nnovation activities in the period under review \line\up0 \expndtw0\charsc
alex121 without having actually implemented an innovation. All activities involv
ed in \line \up0 \expndtw0\charscalex124 the development or implementation of in
novations, including those planned \line \up0 \expndtw0\charscalex128 for implem
entation in the future, are innovation activities (see Section 2). \line \up0 \e
xpndtw0\charscalex119 During a given period, innovation activities can be of thr
ee kinds: \par\pard\qj \li1303\ri1178\sb79\sl-240\slmult0\tx1508 \up0 \expndtw0\
charscalex111 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17
Successful\ul0\nosupersub\cf23\f24\fs17 in having resulted in the impl
ementation of an innovation \line\tab \up0 \expndtw0\charscalex111 (although
the innovation need not have been commercially successful). \par\pard\qj \li1303
cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Ongoing\ul0\nosupersub\cf23
\f24\fs17 , for work in progress which has not yet resulted in the \l
ine\tab \up0 \expndtw0\charscalex119 implementation of an innovation. \par\pard\
ql \li1303\sb118\sl-195\slmult0 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf2
7\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Abandoned\ul0\nosupersub\cf23\
f24\fs17 before the implementation of an innovation. \par\pard\ql \li1303\sb106
\sl-195\slmult0 \up0 \expndtw0\charscalex120 Innovation activities are specified
in detail in Chapter 6. \par\pard\qj \li1303\ri1117\sb80\sl-250\slmult0\tx1870
\up0 \expndtw0\charscalex109 215. \tab \up0 \expndtw0\charscalex64 \ul0\nosupers
ub\cf24\f25\fs17 An innovation-active firm is one that has had innovation activi
ties during the \line\up0 \expndtw-7\charscalex74 period under review, including
those with ongoing and abandoned activities\ul0\nosupersub\cf23\f24\fs17 . In o
ther \line \up0 \expndtw0\charscalex131 words, firms that have had innovation ac
tivities during the period under \up0 \expndtw0\charscalex120 review, regardless
of whether the activity resulted in the implementation of an \up0 \expndtw0\cha
rscalex120 innovation, are innovation-active. \par\pard\qj \li1303\ri1177\sb50\s
l-250\slmult0\tx1870 \up0 \expndtw0\charscalex109 216. \tab \up0 \expndtw0\chars
calex125 Firms can have come into existence during the period under review. \lin
e\up0 \expndtw0\charscalex127 These include both newly established firms and fir
ms that are the result of \line \up0 \expndtw0\charscalex121 mergers, demergers
or other kinds of reorganisation. The innovation status of \up0 \expndtw0\charsc
alex131 these firms, such as whether they are innovative or innovation-active, i
s \up0 \expndtw0\charscalex121 defined in the same way as for all other firms. \
par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb17\sl-241\slmult0 \up
0 \expndtw0\charscalex122 \ul0\nosupersub\cf22\f23\fs21 8. Collecting data on in
novations \par\pard\qj \li1303\ri1177\sb94\sl-248\slmult0\tx1870 \up0 \expndtw0\
28 Depending on survey objectives and scope, data collection on \line\up
0 \expndtw0\charscalex124 innovations can take various approaches. A comprehensi
ve approach would \line \up0 \expndtw0\charscalex120 cover all four types of inn
ovations equally. Alternatively, product and process \line \up0 \expndtw0\charsc
alex124 innovations might be maintained as the core innovation types but marketi
ng \line \up0 \expndtw0\charscalex132 and organisational innovations might be pa
rtly covered, or product and \line \up0 \expndtw0\charscalex126 process innovati
ons might be the exclusive focus. In addition, one or more \line \up0 \expndtw0\
charscalex132 types of innovation can be covered in greater detail through speci
alised \line \up0 \expndtw0\charscalex119 surveys. \par\pard\li1303\sb119\sl-195

\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex125 218.\tab \up0 \expndtw0\charsca
lex125 The guidelines presented here and in subsequent chapters outline a\par\pa
rd\li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex126 number of options
for data collection. Clearly, it is not feasible to cover all\par\pard\li1303\s
b57\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex126 topics and subtopics in one
innovation survey, and surveys must choose the\par\pard\li824\sb0\sl-218\slmult0
0 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3
- OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersu
b\cf19\f20\fs20 59
}
23\f24\fs17 questions that are deemed most relevant. A limited set of topics whi
ch are \up0 \expndtw0\charscalex121 considered particularly important for innova
tion surveys are recommended in \up0 \expndtw0\charscalex118 bold type. \par\par
\tab \up0 \expndtw0\charscalex115 Data on each type of innovation can be collec
ted through a single question \line\up0 \expndtw0\charscalex127 or through a ser
ies of sub-questions on separate subgroups of each type of \line \up0 \expndtw0\
charscalex125 innovation. The latter option will result in more detailed informa
tion on the \line \up0 \expndtw0\charscalex120 innovations of each firm. Greater
detail on the types of innovations firms have \line \up0 \expndtw0\charscalex11
7 implemented would be very useful for data analysis and interpretation. \par\pa
rd\qj \li1303\ri1176\sb50\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex109 220
. \tab \up0 \expndtw0\charscalex127 Information on supplementary factors, such a
s linkages, innovation \line\up0 \expndtw0\charscalex120 objectives and barriers
to innovation, can be collected separately for each type \line \up0 \expndtw0\c
harscalex133 of innovation, or for closely related subsets of the four types, su
ch as a \up0 \expndtw0\charscalex128 combination of product and process innovati
on. For some supplementary \up0 \expndtw0\charscalex122 questions, collecting da
ta for all four types of innovation combined can make \up0 \expndtw0\charscalex1
19 interpretation of the data more difficult. For example, combining all four ty
pes \up0 \expndtw0\charscalex135 of innovation in questions on linkages would ma
ke it very difficult to \up0 \expndtw0\charscalex128 determine if a specific lin
kage was used in developing a product, process, \up0 \expndtw0\charscalex121 mar
keting or organisational innovation. \par\pard\qj \li1303\ri1177\sb70\sl-250\slm
ult0\tx1870 \up0 \expndtw0\charscalex109 221. \tab \up0 \expndtw0\charscalex127
Length constraints make separate questions on each supplementary \line\up0 \expn
dtw0\charscalex127 factor for each type of innovation somewhat problematic. Taki
ng this into \line \up0 \expndtw0\charscalex131 account, Chapters 6 and 7 outlin
e options for supplementary questions: \line \up0 \expndtw0\charscalex124 referr
ing to all four types of innovations combined, focusing on product and \line \up
0 \expndtw0\charscalex121 process innovations, or directing questions at individ
ual types of innovations. \line \up0 \expndtw0\charscalex122 Chapter 5 provides
guidelines for directing questions on linkages towards all \line \up0 \expndtw0\
charscalex129 four types (either combined or separately) or to a subset of types
, such as \line \up0 \expndtw0\charscalex127 product and process innovations. Ch
apter 6 separates product and process \line \up0 \expndtw0\charscalex136 innovat
ion activities from activities for marketing and organisational \line \up0 \expn
dtw0\charscalex122 innovations. Chapter 7 lists objectives, hindering factors an
d other indicators \line \up0 \expndtw0\charscalex125 for each individual type o
f innovation. These lists can be equally useful for \line \up0 \expndtw0\charsca
lex123 questions that focus solely on a subset of innovations, either those that
cover \line \up0 \expndtw0\charscalex121 all innovation types, or those that co
ver individual types of innovations. \par\pard\qj \li1303\ri1177\sb49\sl-252\slm
Innovations spanning more than one type, such as those including \line\up0 \expn
dtw0\charscalex124 both a process and an organisational component, might play an
increasingly \line \up0 \expndtw0\charscalex120 important role in firm competit
iveness and in productivity gains. For example, \line \up0 \expndtw0\charscalex1
21 a restructuring of production operations could involve process, organisationa
l \line \up0 \expndtw0\charscalex129 and marketing innovations, or a marketing a
nd organisational innovation \line \up0 \expndtw0\charscalex122 could be impleme
nted in order to better profit from a product innovation. \par\pard\qj \li1303\r
i1177\sb50\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex109 223. \tab \up0 \ex
pndtw0\charscalex125 One option is to include questions on the connectio
ns between \line\up0 \expndtw0\charscalex132 different types of innovations. Of
particular interest is the link between \line \up0 \expndtw0\charscalex124 orga
nisational and process innovations, although connections between other \up0 \exp
ndtw0\charscalex129 types, such as product and marketing innovations or product
and process \up0 \expndtw0\charscalex121 innovations, can also be of interest. \
f19\f20\fs20 60\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 I
SBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
upersub\cf23\f24\fs17 224. \tab \up0 \expndtw0\charscalex123 To ensure comparabi
lity, surveys must specify an observation period \line\up0 \expndtw0\charscalex1
36 for questions on innovation. It is recommended that the length of the \line \
up0 \expndtw0\charscalex126 observation period for innovation surveys should not
exceed three years or \line \up0 \expndtw0\charscalex131 be less than one year.
Factors influencing the choice of the length of the \line \up0 \expndtw0\charsc
alex124 observation period are discussed in Chapter 8 on survey methods. The sam
e \line \up0 \expndtw0\charscalex124 observation period should be used for all q
uestions in an innovation survey, \line \up0 \expndtw0\charscalex122 with the ex
ception of a few quantitative indicators that are difficult to collect \line \up
0 \expndtw0\charscalex124 and should therefore refer to the most recent year of
the observation period, \line \up0 \expndtw0\charscalex124 the reference year. \

02 225. \tab \up0 \expndtw0\charscalex112 The concept of novelty is in pri
nciple applicable to all four types of \line\up0 \expndtw0\charscalex116 i
nnovations, possibly to differing degrees. Questions on novelty are likely to be
\line \up0 \expndtw0\charscalex112 easiest to answer for product innovations. F
irms may find questions on the novelty \up0 \expndtw0\charscalex117 of process i
nnovations more difficult, as they may lack full knowledge of other \up0 \expndt
w0\charscalex114 firms\u8217? production and delivery methods. The concept of no
velty is applicable for \up0 \expndtw0\charscalex125 most marketing innovations
(such as new methods in contracting, product \up0 \expndtw0\charscalex121 placem
ent and product promotion), though less relevant for new concepts of \up0 \expnd
tw0\charscalex114 product design. For organisational innovation, some new organi
sational methods \up0 \expndtw0\charscalex112 may be specific to an individual f
irm, thereby complicating comparison with other \up0 \expndtw0\charscalex114 fir
ms, and firms may lack information on whether certain organisational methods \up
0 \expndtw0\charscalex111 have already been applied by other firms. \par\pard\qj
b \up0 \expndtw0\charscalex124 It is recommended that innovation surveys ask whe
ther any product \line\up0 \expndtw0\charscalex132 innovations introduced during
the observation period were new to the \line \up0 \expndtw0\charscalex119 marke
t. Innovation surveys can also collect data on new to the market process \up0 \e
xpndtw0\charscalex119 innovations. An additional option is to ask whether these
types of innovations \up0 \expndtw0\charscalex119 were new to the world. \par\pa
d\ql\li1303\sb101\sl-218\slmult0 \up0 \expndtw-8\charscalex88 \ul0\nosupersub\cf
28\f29\fs19 Notes \par\pard\qj \li1401\ri1194\sb97\sl-200\slmult0\tx1587\tx1587
\up0 \expndtw0\charscalex121 \ul0\nosupersub\cf30\f31\fs15 1. In this chapter, t
he generic term, \u8220?the firm\u8221?, is used. The primary statistical unit \
line\tab \up0 \expndtw0\charscalex118 for collecting data, which in general is t
he enterprise, is discussed in Chapter 4. In \line \tab \up0 \expndtw0\charscale
x118 particular, the question of what is \u8220?new to the firm\u8221? becomes m
ore complicated \par\pard\qj \li1587\ri1195\sb0\sl-200\slmult0 \up0 \expndtw0\ch
arscalex126 when considering large enterprise groups or multinational enterprise
s. These \up0 \expndtw0\charscalex117 issues will be considered in Chapter 4. \p
ar\pard\qj \li1401\ri1194\sb90\sl-190\slmult0\tx1587\tx1587 \up0 \expndtw0\chars
calex120 2. A routine upgrade involves minor changes to a good or service that a
re expected \line\tab \up0 \expndtw0\charscalex125 and planned for in advance. T
he development of the upgrade is also based on \line \tab \up0 \expndtw0\charsca
lex119 routine, well-established activities. For example, anti-virus software is
purchased \par\pard\qj \li1587\ri1193\sb8\sl-193\slmult0 \up0 \expndtw0\charsca
lex118 with the expectation of frequent upgrades to cover the appearance of new
viruses. \up0 \expndtw0\charscalex126 A hotel chain will construct new hotels wi
th the expectation that furnishings, \up0 \expndtw0\charscalex118 lamps and bath
room fixtures will be upgraded on a regular basis, even though this \up0 \expndt
w0\charscalex114 may be on a 10- or 20-year cycle. \par\pard\qj \li1401\ri1134\s
b102\sl-200\slmult0\tx1587 \up0 \expndtw0\charscalex116 3. By \u8220?firm\u8221?
is meant, the statistical unit for which data is compiled, which in general \li
ne\tab \up0 \expndtw-3\charscalex100 is the \ul0\nosupersub\cf31\f32\fs15 enterp
rise\ul0\nosupersub\cf30\f31\fs15 . \ul0\nosupersub\cf31\f32\fs15 New to the fir
m\ul0\nosupersub\cf30\f31\fs15 thus implies new to the statistical unit. \par\p
0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb130\sl-218\s
lmult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISB
N 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex10

}
b166\sl-322\slmult0 \up0 \expndtw0\charscalex123 \ul0\nosupersub\cf3\f4\fs28 Ins
titutional Classifications \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0
mult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb16\sl-218\slmult0\fi0\t
x8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-0130
8-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosup
ersub\cf19\f20\fs20 63
}
}}

}}
}
}}
}
}}
}}
}
l-241\slmult0 \par\pard\ql\li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb146\sl241\slmult0 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf22\f23\fs21 1. The ap
proach \par\pard\qj \li1303\ri1178\sb70\sl-253\slmult0\tx1870 \up0 \expndtw0\cha
rscalex107 \ul0\nosupersub\cf23\f24\fs17 227. \tab \up0 \expndtw0\charscalex122
The institutional approach focuses on the characteristic properties of \line\up0

\expndtw0\charscalex128 the innovative firm. All characteristics of innovation
activities, and their \line \up0 \expndtw0\charscalex126 inputs and outputs, are
classified to one class or subclass according to the \up0 \expndtw0\charscalex1
15 unit\u8217?s principal activity. \par\pard\ql \li793\sb0\sl-241\slmult0 \par\
pard\ql\li793\sb16\sl-241\slmult0 \up0 \expndtw0\charscalex121 \ul0\nosupersub\c
f22\f23\fs21 2. The units \par\pard\qj \li1303\ri1177\sb72\sl-250\slmult0\tx1870
\up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 228. \tab \up0 \expn
dtw0\charscalex127 A clear distinction should be made between the reporting unit
, the \line\up0 \expndtw0\charscalex122 observation unit and the statistical uni
t. The reporting unit is the entity from \line \up0 \expndtw0\charscalex125 whic
h the recommended items of data are collected. They may vary from \up0 \expndtw0
\charscalex130 sector to sector and from country to country, depending on instit
utional \up0 \expndtw0\charscalex128 structures, the legal status of data collec
tion, tradition, national priorities \up0 \expndtw0\charscalex129 and survey r
esources. It is therefore difficult to make international \up0 \expndtw0\
charscalex121 recommendations about the reporting unit for innovation surveys. H
owever, \up0 \expndtw0\charscalex130 whenever countries provide statistics for i
nternational comparisons, the \up0 \expndtw0\charscalex119 reporting units shoul
d be specified. \par\pard\qj \li1303\ri1176\sb50\sl-251\slmult0\fi0\tx1870 \up0
\expndtw0\charscalex107 229. \tab \up0 \expndtw0\charscalex124 The observation u
nit is the entity that the received data refer to. The \line\up0 \expndtw0\chars
calex123 observation unit is equivalent to the reporting unit if the data receiv
ed refer \line \up0 \expndtw0\charscalex134 to the same unit as the reporting u
nit.\ul0\super\cf25\f26\fs20 1\ul0\nosupersub\cf23\f24\fs17 The statistical uni
t may be an \line \up0 \expndtw0\charscalex119 observation unit on which informa
tion is received and statistics are compiled, \line \up0 \expndtw0\charscalex130
or an analytical unit which statisticians create by splitting or combining \lin
e \up0 \expndtw0\charscalex129 observation units with the help of estimations or
imputations in order to \line \up0 \expndtw0\charscalex127 supply more detailed
and/or homogeneous data than would otherwise be \line \up0 \expndtw0\charscalex
116 possible. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870 \up0 \expnd
tw0\charscalex107 230. \tab \up0 \expndtw0\charscalex122 As far as possible,
the statistical unit should be uniform for all \line\up0 \expndtw0\chars
calex125 countries. This goal may, however, be difficult to achieve in practice.
One \line \up0 \expndtw0\charscalex123 reason is that legal structures differ f
rom country to country. Definitions of \line \up0 \expndtw0\charscalex122 units,
such as the enterprise, may also vary across countries. Another reason \line \u
p0 \expndtw0\charscalex121 is the interaction of the statistical unit with the o
bservation or reporting unit. \line \up0 \expndtw0\charscalex121 If the reportin
g or the observation unit is larger than the statistical unit, there \line \up0
\expndtw0\charscalex121 may be problems in distributing the data into the approp
riate statistical units. \par\pard\li1303\sb124\sl-195\slmult0\fi0\tx1870 \up0 \
expndtw0\charscalex126 231.\tab \up0 \expndtw0\charscalex127 Ideally, innovatio
n data should be compiled (and collected) at the\par\pard\li1303\sb57\sl
-195\slmult0\fi0 \up0 \expndtw0\charscalex127 organisational level for which dec
isions on innovation activity are made.\par\pard\li1303\sb55\sl-195\slmult0\fi0
\up0 \expndtw0\charscalex127 Taking into account how innovation activities are u
sually organised, the\par\pard\li1303\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\cha
rscalex127 enterprise is in general the most appropriate statistical unit. Howev
er, no\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\p
ard\li793\sb139\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\nosu
persub\cf19\f20\fs20 64\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f1
9\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005

}
\cf23\f24\fs17 single definition of an enterprise is used in all countries. The
two main \line \up0 \expndtw0\charscalex126 definitions are those of the ISIC an
d the EU. According to ISIC Rev. 3.1, \line \up0 \expndtw0\charscalex120 54-55, a
n enterprise has \u8220?autonomy in respect of financial and investment \line \u
p0 \expndtw0\charscalex133 decision making, as well as authority and responsibil
ity for allocating \line \up0 \expndtw0\charscalex120 resources for the producti
on of goods and services. It may be engaged in one \line \up0 \expndtw0\charscal
ex124 or many productive activities. The enterprise is the level at which financ
ial \line \up0 \expndtw0\charscalex127 and balance sheet accounts are maintained
and from which international \line \up0 \expndtw0\charscalex120 transactions, a
nd international investment position (when applicable) and the \line \up0 \expnd
tw0\charscalex128 consolidated financial position can be derived\u8221?. The EU
definition of an \line \up0 \expndtw0\charscalex120 enterprise is somewhat narro
wer: \u8220?The enterprise is the smallest combination \line \up0 \expndtw0\char
scalex118 of legal units that is an organisational unit producing goods or servi
ces, which \line \up0 \expndtw0\charscalex119 benefits from a certain degree of
autonomy in decision making, especially for \line \up0 \expndtw0\charscalex122 t
he allocation of its current resources. An enterprise carries out one or more \l
ine \up0 \expndtw0\charscalex117 activities at one or more locations.\u8221?\ul0
\super\cf25\f26\fs20 2 \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870 \u
p0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 232. \tab \up0 \expndtw
0\charscalex119 While the two definitions are very similar, a central difference
is that a \line\up0 \expndtw0\charscalex120 group of enterprises is not an ente
rprise according to the EU definition (since \line \up0 \expndtw0\charscalex134
it does not comprise the smallest combination of legal units that is an \line \u
p0 \expndtw0\charscalex129 organisational unit), while an enterprise group still
falls within the ISIC \line \up0 \expndtw0\charscalex131 definition of an enter
prise. Common characteristics are that enterprises \line \up0 \expndtw0\charscal
ex129 exercise a certain degree of autonomy in decision making and have full \li
ne \up0 \expndtw0\charscalex119 financial accounts. \par\pard\ql \li1303\sb0\sl218\slmult0 \par\pard\ql\li1303\sb59\sl-218\slmult0 \up0 \expndtw-8\charscalex73
\ul0\nosupersub\cf28\f29\fs19 2.1. The primary statistical unit \par\pard\qj \l
rsub\cf23\f24\fs17 233. \tab \up0 \expndtw0\charscalex124 The enterprise unit
is the appropriate primary statistical unit in \line\up0 \expndtw0\charsc
alex119 innovation surveys in most cases. The enterprise unit should, however, n
ot be \line \up0 \expndtw0\charscalex123 confused with the entity \u8220?legal u
nit\u8221?. While legal units are independent in a \line \up0 \expndtw0\charscal
ex131 legal sense, they may not necessarily constitute independent economic \lin
e \up0 \expndtw0\charscalex122 entities with decision-making autonomy for their
productive activities. This \line \up0 \expndtw0\charscalex118 point follows fro
m the EU definition of an enterprise and ISIC Rev. 3.1, 49.\ul0\super\cf25\f26\fs
20 3 \line \up0 \expndtw0\charscalex124 \ul0\nosupersub\cf23\f24\fs17 This is im
portant for samples drawn from business registers based on legal \line \up0 \exp
ndtw0\charscalex119 units, as data from legal units without decision-making auto
nomy may not be \line \up0 \expndtw0\charscalex121 comparable with data from ent
erprises. If data are collected for legal units, it \line \up0 \expndtw0\charsca
lex121 is desirable to compile the data for statistical use at the enterprise le
vel. \par\pard\qj \li1303\ri1178\sb79\sl-240\slmult0\tx1870 \up0 \expndtw0\chars
calex107 234. \tab \up0 \expndtw0\charscalex129 The enterprise is generally the

most appropriate statistical unit. It \line\up0 \expndtw0\charscalex118 includes
: \par\pard\qj \li1303\ri1177\sb80\sl-240\slmult0\tx1508 \up0 \expndtw0\charscal
ex123 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Enter
prises that consist of a single legal unit that engages primarily in one \line\t
ab \up0 \expndtw0\charscalex117 kind of economic activity. \par\pard\qj \li1303\
ri1176\sb80\sl-240\slmult0\tx1508 \up0 \expndtw0\charscalex123 \ul0\nosupersub\c
f27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Enterprises that are a group
of legal units, where the individual legal units \line\tab \up0 \expndtw0\chars
calex123 cannot be considered separate economic entities, including: \par\pard\q
j \li1508\ri1178\sb31\sl-300\slmult0 \up0 \expndtw0\charscalex121 \ul0\nosupersu
b\cf34\f35\fs17 \u10070?\ul0\nosupersub\cf23\f24\fs17 Legal units that are vert
ically or horizontally integrated in the enterprise. \line \up0 \expndtw0\charsc
alex119 \ul0\nosupersub\cf34\f35\fs17 \u10070?\ul0\nosupersub\cf23\f24\fs17 Ind
ividual legal units that perform ancillary functions, including R&D. \par\pard\l
i824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb48\sl
11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charsc
alex105 \ul0\nosupersub\cf19\f20\fs20 65
}
rsub\cf23\f24\fs17 235. \tab \up0 \expndtw0\charscalex122 Some cases require gre
ater clarification. These include: \ul0\nosupersub\cf24\f25\fs17 i)\ul0\nosupers
ub\cf23\f24\fs17 enterprise \line\up0 \expndtw0\charscalex129 groups; \ul0\nosu
persub\cf24\f25\fs17 ii)\ul0\nosupersub\cf23\f24\fs17 large enterprises that ma
y have several areas of activity and \line \up0 \expndtw0\charscalex113 \ul0\nos
upersub\cf24\f25\fs17 iii)\ul0\nosupersub\cf23\f24\fs17 multinational enterpris
es and groups. \par\pard\qj \li1303\ri1178\sb70\sl-250\slmult0\tx1869 \up0 \expn
dtw0\charscalex109 236. \tab \up0 \expndtw0\charscalex121 An enterprise group is
an association of enterprises bound together by \line\up0 \expndtw0\charscalex1
36 legal and/or financial links. For such groups, the question of whether \line
\up0 \expndtw0\charscalex124 innovation data should be compiled at the group lev
el or for each individual \up0 \expndtw0\charscalex123 enterprise depends on the
level at which decisions on innovation activity are \up0 \expndtw0\charscalex13
1 made. If each individual enterprise unit has decision-making autonomy \up0 \ex
pndtw0\charscalex131 concerning innovation, it is preferable to collect and comp
ile data at the \up0 \expndtw0\charscalex120 enterprise level as opposed to the
group level. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870 \up0 \expndt
w0\charscalex107 237. \tab \up0 \expndtw0\charscalex119 Large enterprises may ha
ve a number of different productive activities. \line\up0 \expndtw0\charscalex11
8 For the largest, decision making on innovation activity will likely not be mad
e \line \up0 \expndtw0\charscalex124 at the highest level of the organisation, b
ut undertaken for each productive \up0 \expndtw0\charscalex116 activity or divis
ion. In this case, it may be preferable, where possible, to collect \up0 \expndt
w0\charscalex117 and compile data at the level of the kind of activity unit (KAU
), defined as \u8220?an \up0 \expndtw0\charscalex126 enterprise or part of an en

terprise which engages in one kind of economic \up0 \expndtw0\charscalex121 acti
vity without being restricted to the geographic area in which that activity \up0
\expndtw0\charscalex123 is carried out\u8221?.\ul0\super\cf25\f26\fs20 4\ul0\no
supersub\cf23\f24\fs17 This means that the KAU may consist of one or more legal
\up0 \expndtw0\charscalex119 units, or a part of a legal unit. \par\pard\qj \li
1303\ri1177\sb72\sl-248\slmult0\tx1870 \up0 \expndtw0\charscalex107 238. \tab \u
p0 \expndtw0\charscalex115 Multinational enterprises (MNEs) present a number of
challenges, given \line\up0 \expndtw0\charscalex126 that many activities may tak
e place across national borders. For example, \line \up0 \expndtw0\charscalex117
innovation activities in MNEs may be undertaken jointly by units in more than \
line \up0 \expndtw0\charscalex129 one country, and many activities may be segmen
ted, with development \line \up0 \expndtw0\charscalex129 activities in one count
ry and production and sales in another. Given that \line \up0 \expndtw0\charscal
ex128 innovation surveys are national surveys, data will be limited to domestic
\line \up0 \expndtw0\charscalex133 unit(s) of the MNE. However, it can be very u
seful to obtain as much \line \up0 \expndtw0\charscalex136 information as possib
le on connections between the domestic unit\u8217?s \line \up0 \expndtw0\charsca
lex121 innovation activities and those of units abroad. The following guidelines
are \line \up0 \expndtw0\charscalex115 suggested for treating MNEs: \par\pard\q
l \li1303\ri1175\sb74\sl-246\slmult0\tx1508\tx1508\tx1508 \up0 \expndtw0\charsca
lex126 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 The
domestic part of the multinational enterprise alone represents the \line\tab
\up0 \expndtw0\charscalex121 statistical unit to be included, regardless of the
location of the enterprise\u8217?s \line \tab \up0 \expndtw0\charscalex121 headq
uarters. Data may be collected on whether observation units are part \line \tab
\up0 \expndtw0\charscalex109 of MNEs (see below). \par\pard\qj \li1303\ri1177\sb
s14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Foreign units of an MNE should be reg
arded as a separate entities (not part \line\tab \up0 \expndtw0\charscalex121 of
the statistical unit, though belonging to the same enterprise group): \par\pard
\qj \li1508\ri1178\sb72\sl-250\slmult0\tx1700\tx1700 \up0 \expndtw0\charscalex12
2 \ul0\nosupersub\cf34\f35\fs17 \u10070?\ul0\nosupersub\cf23\f24\fs17 Joint inn
ovation activities between the domestic and foreign units of the \line\tab \up0
\expndtw0\charscalex129 MNE should be considered as innovation co-operation betw
een two \line \tab \up0 \expndtw0\charscalex126 enterprises in the same enterpri
se group. Exchanges of information or \par\pard\qj \li1700\ri1179\sb0\sl-260\slm
ult0 \up0 \expndtw0\charscalex134 purchases of knowledge and technology should a
lso be treated as \up0 \expndtw0\charscalex123 transfers between two separate en
terprises. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\
par\pard\li793\sb227\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0
\nosupersub\cf19\f20\fs20 66\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf
18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
ul0\nosupersub\cf34\f35\fs17 \u10070?\ul0\nosupersub\cf23\f24\fs17 R&D activit

y that is conducted abroad or other new knowledge and \line\tab \up0 \e
xpndtw0\charscalex119 technology acquired abroad (and included in the accounts o
f the MNE\u8217?s \line \tab \up0 \expndtw0\charscalex116 domestic unit) should
be included in \u8220?Extramural R&D\u8221? and \u8220?Acquisition \par\pard\ql
\li1700\sb56\sl-195\slmult0 \up0 \expndtw0\charscalex116 of external knowledge\u
8221?, respectively (see Chapter 6). \par\pard\qj \li1508\ri1179\sb60\sl-250\slm
ult0\tx1700\tx1700 \up0 \expndtw0\charscalex120 \ul0\nosupersub\cf34\f35\fs17 \u
10070?\ul0\nosupersub\cf23\f24\fs17 For questions on the developer of an innova
tion, \u8220?other enterprises\u8221? can \line\tab \up0 \expndtw0\charscalex117
be broken down into those that are part of a MNE or enterprise group, and \line
\tab \up0 \expndtw0\charscalex117 all other enterprises. \par\pard\qj \li1508\r
i1177\sb70\sl-250\slmult0\tx1700\tx1700 \up0 \expndtw0\charscalex122 \ul0\nosupe
rsub\cf34\f35\fs17 \u10070?\ul0\nosupersub\cf23\f24\fs17 Innovations developed
by the foreign units of a multinational enterprise \line\tab \up0 \expndtw0\char
scalex127 and adopted by the domestic units are innovations that are new to the
\line \tab \up0 \expndtw0\charscalex119 firm. \par\pard\qj \li1508\ri1179\sb42\s
l-260\slmult0\tx1700 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf34\f35\fs17
\u10070?\ul0\nosupersub\cf23\f24\fs17 Innovations developed by foreign units, b
ut not adopted by the domestic \line\tab \up0 \expndtw0\charscalex121 units of a
multinational enterprise, should not be included. \par\pard\ql \li1303\sb94\sl195\slmult0\tx1870 \up0 \expndtw0\charscalex109 239. \tab \up0 \expndtw0\charsca
lex124 Guidelines for the primary statistical unit are summarised below: \par\pa
rd\qj \li1530\sb0\sl-300\slmult0 \par\pard\qj\li1530\ri1411\sb139\sl-300\slmult0
\fi170 \up0 \expndtw0\charscalex124 \ul0\nosupersub\cf10\f11\fs16 The most appro
priate primary statistical unit is the enterprise, including: \line \up0 \expndt
s16 Enterprises that are single legal units with one primary economic activity
. \line \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\n
osupersub\cf10\f11\fs16 Enterprises that are groups of legal units that
cannot be considered \par\pard\ql \li1735\sb36\sl-184\slmult0 \up0 \expndtw0
\charscalex122 separate economic entities. \par\pard\qj \li1530\ri1411\sb70\sl-2
679?\ul0\nosupersub\cf10\f11\fs16 Enterprises that are part of an enterprise g
roup, where decision making on \line\tab \up0 \expndtw0\charscalex121 innovation
takes place at the enterprise level: \par\pard\qj \li1735\ri1412\sb60\sl-240\sl
mult0\tx1927\tx1927 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf35\f36\fs16 \
u10070?\ul0\nosupersub\cf10\f11\fs16 In some cases for very large enterprises w
ith more than one economic \line\tab \up0 \expndtw0\charscalex124 activity, the
appropriate primary statistical unit can be kind of activity \line \tab \up0 \ex
pndtw0\charscalex119 units (KAU), with the KAU consisting of one or more legal u
nits, or part \par\pard\ql \li1927\sb47\sl-184\slmult0 \up0 \expndtw0\charscalex
118 of a legal unit. \par\pard\qj \li1735\ri1411\sb70\sl-240\slmult0\tx1927\tx19
27 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf35\f36\fs16 \u10070?\ul0\nosup
ersub\cf10\f11\fs16 For MNEs, the domestic units of multinational enterp
rises are the \line\tab \up0 \expndtw0\charscalex125 appropriate statistical u
nits, and may either be an enterprise or part of \line \tab \up0 \expndtw0\chars
calex112 an enterprise (\ul0\nosupersub\cf13\f14\fs16 e.g.\ul0\nosupersub\cf10\f
11\fs16 a legal unit). \par\pard\qj \li1303\sb0\sl-240\slmult0 \par\pard\qj\li1
303\sb0\sl-240\slmult0 \par\pard\qj\li1303\ri1178\sb140\sl-240\slmult0\tx1870 \u
0\charscalex123 Based on the discussions above, it is recommended that
data be \line\up0 \expndtw0\charscalex123 collected on the institutional status
of the observation unit: \par\pard\ql \li1303\ri1177\sb52\sl-250\slmult0\tx1508
\tx1508 \up0 \expndtw0\charscalex127 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\n
osupersub\cf23\f24\fs17 Whether the observation unit is part of an enterprise
or enterprise group \line\tab \up0 \expndtw0\charscalex137 and, if so, its funct
ion: for example, headquarters, research centre, \line \tab \up0 \expndtw0\chars
calex122 administrative centre, marketing, other. \par\pard\qj \li1303\ri1178\sb
s14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Whether the observation unit is part

of a multinational enterprise and, if so, \line\tab \up0 \expndtw0\charscalex121
its function and where the headquarters is located. \par\pard\li824\sb0\sl-218\
b201\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18
\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0
\charscalex105 \ul0\nosupersub\cf19\f20\fs20 67
}
}}
}
charscalex74 \ul0\nosupersub\cf28\f29\fs19 2.2. The secondary statistical unit \
00 \ul0\nosupersub\cf23\f24\fs17 241. \tab \up0 \expndtw0\charscalex113 In some
instances, there may be interest in collecting data at a lower \line
\up0 \expndtw0\charscalex122 organisational level than the enterprise. This may
for example be the case for \line \up0 \expndtw0\charscalex108 compiling regiona
l statistics or for employing a two-tiered approach to data collection. \par\par
\tab \up0 \expndtw0\charscalex129 In such cases, an appropriate secondary
statistical unit is the \line\up0 \expndtw0\charscalex124 establishment unit
, which can be defined (following ISIC Rev. 3.1) as: \u8220?an \line \up0 \expnd
tw0\charscalex122 enterprise or part of an enterprise, that is situated in a sin
gle location, and in \line \up0 \expndtw0\charscalex126 which only a single (non
-ancillary) productive activity is carried out or in \line \up0 \expndtw0\charsc
alex119 which the principal productive activity accounts for most of the value a
dded\u8221?. \line \up0 \expndtw0\charscalex117 An alternative is the local unit
as defined by the EU.\ul0\super\cf25\f26\fs20 5\ul0\nosupersub\cf23\f24\fs17 T
he secondary statistical \line \up0 \expndtw0\charscalex125 unit may be useful f
or larger enterprises that have operations in more than \line \up0 \expndtw0\cha
rscalex117 one region. \par\pard\qj \li1303\ri1177\sb72\sl-248\slmult0\tx1870 \u
p0 \expndtw0\charscalex107 243. \tab \up0 \expndtw0\charscalex123 For regional a
nalysis, the establishment unit or similar units may be \line\up0 \expndtw0\char
scalex131 useful\ul0\super\cf25\f26\fs20 6\ul0\nosupersub\cf23\f24\fs17 for col
lecting innovation data. However, information on some \line \up0 \expndtw0\chars

calex117 variables should not be collected at the level of establishment (or sim
ilar) units \up0 \expndtw0\charscalex134 as they refer directly to the enterpris
e. An example is information on \up0 \expndtw0\charscalex126 innovation objectiv
es, which refers to strategic decisions at the enterprise \up0 \expndtw0\charsca
lex119 level which are rarely taken by establishment units. \par\pard\qj \li1303
expndtw0\charscalex116 For large enterprises in particular, decisions on innovat
ion activities may \line\up0 \expndtw0\charscalex122 be decentralised and it may
be difficult for one person to provide data on all \line \up0 \expndtw0\charsca
lex105 innovation activities in the enterprise. An option in this case is to use
a \ul0\nosupersub\cf24\f25\fs17 two-tiered \line \up0 \expndtw0\charscalex108 a
pproach\ul0\nosupersub\cf23\f24\fs17 to data collection. More than one method c
an be used. One is to collect \line \up0 \expndtw0\charscalex117 data at the est
ablishment level and then compile the data at the enterprise level. \line \up0 \
expndtw0\charscalex113 Regional- or establishment-level analysis can rely on the
collected establishment-\line \up0 \expndtw0\charscalex114 level data. A drawba
ck is that, as mentioned above, establishments may not be in \line \up0 \expndtw
0\charscalex120 a position to respond to all questions on innovation. The second
method is to \line \up0 \expndtw0\charscalex129 collect some innovation data at
the enterprise level and other data at the \line \up0 \expndtw0\charscalex122 e
stablishment level. How this method is used in practice may depend on the \line
\up0 \expndtw0\charscalex115 preferences of the management of each enterprise. \
07 245. \tab \up0 \expndtw0\charscalex121 Care should be taken in aggregati
ng establishment results to the \line\up0 \expndtw0\charscalex119 enterprise
level. For example, the introduction of a new technology can be an \line \up0 \
expndtw0\charscalex127 innovation for an establishment but not for the enterpris
e if it already has \up0 \expndtw0\charscalex120 been used elsewhere in the ente
rprise. \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb16\sl-241\sl
mult0 \up0 \expndtw0\charscalex118 \ul0\nosupersub\cf22\f23\fs21 3. Classificati
on by main economic activity \par\pard\qj \li1303\ri1177\sb74\sl-248\slmult0\tx1
870 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 246. \tab \up0 \e
xpndtw0\charscalex118 Statistical units of innovation surveys can be broken down
according to \line\up0 \expndtw0\charscalex126 different classifications. The m
ost important classification is the principal \line \up0 \expndtw0\charscalex130
economic activity of the statistical unit (\u8220?industry\u8221?). The Intern
ational \line \up0 \expndtw0\charscalex127 Standard Industrial Classification
(ISIC Rev. 3 . 1 ) and the statistical \line \up0 \expndtw0\charscalex133 cl
assification of economic activities in the European Community \line \up0
\expndtw0\charscalex117 (NACE Rev. 1.1)\ul0\super\cf25\f26\fs20 7\ul0\nosupersub
\cf23\f24\fs17 are appropriate international classifications for this purpose.
9 \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 68\tab \up0 \expndt
N COMMUNITIES 2005
}

li731\sb0\sl-195\slmult0 \par\pard\ql\li731\sb141\sl-195\slmult0 \up0 \expndtw0\
charscalex124 \ul0\nosupersub\cf23\f24\fs17 Table 4.1. Industrial classification
proposed for innovation surveys in the business \par\pard\ql \li1778\sb6\sl-195
\slmult0 \up0 \expndtw0\charscalex117 enterprise sector based on ISIC Rev. 3.1 a
nd NACE Rev. 1.1\par\pard\sect\sectd\sbknone\cols2\colno1\colw4821\colsr160\coln
o2\colw3959\colsr160\ql \li813\sb0\sl-161\slmult0 \par\pard\ql \li813\sb122\sl-1
61\slmult0 \up0 \expndtw0\charscalex104 \ul0\nosupersub\cf36\f37\fs14 Title\par\
pard\column \ql \li5202\sb0\sl-161\slmult0 \par\pard\ql \li241\sb27\sl-161\slmul
t0\tx1596 \up0 \expndtw0\charscalex102 ISIC Rev. 3.1\tab \up0 \expndtw0\charscal
ex100 NACE Rev. 1.1\par\pard\ql \li20\sb28\sl-161\slmult0\tx1414 \up0 \expndtw0\
charscalex106 Division/Group/Class\tab \up0 \expndtw0\charscalex106 Division/Gro
up/Class \par\pard\sect\sectd\sbknone \li813\sb120\sl-161\slmult0\fi0\tx5530\tx6
721 \up0 \expndtw0\charscalex106 MINING AND QUARRYING\tab \up0 \expndtw0\charsca
lex106 10 to 14\tab \up0 \expndtw0\charscalex106 10 to 14\par\pard\sect\sectd\sb
knone \li813\sb89\sl-161\slmult0\fi0\tx5530\tx6720 \up0 \expndtw0\charscalex106
MANUFACTURING\tab \up0 \expndtw0\charscalex106 15 to 37\tab \up0 \expndtw0\chars
calex106 15 to 37\par\pard\sect\sectd\sbknone \li813\sb88\sl-161\slmult0\fi0\tx5
530\tx6721 \up0 \expndtw0\charscalex106 Food products and beverages\tab \up0 \ex
pndtw0\charscalex106 15\tab \up0 \expndtw0\charscalex106 15\par\pard\sect\sectd\
sbknone \li813\sb90\sl-161\slmult0\fi0\tx5530\tx6721 \up0 \expndtw0\charscalex10
6 Tobacco products\tab \up0 \expndtw0\charscalex106 16\tab \up0 \expndtw0\charsc
alex106 16\par\pard\sect\sectd\sbknone \li813\sb89\sl-161\slmult0\fi0\tx5530\tx6
721 \up0 \expndtw0\charscalex106 Textiles\tab \up0 \expndtw0\charscalex106 17\ta
b \up0 \expndtw0\charscalex106 17\par\pard\sect\sectd\sbknone \li813\sb88\sl-161
\slmult0\fi0\tx5530\tx6720 \up0 \expndtw0\charscalex106 Wearing apparel and fur\
tab \up0 \expndtw0\charscalex106 18\tab \up0 \expndtw0\charscalex106 18\par\pard
\sect\sectd\sbknone \li813\sb90\sl-161\slmult0\fi0\tx5530\tx6721 \up0 \expndtw0\
charscalex106 Leather products and footwear\tab \up0 \expndtw0\charscalex106 19\
tab \up0 \expndtw0\charscalex106 19\par\pard\sect\sectd\sbknone \li813\sb89\sl-1
61\slmult0\fi0\tx5530\tx6720 \up0 \expndtw0\charscalex106 Wood and cork (not fur
niture)\tab \up0 \expndtw0\charscalex106 20\tab \up0 \expndtw0\charscalex106 20\
par\pard\sect\sectd\sbknone \li813\sb88\sl-161\slmult0\fi0\tx5530\tx6721 \up0 \e
xpndtw0\charscalex106 Pulp, paper and paper products\tab \up0 \expndtw0\charscal
ex106 21\tab \up0 \expndtw0\charscalex106 21\par\pard\sect\sectd\sbknone \li813\
sb90\sl-161\slmult0\fi0\tx5529\tx6719 \up0 \expndtw0\charscalex106 Publishing, p
rinting and reproduction of recorded media\tab \up0 \expndtw0\charscalex106 22\t
ab \up0 \expndtw0\charscalex106 22\par\pard\sect\sectd\sbknone \li813\sb89\sl-16
1\slmult0\fi0\tx5530\tx6721 \up0 \expndtw0\charscalex106 Coke, refined petroleum
products and nuclear fuel\tab \up0 \expndtw0\charscalex106 23\tab \up0 \expndtw
0\charscalex106 23\par\pard\sect\sectd\sbknone \li813\sb90\sl-161\slmult0\fi0\tx
5530\tx6720 \up0 \expndtw0\charscalex106 Chemicals and chemical products\tab \up
0 \expndtw0\charscalex106 24\tab \up0 \expndtw0\charscalex106 24\par\pard\sect\s
ectd\sbknone \li813\sb88\sl-161\slmult0\fi0\tx5223\tx6630 \up0 \expndtw0\charsca
lex106 Chemical products less pharmaceuticals\tab \up0 \expndtw0\charscalex106 2
4 less 2423\tab \up0 \expndtw0\charscalex106 24 less 24.4\par\pard\sect\sectd\sb
6 Pharmaceuticals\tab \up0 \expndtw0\charscalex106 2423\tab \up0 \expndtw0\chars
calex106 24.4\par\pard\sect\sectd\sbknone \li813\sb90\sl-161\slmult0\fi170\tx553
0\tx6721 \up0 \expndtw0\charscalex106 Rubber and plastic products\tab \up0 \expn
dtw0\charscalex106 25\tab \up0 \expndtw0\charscalex106 25\par\pard\sect\sectd\sb
Non-metallic mineral products\tab \up0 \expndtw0\charscalex106 26\tab \up0 \expn
dtw0\charscalex106 26\par\pard\sect\sectd\sbknone \li813\sb89\sl-161\slmult0\fi0
\tx5530\tx6721 \up0 \expndtw0\charscalex106 Basic metals\tab \up0 \expndtw0\char
scalex106 27\tab \up0 \expndtw0\charscalex106 27\par\pard\sect\sectd\sbknone \li
813\sb90\sl-161\slmult0\fi170\tx5259\tx6313 \up0 \expndtw0\charscalex106 Basic m
etals, ferrous\tab \up0 \expndtw0\charscalex106 271 + 2731\tab \up0 \expndtw0\ch
arscalex106 27.1 to 27.3 + 27.51/52\par\pard\sect\sectd\sbknone \li813\sb88\sl-1
61\slmult0\fi170\tx5262\tx6526 \up0 \expndtw0\charscalex106 Basic metals, non-fe

rrous\tab \up0 \expndtw0\charscalex106 272 + 2732\tab \up0 \expndtw0\charscalex1
06 27.4 + 27.53/54\par\pard\sect\sectd\sbknone \li813\sb89\sl-161\slmult0\fi0\tx
5533\tx6723 \up0 \expndtw0\charscalex106 Fabricated metal products (except machi
nery and equipment)\tab \up0 \expndtw0\charscalex106 28\tab \up0 \expndtw0\chars
calex106 28\par\pard\sect\sectd\sbknone \li813\sb90\sl-161\slmult0\fi0\tx5530\tx
6721 \up0 \expndtw0\charscalex106 Machinery n.e.c.\tab \up0 \expndtw0\charscalex
106 29\tab \up0 \expndtw0\charscalex106 29\par\pard\sect\sectd\sbknone \li813\sb
88\sl-161\slmult0\fi0\tx5530\tx6720 \up0 \expndtw0\charscalex106 Office, account
ing and computing machinery\tab \up0 \expndtw0\charscalex106 30\tab \up0 \expndt
w0\charscalex106 30\par\pard\sect\sectd\sbknone \li813\sb89\sl-161\slmult0\fi0\t
x5530\tx6721 \up0 \expndtw0\charscalex106 Electrical machinery\tab \up0 \expndtw
0\charscalex106 31\tab \up0 \expndtw0\charscalex106 31\par\pard\sect\sectd\sbkno
ne \li813\sb90\sl-161\slmult0\fi0\tx5530\tx6720 \up0 \expndtw0\charscalex106 Ele
ctronic equipment (radio, TV and communications)\tab \up0 \expndtw0\charscalex10
6 32\tab \up0 \expndtw0\charscalex106 32\par\pard\sect\sectd\sbknone \li813\sb88
\sl-161\slmult0\fi170\tx5530\tx6721 \up0 \expndtw0\charscalex106 Electronic comp
onents (includes semiconductors)\tab \up0 \expndtw0\charscalex106 321\tab \up0 \
expndtw0\charscalex106 32.1\par\pard\sect\sectd\sbknone \li813\sb89\sl-161\slmul
t0\fi170\tx5259\tx6757 \up0 \expndtw0\charscalex106 Television, radio and commun
ications equipment\tab \up0 \expndtw0\charscalex106 32 less 321\tab \up0 \expndt
w0\charscalex106 32 less 32.1\par\pard\sect\sectd\sbknone \li813\sb90\sl-161\slm
ult0\fi0\tx5530\tx6721 \up0 \expndtw0\charscalex107 Medical, precision and optic
al instruments, watches, clocks (instruments)\tab \up0 \expndtw0\charscalex106 3
3\tab \up0 \expndtw0\charscalex106 33\par\pard\sect\sectd\sbknone \li813\sb88\sl
-161\slmult0\fi0\tx5532\tx6722 \up0 \expndtw0\charscalex106 Motor vehicles\tab \
up0 \expndtw0\charscalex106 34\tab \up0 \expndtw0\charscalex106 34\par\pard\sect
\sectd\sbknone \li813\sb89\sl-161\slmult0\fi0\tx5530\tx6721 \up0 \expndtw0\chars
calex106 Other transport equipment\tab \up0 \expndtw0\charscalex106 35\tab \up0
\expndtw0\charscalex106 35\par\pard\sect\sectd\sbknone \li813\sb90\sl-161\slmult
0\fi170\tx5530\tx6720 \up0 \expndtw0\charscalex106 Ships\tab \up0 \expndtw0\char
scalex106 351\tab \up0 \expndtw0\charscalex106 35.1\par\pard\sect\sectd\sbknone
\li813\sb88\sl-161\slmult0\fi170\tx5530\tx6721 \up0 \expndtw0\charscalex106 Aero
space\tab \up0 \expndtw0\charscalex106 353\tab \up0 \expndtw0\charscalex106 35.3
\par\pard\sect\sectd\sbknone \li813\sb89\sl-161\slmult0\fi170\tx5530\tx6720 \up0
\expndtw0\charscalex106 Other transport n.e.c.\tab \up0 \expndtw0\charscalex106
352 + 359\tab \up0 \expndtw0\charscalex106 35.2 + 35.4 + 35.5\par\pard\sect\sec
td\sbknone \li813\sb90\sl-161\slmult0\fi0\tx5530\tx6721 \up0 \expndtw0\charscale
x106 Furniture, other manufacturing n.e.c.\tab \up0 \expndtw0\charscalex106 36\t
ab \up0 \expndtw0\charscalex106 36\par\pard\sect\sectd\sbknone \li813\sb88\sl-16
1\slmult0\fi170\tx5530\tx6720 \up0 \expndtw0\charscalex106 Furniture\tab \up0 \e
xpndtw0\charscalex106 361\tab \up0 \expndtw0\charscalex106 36.1\par\pard\sect\se
ctd\sbknone \li813\sb89\sl-161\slmult0\fi170\tx5530\tx6721 \up0 \expndtw0\charsc
alex106 Other manufacturing n.e.c.\tab \up0 \expndtw0\charscalex106 369\tab \up0
\expndtw0\charscalex106 36.2 to 36.6\par\pard\sect\sectd\sbknone \li813\sb90\sl
-161\slmult0\fi0\tx5531\tx6721 \up0 \expndtw0\charscalex106 Recycling\tab \up0 \
expndtw0\charscalex106 37\tab \up0 \expndtw0\charscalex106 37\par\pard\sect\sect
d\sbknone \li813\sb88\sl-161\slmult0\fi0\tx5349\tx6721 \up0 \expndtw0\charscalex
106 Electricity, gas and water supply\tab \up0 \expndtw0\charscalex106 40 + 41\t
ab \up0 \expndtw0\charscalex106 40 + 41\par\pard\sect\sectd\sbknone\cols2\colno1
\colw7880\colsr160\colno2\colw900\colsr160\ql \li824\sb0\sl-126\slmult0 \par\par
d\ql \li824\sb0\sl-126\slmult0 \par\pard\ql \li824\sb0\sl-126\slmult0 \par\pard\
ql \li824\sb0\sl-126\slmult0 \par\pard\ql \li824\sb0\sl-126\slmult0 \par\pard\ql
\li824\sb0\sl-126\slmult0 \par\pard\ql \li824\sb84\sl-126\slmult0 \up0 \expndtw
0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN
COMMUNITIES 2005\par\pard\column \ql \li8040\sb0\sl-180\slmult0 \par\pard\ql \l
i8040\sb0\sl-180\slmult0 \par\pard\ql \li8040\sb0\sl-180\slmult0 \par\pard\ql \l
i8040\sb0\sl-180\slmult0 \par\pard\ql \li20\sb136\sl-180\slmult0 \up0 \expndtw0\
charscalex116 \ul0\nosupersub\cf19\f20\fs20 69
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RPRETING INNOVATION DATA \par\pard\qj \li846\sb0\sl-200\slmult0 \par\pard\qj\li8
46\sb0\sl-200\slmult0 \par\pard\qj\li846\ri1145\sb127\sl-200\slmult0\tx1629 \up0
\expndtw0\charscalex124 \ul0\nosupersub\cf23\f24\fs17 Table 4.1. Industrial cla
ssification proposed for innovation surveys in the busines \line\tab \up0 \expnd
tw0\charscalex110 enterprise sector based on ISIC Rev. 3.1 and NACE Rev. 1.1 \ul
0\nosupersub\cf24\f25\fs17 (cont.)\par\pard\sect\sectd\sbknone\cols2\colno1\colw
5019\colsr160\colno2\colw3761\colsr160\ql \li842\sb0\sl-161\slmult0 \par\pard\ql
\li842\sb121\sl-161\slmult0 \up0 \expndtw0\charscalex104 \ul0\nosupersub\cf36\f
37\fs14 Title\par\pard\column \ql \li5401\sb0\sl-161\slmult0 \par\pard\ql \li242
\sb26\sl-161\slmult0\tx1597 \up0 \expndtw0\charscalex102 ISIC Rev. 3.1\tab \up0
\expndtw0\charscalex100 NACE Rev. 1.1\par\pard\ql \li20\sb28\sl-161\slmult0\tx14
14 \up0 \expndtw0\charscalex106 Division/Group/Class\tab \up0 \expndtw0\charscal
ex106 Division/Group/Class \par\pard\sect\sectd\sbknone \li842\sb120\sl-161\slmu
lt0\fi0\tx5730\tx6920 \up0 \expndtw0\charscalex106 Construction\tab \up0 \expndt
w0\charscalex106 45\tab \up0 \expndtw0\charscalex106 45\par\pard\sect\sectd\sbkn
one \li842\sb109\sl-161\slmult0\fi0\tx5729\tx6921 \up0 \expndtw0\charscalex106 M
arketed services\tab \up0 \expndtw0\charscalex106 50 to 74\tab \up0 \expndtw0\ch
arscalex106 50 to 74\par\pard\sect\sectd\sbknone \li842\sb109\sl-161\slmult0\fi0
\tx5730\tx6920 \up0 \expndtw0\charscalex106 Sale, retail, maintenance and repair
of motor vehicles and motorcycles\tab \up0 \expndtw0\charscalex106 50\tab \up0
\expndtw0\charscalex106 50\par\pard\sect\sectd\sbknone \li842\sb109\sl-161\slmul
t0\fi0\tx5730\tx6920 \up0 \expndtw0\charscalex106 Other wholesale trade\tab \up0
\expndtw0\charscalex106 51\tab \up0 \expndtw0\charscalex106 51\par\pard\sect\se

ctd\sbknone \li842\sb109\sl-161\slmult0\fi0\tx5730\tx6920 \up0 \expndtw0\charsca
lex106 Other retail trade\tab \up0 \expndtw0\charscalex106 52\tab \up0 \expndtw0
\charscalex106 52\par\pard\sect\sectd\sbknone \li842\sb109\sl-161\slmult0\fi0\tx
5730\tx6921 \up0 \expndtw0\charscalex106 Hotels and restaurants\tab \up0 \expndt
w0\charscalex106 55\tab \up0 \expndtw0\charscalex106 55\par\pard\sect\sectd\sbkn
one \li842\sb109\sl-161\slmult0\fi0\tx5730\tx6920 \up0 \expndtw0\charscalex106 L
and transport and via pipelines\tab \up0 \expndtw0\charscalex106 60\tab \up0 \ex
pndtw0\charscalex106 60\par\pard\sect\sectd\sbknone \li842\sb109\sl-161\slmult0\
fi0\tx5730\tx6920 \up0 \expndtw0\charscalex106 Water transport\tab \up0 \expndtw
0\charscalex106 61\tab \up0 \expndtw0\charscalex106 61\par\pard\sect\sectd\sbkno
ne \li842\sb109\sl-161\slmult0\fi0\tx5730\tx6920 \up0 \expndtw0\charscalex106 Ai
r transport\tab \up0 \expndtw0\charscalex106 62\tab \up0 \expndtw0\charscalex106
62\par\pard\sect\sectd\sbknone \li842\sb109\sl-161\slmult0\fi0\tx5730\tx6920 \u
p0 \expndtw0\charscalex106 Supporting and auxiliary transport activities, travel
agencies\tab \up0 \expndtw0\charscalex106 63\tab \up0 \expndtw0\charscalex106 6
3\par\pard\sect\sectd\sbknone \li842\sb109\sl-161\slmult0\fi0\tx5730\tx6920 \up0
\expndtw0\charscalex106 Post and telecommunications\tab \up0 \expndtw0\charscal
ex106 64\tab \up0 \expndtw0\charscalex106 64\par\pard\sect\sectd\sbknone \li842\
sb109\sl-161\slmult0\fi170\tx5729\tx6920 \up0 \expndtw0\charscalex106 Post\tab \
up0 \expndtw0\charscalex106 641\tab \up0 \expndtw0\charscalex106 64.1\par\pard\s
ect\sectd\sbknone \li842\sb109\sl-161\slmult0\fi170\tx5730\tx6920 \up0 \expndtw0
\charscalex106 Telecommunications\tab \up0 \expndtw0\charscalex106 642\tab \up0
\expndtw0\charscalex106 64.2\par\pard\sect\sectd\sbknone \li842\sb109\sl-161\slm
ult0\fi0\tx5729\tx6920 \up0 \expndtw0\charscalex106 Financial intermediation\tab
\up0 \expndtw0\charscalex106 65 to 67\tab \up0 \expndtw0\charscalex106 65 to 67
\par\pard\sect\sectd\sbknone \li842\sb109\sl-161\slmult0\fi0\tx5730\tx6920 \up0
\expndtw0\charscalex106 Real estate, renting\tab \up0 \expndtw0\charscalex106 70
+ 71\tab \up0 \expndtw0\charscalex106 70 + 71\par\pard\sect\sectd\sbknone \li84
2\sb109\sl-161\slmult0\fi0\tx5730\tx6921 \up0 \expndtw0\charscalex106 Computer a
nd related activities\tab \up0 \expndtw0\charscalex106 72\tab \up0 \expndtw0\cha
rscalex106 72\par\pard\sect\sectd\sbknone \li842\sb109\sl-161\slmult0\fi170\tx57
30\tx6920 \up0 \expndtw0\charscalex106 Software consultancy and supply\tab \up0
\expndtw0\charscalex106 722\tab \up0 \expndtw0\charscalex106 72.2\par\pard\sect\
sectd\sbknone \li842\sb109\sl-161\slmult0\fi170\tx5372\tx6743 \up0 \expndtw0\cha
rscalex106 Other computer services n.e.c.\tab \up0 \expndtw0\charscalex106 72 le
ss 722\tab \up0 \expndtw0\charscalex106 72 less 72.2\par\pard\sect\sectd\sbknone
\li842\sb109\sl-161\slmult0\fi0\tx5730\tx6920 \up0 \expndtw0\charscalex106 Rese
arch and development\ul0\super\cf39\f40\fs16 1\tab \up0 \expndtw0\charscalex106
\ul0\nosupersub\cf36\f37\fs14 73\tab \up0 \expndtw0\charscalex106 73\par\pard\se
ct\sectd\sbknone \li842\sb109\sl-161\slmult0\fi0\tx5731\tx6922 \up0 \expndtw0\ch
arscalex106 Other business activities\tab \up0 \expndtw0\charscalex106 74\tab \u
p0 \expndtw0\charscalex106 74\par\pard\sect\sectd\sbknone \li842\sb109\sl-161\sl
mult0\fi170\tx5730\tx6920 \up0 \expndtw0\charscalex106 Architectural, engineerin
g and other technical activities\tab \up0 \expndtw0\charscalex106 742\tab \up0 \
expndtw0\charscalex106 74.2 + 74.3\par\pard\sect\sectd\sbknone \li842\sb109\sl-1
61\slmult0\fi170\tx5195\tx6549 \up0 \expndtw0\charscalex106 Other business activ
ities n.e.c.\tab \up0 \expndtw0\charscalex106 74 less 742 + 743\tab \up0 \expndt
w0\charscalex106 74 less 74.2 + 74.3\par\pard\qj \li793\sb0\sl-160\slmult0 \par\
pard\qj\li793\ri1234\sb86\sl-160\slmult0\tx1020 \up0 \expndtw0\charscalex104 \ul
0\nosupersub\cf37\f38\fs13 1. Only enterprises in the business sector should b
e included, following the \ul0\nosupersub\cf38\f39\fs13 Frascati Manual, \ul0\no
supersub\cf37\f38\fs13 163-168. For this \line\tab \up0 \expndtw0\charscalex102 N
ACE/ISIC-group (73), data on the product field should also be collected, followi
ng the\ul0\nosupersub\cf38\f39\fs13 Frascati Manual,\ul0\nosupersub\cf37\f38\fs
13 272. \par\pard\qj \li1303\ri1178\sb206\sl-250\slmult0 \up0 \expndtw0\charsca
lex132 \ul0\nosupersub\cf23\f24\fs17 Countries that use a national industrial cl
assification system rather than \up0 \expndtw0\charscalex129 ISIC Rev. 3.1 shoul
d use concordance tables to convert their industrially \up0 \expndtw0\charscalex
113 classified data to ISIC Rev. 3.1. \par\pard\qj \li1303\ri1177\sb50\sl-251\sl
mult0\tx1870 \up0 \expndtw0\charscalex107 247. \tab \up0 \expndtw0\charscalex124

The criteria for classification of statistical units by principal activity \lin
e\up0 \expndtw0\charscalex114 should be determined by \u8220?the ISIC (NACE) cla
ss in which the principal activity, \line \up0 \expndtw0\charscalex112 or range
of activities, of the unit is included\u8221? (UN, 2002, ISIC Rev. 3.1, 79). The
\up0 \expndtw0\charscalex132 principal activity is the ISIC class that accounts
for the majority of the \up0 \expndtw0\charscalex117 enterprise\u8217?s value a
dded from its goods and services. If this is not possible, the \up0 \expndtw0\ch
arscalex121 principal activity can be determined either on the basis of the gros
s output of \up0 \expndtw0\charscalex118 the goods sold or services rendered in
each ISIC class, by value of sales, or by \up0 \expndtw0\charscalex108 employmen
t (UN, 2002, ISIC Rev. 3.1, 80). \par\pard\li793\sb0\sl-230\slmult0\par\pard\li7
93\sb0\sl-230\slmult0\par\pard\li793\sb47\sl-230\slmult0\fi0\tx4899 \dn4 \expndt
w0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 70\tab \up0 \expndtw0\charscalex1
2005
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upersub\cf23\f24\fs17 248. \tab \up0 \expndtw0\charscalex125 The proposed clas
sification list is presented in Table 4.1, which \line\up0 \expndtw0\chars
calex134 contains the basic arrangement of the divisions, groups and classes of
\line \up0 \expndtw0\charscalex117 ISIC Rev. 3.1/ NACE Rev. 1.1 for the purpose
of innovation statistics. The table \up0 \expndtw0\charscalex117 may be further
split, or aggregated, for specific purposes. \par\pard\ql \li793\sb0\sl-241\slmu
lt0 \par\pard\ql\li793\sb16\sl-241\slmult0 \up0 \expndtw0\charscalex117 \ul0\nos
upersub\cf22\f23\fs21 4. Classifications by size \par\pard\qj \li1303\ri1177\s
b72\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\
fs17 249. \tab \up0 \expndtw0\charscalex120 For innovation surveys, size is
the other essential classification of \line\up0 \expndtw0\charscalex122 sta
tistical units. Although different variables can be used to define the size of \
line \up0 \expndtw0\charscalex122 a statistical unit in innovation surveys, it i
s recommended that size should be \up0 \expndtw0\charscalex125 measured on the b
asis of number of employees. This recommendation is in \up0 \expndtw0\charscalex
122 line with similar proposals in other manuals in the Frascati family. Given t
he \up0 \expndtw0\charscalex134 strata requirements in sample surveys (see Chap
ter 8), and given that \up0 \expndtw0\charscalex128 innovation activities other
than R&D are widely performed by small and \up0 \expndtw0\charscalex131 medium-s
ized units, it is recommended that size classes include smaller \up0 \expndtw0\c
harscalex121 firms. In order to maintain international comparability while at th
e same time \up0 \expndtw0\charscalex125 allowing flexibility in the number of s
ize classes, the following size classes \up0 \expndtw0\charscalex125 are recomme
nded as a minimum: \par\pard\ql \li1303\sb116\sl-195\slmult0 \up0 \expndtw-7\cha
rscalex73 \ul0\nosupersub\cf24\f25\fs17 Classification of statistical units for
innovation surveys by size \par\pard\ql \li1303\sb106\sl-195\slmult0 \up0 \expnd
tw0\charscalex121 \ul0\nosupersub\cf23\f24\fs17 Number of employees: \par\pard\q
l \li1700\sb126\sl-195\slmult0 \up0 \expndtw0\charscalex117 10-49 \par\pard\ql \
li1700\sb106\sl-195\slmult0 \up0 \expndtw0\charscalex117 50-249 \par\pard\ql \li
1700\sb126\sl-195\slmult0 \up0 \expndtw0\charscalex122 250 and above \par\pard\q
j \li1303\ri1176\sb60\sl-250\slmult0 \up0 \expndtw0\charscalex121 More detailed
breakdowns by size class may also be used, such as a size class \up0 \expndtw0\c
harscalex121 for firms with fewer than ten employees. It is important for more d
etailed size \up0 \expndtw0\charscalex121 classes to be consistent with the abov
e groups. A proposal would be: \par\pard\ql \li1303\sb116\sl-195\slmult0 \up0 \e
xpndtw-7\charscalex73 \ul0\nosupersub\cf24\f25\fs17 Classification of statistica
l units for innovation surveys by size - detailed: \par\pard\ql \li1700\sb106\sl
-195\slmult0 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf23\f24\fs17 0 \par\
pard\ql \li1700\sb126\sl-195\slmult0 \up0 \expndtw0\charscalex118 1-9 \par\pard\
ql \li1700\ri3452\sb2\sl-320\slmult0 \up0 \expndtw0\charscalex117 10-49 \line \u
p0 \expndtw0\charscalex118 50-99 \par\pard\ql \li1700\ri3351\sb0\sl-310\slmult0
\up0 \expndtw0\charscalex117 100-249 \line \up0 \expndtw0\charscalex117 250-499
\line \up0 \expndtw0\charscalex118 500-999 \par\pard\ql \li1700\sb95\sl-195\slmu
lt0 \up0 \expndtw0\charscalex123 1000-4 999 \par\pard\ql \li1700\sb106\sl-195\sl
mult0 \up0 \expndtw0\charscalex126 5000 and above. \par\pard\li824\sb0\sl-218\sl
\sl-218\slmult0\par\pard\li824\sb75\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\cha
rscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMM
UNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 71
}

21 5. Other classifications \par\pard\ql \li1303\sb119\sl-218\slmult0 \up0 \expn
dtw-8\charscalex73 \ul0\nosupersub\cf28\f29\fs19 5.1. Type of institution \par\p
ard\qj \li1303\ri1118\sb78\sl-248\slmult0\tx1870 \up0 \expndtw0\charscalex109 \u
l0\nosupersub\cf23\f24\fs17 250. \tab \up0 \expndtw0\charscalex120 A further use
ful classification of statistical units for innovation surveys \line\up0 \expndt
w0\charscalex122 might be by type of institution. This breakdown seems particula
rly important \line \up0 \expndtw0\charscalex136 when the statistical unit is in
general the enterprise and in view of the \line \up0 \expndtw0\charscalex125 in
creasing internationalisation of innovation activities. Taking into account \lin
e \up0 \expndtw0\charscalex112 these considerations, and similar proposals in th
e \ul0\nosupersub\cf24\f25\fs17 Frascati Manual\ul0\nosupersub\cf23\f24\fs17 an
d the \line \up0 \expndtw-7\charscalex95 \ul0\nosupersub\cf24\f25\fs17 Handbook
on Economic Globalisation Indicators\ul0\nosupersub\cf23\f24\fs17 , it is recomm
ended that when \line \up0 \expndtw0\charscalex132 enterprises are the statistic
al units in innovation surveys they should be \line \up0 \expndtw0\charscalex121
classified as follows: \par\pard\qj \li1303\ri1425\sb30\sl-300\slmult0\fi0 \up0
\expndtw-7\charscalex73 \ul0\nosupersub\cf24\f25\fs17 Classification of statist
ical units for innovation surveys by type of institution \up0 \expndtw-7\charsca
lex73 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Priva
te enterprise: \par\pard\ql \li1508\sb107\sl-195\slmult0 \up0 \expndtw0\charscal
ex112 \ul0\nosupersub\cf24\f25\fs17 a)\ul0\nosupersub\cf23\f24\fs17 National (n
o controlled affiliates\ul0\super\cf25\f26\fs20 8\ul0\nosupersub\cf23\f24\fs17
(CA) abroad). \par\pard\ql \li1508\sb106\sl-195\slmult0 \up0 \expndtw0\charscale
x117 \ul0\nosupersub\cf24\f25\fs17 b)\ul0\nosupersub\cf23\f24\fs17 Multinationa
l, of which there may be three types: \par\pard\qj \li1700\ri1179\sb88\sl-240\sl
mult0\tx1881 \up0 \expndtw0\charscalex118 \ul0\nosupersub\cf34\f35\fs17 \u10070?
\ul0\nosupersub\cf23\f24\fs17 Foreign-controlled\ul0\super\cf25\f26\fs20 9\ul0\
nosupersub\cf23\f24\fs17 affiliates (CAs) (where the affiliate does not control
\line\tab \up0 \expndtw0\charscalex118 any other affiliates abroad). \par\pard\
qj \li1700\ri1178\sb80\sl-240\slmult0\tx1881 \up0 \expndtw0\charscalex119 \ul0\n
osupersub\cf34\f35\fs17 \u10070?\ul0\nosupersub\cf23\f24\fs17 Foreign-controlle
d affiliates with CAs (parent companies under foreign \line\tab \up0 \expndtw0\c
harscalex117 control). \par\pard\qj \li1700\ri1180\sb80\sl-240\slmult0\tx1881 \u
p0 \expndtw0\charscalex119 \ul0\nosupersub\cf34\f35\fs17 \u10070?\ul0\nosupersub
\cf23\f24\fs17 Parent companies with CAs abroad (parent company not under forei
gn \line\tab \up0 \expndtw0\charscalex117 control). \par\pard\li1303\sb125\sl-19
5\slmult0\fi0\tx3219\tx4863\tx5137\tx5698 \up0 \expndtw0\charscalex100 \ul0\nosu
persub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Public enterprise\
tab \up0 \expndtw-7\charscalex72 (\ul0\nosupersub\cf24\f25\fs17 Frascati Manua
l\ul0\nosupersub\cf23\f24\fs17 ,\tab \up0 \expndtw0\charscalex100 \tab \up0 \expn
dtw0\charscalex100 180),\tab \up0 \expndtw0\charscalex100 \u8220?resident nonfinancial\par\pard\qj \li1508\ri1177\sb0\sl-253\slmult0 \up0 \expndtw0\charscale
x137 corporations and quasi-corporations that are subject to control by \line \u
p0 \expndtw0\charscalex119 government units, control over a corporation being de
fined as the ability to \line \up0 \expndtw0\charscalex125 determine general cor
porate policy by choosing appropriate directors, if \line \up0 \expndtw0\charsca
lex117 necessary\u8221?. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li
1303\sb29\sl-218\slmult0 \up0 \expndtw-8\charscalex79 \ul0\nosupersub\cf28\f29\f
s19 5.2. Other \par\pard\qj \li1303\ri1179\sb68\sl-260\slmult0\tx1870 \up0 \expn
alex124 Many other types of classifications of statistical units can be used in
\line\up0 \expndtw0\charscalex118 innovation surveys for analytical purposes. Th
ey include: \par\pard\ql \li1303\sb94\sl-195\slmult0 \up0 \expndtw-7\charscalex7
1 \ul0\nosupersub\cf24\f25\fs17 General enterprise characteristics: \par\pard\qj
\li1303\ri1178\sb88\sl-240\slmult0\tx1508 \up0 \expndtw-1\charscalex100 \ul0\no
supersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Form of activity
,\ul0\nosupersub\cf23\f24\fs17 with the categories: capital-intensive/labou

r-intensive\ul0\nosupersub\cf24\f25\fs17 / \line\tab \up0 \expndtw-2\charscalex1
00 \ul0\nosupersub\cf23\f24\fs17 knowledge-intensive. \par\pard\qj \li1303\ri117
8\sb80\sl-240\slmult0\tx1508 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf27\f
28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Type of goods produced,\ul0\nosup
ersub\cf23\f24\fs17 with the categories: consumer goods/intermediate \line\tab
\up0 \expndtw-1\charscalex100 goods/investment goods. \par\pard\qj \li1303\ri117
28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Export intensity\ul0\nosupersub\c
f23\f24\fs17 , the exports of the enterprise as a ratio of sales revenue/ \line\
tab \up0 \expndtw0\charscalex107 turnover.\ul0\super\cf25\f26\fs20 10 \par\pard\
ql \li1303\sb118\sl-195\slmult0 \up0 \expndtw-7\charscalex77 \ul0\nosupersub\cf2
7\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Geographic location\ul0\nosupe
rsub\cf23\f24\fs17 . \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-23
fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 72\tab \up
D/EUROPEAN COMMUNITIES 2005
}
-7\charscalex70 \ul0\nosupersub\cf24\f25\fs17 Innovation indicators: \par\pard\q
j \li1303\ri1118\sb88\sl-240\slmult0\tx1508 \up0 \expndtw-2\charscalex100 \ul0\n
osupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Innovation or R&D
intensity\ul0\nosupersub\cf23\f24\fs17 , the ratio between innovation expenditu
re (or \line\tab \up0 \expndtw-3\charscalex100 R&D expenditure) and turnover. \p
ar\pard\ql \li1303\sb118\sl-195\slmult0 \up0 \expndtw0\charscalex101 \ul0\nosupe
rsub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Co-operation \ul0\nosu
persub\cf23\f24\fs17 with other enterprises/public institutions. \par\pard\ql \l
303\sb91\sl-218\slmult0 \up0 \expndtw-8\charscalex88 \ul0\nosupersub\cf28\f29\fs
19 Notes \par\pard\qj \li1401\ri1193\sb126\sl-190\slmult0\tx1587\tx1587 \up0 \ex
pndtw0\charscalex127 \ul0\nosupersub\cf30\f31\fs15 1. They are not the same if,
for example, a questionnaire is sent to an enterprise \line\tab \up0 \expndtw0\c
harscalex124 (reporting unit), but the data are reported individually from each
division of the \line \tab \up0 \expndtw0\charscalex120 enterprise (observation
units). \par\pard\qj \li1401\ri1193\sb102\sl-200\slmult0\tx1587 \up0 \expndtw0\c
harscalex114 2. Council Regulation (EEC) No 696/93 of 15 March 1993 on the stati
stical units for the \line\tab \up0 \expndtw0\charscalex114 observation and anal
ysis of the production system in the Community, OJ No L 76, \par\pard\ql \li1587
\sb4\sl-172\slmult0 \up0 \expndtw0\charscalex116 p.1, section III/A of the annex
. \par\pard\qj \li1401\ri1194\sb105\sl-200\slmult0\tx1587\tx1587 \up0 \expndtw0\
charscalex115 3.\ul0\nosupersub\cf31\f32\fs15 i.e. \ul0\nosupersub\cf30\f31\fs1
5 \u8220?\u8230?the smallest combination of legal units that is an organisation
al unit\u8230?\u8221?. \line\tab \up0 \expndtw0\charscalex120 ISIC Rev. 3.1 49:
\u8220?In such cases, for statistical purposes it is inappropriate and \line \ta
b \up0 \expndtw0\charscalex120 unnecessary to regard each legal entity as a sepa

rate institutional unit.\u8221? \par\pard\qj \li1401\ri1194\sb81\sl-200\slmult0\
tx1587 \up0 \expndtw0\charscalex112 4. Council Regulation (EEC) No. 696/93 of 15
March 1993, OJ No. L76 of 3 March and \line\tab \up0 \expndtw0\charscalex102 IS
IC Rev. 3 \ul0\nosupersub\cf37\f38\fs13 \ul0\nosupersub\cf30\f31\fs15 91. \par\p
ard\qj \li1401\ri1194\sb109\sl-190\slmult0\tx1587\tx1587 \up0 \expndtw0\charscal
ex117 5. The local unit as defined by the EU: \u8220?The local unit is an enterp
rise or part thereof \line\tab \up0 \expndtw0\charscalex124 (\ul0\nosupersub\cf3
1\f32\fs15 e.g.\ul0\nosupersub\cf30\f31\fs15 a workshop, factory, warehouse,
office, mine or depot) situated in a \line \tab \up0 \expndtw0\charscalex119
geographically identified place. At or from this place economic activity is car
ried \par\pard\qj \li1587\ri1194\sb2\sl-200\slmult0 \up0 \expndtw0\charscalex123
out for which - save for certain exceptions - one or more persons work (even if
\up0 \expndtw0\charscalex124 only part-time) for one and the same enterprise.\u
8221? (Council Regulation [EEC] \up0 \expndtw0\charscalex107 No. 696/93 of 15
March 1993, OJ No. L76 of 3 March 1993) \par\pard\qj \li1401\ri1196\sb81\sl-200\
slmult0\tx1587 \up0 \expndtw0\charscalex120 6. For a detailed discussion of the
problem of the local unit as the statistical unit in \line\tab \up0 \expndtw0\ch
arscalex115 innovation surveys see Eurostat (1996), particularly part B. \par\pa
rd\qj \li1401\ri1194\sb109\sl-190\slmult0\tx1587\tx1587 \up0 \expndtw0\charscale
x117 7. Revisions of the International Standard Industrial Classification (ISIC
Rev. 4) and \line\tab \up0 \expndtw0\charscalex120 the Statistical Classificatio
n of Economic Activities in the European Community \line \tab \up0 \expndtw0\cha
rscalex120 (NACE Rev. 2) are expected to be completed in 2007. Industrial classi
fications \par\pard\ql \li1587\sb25\sl-172\slmult0 \up0 \expndtw0\charscalex119
should be modified accordingly upon the implementation of these revisions. \par\
pard\qj \li1401\ri1195\sb105\sl-200\slmult0\tx1587 \up0 \expndtw0\charscalex120
8. A controlled affiliate is an enterprise that is directly or indirectly contro
lled by a \line\tab \up0 \expndtw0\charscalex109 parent company. See OECD (2005)
\ul0\nosupersub\cf31\f32\fs15 . \par\pard\qj \li1401\ri1194\sb81\sl-200\slmult0\
tx1587 \up0 \expndtw0\charscalex116 \ul0\nosupersub\cf30\f31\fs15 9. Control is
defined in OECD (2005) as having more than 50% ownership or control \line\tab \u
p0 \expndtw0\charscalex116 of more than 50% of voting shares. \par\pard\qj \li13
15\ri1192\sb101\sl-200\slmult0\tx1587 \up0 \expndtw0\charscalex121 10. Turnover
or sales revenue is the total amount of money that the firm has earned \line\tab
\up0 \expndtw0\charscalex118 from the sales of all its products during a given
time period. \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult
24\sb0\sl-218\slmult0\par\pard\li824\sb6\sl-218\slmult0\fi0\tx8040 \up0 \expndtw
COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20
73
}

b166\sl-322\slmult0 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf3\f4\fs28 Lin
kages in the Innovation Process \par\pard\li824\sb0\sl-218\slmult0\par\pard\li82
fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64
-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\
nosupersub\cf19\f20\fs20 75
}
}}
}}
}
}}
}
}}
}}
}
The innovative activities of an enterprise\ul0\super\cf25\f26\fs20 1\ul0\nosuper
sub\cf23\f24\fs17 depend in part on the variety \line\up0 \expndtw0\charscalex1
20 and structure of its links to sources of information, knowledge, technologies
, \line \up0 \expndtw0\charscalex129 practices and human and financial resources
. Linkages act as sources of \line \up0 \expndtw0\charscalex125 knowledge and te
chnology for an enterprise\u8217?s innovation activity, ranging \line \up0 \expn
dtw0\charscalex130 from passive sources of information to suppliers of e
mbodied and \line \up0 \expndtw0\charscalex124 disembodied knowledge and techno
logy to co-operative partnerships. This \line \up0 \expndtw0\charscalex123 chapt
er makes recommendations on how to measure these linkages, with a \line \up0 \ex
pndtw0\charscalex118 focus on links to sources outside the enterprise. Linkages

can be related to any \line \up0 \expndtw0\charscalex124 of the four types o
f innovations (\ul0\nosupersub\cf24\f25\fs17 i.e.\ul0\nosupersub\cf23\f24\fs17
product, process, marketing or \line \up0 \expndtw0\charscalex131 organisat
ional). This chapter is designed to provide guidelines both for \line \up0 \expn
dtw0\charscalex123 measuring linkages for individual innovation types or subsets
of innovation \line \up0 \expndtw0\charscalex122 types (such as product and pro
cess innovations) and for all innovation types \line \up0 \expndtw0\charscalex11
8 combined. \par\pard\qj \li1303\ri1177\sb71\sl-249\slmult0\tx1870 \up0 \expndtw
0\charscalex107 253. \tab \up0 \expndtw0\charscalex121 Each linkage connects the
innovating enterprise to other actors in the \line\up0 \expndtw0\charscalex119
innovation system: government laboratories, universities, policy departments, \l
ine \up0 \expndtw0\charscalex127 regulators, competitors, suppliers and customer
s. Innovation surveys can \line \up0 \expndtw0\charscalex126 obtain information
on the prevalence and importance of different types of \line \up0 \expndtw0\char
scalex134 linkages and on the factors that influence the use of specific linkage
s. \line \up0 \expndtw0\charscalex131 Identifying the linkages in innovation act
ivity provides evidence of the \line \up0 \expndtw0\charscalex131 complexity of
the activity, but stops short of providing the information \line \up0 \expndtw0\
charscalex117 necessary for a dynamic model, with positive and negative feedback
loops and \line \up0 \expndtw0\charscalex122 non-linear outcomes resulting from
change. However, such information can \line \up0 \expndtw0\charscalex124 make a
valuable contribution to understanding innovation systems and can \line \up0 \e
xpndtw0\charscalex131 help determine the influence of government programmes to e
ncourage \line \up0 \expndtw0\charscalex117 greater knowledge sharing or technol
ogy diffusion. \par\pard\qj \li1303\ri1177\sb72\sl-248\slmult0\tx1870 \up0 \expn
dtw0\charscalex107 254. \tab \up0 \expndtw0\charscalex119 Linkages may depend on
the nature of the enterprise and on its market \line\up0 \expndtw0\charscalex13
0 (Dierkes, 2003). For example, the innovative activities of an enterprise \lin
e \up0 \expndtw0\charscalex120 operating in a stable, mature sector will be driv
en by the value of its turnover \line \up0 \expndtw0\charscalex128 and the cost
of its inputs. Under these circumstances, the enterprise may \line \up0 \expndtw
0\charscalex124 focus on incremental innovation and its principal links may be t
o suppliers \line \up0 \expndtw0\charscalex133 and to customers\u8217? market si
gnals. In a more volatile environment, the \line \up0 \expndtw0\charscalex125 en
terprise may need to rapidly introduce new products, seek new markets, \line \up
0 \expndtw0\charscalex128 and introduce new technologies, production methods and
organisational \line \up0 \expndtw0\charscalex132 methods. The enterprise may d
evelop multiple linkages to obtain new \line \up0 \expndtw0\charscalex123 inform
ation, knowledge, technologies, production practices and human and \par\pard\li7
}

\cf23\f24\fs17 financial resources. In all cases, information on linkages shows
how the \up0 \expndtw0\charscalex123 enterprise responds to its business environ
ment. \par\pard\qj \li1303\ri1177\sb49\sl-250\slmult0\tx1870 \up0 \expndtw0\char
scalex109 255. \tab \up0 \expndtw0\charscalex125 Linkages vary by source (whom
or what the link is with), cost (the \line\up0 \expndtw0\charscalex129 amount o
f investment required), and level of interaction (the direction of \line \up0 \e
xpndtw0\charscalex131 information flows and the level of interpersonal contact).
Some external \line \up0 \expndtw0\charscalex131 sources consistently provide i
nformation at nominal cost, such as patent \line \up0 \expndtw0\charscalex129 di
sclosures or publications, while others, such as consultants, are usually \line
\up0 \expndtw0\charscalex119 costly. The level of interaction of a linkage influ
ences the characteristics of the \line \up0 \expndtw0\charscalex122 information
or knowledge that can be obtained. Less interactive linkages that \line \up0 \ex
pndtw0\charscalex121 require no interpersonal contact and are based on one-way i
nformation flows, \line \up0 \expndtw0\charscalex123 such as reading publication
s or searching patent databases, can only provide \line \up0 \expndtw0\charscale
x122 codified information. Conversely, highly interactive linkages involving clo
se \line \up0 \expndtw0\charscalex129 working relationships, such as with a supp
lier, can provide both codified \line \up0 \expndtw0\charscalex126 information a
nd tacit knowledge and real-time problem-solving assistance. \line \up0 \expndtw
0\charscalex124 However, enterprises may avoid some types of highly complex link
s if they \line \up0 \expndtw0\charscalex121 have concerns about the loss of int
ellectual property. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870 \up0
\expndtw0\charscalex109 256. \tab \up0 \expndtw0\charscalex121 A linkage can be
internal to the unit or external, depending on how the \line\up0 \expndtw0\chars
calex118 unit is defined (see Chapter 4). Even if business units are formally or
ganised as \line \up0 \expndtw0\charscalex129 separate enterprises, they may bel
ong to the same enterprise group. Units \up0 \expndtw0\charscalex123 may be part
of multinational enterprises so that within-enterprise links cross \up0 \expndt
w0\charscalex121 national boundaries. Enterprises that belong to marketing chain
s (for instance \up0 \expndtw0\charscalex129 clothing) or highly integrated valu
e chains may view linkages with other \up0 \expndtw0\charscalex124 enterprises i
n the chain more as internal than external. \par\pard\qj \li1303\ri1177\sb70\sl250\slmult0\tx1870 \up0 \expndtw0\charscalex107 257. \tab \up0 \expndtw0\charsca
lex122 The inflow of knowledge and technology is one side of what is often \line
\up0 \expndtw0\charscalex120 referred to as diffusion. Diffusion also involves o
utflows from the innovating \line \up0 \expndtw0\charscalex106 enterprise. \ul0\
nosupersub\cf24\f25\fs17 Outbound diffusion\ul0\nosupersub\cf23\f24\fs17 is rel
evant both for identifying the economic \up0 \expndtw0\charscalex118 effects of
innovation and for establishing the shape of an enterprise\u8217?s network. \up0
\expndtw0\charscalex129 As with highly interactive linkages, outbound diffusion
is influenced by \up0 \expndtw0\charscalex121 concern over knowledge leakages a
nd the methods enterprises use to protect \up0 \expndtw0\charscalex121 their int
ellectual property. \par\pard\qj \li1303\ri1178\sb50\sl-250\slmult0\tx1869 \up0
\expndtw0\charscalex107 258. \tab \up0 \expndtw0\charscalex125 Also related to
linkages are questions on the developer of the \line\up0 \expndtw0\char
scalex130 innovations. These questions establish whether innovations are mainly
\line \up0 \expndtw0\charscalex119 developed by enterprises themselves or in cooperation with other enterprises \line \up0 \expndtw0\charscalex119 or public re
search institutions, or if innovations are mainly developed outside \line \up0 \
expndtw0\charscalex119 the enterprise. \par\pard\qj \li1303\ri1177\sb70\sl-250\s
lmult0\tx1870 \up0 \expndtw0\charscalex107 259. \tab \up0 \expndtw0\charscalex11
9 The benefits of linkages will depend on how well knowledge is shared \line\up0
\expndtw0\charscalex131 throughout the enterprise and channelled into the devel
opment of new \line \up0 \expndtw0\charscalex102 products, processes and other i
nnovations. \ul0\nosupersub\cf24\f25\fs17 Knowledge management\ul0\nosupersub\cf
23\f24\fs17 involves \line \up0 \expndtw0\charscalex136 practices for gaining e
xternal knowledge and interacting with other \line \up0 \expndtw0\charscalex120
organisations, and for sharing and utilising knowledge within the enterprise. \
24\sb0\sl-218\slmult0\par\pard\li824\sb199\sl-218\slmult0\fi0\tx8040 \up0 \expnd
tw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPE
AN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs
20 77
}
rsub\cf23\f24\fs17 260. \tab \up0 \expndtw0\charscalex124 Trust, values and n
orms can have an important impact on the \line\up0 \expndtw0\charscalex12
4 functioning of external relations and on the exchange of knowledge within \lin
e \up0 \expndtw0\charscalex113 the enterprise. Given this, building \ul0\nosuper
sub\cf24\f25\fs17 social capital\ul0\nosupersub\cf23\f24\fs17 may be a vital pa
rt of an \up0 \expndtw0\charscalex131 enterprise\u8217?s innovation strategies.
The term \u8220?social capital\u8221? has many \up0 \expndtw0\charscalex131 mea
nings outside of economic analysis and this can lead to confusion. \up0 \expndtw
-2\charscalex100 \ul0\nosupersub\cf24\f25\fs17 Network capital\ul0\nosupersub\cf
23\f24\fs17 has been used as an alternative. \par\pard\qj \li1303\ri1116\sb50\s
calex124 Three additional topics of relevance to linkages are covered i
n \line\up0 \expndtw-1\charscalex100 Chapter 4. Several \ul0\nosupersub\cf24\f25
\fs17 factors that hamper\ul0\nosupersub\cf23\f24\fs17 innovation activity invo
lve linkages such \line \up0 \expndtw0\charscalex123 as access to information an
d opportunities for co-operation. The section on \line \up0 \expndtw-6\charscale
x100 the \ul0\nosupersub\cf24\f25\fs17 objectives and effects of innovation\ul0\
nosupersub\cf23\f24\fs17 addresses improving the capture and use \line \up0 \ex
pndtw-2\charscalex100 of knowledge. Firms may use different \ul0\nosupersub\cf24
\f25\fs17 methods of protection \ul0\nosupersub\cf23\f24\fs17 to control the flo
w \line \up0 \expndtw0\charscalex129 of knowledge to other firms. These are rele
vant to some types of highly \line \up0 \expndtw0\charscalex118 interactive link
ages. \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb17\sl-241\slmu
lt0 \up0 \expndtw0\charscalex120 \ul0\nosupersub\cf22\f23\fs21 2. Inbound diffus
ion \par\pard\qj \li1303\ri1176\sb92\sl-250\slmult0\tx1870 \up0 \expndtw0\charsc
alex107 \ul0\nosupersub\cf23\f24\fs17 262. \tab \up0 \expndtw0\charscalex112 \ul
0\nosupersub\cf24\f25\fs17 Diffusion\ul0\nosupersub\cf23\f24\fs17 is the spread
of innovations, through market or non-market \line\up0 \expndtw0\charscalex120
channels, from first implementation anywhere in the world to other countries \li
ne \up0 \expndtw0\charscalex130 and regions and to other markets and firms. The
diffusion process often \up0 \expndtw0\charscalex129 involves more than the mere
adoption of knowledge and technology, as \up0 \expndtw0\charscalex134 adopting
enterprises learn from and build on the new knowledge and \up0 \expndtw0\charsca
lex127 technology. Through the diffusion process, innovations may change and \up
0 \expndtw0\charscalex118 supply feedback to the original innovator. \par\pard\q
ab \up0 \expndtw0\charscalex117 Identifying how transfers of knowledge and
technology take place, \line\up0 \expndtw0\charscalex118 what the main source
s of knowledge and technology flows are for enterprises, \line \up0 \expndtw0\ch
arscalex125 and which of these are of greatest importance are central to underst
anding \up0 \expndtw0\charscalex127 linkages in the innovation process. They res
ult in better understanding of \up0 \expndtw0\charscalex126 diffusion processes
and make it possible to map linkages and knowledge \up0 \expndtw0\charscalex124
flows, and they are of direct relevance for innovation policy. For example, \up0
\expndtw0\charscalex116 should policy focus on promoting active co-operation an
d, if so, which types of \up0 \expndtw0\charscalex126 partners are most importan
t? Or, are knowledge and technology flows of \up0 \expndtw0\charscalex124 greate
r importance when due to networks and other informal arrangements \up0 \expndtw0
\charscalex118 that do not involve active co-operation? \par\pard\qj \li1303\ri1
dtw0\charscalex122 This section discusses three types of linkages or flows of kn
owledge \line\up0 \expndtw0\charscalex100 and technology to enterprises: \ul0\no
supersub\cf24\f25\fs17 open information sources\ul0\nosupersub\cf23\f24\fs17 th
at do not involve \line \up0 \expndtw0\charscalex130 purchases of knowledge and
technology or interaction with the source; \line \up0 \expndtw-7\charscalex81 pu
rchases or \ul0\nosupersub\cf24\f25\fs17 acquisition of knowledge and technology
\ul0\nosupersub\cf23\f24\fs17 ; and \ul0\nosupersub\cf24\f25\fs17 innovation cooperation. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb38\sl-2
18\slmult0 \up0 \expndtw-8\charscalex75 \ul0\nosupersub\cf28\f29\fs19 2.1. Types
of linkages \par\pard\li1303\sb129\sl-195\slmult0\fi0\tx1870 \up0 \expndtw0\cha
rscalex112 \ul0\nosupersub\cf23\f24\fs17 265.\tab \up0 \expndtw0\charscalex112 \
ul0\nosupersub\cf24\f25\fs17 Open information sources\ul0\nosupersub\cf23\f24\fs
17 provide access to knowledge without the need\par\pard\li1303\sb56\sl-195\slm
ult0\fi0 \up0 \expndtw0\charscalex113 to pay for the knowledge itself, although
there may be marginal fees for access\par\pard\li1303\sb57\sl-195\slmult0\fi0 \u
p0 \expndtw0\charscalex113 (membership in trade associations, attendance at conf
erences, subscriptions\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-2
}
\cf23\f24\fs17 to journals). Open information sources do not provide access to k
nowledge \line \up0 \expndtw0\charscalex122 embodied in machinery or equipment o
r the right to use knowledge protected \line \up0 \expndtw0\charscalex125 by pat
ents and other forms of intellectual property, although the knowledge \line \up0
\expndtw0\charscalex131 behind the patent can be accessed through patent databa
ses. Some open \line \up0 \expndtw0\charscalex126 sources, such as attendance at
fairs or exhibitions, can give access to some \line \up0 \expndtw0\charscalex12
2 tacit knowledge through personal interaction with other participants. \par\par
\tab \up0 \expndtw0\charscalex121 Codified knowledge can take many forms, such
as published articles, \line\up0 \expndtw0\charscalex119 standards, metrology (m
ethods of measuring items such as liquid or gas flow, \line \up0 \expndtw0\chars
calex122 time, chemical pollutants, etc.), or knowledge gained from networks, ar
m\u8217?s\up0 \expndtw0\charscalex122 length contact with suppliers, or trade fa
irs. \par\pard\qj \li1303\ri1176\sb50\sl-250\slmult0\tx1870 \up0 \expndtw0\chars
calex107 267. \tab \up0 \expndtw0\charscalex120 Some information, such as feedba
ck from clients or suppliers, may be \line\up0 \expndtw0\charscalex117 very easy
to use. It may be more difficult, depending on employee capabilities, \line \up
0 \expndtw0\charscalex132 to use other information, for example from universitie
s. An additional \line \up0 \expndtw0\charscalex126 challenge for using informat
ion sources is locating them. Enterprises may \line \up0 \expndtw0\charscalex133
have limited knowledge about potential information sources. Data on \line \up0
\expndtw0\charscalex131 information sources can aid in designing policy initiati
ves for training, \line \up0 \expndtw0\charscalex119 improving ICT capabilities
and establishing networks and support services. \par\pard\qj \li1303\ri1177\sb70
rscalex124 Knowledge networks facilitate the exchange of technology and \
line\up0 \expndtw0\charscalex126 commercial information. Informal networks tend
to be based on personal \line \up0 \expndtw0\charscalex120 contacts or \u8220?co
mmunities of practice\u8221? or simply arise in the normal course of \line \up0
\expndtw0\charscalex134 business. Formal or managed networks can be organised by
business \line \up0 \expndtw0\charscalex135 organisations such as chambers of c
ommerce, research associations, \line \up0 \expndtw0\charscalex124 technology se
rvices companies, consultants, universities or public research \line \up0 \expnd
tw0\charscalex118 organisations or sponsored by local, regional or central gover
nments. \par\pard\qj \li1303\ri1117\sb50\sl-250\slmult0\tx1870 \up0 \expndtw0\ch
arscalex107 269. \tab \up0 \expndtw-7\charscalex93 \ul0\nosupersub\cf24\f25\fs17
Acquisition of technology and knowledge\ul0\nosupersub\cf23\f24\fs17 involves
the purchase of external \line\up0 \expndtw0\charscalex121 knowledge and technol
ogy without active co-operation with the source. This \line \up0 \expndtw0\chars
calex133 external knowledge can be embodied in machinery or equipment that \up0
\expndtw0\charscalex120 incorporates this knowledge. It can also include the hir
ing of employees who \up0 \expndtw0\charscalex125 possess the new knowledge, or
the use of contract research and consulting \up0 \expndtw0\charscalex123 service
s. Disembodied technology or knowledge also includes other know\up0 \expndtw0\ch
arscalex119 how, patents, licences, trademarks and software. \par\pard\qj \li130
\expndtw0\charscalex121 Data on sources of acquisitions provide informatio
n on flows of \line\up0 \expndtw0\charscalex127 knowledge and technology and
on where (in terms of regions, industries) \line \up0 \expndtw0\charscalex137 th
ese acquisitions are most prevalent. Identifying the importance of \line \up0 \e
xpndtw0\charscalex123 purchases of knowledge and technology is also useful in mo
tivating further \line \up0 \expndtw0\charscalex117 analysis of how well \u8220?
trade\u8221? in knowledge and technology functions. \par\pard\qj \li1303\ri1177\
sb50\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex107 271. \tab \up0 \expndtw2\charscalex100 \ul0\nosupersub\cf24\f25\fs17 Innovation co-operation\ul0\nosupe
rsub\cf23\f24\fs17 involves active participation in joint innovation \line\up0
\expndtw0\charscalex125 projects with other organisations. These may either be o
ther enterprises or \line \up0 \expndtw0\charscalex133 non-commercial institutio
ns. The partners need not derive immediate \line \up0 \expndtw0\charscalex125 co
mmercial benefit from the venture. Pure contracting out of work, where \line \up
0 \expndtw0\charscalex120 there is no active collaboration, is not regarded as c
o-operation. Co-operation \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\
sl-218\slmult0\par\pard\li824\sb117\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\cha
rscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMM
UNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 79

}
23\f24\fs17 is distinct from open information sources and acquisition of knowled
ge and \up0 \expndtw0\charscalex121 technology in that all parties take an activ
e part in the work. \par\pard\qj \li1303\ri1177\sb49\sl-250\slmult0\tx1870 \up0
\expndtw0\charscalex109 272. \tab \up0 \expndtw0\charscalex125 Innovation co-ope
ration allows enterprises to access knowledge and \line\up0 \expndtw0\charscalex
127 technology that they would be unable to utilise on their own. There is also
\line \up0 \expndtw0\charscalex121 great potential for synergies in co-operation
as partners learn from each other. \par\pard\qj \li1303\ri1173\sb70\sl-250\slmu
lt0\tx1870 \up0 \expndtw0\charscalex107 273. \tab \up0 \expndtw0\charscalex117 I
nnovation co-operation can take place along supply chains and involve \line\up0
\expndtw0\charscalex116 customers and suppliers in the joint development of new
products, processes or \line \up0 \expndtw0\charscalex119 other innovations. The
level of interaction along supply chains (\ul0\nosupersub\cf24\f25\fs17 i.e.\ul
0\nosupersub\cf23\f24\fs17 whether \line \up0 \expndtw0\charscalex123 linkages
involve co-operation, or arm\u8217?s-length exchanges of information or \line \u
p0 \expndtw0\charscalex115 purchases of technology) may depend on the type of kn
owledge and technology. \line \up0 \expndtw0\charscalex113 For example, concerni
ng product development, if the technology is non-modular, \line \up0 \expndtw0\c
harscalex115 innovation along the supply chain must be closely co-ordinated beca
use changes \line \up0 \expndtw0\charscalex116 in the technological configuratio
n of one part of a product must take account of \line \up0 \expndtw0\charscalex1
12 changes in any of the others. If the technologies involved are completely mod
ular, \line \up0 \expndtw0\charscalex125 the assemblers of the final product can
deal with suppliers of components, \line \up0 \expndtw0\charscalex116 materials
, etc., on an arm\u8217?s-length basis, in which interaction mainly consists of
\line \up0 \expndtw0\charscalex129 purchases of equipment or services embodied w
ith the new knowledge. \line \up0 \expndtw0\charscalex114 Exchange of technologi
cal and business information naturally accompanies trade \line \up0 \expndtw0\ch
arscalex117 in goods and services. Information on customer needs and their exper
ience of a \line \up0 \expndtw0\charscalex112 supplier\u8217?s products plays a
key role in innovation. \par\pard\qj \li1303\ri1177\sb50\sl-251\slmult0\tx1870 \
up0 \expndtw0\charscalex107 274. \tab \up0 \expndtw0\charscalex118 Innovation co
-operation can also involve horizontal collaboration, with \line\up0 \expndtw0\c
harscalex136 enterprises working jointly with other enterprises or public resear
ch \line \up0 \expndtw0\charscalex132 institutions. Examples are the joint devel
opment of new technologies, \line \up0 \expndtw0\charscalex125 products or proce
sses by enterprises that sell the same type of product but \line \up0 \expndtw0\
charscalex120 possess complementary assets, \ul0\nosupersub\cf24\f25\fs17 e.g.\u
l0\nosupersub\cf23\f24\fs17 sell in different geographical markets or \line \up
0 \expndtw0\charscalex128 different market niches. Horizontal co-operation on in
novation may also \line \up0 \expndtw0\charscalex135 include strategic marketing
alliances to develop and implement new \line \up0 \expndtw0\charscalex129 marke
ting concepts. It may take place between enterprises that produce \line \up0 \ex
pndtw0\charscalex117 different but highly complementary products, \ul0\nosupersu
b\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 a new computer-controlled \li
ne \up0 \expndtw0\charscalex117 machine tool and the software package needed to
monitor and control it. \par\pard\qj \li1303\ri1178\sb50\sl-250\slmult0\fi0\tx18
70 \up0 \expndtw0\charscalex107 275. \tab \up0 \expndtw0\charscalex117 While the
focus of this chapter is on external linkages, the \ul0\nosupersub\cf24\f25\fs1

7 internal \line\up0 \expndtw-1\charscalex100 sourcing of information\ul0\nosupe
rsub\cf23\f24\fs17 is also important. The identification of which parts of \lin
e \up0 \expndtw0\charscalex119 the enterprise (\ul0\nosupersub\cf24\f25\fs17 e.g
.\ul0\nosupersub\cf23\f24\fs17 R&D, marketing, production, distribution) are im
portant \up0 \expndtw0\charscalex122 sources of information for innovation activ
ities provides information on the \up0 \expndtw0\charscalex118 flow of knowledge
within the enterprise. \par\pard\qj \li1303\ri1177\sb72\sl-248\slmult0\tx1870 \
up0 \expndtw0\charscalex107 276. \tab \up0 \expndtw0\charscalex118 The potential
sources for the three types of linkages are similar, though \line\up0 \expndtw0
\charscalex133 some are only relevant as openly available sources of knowledge a
nd \line \up0 \expndtw0\charscalex130 technology. Table 5.1 shows sources for al
l three types of linkages and \line \up0 \expndtw0\charscalex120 indicates for w
hich types each source is relevant. It includes internal sources, \line \up0 \ex
pndtw0\charscalex119 other enterprises, public and non-profit research instituti
ons, and a number of \line \up0 \expndtw0\charscalex119 general information sour
ces. The definition of several sources must be \par\pard\li793\sb0\sl-230\slmult
0\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb67\sl-230\slmult0\fi0\tx489
9 \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 80\tab \up0 \expndt
N COMMUNITIES 2005
}
\li1934\sb0\sl-195\slmult0 \par\pard\ql\li1934\sb141\sl-195\slmult0 \up0 \expndt
w0\charscalex122 \ul0\nosupersub\cf23\f24\fs17 Table 5.1. Sources for transfers
of knowledge and technology \par\pard\ql \li5842\sb0\sl-161\slmult0 \par\pard\ql
7\fs14 Sources \par\pard\li1348\sb43\sl-161\slmult0\fi3104\tx5689\tx6842 \up0 \e
xpndtw0\charscalex106 Open information\tab \up0 \expndtw0\charscalex106 for purc
hases\tab \up0 \expndtw0\charscalex106 Co-operation\par\pard\li1348\sb29\sl-161\
slmult0\fi3367\tx5698\tx6970 \up0 \expndtw0\charscalex106 sources\tab \up0 \expn
dtw0\charscalex106 of knowledge\tab \up0 \expndtw0\charscalex106 partners\par\pa
rd\li1348\sb28\sl-161\slmult0\fi4296 \up0 \expndtw0\charscalex106 and technology
97 \up0 \expndtw0\charscalex106 Internal sources within the enterprise:\tab \up0
\expndtw0\charscalex106 *\par\pard\li1348\sb58\sl-161\slmult0\fi170\tx4897 \up0
\expndtw0\charscalex106 R&D\tab \up0 \expndtw0\charscalex106 *\par\pard\li1348\
sb60\sl-161\slmult0\fi170\tx4897 \up0 \expndtw0\charscalex106 Production\tab \up
0 \expndtw0\charscalex106 *\par\pard\li1348\sb59\sl-161\slmult0\fi170\tx4897 \up
0 \expndtw0\charscalex106 Marketing\tab \up0 \expndtw0\charscalex106 *\par\pard\
li1348\sb58\sl-161\slmult0\fi170\tx4897 \up0 \expndtw0\charscalex106 Distributio
n\tab \up0 \expndtw0\charscalex106 *\par\pard\li1348\sb60\sl-161\slmult0\fi0\tx4
897\tx6031\tx7165 \up0 \expndtw0\charscalex106 Other enterprises within the ente
rprise group\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106
*\tab \up0 \expndtw0\charscalex106 *\par\pard\li1348\sb59\sl-161\slmult0\fi0 \u
p0 \expndtw0\charscalex106 External market and commercial sources:\par\pard\li13
48\sb58\sl-161\slmult0\fi170\tx4897\tx6031\tx7165 \up0 \expndtw0\charscalex106 C

ompetitors\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *
\tab \up0 \expndtw0\charscalex106 *\par\pard\li1348\sb60\sl-161\slmult0\fi170\tx
4897\tx6031\tx7165 \up0 \expndtw0\charscalex106 Other enterprises in the industr
y\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0
\expndtw0\charscalex106 *\par\pard\li1348\sb59\sl-161\slmult0\fi170\tx4897\tx71
65 \up0 \expndtw0\charscalex106 Clients or customers\tab \up0 \expndtw0\charscal
ex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\li1348\sb60\sl-161\slmult0\f
i170\tx6031\tx7165 \up0 \expndtw0\charscalex106 Consultants/consultancy firms\ta
b \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\li1
348\sb58\sl-161\slmult0\fi170 \up0 \expndtw0\charscalex106 Suppliers of equipmen
t, materials, components,\par\pard\li1348\sb29\sl-161\slmult0\fi170\tx4897\tx603
1\tx7165 \up0 \expndtw0\charscalex106 software or services\tab \up0 \expndtw0\ch
arscalex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex10
6 *\par\pard\li1348\sb60\sl-161\slmult0\fi170\tx4897\tx6031\tx7165 \up0 \expndtw
0\charscalex106 Commercial laboratories\tab \up0 \expndtw0\charscalex106 *\tab \
up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\li1348
\sb58\sl-161\slmult0\fi0 \up0 \expndtw0\charscalex106 Public sector sources:\par
\pard\li1348\sb59\sl-161\slmult0\fi170\tx4897\tx6031\tx7165 \up0 \expndtw0\chars
calex106 Universities and other higher education institutions\tab \up0 \expndtw0
\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscale
x106 *\par\pard\li1348\sb60\sl-161\slmult0\fi170\tx4897\tx6031\tx7165 \up0 \expn
dtw0\charscalex106 Government/public research institutes\tab \up0 \expndtw0\char
scalex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106
*\par\pard\li1348\sb58\sl-161\slmult0\fi170\tx4897\tx6031\tx7165 \up0 \expndtw0\
charscalex106 Private non profit research institutes\tab \up0 \expndtw0\charscal
ex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\pa
r\pard\ql \li1519\sb55\sl-161\slmult0 \up0 \expndtw0\charscalex107 Specialised p
ublic/semi-public innovation support \par\pard\li1348\sb34\sl-161\slmult0\fi170\
tx4897\tx6031\tx7165 \up0 \expndtw0\charscalex106 services\tab \up0 \expndtw0\ch
arscalex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex10
6 *\par\pard\li1348\sb58\sl-161\slmult0\fi0 \up0 \expndtw0\charscalex106 General
information sources:\par\pard\li1348\sb59\sl-161\slmult0\fi170\tx4897 \up0 \exp
ndtw0\charscalex106 Patent disclosures\tab \up0 \expndtw0\charscalex106 *\par\pa
rd\li1348\sb60\sl-161\slmult0\fi170 \up0 \expndtw0\charscalex106 Professional co
nferences, meetings, branch\par\pard\li1348\sb28\sl-161\slmult0\fi170\tx4897 \up
0 \expndtw0\charscalex106 literature and journals\tab \up0 \expndtw0\charscalex1
06 *\par\pard\li1348\sb59\sl-161\slmult0\fi170\tx4896 \up0 \expndtw0\charscalex1
06 Fairs and exhibitions\tab \up0 \expndtw0\charscalex106 *\par\pard\li1348\sb60
\sl-161\slmult0\fi170\tx4897 \up0 \expndtw0\charscalex106 Professional associati
ons, trade unions\tab \up0 \expndtw0\charscalex106 *\par\pard\li1348\sb58\sl-161
\slmult0\fi170\tx4897 \up0 \expndtw0\charscalex106 Other local associations\tab
\up0 \expndtw0\charscalex106 *\par\pard\li1348\sb59\sl-161\slmult0\fi170\tx4897
\up0 \expndtw0\charscalex106 Informal contacts or networks\tab \up0 \expndtw0\ch
arscalex106 *\par\pard\li1348\sb60\sl-161\slmult0\fi170\tx4897 \up0 \expndtw0\ch
arscalex106 Standards or standardisation agencies\tab \up0 \expndtw0\charscalex1
06 *\par\pard\li1348\sb58\sl-161\slmult0\fi170\tx4897 \up0 \expndtw0\charscalex1
06 Public regulations (\ul0\nosupersub\cf40\f41\fs14 i.e.\ul0\nosupersub\cf36\f3
7\fs14 environment, security)\tab \up0 \expndtw0\charscalex106 *\par\pard\qj \l
i1303\sb0\sl-250\slmult0 \par\pard\qj\li1303\sb0\sl-250\slmult0 \par\pard\qj\li1
303\ri1178\sb202\sl-250\slmult0 \up0 \expndtw0\charscalex131 \ul0\nosupersub\cf2
3\f24\fs17 adapted to country-specific terminology to clearly differentiate betw
een \up0 \expndtw0\charscalex129 commercial laboratories, government research in
stitutes and private non\up0 \expndtw0\charscalex123 profit research institutes.
\par\pard\qj \li1303\ri1177\sb70\sl-250\slmult0\tx1870 \up0 \expndtw0\charscale
x107 277. \tab \up0 \expndtw0\charscalex117 Multinational enterprises (MNEs) are
a special case. Interactions within \line\up0 \expndtw0\charscalex130 the MNE c
an take place across countries. Given that statistical units for \line \up0 \exp
ndtw0\charscalex121 innovation surveys only include the domestic part of MNEs (s
ee Chapter 4), \up0 \expndtw0\charscalex122 interactions with foreign units of t
he MNE should be considered as external \up0 \expndtw0\charscalex119 linkages, w

ith \u8220?other enterprises within an enterprise group\u8221?. \par\pard\li824\
sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb97\sl-218\
slmult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 IS
BN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex1
}
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charscalex74 \ul0\nosupersub\cf28\f29\fs19 2.2. Collecting data on linkages in t
he innovation process \par\pard\qj \li1303\ri1177\sb76\sl-250\slmult0\tx1870 \up
0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 278. \tab \up0 \expndtw0
\charscalex127 It is recommended that data be collected on all three t
ypes of \line\up0 \expndtw0\charscalex122 linkages, drawing on the list of sour
ces above. For use in innovation surveys, \line \up0 \expndtw0\charscalex122 the
se types of linkages can be defined as: \par\pard\qj \li1303\ri1117\sb79\sl-240\
slmult0\tx1508 \up0 \expndtw-7\charscalex72 \ul0\nosupersub\cf27\f28\fs14 \u9679
?\ul0\nosupersub\cf24\f25\fs17 Open information sources: openly available info
rmation that does not require the \line\tab \up0 \expndtw0\charscalex64 purchase
of technology or intellectual property rights, or interaction with the source.
\par\pard\ql \li1303\ri1116\sb72\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw-7\ch
arscalex74 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17
Acquisition of knowledge and technology: purchases of external knowledge and/ \l
ine\tab \up0 \expndtw-7\charscalex75 or knowledge and technology embodied in cap
ital goods (machinery, equipment, \line \tab \up0 \expndtw-7\charscalex70 softwa
re) and services, which do not involve interaction with the source. \par\pard\ql
\li1303\ri1117\sb50\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw0\charscalex63 \u
l0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Innovation c
o-operation: active co-operation with other enterprises or public \line\t
ab \up0 \expndtw-7\charscalex74 research institutions for innovation activities
(which may include purchases of \line \tab \up0 \expndtw-7\charscalex74 knowledg
e and technology). \par\pard\qj \li1303\ri1177\sb72\sl-248\slmult0\tx1870 \up0 \
expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 279. \tab \up0 \expndtw0\ch
arscalex125 Designing questions on types of linkages in innovation surve
ys \line\up0 \expndtw0\charscalex130 presents a number of challenges. While all
three types of linkages are of \line \up0 \expndtw0\charscalex121 interest, sepa
rate questions on each type may result in large response burdens \line \up0 \exp
ndtw0\charscalex139 and, given the similarity of the questions, may be very tire
some for \line \up0 \expndtw0\charscalex127 enterprises to answer. The paragraph
s below discuss a number of relevant \line \up0 \expndtw0\charscalex122 aspects
and some options for covering these topics in innovation surveys. \par\pard\qj \
li1303\ri1177\sb71\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex109 280. \tab
\up0 \expndtw0\charscalex124 Linkages can generate knowledge and technology for
any of the four \line\up0 \expndtw0\charscalex126 types of innovations (\ul0\no
supersub\cf24\f25\fs17 i.e.\ul0\nosupersub\cf23\f24\fs17 product, process, orga
nisational and marketing \line \up0 \expndtw0\charscalex120 innovations). A larg
e share of the interactions will involve the development of \up0 \expndtw0\chars
calex119 new products or processes; however linkages may, in many cases, also in
volve \up0 \expndtw0\charscalex126 product design, the development of new market
ing techniques, or work on \up0 \expndtw0\charscalex136 organisational innovatio
ns such as the integration of enterprises with \up0 \expndtw0\charscalex122 cust
omers, suppliers or retailers. \par\pard\qj \li1303\ri1177\sb50\sl-251\slmult0\f
i0\tx1870 \up0 \expndtw0\charscalex109 281. \tab \up0 \expndtw0\charscalex125 Qu
estions on linkages can refer to all innovation types combined, to \line\up0 \ex
pndtw0\charscalex133 individual types, or to closely related subsets of the four
types, such as \line \up0 \expndtw0\charscalex134 product and process innovatio
ns. The ability to identify which type of \line \up0 \expndtw0\charscalex124 inn
ovation a linkage primarily relates to (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\
nosupersub\cf23\f24\fs17 work on individual types of \line \up0 \expndtw0\chars

calex120 innovations, or a subset of types such as product and process innovatio
ns) can \line \up0 \expndtw0\charscalex132 aid greatly in interpreting the data.
For example, linkages involving the \line \up0 \expndtw0\charscalex133 developm
ent of a new good or service can differ greatly from linkages \line \up0 \expndt
w0\charscalex121 involving the development of new marketing methods. \par\pard\q
ab \up0 \expndtw0\charscalex121 Questions on linkages can use either a binary sc
ale (\ul0\nosupersub\cf24\f25\fs17 i.e.\ul0\nosupersub\cf23\f24\fs17 yes/no) or
an \line\up0 \expndtw0\charscalex126 ordinal scale and ask enterprises whether
they have used the source and, if \line \up0 \expndtw0\charscalex137 so, its imp
ortance. An ordinal scale is useful for identifying the most \up0 \expndtw0\char
scalex136 important sources (see the discussion of binary and ordinal scales in
\up0 \expndtw0\charscalex126 Chapter 8). However, use of an ordinal scale may a
lso limit the options for \up0 \expndtw0\charscalex121 designing questions on li
nkages. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par
\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb117\sl-230\slmult0\fi0\tx4899 \d
n4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 82\tab \up0 \expndtw0\c
harscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN CO
MMUNITIES 2005
}
upersub\cf23\f24\fs17 283. \tab \up0 \expndtw0\charscalex121 Some information on
acquisition of knowledge and technology can be \line\up0 \expndtw0\charscalex12
7 obtained from questions on innovation activities (see Chapter 6), although \li
ne \up0 \expndtw0\charscalex122 these questions do not ask about the source of t
he purchase. \par\pard\qj \li1303\ri1178\sb72\sl-248\slmult0\tx1870 \up0 \expndt
w0\charscalex109 284. \tab \up0 \expndtw0\charscalex127 In order to detect and b
etter understand the process of clustering or \line\up0 \expndtw0\charscalex138
networking in the field of innovation, additional information can be \line \up0
\expndtw0\charscalex129 obtained by asking for the geographical location of co-o
peration partners \line \up0 \expndtw0\charscalex122 (local, national, foreign b
y region or country). Information on the geographic \line \up0 \expndtw0\charsca
lex134 location of sources (domestic or foreign) may also be useful for open \l
ine \up0 \expndtw0\charscalex120 information sources and acquisition of knowledg
e and technology. \par\pard\qj \li1303\ri1178\sb71\sl-250\slmult0\tx1870 \up0 \e
xpndtw0\charscalex107 285. \tab \up0 \expndtw0\charscalex124 To better interpret
results on linkages, questions can be asked about \line\up0 \expndtw0\charscale
x119 the enterprise\u8217?s status as part of an enterprise group and its positi
on in a value \line \up0 \expndtw0\charscalex119 chain. \par\pard\ql \li1303\sb0
\sl-218\slmult0 \par\pard\ql\li1303\sb39\sl-218\slmult0 \up0 \expndtw-8\charscal
ex73 \ul0\nosupersub\cf28\f29\fs19 2.2.1. Options for designing linkage question
s for innovation surveys \par\pard\qj \li1303\ri1177\sb76\sl-250\slmult0\tx1870
\up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 286. \tab \up0 \expnd
tw0\charscalex123 Types of linkages, reference to types of innovation, use of bi
nary or \line\up0 \expndtw0\charscalex121 ordinal scales and the geographical lo

cation of linkages have been identified \line \up0 \expndtw0\charscalex125 as fo
ur main factors that innovation surveys can take into consideration in \up0 \exp
ndtw0\charscalex135 designing questions on linkages. In order to provide some ad
ditional \up0 \expndtw0\charscalex118 guidance, three options are outlined below
ex107 287. \tab \up0 \expndtw0\charscalex118 One option when designing linkage q
uestions for innovation surveys is \line\up0 \expndtw0\charscalex128 to include
a combined question that asks whether sources are relevant as \line \up0 \expndt
w0\charscalex118 information sources, as sources of purchases of knowledge and t
echnology, or \line \up0 \expndtw0\charscalex120 as co-operation partners. This
allows for including all three types of linkages \line \up0 \expndtw0\charscalex
120 and eliminates repetition. For this option, it is only feasible to utilise a
binary \line \up0 \expndtw0\charscalex133 (yes/no) scale. The question could re
fer either to product and process \line \up0 \expndtw0\charscalex126 innovation
or to all innovation types. However, restricting the question to \line \up0 \exp
ndtw0\charscalex118 product and process innovation (as opposed to all innovation
types combined) \line \up0 \expndtw0\charscalex126 would aid when interpreting
the data. Supplementary questions could ask \line \up0 \expndtw0\charscalex131 w
hether enterprises have had linkages (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\no
supersub\cf23\f24\fs17 co-operative partners or \line \up0 \expndtw0\charscalex
124 information sources without specifying the specific types) for each type of
\line \up0 \expndtw0\charscalex119 innovation. A further question might ask abou
t the geographic location of the \line \up0 \expndtw0\charscalex117 enterprise\u
8217?s linkages. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\fi0\tx1870 \up0
\expndtw0\charscalex107 288. \tab \up0 \expndtw0\charscalex117 A second optio
n, which has been used in a number of innovation \line\up0 \expndtw0\ch
arscalex120 surveys, is to include two separate questions on linkages, one on in
formation \line \up0 \expndtw0\charscalex120 sources and their relative importan
ce, and one on co-operation partners, their \line \up0 \expndtw0\charscalex122 r
elative importance and their location. In using this option, it is important to
\line \up0 \expndtw0\charscalex118 distinguish between information sources and c
o-operation partners (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24
\fs17 if no \line \up0 \expndtw0\charscalex118 guidelines are given, any co-ope
ration partner will also be considered an open \line \up0 \expndtw0\charscalex12
3 information source). Advantages of this approach include the possibility of \l
ine \up0 \expndtw0\charscalex129 asking about the relative importance of each so
urce and the geographic \line \up0 \expndtw0\charscalex120 location of co-operat
ion partners. Drawbacks include the fact that acquisition \par\pard\li824\sb0\sl
-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb177\sl-218\slmul
t0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92
-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \u
l0\nosupersub\cf19\f20\fs20 83
}
23\f24\fs17 of knowledge and technology is not covered (aside from the informat
ion \up0 \expndtw0\charscalex122 gained from questions on innovation activity) a
nd the great deal of repetition \up0 \expndtw0\charscalex126 in the two question
s. As with the above option, these questions might refer \up0 \expndtw0\charscal
ex126 either to product and process innovation or to all innovation types, and t
he \up0 \expndtw0\charscalex122 same supplementary questions could be asked. \pa
r\pard\qj \li1303\ri1177\sb70\sl-250\slmult0\fi0\tx1870 \up0 \expndtw0\charscale
x109 289. \tab \up0 \expndtw0\charscalex121 A third option would be to include t
wo separate questions on linkages, \line\up0 \expndtw0\charscalex131 one on info
rmation sources and one on co-operation partners, as above. \line \up0 \expndtw0
\charscalex129 However, instead of asking about the relative importance of linka
ges, the \up0 \expndtw0\charscalex131 questions could ask (using a binary scale
) which types of innovation(s) \up0 \expndtw0\charscalex121 (\ul0\nosupersub\cf2
4\f25\fs17 i.e.\ul0\nosupersub\cf23\f24\fs17 product, process, organisational,
marketing) each linkage involves. The \up0 \expndtw0\charscalex124 main advantag
e of this option is that it allows for more detailed information \up0 \expndtw0\
charscalex120 on the type of innovation concerned by each linkage. \par\pard\ql
-8\charscalex74 \ul0\nosupersub\cf28\f29\fs19 2.2.2. Developer of the innovation
x107 \ul0\nosupersub\cf23\f24\fs17 290. \tab \up0 \expndtw0\charscalex118 Additi
onal information can be obtained on diffusion by collecting data \line\up0 \expn
dtw0\charscalex124 on the developer of the enterprise\u8217?s innovations. Such
questions have been \line \up0 \expndtw0\charscalex120 included in a number of s
urveys and can give an indication of how active the \up0 \expndtw0\charscalex122
enterprise has been in developing its innovations, whether it interacted with \
up0 \expndtw0\charscalex126 other enterprises in their development, or whether t
he development of the \up0 \expndtw0\charscalex120 innovation was primarily cond
ucted outside the enterprise. \par\pard\qj \li1303\ri1178\sb50\sl-250\slmult0\tx
1870 \up0 \expndtw0\charscalex107 291. \tab \up0 \expndtw0\charscalex125 The in
formation provided is different from that obtained from \line\up0 \expndt
w0\charscalex127 questions on the degree of novelty (see Chapter 3), as enterpri
ses may be \line \up0 \expndtw0\charscalex133 developing innovations that alread
y have been implemented by other \up0 \expndtw0\charscalex130 enterprises. It th
us indicates how innovative enterprises are, though not \up0 \expndtw0\charscale
x118 necessarily how novel their innovations are. \par\pard\qj \li1303\ri1179\sb
70\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex107 292. \tab \up0 \expndtw0\c
harscalex124 It is recommended to ask questions on the developer of enterprises\
u8217? \line\up0 \expndtw0\charscalex136 innovations. Enterprises can, for examp
le, be asked for each type of \line \up0 \expndtw0\charscalex120 innovation whet
her: \par\pard\ql \li1303\sb96\sl-195\slmult0 \up0 \expndtw0\charscalex120 \ul0\
nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 The innovations
were mainly developed by the enterprise itself. \par\pard\qj \li1303\ri1176\sb88
4 \u9679?\ul0\nosupersub\cf23\f24\fs17 The innovations were developed by the
enterprise in co-operation with \line\tab \up0 \expndtw0\charscalex124 other ent
erprises or institutions. \par\pard\qj \li1303\ri1177\sb66\sl-257\slmult0\fi0 \u
p0 \expndtw0\charscalex120 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\
cf23\f24\fs17 The innovations were mainly developed by other enterprises or in
stitutions. \line \up0 \expndtw0\charscalex131 The last two categories can also
be broken down into subcategories, for \line \up0 \expndtw0\charscalex126 exampl
e by distinguishing between innovations developed in co-operation \line \up0 \ex
pndtw0\charscalex130 with other firms and in co-operation with public research i
nstitutions, or \line \up0 \expndtw0\charscalex129 whether other enterprises are
part of the same multinational enterprise or \line \up0 \expndtw0\charscalex127
enterprise group. As with questions on degree of novelty, questions on the \lin
e \up0 \expndtw0\charscalex122 developer of the innovations can be asked for all
four types of innovations or \line \up0 \expndtw0\charscalex122 for a subset. \
tw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 84\tab \up0 \expndtw0\charscalex

2005
}
-8\charscalex75 \ul0\nosupersub\cf28\f29\fs19 2.3. Other linkage indicators \par
\ul0\nosupersub\cf23\f24\fs17 293. \tab \up0 \expndtw0\charscalex121 This subse
ction discusses options for collecting additional data on \line\up0 \expn
dtw0\charscalex121 linkages that are primarily relevant for specialised surveys.
\up0 \expndtw-8\charscalex74 \ul0\nosupersub\cf28\f29\fs19 2.3.1. Types of know
ledge and methods of transfer \par\pard\qj \li1303\ri1175\sb76\sl-250\slmult0\tx
1870 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 294. \tab \up0 \
expndtw0\charscalex121 In addition to identifying types of linkages and their so
urces, it may be \line\up0 \expndtw0\charscalex127 useful to collect more detail
ed information on important characteristics of \line \up0 \expndtw0\charscalex13
1 linkages, such as the kinds of knowledge transferred and the method of \line \
up0 \expndtw0\charscalex124 transfer. Questions of this type are likely to requi
re a specialised survey that \line \up0 \expndtw0\charscalex139 may be possible
to link to the results of general innovation surveys. \line \up0 \expndtw0\chars
calex121 Alternatively, supplementary questions can be included in general innov
ation \line \up0 \expndtw0\charscalex121 surveys, for example on the most import
ant external linkage.\ul0\super\cf25\f26\fs20 2 \par\pard\qj \li1303\ri1178\sb50
7 295. \tab \up0 \expndtw0\charscalex121 Questions on the kinds of knowledg
e that are obtained through a \line\up0 \expndtw0\charscalex129 linkage can
ask if the knowledge was embodied or disembodied, tacit or \line \up0 \expndtw0
\charscalex122 codified, public or private, whether it is R&D-based, specific or
generic, and \line \up0 \expndtw0\charscalex121 what its degree of novelty is.
Questions on how the actual transfer takes place \line \up0 \expndtw0\charscalex
124 can ask about the use of written reports, blueprints, purchases of machinery
, \line \up0 \expndtw0\charscalex124 components and software, informal contacts,
working together, training and \line \up0 \expndtw0\charscalex124 presentations
0 \up0 \expndtw-8\charscalex72 \ul0\nosupersub\cf28\f29\fs19 2.3.2. Social or ne
twork capital \par\pard\qj \li1303\ri1178\sb78\sl-248\slmult0\tx1870 \up0 \expnd
tw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 296. \tab \up0 \expndtw0\charsca
lex124 Social or network capital refers to enterprises\u8217? stocks of social t
rust, \line\up0 \expndtw0\charscalex132 values and norms. These have important i
mpacts on the circulation of \line \up0 \expndtw0\charscalex123 information with
in an enterprise and on sharing knowledge in collaborative \up0 \expndtw0\charsc
alex137 activities with other organisations. Enterprises may implement new \up0
\expndtw0\charscalex132 organisational structures or new practices to introduce
a new business \up0 \expndtw0\charscalex124 culture, norms and values, with the
objective of improving the enterprise\u8217?s \up0 \expndtw0\charscalex134 capac

ity to innovate. The establishment of trust is also a key factor in \up0 \expndt
w0\charscalex133 maintaining and improving relationships, both within and outsid
e the \up0 \expndtw0\charscalex122 enterprise. Long-term relationships that can
build up mutual trust will likely \up0 \expndtw0\charscalex118 be beneficial for
all participants. \par\pard\qj \li1303\ri1177\sb72\sl-248\slmult0\fi0\tx1870 \u
p0 \expndtw0\charscalex107 297. \tab \up0 \expndtw0\charscalex121 Information ca
n be gained on enterprises\u8217? activities to improve social \line\up0 \expndt
w0\charscalex124 capital through questions on organisational innovation, \ul0\no
supersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 if enterprises \line \
up0 \expndtw0\charscalex125 have implemented new practices and routines to intro
duce a new business \line \up0 \expndtw0\charscalex125 culture and values. Addit
ional information can be gained from specialised \line \up0 \expndtw0\charscalex
124 surveys. For example, questions on the duration of an external linkage can \
line \up0 \expndtw0\charscalex124 provide an indicator of the level of trust in
the relationship. An option is to \line \up0 \expndtw0\charscalex126 include que
stions on the date of establishment of partnerships or strategic \line \up0 \exp
ndtw0\charscalex119 alliances, for example within the last five years, more than
five years ago, etc. \line \up0 \expndtw0\charscalex120 Questions on the degree
of formalisation of a relationship, such as on the use \line \up0 \expndtw0\cha
rscalex118 of formal contracts, add information on the social and cultural value
s involved \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\
par\pard\li824\sb157\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0
\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\ta
b \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 85
}
23\f24\fs17 and on the degree of trust. Further details on the role of trust can
be gained by \line \up0 \expndtw0\charscalex128 asking how the partner was iden
tified, such as through prior knowledge, \line \up0 \expndtw0\charscalex120 reco
mmendations, or at arm\u8217?s length through means such as advertising. \par\pa
rd\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb59\sl-218\slmult0 \up0 \e
xpndtw-8\charscalex72 \ul0\nosupersub\cf28\f29\fs19 2.3.3 Additional informatio
n on innovation co-operation \par\pard\qj \li1303\ri1177\sb79\sl-246\slmult0\tx1
870 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 298. \tab \up0 \e
xpndtw0\charscalex121 Additional information can be collected about
the formalities \line\up0 \expndtw0\charscalex122 regulating co-operation, spe
cific knowledge delivered in the field of the co-\line \up0 \expndtw0\charscalex
119 operation agreement, and more general economic information (such as sector,
\up0 \expndtw0\charscalex119 size and age) about each partner. \par\pard\qj \li1
0 \expndtw0\charscalex122 An additional option is to ask for the number of diffe
rent partners for \line\up0 \expndtw0\charscalex121 each category. This would ma
ke it possible to distinguish between large and \line \up0 \expndtw0\charscalex1
30 small networkers. The number and duration of relationships are also of \line
\up0 \expndtw0\charscalex122 interest. Ideally this could contribute to distingu

ishing the importance of the \line \up0 \expndtw0\charscalex122 different relati
onships that make up the networks surrounding the firms. \par\pard\ql \li793\sb2
38\sl-241\slmult0 \up0 \expndtw0\charscalex119 \ul0\nosupersub\cf22\f23\fs21 3.
Outbound diffusion \par\pard\qj \li1303\ri1173\sb92\sl-250\slmult0\tx1870 \up0 \
arscalex117 The value of innovations goes far beyond the impact on the developin
g \line\up0 \expndtw0\charscalex126 firm itself. It is therefore of interest to
examine the effects and benefits of \line \up0 \expndtw0\charscalex127 innovatio
ns for other firms, consumers and the general public. Outbound \line \up0 \expnd
tw0\charscalex114 diffusion can take place via the sale of a new good or service
to consumers or the \line \up0 \expndtw0\charscalex114 sale of a new product or
process to another firm. However, outbound diffusion is \line \up0 \expndtw0\ch
arscalex117 much broader than this, and can also include the sharing of informat
ion and the \line \up0 \expndtw0\charscalex115 diffusion of organisational and m
arketing innovations. Parts of this process have \line \up0 \expndtw0\charscalex
119 been discussed in connection with collaboration, which by definition involve
s \line \up0 \expndtw0\charscalex115 active participation - and knowledge or tec
hnology transfer - for all partners. \par\pard\qj \li1303\ri1177\sb50\sl-250\slm
While it may be difficult for enterprises to assess the impact of their \line\up
0 \expndtw0\charscalex120 innovations outside of their own enterprise or to trac
k the use of any kinds of \line \up0 \expndtw0\charscalex113 new knowledge, it m
ay be possible to gain information on the \ul0\nosupersub\cf24\f25\fs17 users\ul
0\nosupersub\cf23\f24\fs17 of a firm\u8217?s \up0 \expndtw0\charscalex126 innov
ations. This may be addressed by identifying the main users of their \up0 \expnd
tw0\charscalex117 innovations for the following classifications: \par\pard\ql \l
i1303\sb116\sl-195\slmult0 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28
\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Consumer markets: \par\pard\ql \li1
s17 \u10070?\ul0\nosupersub\cf23\f24\fs17 Domestic. \par\pard\ql \li1508\sb126\
sl-195\slmult0 \up0 \expndtw0\charscalex112 \ul0\nosupersub\cf34\f35\fs17 \u1007
0?\ul0\nosupersub\cf23\f24\fs17 Foreign. \par\pard\ql \li1303\sb106\sl-195\slmu
ersub\cf23\f24\fs17 Inputs to other firms: \par\pard\ql \li1508\ri2425\sb39\sl
-300\slmult0 \up0 \expndtw-7\charscalex87 \ul0\nosupersub\cf34\f35\fs17 \u10070?
\ul0\nosupersub\cf23\f24\fs17 Domestic (\ul0\nosupersub\cf24\f25\fs17 inside/ou
tside group\ul0\nosupersub\cf23\f24\fs17 ). \line \up0 \expndtw-7\charscalex84 \
ul0\nosupersub\cf34\f35\fs17 \u10070?\ul0\nosupersub\cf23\f24\fs17 Foreign (\ul
0\nosupersub\cf24\f25\fs17 inside/outside group\ul0\nosupersub\cf23\f24\fs17 ).
\par\pard\qj \li1303\ri1177\sb65\sl-246\slmult0 \up0 \expndtw0\charscalex122 Thi
s information may also be useful for identifying the structure of demand \up0 \e
xpndtw0\charscalex121 for the firm\u8217?s innovations. The innovative activitie
s, strategies and problems \up0 \expndtw0\charscalex125 of firms that sell to in
termediate users such as other firms may differ from \up0 \expndtw0\charscalex11
9 those of firms that sell to final consumers. \par\pard\li793\sb0\sl-230\slmult
}
\fs21 4. Knowledge management \par\pard\qj \li1303\ri1177\sb72\sl-250\slmult0\tx
expndtw0\charscalex120 Knowledge about the core processes, products and ma
rkets can be \line\up0 \expndtw0\charscalex134 considered to be what constitut
es a firm. Decisions on how to use and \line \up0 \expndtw0\charscalex123 exchan
ge existing knowledge and obtain new knowledge are essential to the \up0 \expndt
w0\charscalex134 operation of enterprises. Proper systems for managing knowledge
can \up0 \expndtw0\charscalex120 therefore improve competitiveness and innovati
ve ability. \par\pard\qj \li1303\ri1177\sb70\sl-250\slmult0\tx1870 \up0 \expndtw
0\charscalex109 303. \tab \up0 \expndtw0\charscalex120 Knowledge management invo
lves activities relating to the capture, use \line\up0 \expndtw0\charscalex126 a
nd sharing of knowledge by the organisation. It involves the management \line \u
p0 \expndtw0\charscalex132 both of external linkages and of knowledge flows with
in the enterprise, \line \up0 \expndtw0\charscalex127 including methods and proc
edures for seeking external knowledge and for \line \up0 \expndtw0\charscalex135
establishing closer relationships with other enterprises (suppliers , \li
ne \up0 \expndtw0\charscalex125 competitors), customers or research institutions
. In addition to practices for \line \up0 \expndtw0\charscalex131 gaining new kn
owledge, knowledge management involves methods for \line \up0 \expndtw0\charscal
ex132 sharing and using knowledge, including establishing value systems for \lin
e \up0 \expndtw0\charscalex120 sharing knowledge and practices for codifying rou
tines. \par\pard\li1303\sb108\sl-195\slmult0\fi0\tx1870 \up0 \expndtw0\charscale
x120 304.\tab \up0 \expndtw0\charscalex120 Examples of knowledge management prac
tices aimed at improving the\par\pard\li1303\sb57\sl-195\slmult0\fi0 \up0 \expnd
tw0\charscalex120 internal flow and use of information are:\par\pard\ql \li1303\
sb103\sl-195\slmult0 \up0 \expndtw0\charscalex118 \ul0\nosupersub\cf27\f28\fs14
\u9679?\ul0\nosupersub\cf23\f24\fs17 Databases of worker \u8220?best practices
\u8221?. \par\pard\ql \li1303\sb126\sl-195\slmult0 \up0 \expndtw0\charscalex120
\ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Regular edu
cation or training programmes. \par\pard\qj \li1303\ri1178\sb52\sl-260\slmult0\t
x1508 \up0 \expndtw0\charscalex123 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nos
upersub\cf23\f24\fs17 Informal and formal work teams that promote worker commu
nication and \line\tab \up0 \expndtw0\charscalex123 interaction. \par\pard\qj \l
rsub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Integration of activ
ities, which promotes interaction among employees \line\tab \up0 \expndtw0\
charscalex121 from different areas, for example engineers and production workers
. \par\pard\qj \li1303\ri1177\sb48\sl-251\slmult0\fi0\tx1870 \up0 \expndtw0\char
scalex109 305. \tab \up0 \expndtw0\charscalex123 A number of surveys on knowledg
e management practices have been \line\up0 \expndtw0\charscalex119 conducted in
recent years, most notably in Canada (see Foray and Gault, 2003; \line \up0 \exp
ndtw0\charscalex127 Earl, 2003) in conjunction with the OECD and international
experts. This \line \up0 \expndtw0\charscalex127 survey covered a number of aspe
cts of knowledge management practices, \line \up0 \expndtw0\charscalex125 such a
s policies and strategies, leadership, knowledge capture, training and \line \up
0 \expndtw0\charscalex126 communications, and reasons for use of knowledge manag
ement practices \line \up0 \expndtw0\charscalex136 and the sources that prompted
the development of these practices. In \line \up0 \expndtw0\charscalex134 addit
ion, questions on knowledge management have been included in \line \up0 \expndtw
0\charscalex129 innovation surveys.\ul0\super\cf25\f26\fs20 3\ul0\nosupersub\cf2
3\f24\fs17 Both approaches have had some success in gaining \line \up0 \expndtw
0\charscalex122 information on knowledge management practices. \par\pard\qj \li1
0 \expndtw0\charscalex121 As discussed in Chapter 3, organisational innovations
may involve the \line\up0 \expndtw0\charscalex135 implementation of significan

t changes in practices for knowledge \line \up0 \expndtw0\charscalex131 man
agement, and some information on knowledge management can be \line \up0 \expndtw
0\charscalex131 gained from questions on organisational innovation. However, det
ailed \line \up0 \expndtw0\charscalex133 examinations of knowledge management ac
tivities require specialised \line \up0 \expndtw0\charscalex124 surveys. This in
formation can then be linked with information from general \line \up0 \expndtw0\
charscalex120 innovation surveys. \par\pard\li824\sb0\sl-218\slmult0\par\pard\li
824\sb0\sl-218\slmult0\par\pard\li824\sb137\sl-218\slmult0\fi0\tx8040 \up0 \expn
s20 87
}
charscalex88 \ul0\nosupersub\cf28\f29\fs19 Notes \par\pard\qj \li1401\ri1193\sb1
s15 1. Throughout the remainder of the Manual, the use of the term enterprise sh
ould be \line\tab \up0 \expndtw0\charscalex120 understood as referring to the pr
imary statistical unit. \par\pard\qj \li1401\ri1194\sb104\sl-200\slmult0\tx1587
\up0 \expndtw0\charscalex120 2. See for example, the DISKO-surveys on innovation
in Denmark and Norway, and \line\tab \up0 \expndtw0\charscalex102 OECD (2001).
x121 3. For example, the CIS3 survey in France, the J-NIS 2003 survey in Japan,
and the \line\tab \up0 \expndtw0\charscalex116 Australian Innovation Survey 2003
. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\pard\
t0\par\pard\li793\sb139\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \
ul0\nosupersub\cf19\f20\fs20 88\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub
\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
0\sl-138\slmult0 \par\pard\ql\li1360\sb0\sl-138\slmult0 \par\pard\ql\li1360\sb32
\sl-138\slmult0 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf11\f12\fs12 ISBN
92-64-01308-3 \par\pard\qj \li1360\ri4375\sb8\sl-180\slmult0 \up0 \expndtw0\char
scalex117 Oslo Manual: Guidelines for Collecting and Interpreting \up0 \expndtw0
\charscalex118 Innovation Data \par\pard\ql \li1360\sb35\sl-138\slmult0 \up0 \ex
pndtw0\charscalex113 OECD/European Communities 2005 \par\pard\ql \li3832\sb0\sl368\slmult0 \par\pard\ql\li3832\sb0\sl-368\slmult0 \par\pard\ql\li3832\sb0\sl-36
ul0\nosupersub\cf20\f21\fs32 Chapter 6 \par\pard\ql \li2278\sb0\sl-322\slmult0 \
par\pard\ql\li2278\sb0\sl-322\slmult0 \par\pard\ql\li2278\sb166\sl-322\slmult0 \
up0 \expndtw0\charscalex121 \ul0\nosupersub\cf3\f4\fs28 Measuring Innovation Act
ivities \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par
4\sb0\sl-218\slmult0\par\pard\li824\sb16\sl-218\slmult0\fi0\tx8040 \up0 \expndtw
COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20
89
}
}}

}}
}
}}
}
}}
}}
}
l-241\slmult0 \par\pard\ql\li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb146\sl-
241\slmult0 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf22\f23\fs21 1. Introd

Information on innovation activity is useful for a number of reasons. It \line\u
p0 \expndtw0\charscalex120 can provide information on the types of innovation ac
tivity enterprises engage \line \up0 \expndtw0\charscalex121 in, for example: wh
ether innovative enterprises engage in R&D; whether they \line \up0 \expndtw0\ch
arscalex135 purchase knowledge and technology in the form of extramural R&D, \li
ne \up0 \expndtw0\charscalex137 machinery and equipment, or other external knowl
edge; whether the \line \up0 \expndtw0\charscalex122 development and implementat
ion of innovations also involves the training of \line \up0 \expndtw0\charscalex
125 employees; and whether enterprises are engaged in activities to change part
\line \up0 \expndtw0\charscalex121 of their organisation. \par\pard\qj \li1303\r
i1178\sb49\sl-252\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex109 308. \tab \up0
\expndtw0\charscalex122 Innovation activities, including capital purchases,
R&D and other \line\up0 \expndtw0\charscalex140 current expenditures related
to innovations, can be characterised as \line \up0 \expndtw0\charscalex121 inve
stments in that they may yield returns in the future. Such returns often go \up0
\expndtw0\charscalex123 beyond the specific innovation the activity is directed
towards. For example, \up0 \expndtw0\charscalex123 investments in R&D and innov
ation-related training are often open-ended in \up0 \expndtw0\charscalex123 natu
re, allowing their application to other tasks. \par\pard\qj \li1303\ri1177\sb48\
sl-253\slmult0\tx1870 \up0 \expndtw0\charscalex109 309. \tab \up0 \expndtw0\char
scalex122 Quantitative measures of expenditures on each innovation activi
ty \line\up0 \expndtw0\charscalex121 provide an important measure of the level o
f innovation activity at enterprise, \line \up0 \expndtw0\charscalex126 industry
and national levels. These measures may also be used, along with \up0 \expndtw0
\charscalex122 output measures, to calculate returns to innovation activities. \
09 310. \tab \up0 \expndtw0\charscalex106 As the \ul0\nosupersub\cf24\f25\fs17 F
rascati Manual\ul0\nosupersub\cf23\f24\fs17 states, R&D is only one step in the
innovation \line\up0 \expndtw0\charscalex120 process. Innovation involves a num
ber of activities not included in R&D, such \line \up0 \expndtw0\charscalex133 a
s later phases of development for preproduction , production and \up0 \e
xpndtw0\charscalex125 distribution, development activities with a lesser degree
of novelty, support \up0 \expndtw0\charscalex127 activities such as training and
market preparation for product innovations, \up0 \expndtw0\charscalex124 and de
velopment and implementation activities for new marketing methods \up0 \expndtw0
\charscalex122 or new organisational methods. In addition, many firms may have i
nnovation \up0 \expndtw0\charscalex117 activities that do not involve any R&D. \
07 311. \tab \up0 \expndtw0\charscalex125 In addition to innovation activities,
a number of other factors may \line\up0 \expndtw0\charscalex123 affect the abi
lity to absorb new knowledge and technology and to innovate. \line \up0 \expndtw
0\charscalex124 Among them are firms\u8217? knowledge bases, workers\u8217? abil
ities and academic \up0 \expndtw0\charscalex123 backgrounds, the implementation
of ICTs, and proximity to public research \up0 \expndtw0\charscalex123 instituti
ons and regions with a high density of innovative firms. Identifying \up0 \expnd
tw0\charscalex127 the main factors that allow firms to innovate and the factors
that enhance \up0 \expndtw0\charscalex117 their ability to innovate is of great
importance for policy. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb177\sl-230\slmult
0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 90\tab \
up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - O
ECD/EUROPEAN COMMUNITIES 2005

}
upersub\cf23\f24\fs17 312. \tab \up0 \expndtw0\charscalex119 As outlined in Chap
ter 2, innovation is a complex process, and the scale \line\up0 \expndtw0\charsc
alex119 of activity required for innovation may vary considerably. For example,
the in-\line \up0 \expndtw0\charscalex133 house development of a radically diffe
rent and sophisticated electronic \up0 \expndtw0\charscalex140 product for the m
ass market will involve many more steps than the \up0 \expndtw0\charscalex123 in
troduction of an improved process resulting from technology incorporated \up0 \e
xpndtw0\charscalex123 in a pre-programmed machine purchased for the purpose. \pa
r\pard\qj \li1303\ri1177\sb48\sl-253\slmult0\tx1869 \up0 \expndtw0\charscalex109
313. \tab \up0 \expndtw0\charscalex120 Innovation activities may be carried out
within the firm or may involve \line\up0 \expndtw0\charscalex134 the acquisitio
n of goods, services or knowledge from outside sources, \line \up0 \expndtw0\cha
rscalex126 including consulting services. A firm may acquire external knowledge
and \up0 \expndtw0\charscalex120 technology in disembodied or embodied form. \pa
r\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb16\sl-241\slmult0 \up0
\expndtw0\charscalex122 \ul0\nosupersub\cf22\f23\fs21 2. The components and cove
rage of innovation activities \par\pard\qj \li1303\ri1177\sb72\sl-250\slmult0\tx
expndtw0\charscalex125 As defined in Chapter 3, innovation activities are all th
ose scientific, \line\up0 \expndtw0\charscalex131 technological, organisational,
financial and commercial steps, including \line \up0 \expndtw0\charscalex122 in
vestment in new knowledge, which actually lead to, or are intended to lead \up0
\expndtw0\charscalex136 to, the implementation of innovations. These activities
may either be \up0 \expndtw0\charscalex123 innovative in themselves, or required
for the implementation of innovations. \up0 \expndtw0\charscalex122 Also includ
ed are basic research activities that (by definition) are not directly \up0 \exp
ndtw0\charscalex122 related to the development of a specific innovation. \par\pa
. \tab \up0 \expndtw0\charscalex122 In order to enable comparability with the re
sults of innovation surveys \line\up0 \expndtw0\charscalex111 based on the secon
d edition of the \ul0\nosupersub\cf24\f25\fs17 Oslo Manual\ul0\nosupersub\cf23\f
24\fs17 , all innovation activities other \line \up0 \expndtw0\charscalex124 tha
n R&D are divided between product and process innovation activities on \line \up
0 \expndtw0\charscalex124 the one hand, and marketing and organisational innovat
ions on the other. \par\pard\qj \li1303\ri1174\sb71\sl-250\slmult0\tx1870 \up0 \
expndtw0\charscalex109 316. \tab \up0 \expndtw0\charscalex124 In order both to m
aintain continuity with earlier measures of product \line\up0 \expndtw0\charscal
ex122 and process innovation activities and to expand coverage to include activi
ties \line \up0 \expndtw0\charscalex122 related to all types of innovations, the
following conventions are adopted: \par\pard\ql \li1303\ri1175\sb49\sl-252\slmu
lt0\tx1508\tx1508\tx1508\tx1508\tx1508 \up0 \expndtw0\charscalex122 \ul0\nosuper
sub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 While most R&D is relat
ed to product and process innovations, some may \line\tab \up0 \expndtw0\charsca
lex123 be related to marketing or organisational innovations. Basic research is
by \line \tab \up0 \expndtw0\charscalex126 definition not related to any specifi
c innovation. All R&D is included as \line \tab \up0 \expndtw0\charscalex119 inn
ovation activity. Furthermore, R&D is defined as a separate category that \line
\tab \up0 \expndtw0\charscalex133 includes relevant activities for product ,
process , marketing and \line \tab \up0 \expndtw0\charscalex121 organisation

al innovations, along with basic research. \par\pard\ql \li1303\ri1116\sb50\sl-2
50\slmult0\tx1508\tx1508\tx1508\tx1508\tx1508\tx1508 \up0 \expndtw0\charscalex11
8 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 All inno
vation activities other than R&D that are specifically related to \line
\tab \up0 \expndtw0\charscalex126 marketing and organisational innovations and n
ot related to a product or \line \tab \up0 \expndtw0\charscalex116 process innov
ation are included under the categories \ul0\nosupersub\cf24\f25\fs17 preparatio
n for \line \tab \up0 \expndtw-7\charscalex78 marketing innovations \ul0\nosupe
rsub\cf23\f24\fs17 and\ul0\nosupersub\cf24\f25\fs17 preparation for organis
ational innovations, \line \tab \up0 \expndtw0\charscalex130 \ul0\nosupersub\cf
23\f24\fs17 respectively. This includes acquisition of other external knowledge
or \line \tab \up0 \expndtw0\charscalex134 capital goods and training that is sp
ecifically related to marketing or \line \tab \up0 \expndtw0\charscalex121 organ
isational innovations. \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\
par\pard\li824\sb161\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\charscalex105 \ul0
\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\ta
b \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 91
}
charscalex77 \ul0\nosupersub\cf28\f29\fs19 2.1. Research and experimental develo
pment \par\pard\ql \li1303\sb122\sl-195\slmult0\tx1870\tx5226 \up0 \expndtw0\cha
rscalex109 \ul0\nosupersub\cf23\f24\fs17 317. \tab \up0 \expndtw-7\charscalex71
\ul0\nosupersub\cf24\f25\fs17 Research and experimental development \tab \up0
\expndtw-7\charscalex70 (R&D) comprises creative work \par\pard\qj \li1303\r
i1117\sb20\sl-250\slmult0 \up0 \expndtw0\charscalex63 undertaken on a systematic
basis in order to increase the stock of knowledge, including \up0 \expndtw0\cha
rscalex64 knowledge of man, culture and society, and the use of this stock of kn
owledge to devise \up0 \expndtw0\charscalex64 new applications\ul0\nosupersub\cf
23\f24\fs17 (as defined in the \ul0\nosupersub\cf24\f25\fs17 Frascati Manual\ul
0\nosupersub\cf23\f24\fs17 ). \par\pard\qj \li1303\ri1177\sb50\sl-251\slmult0\tx
1870 \up0 \expndtw0\charscalex109 318. \tab \up0 \expndtw0\charscalex119 All R&D
activities financed or performed by enterprises are included as \line\up0 \expn
dtw0\charscalex124 innovation activities. This includes total intramural and ext
ramural R&D as \line \up0 \expndtw0\charscalex106 defined in the \ul0\nosupersub
\cf24\f25\fs17 Frascati Manual\ul0\nosupersub\cf23\f24\fs17 . It is also worth e
mphasising the importance of \line \up0 \expndtw0\charscalex112 using the defini
tion and guidelines for R&D of the \ul0\nosupersub\cf24\f25\fs17 Frascati Manual
\ul0\nosupersub\cf23\f24\fs17 when \line \up0 \expndtw0\charscalex120 collectin
g data on R&D in innovation surveys. Therefore, surveys should state \line \up0
\expndtw0\charscalex121 that the definition of R&D is the same as that used in R
&D surveys. This will \line \up0 \expndtw0\charscalex127 aid comparison with R&D
surveys and facilitate the use of the R&D data \line \up0 \expndtw0\charscalex1
19 separately. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870 \up0 \expn
dtw0\charscalex109 319. \tab \up0 \expndtw0\charscalex117 Software development

is classified as R&D if it involves making a \line\up0 \expndtw0\charsc
alex124 scientific or technological advance and/or resolving scientific/technolo
gical \line \up0 \expndtw0\charscalex118 uncertainty on a systematic basis. Serv
ices development is classified as R&D if \up0 \expndtw0\charscalex124 it results
in new knowledge or involves the use of new knowledge to devise \up0 \expndtw0\
charscalex121 new applications. \par\pard\qj \li1303\ri1117\sb72\sl-248\slmult0\
tx1870 \up0 \expndtw0\charscalex109 320. \tab \up0 \expndtw0\charscalex118 Const
ruction and testing of a prototype is classified as R&D if the \line\
up0 \expndtw0\charscalex127 primary objective is to make further improvements. T
his is often the most \line \up0 \expndtw0\charscalex134 important phase of the
experimental development of an innovation. A \up0 \expndtw0\charscalex121 protot
ype is an original model (or test situation) that includes all the technical \up
0 \expndtw0\charscalex124 characteristics and performances of the new product or
process. Acceptance \up0 \expndtw0\charscalex128 of a prototype often means tha
t the experimental development phase ends \up0 \expndtw0\charscalex123 and the n
ext phase of the innovation process begin (further guidance may be \up0 \expndtw
-5\charscalex100 found below and in the \ul0\nosupersub\cf24\f25\fs17 Frascati M
anual\ul0\nosupersub\cf23\f24\fs17 ). \par\pard\qj \li1303\ri1176\sb71\sl-250\sl
Intramural R&D comprises all R&D performed within the enterprise as \line\up0 \
expndtw0\charscalex104 defined in the \ul0\nosupersub\cf24\f25\fs17 Frascati Man
ual\ul0\nosupersub\cf23\f24\fs17 and as reported in R&D surveys. It includes bo
th \line \up0 \expndtw0\charscalex131 R&D intended to contribute to the developm
ent and implementation of \line \up0 \expndtw0\charscalex123 product, process, m
arketing or organisational innovations and basic research \line \up0 \expndtw0\c
harscalex124 that is not directly related to the development of a specific innov
ation. Note \line \up0 \expndtw0\charscalex121 that, following the \ul0\nosupers
ub\cf24\f25\fs17 Frascati\ul0\nosupersub\cf23\f24\fs17 definition, intramural R
&D also includes the \line \up0 \expndtw0\charscalex118 acquisition of capital g
oods that is directly related to R&D. \par\pard\li1303\sb109\sl-195\slmult0\fi0\
tx1870 \up0 \expndtw0\charscalex123 322.\tab \up0 \expndtw0\charscalex124 Extram
ural R&D comprises the acquisition of R&D services. It also\par\pard\li
1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex123 includes the acquisiti
on of R&D services from units of multinational\par\pard\li1303\sb57\sl-195\slmul
t0\fi0 \up0 \expndtw0\charscalex123 enterprises (MNEs) located abroad.\ul0\super
\cf25\f26\fs20 1\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slm
}
-8\charscalex74 \ul0\nosupersub\cf28\f29\fs19 2.2. Activities for product and pr
ocess innovations \par\pard\ql \li1303\sb123\sl-218\slmult0 \up0 \expndtw-8\char

scalex75 2.2.1. Acquisition of other external knowledge \par\pard\qj \li1303\ri1
\f24\fs17 323. \tab \up0 \expndtw0\charscalex118 In addition to R&D, enterprises
may acquire technology and know-how \line\up0 \expndtw0\charscalex127 in a numb
er of forms and from a variety of sources in connection with the \line \up0 \exp
ndtw0\charscalex138 development and implementation of innovations. This also inc
ludes \up0 \expndtw0\charscalex117 acquisitions from foreign units of MNEs. \par
324. \tab \up0 \expndtw0\charscalex121 Acquisition of external knowledge and tec
hnology may be in the form \line\up0 \expndtw0\charscalex132 of patents, non-pat
ented inventions, licences, disclosures of know-how, \line \up0 \expndtw0\charsc
alex124 trademarks, designs and patterns. \par\pard\qj \li1303\ri1177\sb50\sl-25
x120 Acquisition of external knowledge may also include computer services \line\
up0 \expndtw0\charscalex122 and other scientific and technical services for prod
uct and process innovation \line \up0 \expndtw0\charscalex120 activities. \par\p
ard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb59\sl-218\slmult0 \up0 \
expndtw-8\charscalex73 \ul0\nosupersub\cf28\f29\fs19 2.2.2. Acquisition of machi
nery, equipment and other capital goods \par\pard\qj \li1303\ri1177\sb76\sl-250\
slmult0\tx1870 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 326. \
tab \up0 \expndtw0\charscalex121 Innovation activities also involve the acquisit
ion of capital goods, both \line\up0 \expndtw0\charscalex132 those with improv
ed technological performance and those with no \line \up0 \expndtw0\charsc
alex139 improvement in technological performance that are required for the \line
\up0 \expndtw0\charscalex120 implementation of new or improved products or proc
esses. This category only \line \up0 \expndtw0\charscalex121 includes the acquis
ition of capital goods for innovation that is not included in \line \up0 \expndt
w0\charscalex127 R&D activities. Note that this category also includes acquisiti
on of capital \line \up0 \expndtw0\charscalex115 goods from foreign units of MNE
s (which is not included in R&D). \par\pard\qj \li1303\ri1118\sb48\sl-253\slmult
0\tx1870 \up0 \expndtw0\charscalex109 327. \tab \up0 \expndtw0\charscalex111 Cap
ital goods for innovations are composed of acquisition of \ul0\nosupersub\cf24\f
25\fs17 land and \line\up0 \expndtw-7\charscalex89 buildings,\ul0\nosupersub\cf2
3\f24\fs17 of \ul0\nosupersub\cf24\f25\fs17 machinery, instruments and equipmen
t \ul0\nosupersub\cf23\f24\fs17 and, in line with the revised \line \up0 \expndt
w0\charscalex114 System of National Accounts - SNA, of \ul0\nosupersub\cf24\f25
\fs17 computer software\ul0\nosupersub\cf23\f24\fs17 , which is a \line \up0 \ex
pndtw0\charscalex115 component of intangible investment and considered as capita
l formation.\ul0\super\cf25\f26\fs20 2 \par\pard\qj \li1303\ri1177\sb50\sl-250\s
lmult0\tx1870 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 328. \t
ab \up0 \expndtw0\charscalex102 \ul0\nosupersub\cf24\f25\fs17 Land and buildings
\ul0\nosupersub\cf23\f24\fs17 includes the acquisition of land and buildings fo
r \line\up0 \expndtw0\charscalex129 product and process innovation activities in
cluding major improvements, \line \up0 \expndtw0\charscalex121 modifications and
repairs. \par\pard\qj \li1303\ri1118\sb70\sl-250\slmult0\tx1870 \up0 \expndtw0\
charscalex109 329. \tab \up0 \expndtw-7\charscalex95 \ul0\nosupersub\cf24\f25\fs
17 Machinery, instruments and equipment\ul0\nosupersub\cf23\f24\fs17 includes m
ajor instruments and \line\up0 \expndtw0\charscalex121 equipment acquired for us
e in product and process innovation activities of the \line \up0 \expndtw0\chars
calex119 firm. \par\pard\qj \li1303\ri1177\sb49\sl-252\slmult0\tx1870 \up0 \expn
dtw0\charscalex109 330. \tab \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf24\f
25\fs17 Computer software\ul0\nosupersub\cf23\f24\fs17 , in line with the
revised SNA, includes computer \line\up0 \expndtw0\charscalex123 software, pr
ogramme descriptions and supporting materials for both systems \line \up0 \expnd
tw0\charscalex122 and applications software for use in product and process innov
ation activities \up0 \expndtw0\charscalex121 of the firm. The acquisition, deve
lopment or extension of computer databases \up0 \expndtw0\charscalex121 expected
to be used for more than one year in product and process innovation \up0 \expnd
tw0\charscalex121 activities of the firm are also included. \par\pard\li824\sb0\
li824\sb0\sl-218\slmult0\par\pard\li824\sb5\sl-218\slmult0\fi0\tx8040 \up0 \expn
s20 93
}
charscalex74 \ul0\nosupersub\cf28\f29\fs19 2.2.3. Other preparations for product
and process innovations \par\pard\qj \li1303\ri1177\sb76\sl-250\slmult0\tx1870
\up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 331. \tab \up0 \expnd
tw0\charscalex120 Enterprises\u8217? development of innovations may include a nu
mber of in-\line \up0 \expndtw0\charscalex102 house activities that are not incl
uded in R&D as defined by the \ul0\nosupersub\cf24\f25\fs17 Frascati Manual\ul0\
nosupersub\cf23\f24\fs17 . \line \up0 \expndtw0\charscalex119 They include both
the later phases of development activities and, importantly, \line \up0 \expndtw
0\charscalex121 the introduction of product and process innovations that are new
to the firm, \line \up0 \expndtw0\charscalex128 but not new to the market (or,
in terms of the definition of R&D, do not \line \up0 \expndtw0\charscalex117 in
crease the stock of knowledge or contain an appreciable element of novelty). \li
ne \up0 \expndtw0\charscalex123 Development and implementation activities for th
e adoption of new goods, \line \up0 \expndtw0\charscalex131 services and process
es may represent an important share of innovation \line \up0 \expndtw0\charscale
x113 activity. \par\pard\qj \li1303\ri1117\sb70\sl-250\slmult0\tx1870 \up0 \expn
dtw0\charscalex107 332. \tab \up0 \expndtw-7\charscalex86 \ul0\nosupersub\cf24\f
25\fs17 Other preparations for product and process innovations\ul0\nosupersub\cf
23\f24\fs17 includes internal \line\up0 \expndtw0\charscalex125 activities invo
lved in the development and implementation of product and \line \up0 \expndtw0\c
harscalex119 process innovations that are not included in R&D. They include deve
lopment \line \up0 \expndtw0\charscalex120 activities that are either partially
excluded as R&D (such as industrial design, \line \up0 \expndtw0\charscalex119 e
ngineering and set-up, and trial production) or fully excluded (such as patent \
line \up0 \expndtw0\charscalex119 and licence work, production start-up and test
ing), and development activities \line \up0 \expndtw0\charscalex122 for product
or process innovations that do not meet the novelty requirement \line \up0 \expn
dtw0\charscalex115 for R&D (\ul0\nosupersub\cf24\f25\fs17 i.e.\ul0\nosupersub\cf
23\f24\fs17 they are new to the firm but not new to the market). Some of the \l
ine \up0 \expndtw0\charscalex115 elements of this category are described in grea
ter detail below. \par\pard\qj \li1303\ri1118\sb50\sl-250\slmult0\fi0\tx1870 \up
0 \expndtw0\charscalex107 333. \tab \up0 \expndtw-7\charscalex90 \ul0\nosupersub
\cf24\f25\fs17 Other development activities for services \ul0\nosupersub\cf2
3\f24\fs17 include internal activities \line\up0 \expndtw0\charscalex122 invo
lved in the planning and development of new or significantly improved \line \up0
\expndtw0\charscalex100 services that are not included in R&D (see also \ul0\no
supersub\cf24\f25\fs17 Frascati Manual\ul0\nosupersub\cf23\f24\fs17 , 145-151). \

07 334. \tab \up0 \expndtw0\charscalex124 Design can include a wide range of act
ivities aimed at planning and \line\up0 \expndtw0\charscalex122 designing proced
ures, technical specifications and other user and functional \line \up0 \expndtw
0\charscalex130 characteristics for new products and processes. Among them are i
nitial \up0 \expndtw0\charscalex119 preparations for the planning of new product
s or processes, and work on their \up0 \expndtw0\charscalex121 design and implem
entation, including adjustments and further changes. Also \up0 \expndtw-5\charsc
alex100 included is \ul0\nosupersub\cf24\f25\fs17 industrial design\ul0\nosupers
ub\cf23\f24\fs17 , as defined in the \ul0\nosupersub\cf24\f25\fs17 Frascati Manu
al\ul0\nosupersub\cf23\f24\fs17 , which involves \up0 \expndtw0\charscalex118 th
e planning of technical specifications for new products and processes. Some \up0
\expndtw0\charscalex100 elements of industrial design should be included as R&D
(see\ul0\nosupersub\cf24\f25\fs17 Frascati Manual, \up0 \expndtw0\charscalex10
0 \ul0\nosupersub\cf23\f24\fs17 124-125) if they are required for R&D. \par\pard\
qj \li1303\ri1177\sb50\sl-251\slmult0\tx1870 \up0 \expndtw0\charscalex107 335. \
tab \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf24\f25\fs17 Testing and ev
aluation\ul0\nosupersub\cf23\f24\fs17 comprise the testing of new or sig
nificantly \line\up0 \expndtw0\charscalex122 improved products or processes, whi
le testing of prototypes is part of R&D, \line \up0 \expndtw0\charscalex122 and
so is excluded here. For manufacturing, trial production and pilot plants \line
\up0 \expndtw0\charscalex128 are included if they are not already included in R&
D. Trial production is \line \up0 \expndtw0\charscalex129 included in R&D if pro
duction implies full-scale testing and subsequent \line \up0 \expndtw0\charscale
x121 further design and engineering, while pilot plants are included in R&D if t
he \line \up0 \expndtw0\charscalex117 primary purpose is R&D. Also included here
are trials and testing activities for \line \up0 \expndtw0\charscalex131 the pr
ovision of services, such as tests of how the provision of services \line \up0 \
expndtw0\charscalex139 functions with the use of new technologies or trials to e
xamine the \line \up0 \expndtw0\charscalex118 performance of significant improve
ments in existing services. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb
0\sl-230\slmult0\par\pard\li793\sb27\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\ch
arscalex105 \ul0\nosupersub\cf19\f20\fs20 94\tab \up0 \expndtw0\charscalex105 \u
l0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
upersub\cf23\f24\fs17 336. \tab \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf
24\f25\fs17 Setup and engineering\ul0\nosupersub\cf23\f24\fs17 concern changes
in production and quality control \line\up0 \expndtw0\charscalex124 procedures,
methods, standards and associated software required to produce \line \up0 \expnd
tw0\charscalex128 the new or improved product or to use the new or improved proc
ess. Also \up0 \expndtw0\charscalex123 included are changes in procedures and so
ftware required for providing new \up0 \expndtw0\charscalex120 services or the u
se of new delivery methods. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql
\li1303\sb59\sl-218\slmult0 \up0 \expndtw-8\charscalex74 \ul0\nosupersub\cf28\f2
9\fs19 2.2.4. Market preparation for product innovations \par\pard\qj \li1303\ri

3\f24\fs17 337. \tab \up0 \expndtw-7\charscalex90 \ul0\nosupersub\cf24\f25\fs17
Market preparation for product innovations\ul0\nosupersub\cf23\f24\fs17 can inc
lude preliminary market \line\up0 \expndtw0\charscalex135 research, market tests
and launch advertising for new or significantly \line \up0 \expndtw0\charscalex
119 improved goods and services. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pa
rd\ql\li1303\sb39\sl-218\slmult0 \up0 \expndtw-8\charscalex73 \ul0\nosupersub\cf
28\f29\fs19 2.2.5. Training \par\pard\qj \li1303\ri1177\sb78\sl-248\slmult0\tx18
pndtw0\charscalex113 \ul0\nosupersub\cf24\f25\fs17 Training\ul0\nosupersub\cf23\
f24\fs17 is a product or process innovation activity when it is required \line\
up0 \expndtw0\charscalex133 for implementing a product or process innovation, fo
r example so that \line \up0 \expndtw0\charscalex122 production workers are able
to identify the desired consistency of a new type \line \up0 \expndtw0\charscal
ex128 of yoghurt in a food factory, so that a marketing manager understands the
\line \up0 \expndtw0\charscalex121 characteristics of an improved braking system
on a new model of car in order \line \up0 \expndtw0\charscalex125 to prepare th
e market launch, or so that staff are able to use different Linux \line \up0 \ex
pndtw0\charscalex124 programmes after the introduction of a Linux-based PC netwo
rk in the firm. \line \up0 \expndtw0\charscalex118 This category should exclude
training that is already included in R&D. \par\pard\qj \li1303\ri1177\sb72\sl-24
8\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex109 339. \tab \up0 \expndtw0\chars
calex124 Training is not a product or process innovation activity when it is not
\line\up0 \expndtw0\charscalex129 oriented towards a specific product or proces
s innovation in the firm. For \line \up0 \expndtw0\charscalex131 example, the fo
llowing are not innovation activities: training in existing \up0 \expndtw0\chars
calex132 production methods for new employees, general upgrading training for \u
p0 \expndtw0\charscalex127 individuals (supervisors, managers, etc.), ongoing c
omputer training, and \up0 \expndtw0\charscalex126 language classes. Training fo
r the first-time introduction of new marketing \up0 \expndtw0\charscalex121 meth
ods or new organisational methods is part of activities for marketing and \up0 \
expndtw0\charscalex121 organisational innovations. \par\pard\ql \li1303\sb0\sl-2
\ul0\nosupersub\cf28\f29\fs19 2.3. Activities for marketing and organisational i
nnovations \par\pard\ql \li1303\sb103\sl-218\slmult0 \up0 \expndtw-8\charscalex7
4 2.3.1. Preparations for marketing innovations \par\pard\qj \li1303\ri1176\sb76
7 340. \tab \up0 \expndtw0\charscalex124 Preparation for marketing innovations c
omprises activities related to \line\up0 \expndtw0\charscalex137 the development
and implementation of new marketing methods not \line \up0 \expndtw0\charscalex
127 previously used by the firm. It includes development and planning of new \li
ne \up0 \expndtw0\charscalex128 marketing methods and work involved in their imp
lementation. Activities \line \up0 \expndtw0\charscalex132 related to marketing
innovations include only those for developing and \line \up0 \expndtw0\charscale
x130 implementing new marketing methods, not expenditures for using these \line
\up0 \expndtw0\charscalex123 methods in daily business (such as expenditures to
run advertisements, event \line \up0 \expndtw0\charscalex131 marketing or sponso
ring in the course of a newly introduced marketing \line \up0 \expndtw0\charscal
ex126 method). Note that this category also includes acquisition of other extern
al \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard
\li824\sb0\sl-218\slmult0\par\pard\li824\sb199\sl-218\slmult0\fi0\tx8040 \up0 \e
xpndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EU
ROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f2
0\fs20 95

}
23\f24\fs17 knowledge and of machinery, equipment and other capital goods and tr
aining \up0 \expndtw0\charscalex121 activities that are specifically related to
marketing innovations. \par\pard\qj \li1303\ri1177\sb49\sl-250\slmult0\tx1870 \u
p0 \expndtw0\charscalex109 341. \tab \up0 \expndtw0\charscalex130 Preparations
for marketing innovations may be related to the \line\up0 \expndtw0\chars
calex123 development and implementation of the four types of marketing instrumen
ts \line \up0 \expndtw0\charscalex122 typically distinguished in the business wo
rld: preparation for the introduction \up0 \expndtw0\charscalex135 of new market
ing methods in product design or packaging, in pricing \up0 \expndtw0\charscalex
122 methods, in product placement and in product promotion. \par\pard\ql \li1303
\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb59\sl-218\slmult0 \up0 \expndtw-8\char
scalex74 \ul0\nosupersub\cf28\f29\fs19 2.3.2. Preparations for organisational in
novations \par\pard\qj \li1303\ri1178\sb76\sl-250\slmult0\tx1870 \up0 \expndtw0\
25 Preparation for organisational innovations includes the development \line\up0
\expndtw0\charscalex125 and planning of new organisational methods and the work
involved in their \line \up0 \expndtw0\charscalex128 implementation. Note that
this category also includes acquisition of other \line \up0 \expndtw0\charscalex
121 external knowledge and of machinery, equipment and other capital goods and \
line \up0 \expndtw0\charscalex121 training activities that are specifically rela
ted to organisational innovations. \par\pard\qj \li1303\ri1178\sb50\sl-250\slmul
t0\tx1870 \up0 \expndtw0\charscalex109 343. \tab \up0 \expndtw0\charscalex120 Pr
eparation for organisational innovations may be distinguished by \line\up
0 \expndtw0\charscalex137 new methods in business practices, in workplace organi
sation and in \line \up0 \expndtw0\charscalex121 organisation of external relati
ons. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb39\sl-218\slm
ult0 \up0 \expndtw-8\charscalex77 \ul0\nosupersub\cf28\f29\fs19 2.4. Design \par
\pard\qj \li1303\ri1175\sb76\sl-250\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex
109 \ul0\nosupersub\cf23\f24\fs17 344. \tab \up0 \expndtw0\charscalex106 The te
rm \ul0\nosupersub\cf24\f25\fs17 product design\ul0\nosupersub\cf23\f24\fs17 ,
as used in the definition of marketing \line\up0 \expndtw0\charscalex131
innovations, refers to the form and appearance of products and not their \line
\up0 \expndtw0\charscalex124 technical specifications or other user or functiona
l characteristics. However, \line \up0 \expndtw0\charscalex123 design activities
may be understood by enterprises in more general terms, as \line \up0 \expndtw0
\charscalex121 an integral part of the development and implementation of product
or process \line \up0 \expndtw0\charscalex119 innovations, as described in Sect
ion 2.2.3 of this chapter. The categorisation of \line \up0 \expndtw0\charscalex
119 design activities will thus depend on the type of innovation they are relate
d to. \par\pard\qj \li1303\ri1117\sb74\sl-246\slmult0\tx1870 \up0 \expndtw0\char
scalex109 345. \tab \up0 \expndtw0\charscalex124 All design activities for t
he development and implementation of \line\up0 \expndtw0\charscalex122 produ
ct innovations (including work on form and appearance) and of process \line \up0
\expndtw-6\charscalex100 innovations should be included either in \ul0\nosupers
ub\cf24\f25\fs17 R&D\ul0\nosupersub\cf23\f24\fs17 or in \ul0\nosupersub\cf24\f2
5\fs17 other preparations for product \up0 \expndtw-7\charscalex72 and process i
nnovations\ul0\nosupersub\cf23\f24\fs17 . \par\pard\qj \li1303\ri1117\sb71\sl-25
x127 Work related to changes in product design that are marketing \line
\up0 \expndtw0\charscalex130 innovations (and not product innovations, \ul0\
nosupersub\cf24\f25\fs17 i.e.\ul0\nosupersub\cf23\f24\fs17 where the function
al \line \up0 \expndtw0\charscalex132 characteristics or intended uses of t
he product in question are not \line \up0 \expndtw0\charscalex103 significa
ntly improved) should be included in \ul0\nosupersub\cf24\f25\fs17 Preparations
for marketing \line \up0 \expndtw-7\charscalex74 innovations\ul0\nosupersub\cf23
\f24\fs17 . \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb39\sl218\slmult0 \up0 \expndtw-8\charscalex74 \ul0\nosupersub\cf28\f29\fs19 2.5. The
borderline between R&D and non-R&D innovation activities \par\pard\li1303\sb135\
sl-195\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex124 \ul0\nosupersub\cf23\f24\
fs17 347.\tab \up0 \expndtw0\charscalex125 Enterprises may have difficulty
differentiating between R&D\par\pard\li1303\sb55\sl-195\slmult0\fi0 \up0
\expndtw0\charscalex125 expenditure and other innovation activities, especially
at the borderline\par\pard\li1303\sb57\sl-195\slmult0\fi0 \up0 \expndtw0\charsca
lex125 between R&D and non-R&D activity. Care must be taken to exclude from R&D\
par\pard\li1303\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex125 any activit
ies that are part of the innovation process but rarely involve any\par\pard\li79
w0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 96\tab \up0 \expndtw0\charscalex1
2005
}
\li1303\ri1118\sb170\sl-253\slmult0 \up0 \expndtw-7\charscalex70 \ul0\nosupersub
\cf23\f24\fs17 R&D \ul0\nosupersub\cf24\f25\fs17 (e.g. patent work, licensing, m
arket research, manufacturing start-up, process re\up0 \expndtw0\charscalex102 e
ngineering, tooling up)\ul0\nosupersub\cf23\f24\fs17 . At the same time, some ac
tivities are at least partly \up0 \expndtw-7\charscalex84 counted as R&D \ul0\
nosupersub\cf24\f25\fs17 (e.g. pilot plants, prototypes, industrial design,
process \line \up0 \expndtw-7\charscalex77 development)\ul0\nosupersub\cf23\f2
4\fs17 . \par\pard\qj \li1303\ri1177\sb47\sl-253\slmult0\fi0\tx1869 \up0 \expndt
w0\charscalex109 348. \tab \up0 \expndtw0\charscalex121 Distinguishing R&D and
other innovation activities is particularly \line\up0 \expndtw0\charscalex
102 difficult for services (see\ul0\nosupersub\cf24\f25\fs17 Frascati Manual,\u
l0\nosupersub\cf23\f24\fs17 145-151), owing in part to the fact \line \up0 \expn
dtw0\charscalex125 that innovation activities in services tend to be less formal
ly organised, and \up0 \expndtw0\charscalex119 that R&D is less well defined for
services than for manufacturing. \par\pard\qj \li1303\ri1176\sb50\sl-250\slmult
0\fi0\tx1870 \up0 \expndtw0\charscalex107 349. \tab \up0 \expndtw0\charscalex116
The basic criteria for distinguishing R&D activities from non-R&D \line
\up0 \expndtw0\charscalex122 innovation activities are \u8220?the presence in R&
D of an appreciable element of \line \up0 \expndtw0\charscalex123 novelty and th
e resolution of scientific and/or technological uncertainty\u8221? or \line \up0
\expndtw0\charscalex129 that they \u8220?result in new knowledge or use of kno
wledge to devise new \line \up0 \expndtw0\charscalex100 applications\u8221? (see
\ul0\nosupersub\cf24\f25\fs17 Frascati Manual\ul0\nosupersub\cf23\f24\fs17 , 84

and 146). These criteria imply \u8220?that a \line \up0 \expndtw0\charscalex119
particular project may be R&D if undertaken for one reason, but not if carried
\line \up0 \expndtw0\charscalex103 out for another\u8221? (\ul0\nosupersub\cf24\
f25\fs17 Frascati Manual,\ul0\nosupersub\cf23\f24\fs17 85). It is recommended t
hat the guidelines \line \up0 \expndtw0\charscalex109 in the \ul0\nosupersub\cf2
4\f25\fs17 Frascati Manual\ul0\nosupersub\cf23\f24\fs17 , 110-130 and 145-151, s
hould be applied to \line \up0 \expndtw0\charscalex109 innovation surveys. \par\
pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb59\sl-218\slmult0 \up0
\expndtw-8\charscalex73 \ul0\nosupersub\cf28\f29\fs19 2.6. The development and u
se of software in innovation activities \par\pard\qj \li1303\ri1176\sb78\sl-248\
tab \up0 \expndtw0\charscalex120 The development, acquisition, adaptation and us
e of software pervade \line\up0 \expndtw0\charscalex125 innovation activities. D
eveloping new or substantially improved software, \line \up0 \expndtw0\charscale
x134 either as a commercial product or for use as an in-house process (an \line
\up0 \expndtw0\charscalex119 innovation in its own right), involves research an
d experimental development \line \up0 \expndtw0\charscalex121 and a range of pos
t-R&D activities. In addition, all types of innovations may \line \up0 \expndtw0
\charscalex127 involve the acquisition and adaptation of software; the software
is not an \line \up0 \expndtw0\charscalex118 innovation in itself but is require
d for the development and implementation of \line \up0 \expndtw0\charscalex118 i
nnovations. \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb17\sl-24
1\slmult0 \up0 \expndtw0\charscalex119 \ul0\nosupersub\cf22\f23\fs21 3. Collecti
ng data on innovation activities \par\pard\li1303\sb135\sl-195\slmult0\fi0\tx187
0 \up0 \expndtw0\charscalex124 \ul0\nosupersub\cf23\f24\fs17 351.\tab \up0 \expn
dtw0\charscalex124 Summarising the section above, innovation activities can be b
roken\par\pard\li1303\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex124 down
as follows:\par\pard\ql \li1303\sb99\sl-195\slmult0 \up0 \expndtw0\charscalex123
Research and experimental development \par\pard\qj \li1303\ri1177\sb83\sl-246\s
lmult0 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf24\f25\fs17 Intramural (i
n-house) R&D: \ul0\nosupersub\cf23\f24\fs17 Creative work undertaken on a system
atic basis \up0 \expndtw0\charscalex120 within the enterprise in order to increa
se the stock of knowledge and use it to \up0 \expndtw0\charscalex118 devise new
applications. This comprises all R&D conducted by the enterprise, \up0 \expndtw0
\charscalex118 including basic research. \par\pard\qj \li1303\ri1179\sb71\sl-250
\slmult0 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf24\f25\fs17 Acquisition
of extramural R&D: \ul0\nosupersub\cf23\f24\fs17 Same activities as intramural
R&D, but \up0 \expndtw0\charscalex132 purchased from public or private research
organisations or from other \up0 \expndtw0\charscalex120 enterprises (including
other enterprises within the group). \par\pard\li824\sb0\sl-218\slmult0\par\pard
l-218\slmult0\par\pard\li824\sb101\sl-218\slmult0\fi0\tx8040 \up0 \expndtw0\char
scalex105 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMU
NITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupersub\cf19\f20\fs20 97
}

1303\sb0\sl-195\slmult0 \par\pard\ql\li1303\sb81\sl-195\slmult0 \up0 \expndtw0\c
harscalex123 \ul0\nosupersub\cf23\f24\fs17 Activities for product and process in
novations \par\pard\qj \li1508\ri1117\sb83\sl-246\slmult0 \up0 \expndtw-7\charsc
alex97 \ul0\nosupersub\cf24\f25\fs17 Acquisition of other external knowledge:\ul
0\nosupersub\cf23\f24\fs17 Acquisition of rights to use patents \up0 \expndtw0\
charscalex127 and non-patented inventions, trademarks, know-how and other types
of \up0 \expndtw0\charscalex123 knowledge from other enterprises and institution
s such as universities and \up0 \expndtw0\charscalex120 government research inst
itutions, other than R&D. \par\pard\qj \li1508\ri1117\sb71\sl-250\slmult0 \up0 \
expndtw-7\charscalex84 \ul0\nosupersub\cf24\f25\fs17 Acquisition of machinery, e
quipment and other capital goods:\ul0\nosupersub\cf23\f24\fs17 Acquisition of \
line \up0 \expndtw0\charscalex121 advanced machinery, equipment, computer hardwa
re or software, and land \line \up0 \expndtw0\charscalex123 and buildings (inclu
ding major improvements, modifications and repairs), \line \up0 \expndtw0\charsc
alex122 that are required to implement product or process innovations. Acquisiti
on \line \up0 \expndtw0\charscalex120 of capital goods that is included in intra
mural R&D activities is excluded. \par\pard\qj \li1508\ri1116\sb50\sl-250\slmult
0 \up0 \expndtw-7\charscalex81 \ul0\nosupersub\cf24\f25\fs17 Other preparations
for product and process innovations:\ul0\nosupersub\cf23\f24\fs17 Other
activities \up0 \expndtw0\charscalex128 related to the development and implemen
tation of product and process \up0 \expndtw0\charscalex123 innovations, such as
design, planning and testing for new products (goods \up0 \expndtw0\charscalex12
9 and services), production processes, and delivery methods that are not \up0 \e
xpndtw0\charscalex115 already included in R&D. \par\pard\qj \li1508\ri1120\sb79\
sl-240\slmult0 \up0 \expndtw-7\charscalex94 \ul0\nosupersub\cf24\f25\fs17 Market
preparations for product innovations:\ul0\nosupersub\cf23\f24\fs17 Activities
aimed at the market \up0 \expndtw-7\charscalex94 introduction of new or signific
antly improved goods or services. \par\pard\qj \li1508\ri1179\sb80\sl-240\slmult
0 \up0 \expndtw0\charscalex110 \ul0\nosupersub\cf24\f25\fs17 Training:\ul0\nosup
ersub\cf23\f24\fs17 Training (including external training) linked to the develo
pment of \up0 \expndtw0\charscalex110 product or process innovations and their i
mplementation. \par\pard\ql \li1303\sb118\sl-195\slmult0 \up0 \expndtw0\charscal
ex124 Activities for marketing and organisational innovations \par\pard\ql \li13
03\ri1116\sb58\sl-253\slmult0\tx1508\tx1508\tx1508 \up0 \expndtw-7\charscalex91
\ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Preparation
s for marketing innovations:\ul0\nosupersub\cf23\f24\fs17
Activities
related to the \line\tab \up0 \expndtw0\charscalex128 development and implem
entation of new marketing methods. Includes \line \tab \up0 \expndtw0\charscalex
130 acquisition of other external knowledge and other capital goods that is \lin
e \tab \up0 \expndtw0\charscalex120 specifically related to marketing innovation
s. \par\pard\ql \li1303\ri1115\sb47\sl-253\slmult0\tx1508\tx1508\tx1508 \up0 \ex
pndtw-7\charscalex90 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f
25\fs17 Preparations for organisational innovations:\ul0\nosupersub\cf23\f2
4\fs17 Activities undertaken for the \line\tab \up0 \expndtw0\charscalex132 pla
nning and implementation of new organisation methods. Includes \line \tab \up0 \
expndtw0\charscalex130 acquisition of other external knowledge and other capital
goods that is \line \tab \up0 \expndtw0\charscalex120 specifically related to o
rganisational innovations. \par\pard\qj \li1303\ri1117\sb50\sl-250\slmult0\tx186
9 \up0 \expndtw0\charscalex109 352. \tab \up0 \expndtw0\charscalex124 Total exp
enditure for innovation activities comprises current and \line\up0 \expndt
w0\charscalex131 capital expenditure incurred for the innovation activities defi
ned above. \line \up0 \expndtw0\charscalex129 Current innovation expenditures ar
e composed of labour costs and other \line \up0 \expndtw0\charscalex128 current
costs. Capital expenditures for innovations are composed of gross \line \up0 \ex
pndtw0\charscalex127 expenditures on land and buildings, on instruments and equi
pment and on \line \up0 \expndtw0\charscalex122 computer software. Capital expen
ditures that are part of R&D are included in \line \up0 \expndtw0\charscalex109
\ul0\nosupersub\cf24\f25\fs17 intramural R&D\ul0\nosupersub\cf23\f24\fs17 , whil
e non-R&D capital expenditures linked to product and \line \up0 \expndtw-7\chars
calex89 process innovations are included in \ul0\nosupersub\cf24\f25\fs17 acquis

ition of machinery, equipment and other \line \up0 \expndtw0\charscalex106 capit
al goods.\ul0\nosupersub\cf23\f24\fs17 Non-R&D capital expenditures specificall
y linked to marketing or \line \up0 \expndtw-7\charscalex94 organisational innov
ations are included in \ul0\nosupersub\cf24\f25\fs17 preparations for marketing
innovations \line \up0 \expndtw-7\charscalex97 \ul0\nosupersub\cf23\f24\fs17 and
\ul0\nosupersub\cf24\f25\fs17 preparations for organisational innovations\ul0\n
osupersub\cf23\f24\fs17 , respectively. The remaining \line \up0 \expndtw-7\char
scalex97 categories of innovation activity consist solely of current expenditure
li793\sb67\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex105 \ul0\nosupersu
b\cf19\f20\fs20 98\tab \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf18\f19\fs1
}
upersub\cf23\f24\fs17 353. \tab \up0 \expndtw0\charscalex125 Innovation surveys
can collect both qualitative and quantitative data \line\up0 \expndtw0\charscale
x120 on innovation activities. Qualitative data involves questions on whether or
not \line \up0 \expndtw0\charscalex123 enterprises have engaged in an innovatio
n activity. Quantitative data involve \up0 \expndtw0\charscalex123 questions on
expenditures for an innovation activity. \par\pard\qj \li1303\ri1177\sb50\sl-250
\slmult0\tx1870 \up0 \expndtw0\charscalex109 354. \tab \up0 \expndtw0\charscalex
123 Innovation expenditure data are among the most important and are in \line\up
0 \expndtw0\charscalex131 demand both for research and policy. However, innovati
on expenditure \line \up0 \expndtw0\charscalex125 questions are also among the m
ost difficult and time-consuming to answer. \up0 \expndtw0\charscalex134 Innovat
ion surveys may consider limiting the number of categories of \up0 \expndtw0\cha
rscalex122 innovation activities for quantitative questions. \par\pard\qj \li130
3\ri1177\sb72\sl-248\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex107 355. \tab \
up0 \expndtw0\charscalex124 Difficulty in reporting innovation expenditure raise
s two issues that \line\up0 \expndtw0\charscalex123 innovation surveys may consi
der when designing quantitative questions on \line \up0 \expndtw0\charscalex119
innovation activities. The first is the response burden. While activities such a
s \line \up0 \expndtw0\charscalex120 R&D may be confined to one department, inno
vation activity may take place \line \up0 \expndtw0\charscalex120 throughout the
enterprise. In addition, expenditures on a number of activities \line \up0 \exp
ndtw0\charscalex129 may not be directly available from enterprises\u8217?
accounting systems. \line \up0 \expndtw0\charscalex129 Expenditure questions ar
e thus likely to be the most time-consuming to \line \up0 \expndtw0\charscalex12
1 answer, and detailed questions on expenditure may therefore have an impact \li
ne \up0 \expndtw0\charscalex134 on unit and item response rates. This is of part
icular concern for non-\line \up0 \expndtw0\charscalex120 mandatory surveys. \pa
356. \tab \up0 \expndtw0\charscalex121 A second, related issue is the quality o
f the data. Data quality is likely \line\up0 \expndtw0\charscalex118 to be best
for expenditures that can be extracted from accounting information; \line \up0 \
expndtw0\charscalex128 other expenditures may be rough estimates, if given at al
l. Questionnaire \line \up0 \expndtw0\charscalex129 design, the number of expend
iture categories and wording may be very \line \up0 \expndtw0\charscalex121 impo
rtant for the quality of the data collected on innovation expenditure. \par\pard
\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb39\sl-218\slmult0 \up0 \exp
ndtw-8\charscalex74 \ul0\nosupersub\cf28\f29\fs19 3.1. Qualitative data on innov
ation activity \par\pard\qj \li1303\ri1177\sb76\sl-250\slmult0\tx1870 \up0 \expn
alex129 It is recommended that qualitative data be collected on innovation \line
\up0 \expndtw0\charscalex131 activities. Questions on whether or not firms have
engaged in the above \line \up0 \expndtw0\charscalex128 activities can either re
fer to a single year or the entire observation period. \up0 \expndtw0\charscalex
125 Surveys may wish to collect qualitative data on all categories of innovation
\up0 \expndtw0\charscalex123 activities or on a subset of these. The multi-year
approach has the advantage \up0 \expndtw0\charscalex137 of capturing innovation
activity for enterprises that may not perform \up0 \expndtw0\charscalex120 inno
vation activity on a regular basis. \par\pard\qj \li1303\ri1177\sb74\sl-246\slmu
lt0\tx1869 \up0 \expndtw0\charscalex109 358. \tab \up0 \expndtw0\charscalex127 A
dditional information can also be collected on individual types of \line\up0 \ex
pndtw0\charscalex126 innovation activities. Examples are whether R&D activity is
continuous or \line \up0 \expndtw0\charscalex121 occasional, which types of ext
ernal knowledge the enterprise has acquired, or \up0 \expndtw0\charscalex121 a s
eparate question on software expenditures. \par\pard\ql \li1303\sb0\sl-218\slmul
t0 \par\pard\ql\li1303\sb60\sl-218\slmult0 \up0 \expndtw-8\charscalex73 \ul0\nos
upersub\cf28\f29\fs19 3.1.1. Other qualitative indicators of innovation activity
\par\pard\li1303\sb120\sl-195\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex119 \
ul0\nosupersub\cf23\f24\fs17 359.\tab \up0 \expndtw0\charscalex120 Information o
n employee characteristics, such as the level of education\par\pard\li1303\sb55\
sl-195\slmult0\fi0 \up0 \expndtw0\charscalex120 and number of technical staff, c
an also be collected in innovation surveys. For\par\pard\li824\sb0\sl-218\slmult
- OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex105 \ul0\nosupers
ub\cf19\f20\fs20 99
}
0\sl-161\slmult0 \par\pard\ql\li793\sb65\sl-161\slmult0 \up0 \expndtw0\charscale
x100 \ul0\nosupersub\cf21\f22\fs14 OSLO MANUAL: GUIDELINES FOR COLLECTING AND IN
TERPRETING INNOVATION DATA \par\pard\qj \li1303\sb0\sl-251\slmult0 \par\pard\qj\
li1303\ri1177\sb174\sl-251\slmult0 \up0 \expndtw0\charscalex119 \ul0\nosupersub\
cf23\f24\fs17 example, the share of employees with a higher education certificat
e or degree \line \up0 \expndtw0\charscalex116 (ISCED 5-6) and the share of pers
onnel involved in innovation or R&D activity \line \up0 \expndtw0\charscalex125
can be used as supplementary measures of the innovation capability of the \line
\up0 \expndtw0\charscalex125 firm\u8217?s knowledge stock and employees. Further
more, most enterprises are \line \up0 \expndtw0\charscalex128 likely to possess
information on their employees\u8217? level of education. An \line \up0 \expndtw
0\charscalex122 additional qualitative indicator is whether enterprises particip
ate in national \line \up0 \expndtw0\charscalex126 or supranational programmes t

hat provide financial support for employee \line \up0 \expndtw0\charscalex120 ed
ucation/training or for the employment of research personnel. \par\pard\ql \li13
03\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb39\sl-218\slmult0 \up0 \expndtw-8\ch
arscalex74 \ul0\nosupersub\cf28\f29\fs19 3.2. Quantitative data on innovation ac
tivity \par\pard\qj \li1303\ri1178\sb76\sl-250\slmult0\tx1870 \up0 \expndtw0\cha
For the collection of quantitative data on innovation expenditures, it \line\up0
\expndtw0\charscalex134 is recommended that a breakdown by type of activity sho
uld be used \line \up0 \expndtw0\charscalex121 (see Section 3 of this chapter).
Surveys may wish to collect quantitative data \line \up0 \expndtw0\charscalex124
on all categories of innovation activities or, as innovation expenditures are \
line \up0 \expndtw0\charscalex119 difficult to measure, surveys may opt to colle
ct data on a subset of these. \par\pard\qj \li1303\ri1178\sb74\sl-246\slmult0\tx
1870 \up0 \expndtw0\charscalex107 361. \tab \up0 \expndtw0\charscalex119 Innovat
ion expenditure can also be broken down by type of \line\up0 \
expndtw0\charscalex134 expenditure (current innovation expenditure vs. capital
expenditures \line \up0 \expndtw0\charscalex131 for innovations ) and by sou
rce of funds . These are discussed in \up0 \expndtw0\charscalex114 Section
s 3.4 and 3.5. \par\pard\qj \li1303\ri1177\sb73\sl-248\slmult0\tx1870 \up0 \expn
dtw0\charscalex107 362. \tab \up0 \expndtw0\charscalex122 While collecting data
on innovation activities for a multi-year period \line\up0 \expndtw0\charscalex1
23 may be feasible for qualitative questions on innovation activities, restricte
d \line \up0 \expndtw0\charscalex133 availability of data within firms is a seri
ous obstacle to the multi-year \up0 \expndtw0\charscalex131 approach for quant
itative data . Therefore, it is recommended that \up0 \expndtw0\charscalex
124 quantitative questions on innovation expenditure refer only to the last year
\up0 \expndtw0\charscalex121 of the observation period, the reference year. \pa
363. \tab \up0 \expndtw0\charscalex124 Concerning capital purchases, expe
nditures for the category, \line\up0 \expndtw-7\charscalex86 \ul0\nosupers
ub\cf24\f25\fs17 acquisition of machinery, equipment and other capital goods,\ul
0\nosupersub\cf23\f24\fs17 should exclude \line \up0 \expndtw0\charscalex113 pu
rchases of capital goods that are already included in \ul0\nosupersub\cf24\f25\f
s17 intramural R&D. \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf23\f24\fs17 P
urchases of capital goods should be included in full for the period in which \up
0 \expndtw0\charscalex118 they took place. All depreciation provisions for build
ing, plant and equipment, \up0 \expndtw0\charscalex131 whether real or imputed,
should be excluded from the measurement of \up0 \expndtw0\charscalex121 intramur
al expenditure. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870 \up0 \exp
ndtw0\charscalex107 364. \tab \up0 \expndtw0\charscalex119 Enterprises often fac
e severe problems for supplying reliable estimates \line\up0 \expndtw0\charscale
x118 of capital expenditure for innovation activities. To assist them, data on \
ul0\nosupersub\cf24\f25\fs17 total \line \up0 \expndtw0\charscalex106 capital ex
penditure\ul0\nosupersub\cf23\f24\fs17 (including capital expenditure not relat
ed to innovation \up0 \expndtw0\charscalex118 activities) can be collected as we
ll. This will help in checking the reliability of \up0 \expndtw0\charscalex118 i
nnovation expenditure data. \par\pard\li1303\sb118\sl-195\slmult0\fi0\tx1870 \up
0 \expndtw0\charscalex126 365.\tab \up0 \expndtw0\charscalex126 Some innovations
span more than one type of innovation. An example\par\pard\li1303\sb57\sl-195\s
lmult0\fi0 \up0 \expndtw0\charscalex126 is the implementation of a marketing inn
ovation that is connected to a\par\pard\li1303\sb56\sl-195\slmult0\fi0 \up0 \exp
ndtw0\charscalex127 product innovation. In order to avoid double counting, innov
ation surveys\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult
9 \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 100\tab \up0 \expnd
AN COMMUNITIES 2005
}
101}{\bkmkend Pg101}\par\pard\ql \li2241\sb0\sl-161\slmult0 \par\pard\ql\li2241\
sb0\sl-161\slmult0 \par\pard\ql\li2241\sb65\sl-161\slmult0 \up0 \expndtw0\charsc
alex100 \ul0\nosupersub\cf21\f22\fs14 OSLO MANUAL: GUIDELINES FOR COLLECTING AND
INTERPRETING INNOVATION DATA \par\pard\qj \li1303\sb0\sl-260\slmult0 \par\pard\
qj\li1303\ri1179\sb158\sl-260\slmult0 \up0 \expndtw0\charscalex130 \ul0\nosupers
ub\cf23\f24\fs17 should ensure that innovation expenditures are included in no m
ore than \up0 \expndtw0\charscalex122 one category of innovation activities. \pa
r\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb37\sl-218\slmult0 \up
0 \expndtw-8\charscalex77 \ul0\nosupersub\cf28\f29\fs19 3.3. Other measurement i
ssues \par\pard\ql \li1303\sb123\sl-218\slmult0 \up0 \expndtw-8\charscalex74 3.3
.1. Intramural and extramural expenditure \par\pard\qj \li1303\ri1178\sb76\sl-25
0\slmult0\tx1870 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 366.
\tab \up0 \expndtw0\charscalex121 While most innovation activities are separate
d according to intramural \line\up0 \expndtw0\charscalex128 and extramural expen
ditures, full separation may not be feasible for most \line \up0 \expndtw0\chars
calex123 enterprises and is not recommended. \par\pard\qj \li1303\ri1178\sb49\sl
-252\slmult0\tx1870 \up0 \expndtw0\charscalex109 367. \tab \up0 \expndtw0\charsc
alex128 The inclusion of extramural expenditures is important at the micro \line
\up0 \expndtw0\charscalex122 level for measuring expenditures for individual ent
erprises. However, special \line \up0 \expndtw0\charscalex133 care must be taken
when aggregating individual enterprise amounts to \line \up0 \expndtw0\charscal
ex124 industry or national figures, because of double counting. Double counting
is \line \up0 \expndtw0\charscalex127 most likely to occur for extramural R&D an
d acquisition of other external \line \up0 \expndtw0\charscalex118 knowledge. \p
ar\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb39\sl-218\slmult0 \u
p0 \expndtw-8\charscalex74 \ul0\nosupersub\cf28\f29\fs19 3.4. Breakdown by type
of expenditure \par\pard\qj \li1303\ri1116\sb76\sl-250\slmult0\fi0\tx1870 \up0 \
arscalex126 Expenditure for innovation activities may also be broken down into \
line\up0 \expndtw0\charscalex134 current and capital expenditure. This can be us
eful if the data are to be \line \up0 \expndtw0\charscalex134 compared with thos
e on intangible investment, with which innovation \line \up0 \expndtw0\charscale
x127 expenditure is sometimes confused (see Section 3.4.1 below). Among the \li
ne \up0 \expndtw0\charscalex128 categories of innovation activities, capital exp
enditures for innovation are \line \up0 \expndtw-7\charscalex78 included in \ul0
\nosupersub\cf24\f25\fs17 intramural R&D\ul0\nosupersub\cf23\f24\fs17 , \ul0\nos
upersub\cf24\f25\fs17 acquisition of machinery, equipment and other capital \lin
e \up0 \expndtw-7\charscalex97 goods, \ul0\nosupersub\cf23\f24\fs17 and potentia
lly also in\ul0\nosupersub\cf24\f25\fs17 preparations for marketing innovations
\ul0\nosupersub\cf23\f24\fs17 and \line \up0 \expndtw-7\charscalex94 \ul0\nosup
ersub\cf24\f25\fs17 preparation for organisational innovations\ul0\nosupersub\cf
23\f24\fs17 . All other categories consist solely of \line \up0 \expndtw0\charsc
alex131 current expenditures. Thus, it may be possible to obtain a breakdown of
\line \up0 \expndtw0\charscalex120 innovation expenditure by type of expenditure
by asking enterprises to specify \line \up0 \expndtw-7\charscalex79 \ul0\nosupe
rsub\cf24\f25\fs17 R&D\ul0\nosupersub\cf23\f24\fs17 , \ul0\nosupersub\cf24\f25\f
s17 preparations for marketing innovations\ul0\nosupersub\cf23\f24\fs17 and \ul
0\nosupersub\cf24\f25\fs17 preparations for organisational \line \up0 \expndtw0\
charscalex108 innovations \ul0\nosupersub\cf23\f24\fs17 according to current and
capital expenditures. However, given that \line \up0 \expndtw0\charscalex123 th
is would increase response burdens and that R&D expenditure is collected \line \
up0 \expndtw0\charscalex138 in considerable detail through other surveys in mo
st countries, this \line \up0 \expndtw0\charscalex121 breakdown is not recommen
ded for general innovation surveys. \par\pard\qj \li1303\ri1118\sb79\sl-240\slmu
lt0\tx1870 \up0 \expndtw0\charscalex109 369. \tab \up0 \expndtw0\charscalex106 C
urrent innovation expenditures are composed of \ul0\nosupersub\cf24\f25\fs1
7 labour costs\ul0\nosupersub\cf23\f24\fs17 and \line\up0 \expndtw-7\charsca
lex71 \ul0\nosupersub\cf24\f25\fs17 other current costs: \par\pard\ql \li1303\ri
1175\sb74\sl-248\slmult0\tx1508\tx1508\tx1508\tx1508\tx1508 \up0 \expndtw0\chars
calex107 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 La
bour costs\ul0\nosupersub\cf23\f24\fs17 comprise annual wages and salaries and
all associated costs of \line\tab \up0 \expndtw0\charscalex131 fringe benefits s
uch as bonus payments, holiday pay, contributions to \line \tab \up0 \expndtw0\c
harscalex126 pension funds and other social security payments and payroll taxes.
The \line \tab \up0 \expndtw0\charscalex132 labour costs of persons not involve
d in innovation activities (such as \line \tab \up0 \expndtw0\charscalex128 sec
urity personnel and maintenance staff) should be excluded here and \line \tab \u
p0 \expndtw0\charscalex123 included under other current costs. \par\pard\li824\s
mult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb161\sl-218\slmult0\fi0\
}
TERPRETING INNOVATION DATA \par\pard\ql \li1303\sb0\sl-250\slmult0 \par\pard\ql\
li1303\ri1177\sb176\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw0\charscalex103 \u
l0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf24\f25\fs17 Other current
costs \ul0\nosupersub\cf23\f24\fs17 comprise non-capital purchases of materials
, supplies, \line\tab \up0 \expndtw0\charscalex125 services and equipment to sup
port innovation activities performed by the \line \tab \up0 \expndtw0\charscalex
118 firm in a given year. \par\pard\ql \li1303\sb116\sl-195\slmult0\tx1870 \up0
\expndtw0\charscalex109 370. \tab \up0 \expndtw0\charscalex122 Capital expenditu
res for innovations are defined above. \par\pard\qj \li1303\sb0\sl-240\slmult0 \
par\pard\qj\li1303\ri1689\sb8\sl-240\slmult0 \up0 \expndtw-8\charscalex73 \ul0\n
osupersub\cf28\f29\fs19 3.4.1. The relation between intangible investment and in
novation \up0 \expndtw-8\charscalex74 expenditure \par\pard\qj \li1303\ri1178\sb
s17 371. \tab \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf24\f25\fs17 Intangi
ble investment\ul0\nosupersub\cf23\f24\fs17 covers all non-capital expenditure
for the firm\u8217?s \line\up0 \expndtw0\charscalex120 development which is expe
cted to give a return over a longer period than the \line \up0 \expndtw0\charsca
lex119 year in which it is incurred. It is generally taken to cover expenditure
on non\up0 \expndtw0\charscalex133 routine marketing, training, software and som
e other similar items, in \up0 \expndtw0\charscalex117 addition to current expen
diture on R&D. \par\pard\qj \li1303\ri1117\sb50\sl-250\slmult0\tx1870 \up0 \expn
dtw0\charscalex107 372. \tab \up0 \expndtw-7\charscalex97 \ul0\nosupersub\cf24\f
25\fs17 Current expenditure on innovation\ul0\nosupersub\cf23\f24\fs17 is

clearly a part of intangible \line\up0 \expndtw0\charscalex121 investment, b
ut intangible investment comprises elements which are not part \line \up0 \expnd
tw0\charscalex122 of current innovation expenditure. For example, only training
in connection \up0 \expndtw0\charscalex123 with the introduction of innovations
is classified as innovation expenditure, \up0 \expndtw0\charscalex120 whereas in
tangible investment includes all of the firm\u8217?s training expenditure. \up0
\expndtw0\charscalex133 Marketing in connection with the introduction of new pro
ducts or the \up0 \expndtw0\charscalex122 development and implementation of new
marketing methods is classified as \up0 \expndtw0\charscalex119 innovation expen
diture. Intangible investment, on the other hand, includes all \up0 \expndtw0\ch
arscalex119 marketing expenditure in general. \par\pard\qj \li1303\ri1178\sb70\s
calex118 At the same time, innovation expenditure includes tangible investment \
line\up0 \expndtw0\charscalex123 such as capital expenditure on R&D, and the acq
uisition of new machinery \line \up0 \expndtw0\charscalex121 and equipment relat
ed to innovations. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\s
5. Breakdown by source of funds \par\pard\qj \li1303\ri1177\sb74\sl-253\slmult0\
tx1870 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 374. \tab \up0
\expndtw0\charscalex125 It is important to know how innovation expenditure is f
inanced, for \line\up0 \expndtw0\charscalex120 instance in order to evaluate the
role of public policy and internationalisation \line \up0 \expndtw0\charscalex1
19 in the innovation process. The following classification by source of funds ca
n \line \up0 \expndtw0\charscalex119 be used: \par\pard\ql \li1303\sb95\sl-195\s
lmult0 \up0 \expndtw0\charscalex119 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\no
supersub\cf23\f24\fs17 Own funds. \par\pard\qj \li1303\ri1725\sb39\sl-300\slmu
ersub\cf23\f24\fs17 Funds from related companies (subsidiary or associated com
panies). \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\
nosupersub\cf23\f24\fs17 Funds from other (non-financial) enterprises. \par\pa
rd\qj \li1303\ri1885\sb21\sl-300\slmult0 \up0 \expndtw0\charscalex120 \ul0\nosup
ersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Funds from financial
companies (bank loans, venture capital, etc.). \up0 \expndtw0\charscalex121 \ul0
\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Funds from gove
rnment (loans, grants, etc.). \par\pard\qj \li1303\ri1765\sb21\sl-300\slmult0 \u
cf23\f24\fs17 Funds from supranational and international organisations (EU, et
c.). \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosu
persub\cf23\f24\fs17 Other sources. \par\pard\qj \li1303\ri1178\sb70\sl-240\sl
mult0 \up0 \expndtw0\charscalex123 In addition, external sources of funds can be
broken down into domestic and \up0 \expndtw0\charscalex123 international source
s of funds. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0
\par\pard\li793\sb109\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex106 \ul
0\nosupersub\cf19\f20\fs20 102\tab \up0 \expndtw0\charscalex106 \ul0\nosupersub\
}

qj\li1303\ri1177\sb176\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex109 \ul0\n
osupersub\cf23\f24\fs17 375. \tab \up0 \expndtw0\charscalex122 Where survey desi
gners wish to cover these topics, it may be enough, \line\up0 \expndtw0\charscal
ex123 for a variety of policy and research issues, to collect information on whe
ther \line \up0 \expndtw0\charscalex120 or not each source is used, instead of s
eeking an estimate, probably imprecise, \up0 \expndtw0\charscalex125 of the amou
nt (either in monetary or percentage terms) contributed by each \up0 \expndtw0\c
harscalex120 source. This will considerably reduce the response burden on firms,
and hence \up0 \expndtw0\charscalex131 increase the total survey response rate
and cut item non-response to this \up0 \expndtw0\charscalex137 question. Owing t
o concerns regarding response burdens for general \up0 \expndtw0\charscalex123 i
nnovations surveys, the Manual makes no recommendation on the extent of \up0 \ex
pndtw0\charscalex118 coverage of sources of funds. \par\pard\qj \li1303\ri1177\s
charscalex126 To evaluate the role of government procurement in innovati
on \line\up0 \expndtw0\charscalex140 processes, it is useful to know whether or
not a firm participates in \line \up0 \expndtw0\charscalex126 government procure
ment of innovative products and processes at regional, \up0 \expndtw0\charscalex
122 national or international levels. \par\pard\ql \li1303\sb0\sl-218\slmult0 \p
ar\pard\ql\li1303\sb60\sl-218\slmult0 \up0 \expndtw-8\charscalex75 \ul0\nosupers
ub\cf28\f29\fs19 3.6. The subject approach versus the object approach \par\pard\
li1303\sb125\sl-195\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex120 \ul0\nosuper
sub\cf23\f24\fs17 377.\tab \up0 \expndtw0\charscalex120 Survey questions on inno
vation expenditure may be formulated in two\par\pard\li1303\sb55\sl-195\slmult0\
fi0 \up0 \expndtw0\charscalex120 ways:\par\pard\qj \li1303\ri1178\sb76\sl-240\sl
mult0\tx1508 \up0 \expndtw0\charscalex124 \ul0\nosupersub\cf27\f28\fs14 \u9679?\
ul0\nosupersub\cf23\f24\fs17 Total expenditure on innovation activities for th
e firm in a given year or \line\tab \up0 \expndtw0\charscalex119 period (= the s
ubject approach). \par\pard\ql \li1303\ri1176\sb72\sl-250\slmult0\tx1508\tx1508
\up0 \expndtw0\charscalex123 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersu
b\cf23\f24\fs17 Total expenditure for specific innovations implemented in a gi
ven year or \line\tab \up0 \expndtw0\charscalex120 during a given period regardl
ess of the year in which the expenditure occurs \line \tab \up0 \expndtw0\charsc
alex120 (= the object approach). \par\pard\qj \li1303\ri1178\sb50\sl-250\slmult0
\tx1870 \up0 \expndtw0\charscalex109 378. \tab \up0 \expndtw0\charscalex127 Ther
e is a fundamental difference between the two approaches and \line\up0 \expndtw0
\charscalex120 they lead to different results. Since both have been used in inno
vation surveys, \line \up0 \expndtw0\charscalex120 it seems worthwhile to clarif
y the relation between them. \par\pard\qj \li1303\ri1179\sb70\sl-250\slmult0\tx1
870 \up0 \expndtw0\charscalex109 379. \tab \up0 \expndtw0\charscalex125 The subj
ect approach covers expenditure for implemented, potential \line\up0 \expndtw0\c
harscalex125 and abandoned innovation activities as defined above. In this respe
ct, it is a \line \up0 \expndtw0\charscalex120 straightforward extension of trad
itional R&D measurement. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870
\up0 \expndtw0\charscalex109 380. \tab \up0 \expndtw0\charscalex125 In the objec
t approach the sum reported comprises total expenditure \line\up0 \expndtw0\char
scalex124 on defined innovations, or on the main innovation(s), implemented duri
ng a \line \up0 \expndtw0\charscalex125 given period. It excludes expenditure on
innovation projects that have been \line \up0 \expndtw0\charscalex120 abandoned
or are in progress, and on general R&D not connected to a specific \line \up0 \
expndtw0\charscalex122 application. This approach seems particularly suitable fo
r innovation surveys \line \up0 \expndtw0\charscalex132 starting from a set of i
dentified innovations, but it could also be used in \line \up0 \expndtw0\charsca
lex120 surveys of the innovation activities of enterprises in general. \par\pard
\li1303\sb119\sl-195\slmult0\fi0\tx1869 \up0 \expndtw0\charscalex123 381.\tab \u
p0 \expndtw0\charscalex123 In light of the advantages and disadvantages of both
approaches, the\par\pard\li1303\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\charscale
x124 subject approach is recommended for reporting on innovation expenditure.\pa
r\pard\li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex124 The Manual\u8

217?s guidelines are therefore oriented to the subject approach.\par\pard\li824\
ard\li824\sb91\sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\charscalex106 \ul0\nosup
ersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4
\expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 103
}
li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb36\sl-218\slmult0 \up0 \expndtw8\charscalex88 \ul0\nosupersub\cf28\f29\fs19 Notes \par\pard\qj \li1401\ri1195\s
b134\sl-180\slmult0\tx1587 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf30\f31
\fs15 1. Foreign units of MNEs are considered as separate statistical units for
innovation \line\tab \up0 \expndtw0\charscalex117 surveys. See Chapter 4. \par\p
ard\qj \li1401\ri1194\sb104\sl-200\slmult0\tx1587 \up0 \expndtw0\charscalex121 2
. It is foreseen that the current revision of the 1993 SNA will change the treat
ment \line\tab \up0 \expndtw0\charscalex119 of R&D expenditure from consumption
to capital formation. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-2
30\slmult0\par\pard\li793\sb156\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charsca
lex106 \ul0\nosupersub\cf19\f20\fs20 104\tab \up0 \expndtw0\charscalex106 \ul0\n
osupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}

sb0\sl-138\slmult0 \par\pard\ql\li1360\sb0\sl-138\slmult0 \par\pard\ql\li1360\sb
32\sl-138\slmult0 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf11\f12\fs12 ISB
N 92-64-01308-3 \par\pard\qj \li1360\ri4375\sb8\sl-180\slmult0 \up0 \expndtw0\ch
arscalex117 Oslo Manual: Guidelines for Collecting and Interpreting \up0 \expndt
w0\charscalex118 Innovation Data \par\pard\ql \li1360\sb35\sl-138\slmult0 \up0 \
expndtw0\charscalex113 OECD/European Communities 2005 \par\pard\ql \li3832\sb0\s
l-368\slmult0 \par\pard\ql\li3832\sb0\sl-368\slmult0 \par\pard\ql\li3832\sb0\sl368\slmult0 \par\pard\ql\li3832\sb108\sl-368\slmult0 \up0 \expndtw0\charscalex69
\ul0\nosupersub\cf20\f21\fs32 Chapter 7 \par\pard\ql \li2005\sb0\sl-322\slmult0
\up0 \expndtw0\charscalex120 \ul0\nosupersub\cf3\f4\fs28 Objectives, Obstacles
and Outcomes \par\pard\ql \li3593\sb18\sl-322\slmult0 \up0 \expndtw0\charscalex1
21 of Innovation \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\sl
slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb112\sl-218\slmult0\fi
0\tx7922 \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-0
1308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\no
supersub\cf19\f20\fs20 105
}
}}
}}
}
}}
}
}}
}}
}
TERPRETING INNOVATION DATA \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\l
\sb0\sl-241\slmult0 \par\pard\ql\li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb0
\sl-241\slmult0 \par\pard\ql\li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb146\s
l-241\slmult0 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf22\f23\fs21 1. Intr
oduction \par\pard\qj \li1303\ri1176\sb71\sl-251\slmult0\tx1870 \up0 \expndtw0\c
harscalex109 \ul0\nosupersub\cf23\f24\fs17 382. \tab \up0 \expndtw0\charscalex12
0 This chapter discusses incentives for and obstacles to engaging in \l
ine\up0 \expndtw0\charscalex124 innovation activity and the impact of innovation
. Identifying the factors that \line \up0 \expndtw0\charscalex125 drive innovati
on and those that hinder it is of great value for understanding \line \up0 \expn
dtw0\charscalex130 the innovation process and for formulating innovation policy.

Interest in \line \up0 \expndtw0\charscalex123 measuring innovation is due to i
ts relation to the performance of enterprises, \line \up0 \expndtw0\charscalex12
2 industries and the economy as a whole. Measures of the impact of innovation \l
ine \up0 \expndtw0\charscalex128 on enterprise performance are thus among the mo
st important innovation \line \up0 \expndtw0\charscalex121 indicators, but they
are also among the most difficult to obtain. \par\pard\qj \li1303\ri1177\sb49\sl
-252\slmult0\tx1870 \up0 \expndtw0\charscalex109 383. \tab \up0 \expndtw0\charsc
alex122 The impact of innovations on enterprise performance range from \
line\up0 \expndtw0\charscalex139 effects on turnover and market share to changes
in productivity and \line \up0 \expndtw0\charscalex123 efficiency. Among the si
gnificant impacts at industry and national levels are \up0 \expndtw0\charscalex1
30 changes in international competitiveness and in total factor productivity, \u
p0 \expndtw0\charscalex120 knowledge spillovers of firm-level innovations, and a
n increase in the amount \up0 \expndtw0\charscalex120 of knowledge flowing throu
gh networks. \par\pard\qj \li1303\ri1178\sb50\sl-250\slmult0\tx1870 \up0 \expndt
w0\charscalex109 384. \tab \up0 \expndtw0\charscalex124 Objectives and barriers
vary by type of innovation. For example, the \line\up0 \expndtw0\charscalex134 o
bjectives of product or marketing innovations will primarily relate to \line \up
0 \expndtw0\charscalex124 demand (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosuper
sub\cf23\f24\fs17 improving product quality, increasing market share, entering
\up0 \expndtw0\charscalex123 new markets), while process or organisational innov
ations will tend to relate \up0 \expndtw0\charscalex126 to supply (\ul0\nosuper
sub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 reducing costs, improving p
roduction capabilities). Some \up0 \expndtw0\charscalex116 barriers relate to al
l types of innovation (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f2
4\fs17 cost factors) while others relate to \up0 \expndtw0\charscalex116 a subs
et of innovation types. \par\pard\qj \li1303\ri1177\sb70\sl-250\slmult0\tx1870 \
up0 \expndtw0\charscalex109 385. \tab \up0 \expndtw0\charscalex124 This chapter
describes a number of indicators for innovation surveys \line\up0 \expndtw0\char
scalex132 and discusses other measures which, while relevant, may be difficult t
o \line \up0 \expndtw0\charscalex129 include in general innovation surveys but m
ay be included in specialised \up0 \expndtw0\charscalex123 surveys. Surveys can
choose to address questions on objectives, barriers and \up0 \expndtw0\charscale
x128 other indicators to all types of innovations, to subsets such as product an
d \up0 \expndtw0\charscalex130 process innovations, or to individual types of in
novation. This chapter is \up0 \expndtw0\charscalex120 designed to provide guide
lines for all these approaches. \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard
\ql\li793\sb17\sl-241\slmult0 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf22\
f23\fs21 2. Objectives and effects of innovations \par\pard\li1303\sb126\sl-195\
slmult0\fi0\tx1870 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf23\f24\fs17 38
6.\tab \up0 \expndtw0\charscalex121 Enterprises may engage in innovation activit
y for a number of reasons.\par\pard\li1303\sb57\sl-195\slmult0\fi0 \up0 \expndtw
0\charscalex122 Their \ul0\nosupersub\cf24\f25\fs17 objectives\ul0\nosupersub\cf
23\f24\fs17 may relate to products, markets, efficiency, quality or the\par\par
d\li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex122 ability to learn a
nd to implement changes. Identifying enterprises\u8217? motives for\par\pard\li1
303\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex122 innovating and their im
portance is helpful when examining the forces that\par\pard\li793\sb0\sl-230\slm
ult0\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb139\sl-230\slmult0\fi0\t
x4899 \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 106\tab \up0 \e
xpndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EU
ROPEAN COMMUNITIES 2005
}
ub\cf23\f24\fs17 drive innovation activity, such as competition and opportunitie
s for entering \up0 \expndtw0\charscalex124 new markets. Data on objectives can
also provide additional information on \up0 \expndtw0\charscalex121 the characte
ristics of types of innovations. \par\pard\qj \li1303\ri1177\sb70\sl-250\slmult0
\tx1870 \up0 \expndtw0\charscalex107 387. \tab \up0 \expndtw0\charscalex123 Ente
rprises may or may not succeed in achieving their objectives by \line\up0 \expnd
tw0\charscalex129 implementing innovations, or innovations may have other or add
itional \line \up0 \expndtw0\charscalex133 effects than those that initially mot
ivated their implementation. While \line \up0 \expndtw0\charscalex111 \ul0\nosup
ersub\cf24\f25\fs17 objectives\ul0\nosupersub\cf23\f24\fs17 concern enterprises
\u8217? motives for innovating, \ul0\nosupersub\cf24\f25\fs17 effects\ul0\nosupe
rsub\cf23\f24\fs17 concern the \line \up0 \expndtw0\charscalex119 actual observ
ed outcomes of innovations. The same factors may play a role in \line \up0 \expn
dtw0\charscalex124 both objectives and effects of innovation, although they will
be interpreted \line \up0 \expndtw0\charscalex118 differently. Table 7.1 lists
factors that are relevant to objectives and effects for \line \up0 \expndtw0\cha
rscalex117 all four types of innovations. A number of the factors may be relevan
t for more \line \up0 \expndtw0\charscalex120 than one type of innovation. In pa
rticular, product and marketing innovations \line \up0 \expndtw0\charscalex124 o
r process and organisational innovations may have a number of factors in \line \
up0 \expndtw0\charscalex120 common. \par\pard\qj \li1303\ri1117\sb50\sl-250\slmu
lt0\tx1870 \up0 \expndtw0\charscalex107 388. \tab \up0 \expndtw0\charscalex116 T
he factors listed aim to shed light on a number of forces driving \l
ine\up0 \expndtw-5\charscalex100 enterprises\u8217? innovation activity. \ul0\no
supersub\cf24\f25\fs17 Competition, demand and markets\ul0\nosupersub\cf23\f24\f
s17 concern the \line \up0 \expndtw0\charscalex127 main incentives for product
innovations and in some cases for marketing \line \up0 \expndtw0\charscalex130 i
nnovations. The intent of questions on these factors is to determine the \line \
up0 \expndtw0\charscalex119 importance of the motives for product innovations, s
uch as: short product life \line \up0 \expndtw0\charscalex120 spans that necessi
tate the development of new products; the need to diversify \line \up0 \expndtw0
\charscalex120 product portfolios; or efforts to increase or avoid a decline in
market share. \par\pard\qj \li1303\ri1163\sb70\sl-250\slmult0\tx1870 \up0 \expnd
tw0\charscalex107 389. \tab \up0 \expndtw0\charscalex122 In addition, a number o
f factors aim to identify the main motives for \line\up0 \expndtw-1\charscalex10
0 changes in \ul0\nosupersub\cf24\f25\fs17 production and delivery\ul0\nosupersu
b\cf23\f24\fs17 , \ul0\nosupersub\cf24\f25\fs17 i.e.\ul0\nosupersub\cf23\f24\fs1
7 whether their main intent is to improve \line \up0 \expndtw0\charscalex118 qu
ality, flexibility or efficiency/cost reduction. In particular, factors relating
to \line \up0 \expndtw0\charscalex127 cost reduction are made specific to enabl
e better interpretation of results. \line \up0 \expndtw0\charscalex104 Factors c
oncerning \ul0\nosupersub\cf24\f25\fs17 workplace organisation\ul0\nosupersub\cf
23\f24\fs17 identify the main forces behind \line \up0 \expndtw0\charscalex120
organisational change: whether they are oriented towards customer relations, \li
ne \up0 \expndtw0\charscalex119 operational efficiency or improving the capture
and sharing of knowledge. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870
\up0 \expndtw0\charscalex107 390. \tab \up0 \expndtw0\charscalex120 It is rec
ommended to collect data on the objectives or effects of \line\up0 \exp
ndtw0\charscalex125 innovations implemented by enterprises during the period und
er review. It \line \up0 \expndtw0\charscalex132 is recommended to use an ordina
l scale to ask enterprises whether the \line \up0 \expndtw0\charscalex122 factor

is relevant and, if so, its importance. Questions on both the objectives \line
\up0 \expndtw0\charscalex126 of innovation and their actual effects can provide
valuable information on \line \up0 \expndtw0\charscalex123 enterprises\u8217? in
novation activity. However, it may not be possible to include \line \up0 \expndt
w0\charscalex122 both questions in innovation surveys. The choice between the tw
o questions \line \up0 \expndtw0\charscalex129 may depend on which is considered
most useful for policy. However, a \line \up0 \expndtw0\charscalex119 drawback
of questions on effects is that the impact of recent innovations may \line \up0
\expndtw0\charscalex118 not be felt within the time period of the survey. The di
sadvantage of questions \line \up0 \expndtw0\charscalex137 on objectives is that
the actual effects may differ substantially from \line \up0 \expndtw0\charscale
x120 expectations. \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\
pard\li824\sb41\sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\charscalex106 \ul0\nosu
persub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn
4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 107
}
li1646\sb0\sl-195\slmult0 \par\pard\ql\li1646\sb141\sl-195\slmult0 \up0 \expndtw
0\charscalex122 \ul0\nosupersub\cf23\f24\fs17 Table 7.1. Factors relating to the
objectives and effects of innovation\par\pard\sect\sectd\sbknone\cols2\colno1\c
olw4312\colsr160\colno2\colw4468\colsr160\ql \li1348\sb0\sl-161\slmult0 \par\par
d\ql \li1348\sb122\sl-161\slmult0 \up0 \expndtw0\charscalex105 \ul0\nosupersub\c
f36\f37\fs14 Relevant for:\par\pard\column \ql \li4573\sb0\sl-161\slmult0 \par\p
ard\ql \li121\sb26\sl-161\slmult0\tx972\tx1648\tx2619 \up0 \expndtw0\charscalex1
08 Product\tab \up0 \expndtw0\charscalex104 Process\tab \up0 \expndtw0\charscale
x105 Organisational\tab \up0 \expndtw0\charscalex107 Marketing\par\pard\ql \li20
\sb30\sl-161\slmult0\tx876\tx1725\tx2576 \up0 \expndtw0\charscalex107 innovation
s\tab \up0 \expndtw0\charscalex107 innovations\tab \up0 \expndtw0\charscalex107
innovations\tab \up0 \expndtw0\charscalex107 innovations \par\pard\sect\sectd\sb
knone \li1348\sb0\sl-161\slmult0\par\pard\li1348\sb27\sl-161\slmult0\fi0 \up0 \e
xpndtw0\charscalex106 \ul0\nosupersub\cf41\f42\fs14 Competition, demand and mark
ets\par\pard\sect\sectd\sbknone \li1348\sb60\sl-161\slmult0\fi170\tx4670 \up0 \e
xpndtw0\charscalex106 \ul0\nosupersub\cf36\f37\fs14 Replace products being phase
d out\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\sectd\sbknone \li1348\sb5
9\sl-161\slmult0\fi170\tx4670 \up0 \expndtw0\charscalex106 Increase range of goo
ds and services\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\sectd\sbknone \
li1348\sb58\sl-161\slmult0\fi170\tx4670 \up0 \expndtw0\charscalex106 Develop env
ironment-friendly products\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\sect
d\sbknone \li1348\sb60\sl-161\slmult0\fi170\tx4670\tx7221 \up0 \expndtw0\charsca
lex106 Increase or maintain market share\tab \up0 \expndtw0\charscalex106 *\tab
\up0 \expndtw0\charscalex106 *\par\pard\sect\sectd\sbknone \li1348\sb59\sl-161\s
lmult0\fi170\tx4670\tx7221 \up0 \expndtw0\charscalex106 Enter new markets\tab \u
p0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\se
ctd\sbknone \li1348\sb58\sl-161\slmult0\fi170\tx7221 \up0 \expndtw0\charscalex10
6 Increase visibility or exposure for products\tab \up0 \expndtw0\charscalex106

*\par\pard\sect\sectd\sbknone \li1348\sb60\sl-161\slmult0\fi170\tx5520\tx6370 \u
p0 \expndtw0\charscalex106 Reduced time to respond to customer needs\tab \up0 \e
xpndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\sectd\s
bknone \li1348\sb59\sl-161\slmult0\fi0 \up0 \expndtw0\charscalex106 \ul0\nosuper
sub\cf41\f42\fs14 Production and delivery\par\pard\sect\sectd\sbknone \li1348\sb
58\sl-161\slmult0\fi170\tx4670\tx5521\tx6370 \up0 \expndtw0\charscalex106 \ul0\n
osupersub\cf36\f37\fs14 Improve quality of goods and services\tab \up0 \expndtw0
\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscale
x106 *\par\pard\sect\sectd\sbknone \li1348\sb60\sl-161\slmult0\fi170\tx5521\tx63
70 \up0 \expndtw0\charscalex106 Improve flexibility of production or service pro
vision\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par
\pard\sect\sectd\sbknone \li1348\sb59\sl-161\slmult0\fi170\tx5521\tx6371 \up0 \e
xpndtw0\charscalex106 Increase capacity of production or service provision\tab \
up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\s
ectd\sbknone \li1348\sb60\sl-161\slmult0\fi170\tx5521\tx6370 \up0 \expndtw0\char
scalex106 Reduce unit labour costs\tab \up0 \expndtw0\charscalex106 *\tab \up0 \
expndtw0\charscalex106 *\par\pard\sect\sectd\sbknone \li1348\sb58\sl-161\slmult0
\fi170\tx4670\tx5521\tx6370 \up0 \expndtw0\charscalex106 Reduce consumption of m
aterials and energy\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charsc
alex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\sectd\sbknone \li1348
\sb59\sl-161\slmult0\fi170\tx5521\tx6370 \up0 \expndtw0\charscalex106 Reduce pro
duct design costs\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscal
ex106 *\par\pard\sect\sectd\sbknone \li1348\sb60\sl-161\slmult0\fi170\tx5520\tx6
370 \up0 \expndtw0\charscalex106 Reduce production lead times\tab \up0 \expndtw0
\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\sectd\sbknone
\li1348\sb58\sl-161\slmult0\fi170\tx4670\tx5521\tx6370 \up0 \expndtw0\charscalex
106 Achieve industry technical standards\tab \up0 \expndtw0\charscalex106 *\tab
\up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\
sectd\sbknone \li1348\sb59\sl-161\slmult0\fi170\tx5522\tx6371 \up0 \expndtw0\cha
rscalex106 Reduce operating costs for service provision\tab \up0 \expndtw0\chars
calex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\sectd\sbknone \li134
8\sb60\sl-161\slmult0\fi170 \up0 \expndtw0\charscalex106 Increase efficiency or
speed of supplying and/or\par\pard\sect\sectd\sbknone \li1348\sb28\sl-161\slmult
0\fi170\tx5521\tx6370 \up0 \expndtw0\charscalex106 delivering goods or services\
tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\s
ect\sectd\sbknone \li1348\sb59\sl-161\slmult0\fi170\tx5521\tx6370 \up0 \expndtw0
\charscalex106 Improve IT capabilities\tab \up0 \expndtw0\charscalex106 *\tab \u
p0 \expndtw0\charscalex106 *\par\pard\ql \li1348\sb55\sl-161\slmult0 \up0 \expnd
tw0\charscalex101 \ul0\nosupersub\cf41\f42\fs14 Workplace organisation \par\pard
\ql \li1519\sb59\sl-161\slmult0 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf3
6\f37\fs14 Improve communication and interaction among \par\pard\li1303\sb33\sl161\slmult0\fi215\tx6371 \up0 \expndtw0\charscalex109 different business activit
ies\tab \up0 \expndtw0\charscalex109 *\par\pard\li1303\sb60\sl-161\slmult0\fi215
\up0 \expndtw0\charscalex109 Increase sharing or transferring of knowledge with
\par\pard\li1303\sb28\sl-161\slmult0\fi215\tx6370 \up0 \expndtw0\charscalex109 o
ther organisations\tab \up0 \expndtw0\charscalex109 *\par\pard\li1303\sb59\sl-16
1\slmult0\fi215 \up0 \expndtw0\charscalex109 Increase the ability to adapt to di
fferent client\par\pard\li1303\sb30\sl-161\slmult0\fi215\tx6370\tx7221 \up0 \exp
ndtw0\charscalex109 demands\tab \up0 \expndtw0\charscalex109 *\tab \up0 \expndtw
0\charscalex109 *\par\pard\li1303\sb58\sl-161\slmult0\fi215\tx6370\tx7221 \up0 \
expndtw0\charscalex109 Develop stronger relationships with customers\tab \up0 \e
xpndtw0\charscalex109 *\tab \up0 \expndtw0\charscalex109 *\par\pard\li1303\sb59\
sl-161\slmult0\fi216\tx5521\tx6370 \up0 \expndtw0\charscalex109 Improve working
conditions\tab \up0 \expndtw0\charscalex109 *\tab \up0 \expndtw0\charscalex109 *
\par\pard\li1303\sb60\sl-161\slmult0\fi45 \up0 \expndtw0\charscalex109 \ul0\nosu
persub\cf41\f42\fs14 Other\par\pard\li1303\sb58\sl-161\slmult0\fi215 \up0 \expnd
tw0\charscalex109 \ul0\nosupersub\cf36\f37\fs14 Reduce environmental impacts or
improve health\par\pard\li1303\sb29\sl-161\slmult0\fi215\tx4670\tx5521\tx6370 \u
p0 \expndtw0\charscalex109 and safety\tab \up0 \expndtw0\charscalex109 *\tab \up
0 \expndtw0\charscalex109 *\tab \up0 \expndtw0\charscalex109 *\par\pard\li1303\s

b60\sl-161\slmult0\fi215\tx4670\tx5521\tx6370 \up0 \expndtw0\charscalex109 Meet
regulatory requirements\tab \up0 \expndtw0\charscalex109 *\tab \up0 \expndtw0\ch
arscalex109 *\tab \up0 \expndtw0\charscalex109 *\par\pard\li1303\sb0\sl-195\slmu
lt0\par\pard\li1303\sb73\sl-195\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex109
\ul0\nosupersub\cf23\f24\fs17 391.\tab \up0 \expndtw0\charscalex110 Questions o
n objectives or effects may either refer to all types of\par\pard\qj \
li1303\ri1178\sb0\sl-252\slmult0 \up0 \expndtw0\charscalex123 innovations or to
a subset of these, such as product and process innovations. \up0 \expndtw0\chars
calex133 Limiting the types of innovations these questions refer to can facilita
te \up0 \expndtw0\charscalex122 interpretation of the data (given that most fact
ors are relevant for at least two \up0 \expndtw0\charscalex135 types, for exampl
e product and marketing innovations or process and \up0 \expndtw0\charscalex124
organisational innovations). An additional option is to include questions for \u
p0 \expndtw0\charscalex120 each innovation type (or subsets of types) separately
li793\sb0\sl-230\slmult0\par\pard\li793\sb113\sl-230\slmult0\fi0\tx4899 \dn4 \ex
pndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 108\tab \up0 \expndtw0\charsc
TIES 2005
}
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}
INTERPRETING INNOVATION DATA \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\q
l\li793\sb232\sl-241\slmult0 \up0 \expndtw0\charscalex124 \ul0\nosupersub\cf22\f
23\fs21 3. Other measures of impacts on enterprise performance \par\pard\qj \li1
ub\cf23\f24\fs17 392. \tab \up0 \expndtw0\charscalex123 This section considers o
utput indicators in addition to those discussed \line\up0 \expndtw0\charscalex12
2 in Section 2, in particular quantitative indicators of innovation performance.
x109 393. \tab \up0 \expndtw0\charscalex118 The success of an innovation may dep
end on a number of factors. It will \line\up0 \expndtw0\charscalex127 clearly de
pend on the quality of the innovation. The impact of innovations \line \up0 \exp
ndtw0\charscalex122 may also vary greatly from sector to sector or region to reg
ion. In addition, it \line \up0 \expndtw0\charscalex124 may depend on other chan
ges in the enterprise that support the innovations. \line \up0 \expndtw0\charsca
lex120 For example, the success of product innovations may depend to a large deg
ree \line \up0 \expndtw0\charscalex120 on marketing initiatives to launch the pr
oduct. Likewise, the impact of process \line \up0 \expndtw0\charscalex121 innova
tions may depend on organisational changes to take advantage of these \line \up0
\expndtw0\charscalex132 new processes . A well -documented example is the
importance of \line \up0 \expndtw0\charscalex131 organisational changes for t
he impact of investments in information and \line \up0 \expndtw0\charscalex118 c
ommunication technology (ICT) on productivity (Brynjolfsson and Hitt, 2000; \lin
e \up0 \expndtw0\charscalex103 OECD, 2004). \par\pard\qj \li1303\ri1176\sb74\sl246\slmult0\tx1870 \up0 \expndtw0\charscalex109 394. \tab \up0 \expndtw0\charsca
lex120 It is generally difficult to ask for quantitative measures of the effects
of \line\up0 \expndtw0\charscalex129 innovations in surveys, even for very roug
h estimates, as the calculations \line \up0 \expndtw0\charscalex126 often requir
e substantial analysis on the part of the enterprise. This section \line \up0 \e
xpndtw0\charscalex123 discusses some output indicators that might be used in inn
ovation surveys. \par\pard\qj \li1303\ri1178\sb73\sl-248\slmult0\fi0\tx1870 \up0
\expndtw0\charscalex109 395. \tab \up0 \expndtw0\charscalex121 An important asp
ect for all analyses of the impact of innovations is the \line\up0 \expndtw0\cha
rscalex122 time lag between an innovation and its impact. Some effects may mater
ialise \line \up0 \expndtw0\charscalex123 over the course of the observation per
iod, while others may take longer. The \up0 \expndtw0\charscalex122 availability
of innovation data on a large cross-section over time (\ul0\nosupersub\cf24\f25
\fs17 i.e.\ul0\nosupersub\cf23\f24\fs17 panel \up0 \expndtw0\charscalex120 data
) is of great value for such analyses. Panel surveys can open up interesting \up
0 \expndtw0\charscalex120 possibilities for analysing the results of innovation.
x109 396. \tab \up0 \expndtw0\charscalex123 To help create a view of how innovat
ion affects overall performance, \line\up0 \expndtw0\charscalex127 some general
data on the enterprise can be collected for the beginning and \line \up0 \expndt
w0\charscalex125 end of the observation period, such as data on turnover, export
s, employees \line \up0 \expndtw0\charscalex130 and operating margins. These dat
a can be used in subsequent analysis to \line \up0 \expndtw0\charscalex132 exami
ne the effect of various indicators on these variables. Data can be \line \up0 \
expndtw0\charscalex121 collected via the innovation survey or taken from other a
vailable sources. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb
39\sl-218\slmult0 \up0 \expndtw-8\charscalex76 \ul0\nosupersub\cf28\f29\fs19 3.1
. Impact on turnover \par\pard\qj \li1303\ri1649\sb104\sl-240\slmult0 \up0 \expn
dtw-8\charscalex73 3.1.1. Proportion of turnover due to new or significantly imp
roved \up0 \expndtw-8\charscalex74 products \par\pard\qj \li1303\ri1177\sb76\sl246\slmult0\tx1870 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 39
7. \tab \up0 \expndtw0\charscalex122 An indicator on the proportion of turnover
due to new or significantly \line\up0 \expndtw0\charscalex124 improved products
provides important information on the impact of product \line \up0 \expndtw0\cha
rscalex118 innovations on the overall makeup of turnover (\ul0\nosupersub\cf24\f
25\fs17 i.e.\ul0\nosupersub\cf23\f24\fs17 the share of turnover from \line \up0
\expndtw0\charscalex118 new products) and on the degree of innovativeness of th
e enterprise. \par\pard\li1303\sb124\sl-195\slmult0\fi0\tx1870 \up0 \expndtw0\ch
arscalex124 398.\tab \up0 \expndtw0\charscalex124 Questions on the proportion of
turnover due to product innovations\par\pard\li1303\sb57\sl-195\slmult0\fi0 \up
0 \expndtw0\charscalex125 should refer to the impact of product innovation over
the observation period\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-2
18\slmult0\par\pard\li824\sb189\sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\charsca
lex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNIT
IES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 109

}
cf23\f24\fs17 on turnover in the reference year (\ul0\nosupersub\cf24\f25\fs17 i
.e.\ul0\nosupersub\cf23\f24\fs17 the last year of the observation period). \up0
\expndtw0\charscalex131 It is recommended to ask enterprises to estimate the pe
rcentage share of \up0 \expndtw0\charscalex124 total turnover in the reference y
ear that is due to: \par\pard\qj \li1303\ri1177\sb79\sl-240\slmult0\tx1508 \up0
\expndtw0\charscalex126 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf2
3\f24\fs17 New or significantly improved goods and services introduced during
the \line\tab \up0 \expndtw0\charscalex122 observation period that were new to t
he market (as defined in Chapter 3). \par\pard\ql \li1303\ri1177\sb72\sl-250\slm
ult0\tx1508\tx1508 \up0 \expndtw0\charscalex123 \ul0\nosupersub\cf27\f28\fs14 \u
9679?\ul0\nosupersub\cf23\f24\fs17 New and significantly improved goods and se
rvices introduced during the \line\tab \up0 \expndtw0\charscalex134 observation
period that were new to the firm, though not new to the \line \tab \up0 \expndtw
0\charscalex127 market. \par\pard\qj \li1303\ri1178\sb42\sl-260\slmult0\tx1508 \
up0 \expndtw0\charscalex126 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub
\cf23\f24\fs17 Products that were unchanged or only marginally modified du
ring the \line\tab \up0 \expndtw0\charscalex120 observation period. \par\pard\qj
b \up0 \expndtw0\charscalex127 A number of firms may have come into existence du
ring the period \line\up0 \expndtw0\charscalex125 under review. This includes bo
th newly established firms and firms that are \line \up0 \expndtw0\charscalex129
the result of mergers, demergers and other kinds of reorganisation. These \line
\up0 \expndtw0\charscalex122 firms should be treated like all other firms when
constructing this indicator. \par\pard\qj \li1303\ri1178\sb47\sl-253\slmult0\tx1
870 \up0 \expndtw0\charscalex109 400. \tab \up0 \expndtw0\charscalex122 Responde
nts should supply their best estimates of actual percentages. \line\up0 \expndtw
0\charscalex129 When presenting the results by industry, firm size, region or co
untry, the \line \up0 \expndtw0\charscalex129 percentages should be calculated a
s the ratio of total turnover due to new \up0 \expndtw0\charscalex121 products t
o total turnover for the industry, etc. \par\pard\ql \li1303\sb95\sl-195\slmult0
\up0 \expndtw0\charscalex64 \ul0\nosupersub\cf24\f25\fs17 Product life cycles \
09 \ul0\nosupersub\cf23\f24\fs17 401. \tab \up0 \expndtw0\charscalex124 Outcome
indicators are directly affected by the length of product life \line\up0 \expndt
w0\charscalex119 cycles. They are likely to be higher in product groups with sho
rt life cycles and \line \up0 \expndtw0\charscalex119 innovation is expected to
take place more frequently. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx18
70 \up0 \expndtw0\charscalex107 402. \tab \up0 \expndtw0\charscalex118 In order
to take the effects of product life cycles into account, an option \line\up0 \ex
pndtw0\charscalex129 is to ask enterprises to estimate the average length of the
ir products\u8217? life \line \up0 \expndtw0\charscalex124 cycles. This informat
ion may be used to weight the outcome indicators for \up0 \expndtw0\charscalex11
9 turnover shares. An alternative way of formulating this question is to ask how
\up0 \expndtw0\charscalex119 often the enterprise generally introduces innovati
ons. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb59\sl-218\slm
ult0 \up0 \expndtw-8\charscalex76 \ul0\nosupersub\cf28\f29\fs19 3.1.2. Process i
120 Innovation surveys can also ask enterprises to estimate the percentage \line
\up0 \expndtw0\charscalex130 of turnover that is affected by process innovations
. This can provide an \line \up0 \expndtw0\charscalex136 indication of how exte
nsive process innovations are in terms of the \up0 \expndtw0\charscalex119 enter
prise\u8217?s total operations. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\par
d\ql\li1303\sb40\sl-218\slmult0 \up0 \expndtw-8\charscalex77 \ul0\nosupersub\cf2
8\f29\fs19 3.1.3. Marketing innovations \par\pard\qj \li1303\ri1177\sb76\sl-250\
tab \up0 \expndtw0\charscalex124 The development and implementation of mark
eting innovations \line\up0 \expndtw0\charscalex122 constitutes an important in
novation activity for many enterprises in terms of \line \up0 \expndtw0\charscal
ex127 impact on performance. To gain an idea of the scope of marketin
g \line \up0 \expndtw0\charscalex125 innovations, enterprises might be asked to
estimate the percentage of total \line \up0 \expndtw0\charscalex125 turnover tha
t is affected by marketing innovations. Innovation surveys can \par\pard\li793\s
b0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb27\sl-230\s
lmult0\fi0\tx4899 \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 110
\tab \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308
-3 - OECD/EUROPEAN COMMUNITIES 2005
}
ub\cf23\f24\fs17 ask two separate questions concerning marketing innovations. On
e asks for \line \up0 \expndtw0\charscalex130 an estimate of the percentage of t
urnover due to goods and services with \line \up0 \expndtw0\charscalex120 signif
icant improvements in product design or packaging. The second asks for \line \up
0 \expndtw0\charscalex126 an estimate of the share of turnover affected by new m
arketing methods in \line \up0 \expndtw0\charscalex121 pricing, promotion or pla
cement. Note that questions on share of turnover due \line \up0 \expndtw0\charsc
alex121 to changes in product design should not be combined with questions on sh
are \line \up0 \expndtw0\charscalex125 of turnover due to product innovations (\
ul0\nosupersub\cf24\f25\fs17 i.e.\ul0\nosupersub\cf23\f24\fs17 these two questi
ons should be \line \up0 \expndtw0\charscalex125 separate), since some new or im
proved products might be both product and \line \up0 \expndtw0\charscalex125 mar
keting innovations. Nor should questions on new marketing methods in \line \up0
\expndtw0\charscalex126 product design be combined with questions on the share o
f turnover due to \line \up0 \expndtw0\charscalex133 other new marketing methods
. As with other questions concerning the \line \up0 \expndtw0\charscalex131 impa
ct on turnover, enterprises will likely only be able to provide rough \line \up0
\expndtw0\charscalex124 estimates at best. \par\pard\ql \li1303\sb0\sl-218\slmu
lt0 \par\pard\ql\li1303\sb59\sl-218\slmult0 \up0 \expndtw-8\charscalex74 \ul0\no
supersub\cf28\f29\fs19 3.2. The impact of process innovations on costs and emplo
yment \par\pard\qj \li1303\ri1177\sb79\sl-246\slmult0\tx1870 \up0 \expndtw0\char
scalex109 \ul0\nosupersub\cf23\f24\fs17 405. \tab \up0 \expndtw0\charscalex120 A
s described in Section 2, innovation surveys can include questions on \line\up0
\expndtw0\charscalex135 the effects of innovations and their relative importance
. An option for \line \up0 \expndtw0\charscalex122 obtaining additional informat

ion on process innovations is through questions \up0 \expndtw0\charscalex122 on
their impacts on costs or employment. \par\pard\qj \li1303\ri1177\sb71\sl-250\sl
There are a number of options for asking questions on the impact of \line\up0 \
expndtw0\charscalex121 process innovations on costs. Enterprises can be asked fi
rst, whether process \line \up0 \expndtw0\charscalex125 innovations implemented
during the observation period led to an increase, \line \up0 \expndtw0\charscale
x118 decrease or no change in costs. A \u8220?yes\u8221? response to a decrease
or increase can \line \up0 \expndtw0\charscalex118 be followed by further questi
ons to quantify the amount of change. \par\pard\qj \li1303\ri1178\sb50\sl-251\sl
These questions can either be asked with respect to average costs or to \line\u
p0 \expndtw0\charscalex122 specific costs, for example changes in the cost of ma
terial, energy or labour \line \up0 \expndtw0\charscalex125 inputs. Quantitative
questions can either ask for an interval estimate of the \line \up0 \expndtw0\c
harscalex126 percentage change in costs, or ask enterprises to choose from a set
of pre-\line \up0 \expndtw0\charscalex112 defined categories (\ul0\nosupersub\c
f24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 an increase or decrease of less
than 5%, 5% to 25%, over \line \up0 \expndtw0\charscalex118 25%). Experience fro
m earlier surveys indicates that enterprises find the latter \line \up0 \expndtw
0\charscalex121 method easier to answer and thus results in much higher item res
ponse rates. \line \up0 \expndtw0\charscalex130 The same techniques can also be
used to ask about the effect of process \line \up0 \expndtw0\charscalex123 innov
ations on employment , \ul0\nosupersub\cf24\f25\fs17 i.e.\ul0\nosupersub\cf23
\f24\fs17 whether employment increased or \line \up0 \expndtw0\charscalex118
decreased, and by how much. \par\pard\qj \li1303\ri1178\sb50\sl-250\slmult0\tx1
870 \up0 \expndtw0\charscalex107 408. \tab \up0 \expndtw0\charscalex121 This app
roach can also be used for organisational innovations. In this \line\up0 \expndt
w0\charscalex123 case, questions should be asked with respect to average costs a
s opposed to \line \up0 \expndtw0\charscalex116 specific costs. \par\pard\ql \li
charscalex73 \ul0\nosupersub\cf28\f29\fs19 3.3. The impact of innovation on prod
uctivity \par\pard\li1303\sb120\sl-195\slmult0\fi0\tx1870 \up0 \expndtw0\charsca
lex118 \ul0\nosupersub\cf23\f24\fs17 409.\tab \up0 \expndtw0\charscalex118 Conce
rning impacts on productivity, a number of questions are of great\par\pard\li130
3\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex119 interest, for example whe
ther process innovations or organisational innovations\par\pard\li824\sb0\sl-218
\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb180\sl-218\slmult0\f
i0\tx7922 \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-6401308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\n
osupersub\cf19\f20\fs20 111
}
cf23\f24\fs17 improve efficiency. A detailed examination of these issues would r
equire separate \line \up0 \expndtw0\charscalex136 analyses using both innovatio

n data and other economic data on firm \line \up0 \expndtw0\charscalex126 perfor
mance. In many cases, panel data on innovation would be necessary, \line \up0 \e
xpndtw0\charscalex124 though some analysis can be performed using innovation dat
a from a single \line \up0 \expndtw0\charscalex123 survey combined with economic
data for more than one year. An example is \line \up0 \expndtw0\charscalex123 e
mpirical analyses of ICT investments and organisational innovation, which \line
\up0 \expndtw0\charscalex117 generally have found that the effects of ICT invest
ments on productivity depend \line \up0 \expndtw0\charscalex113 greatly on organ
isational innovations (Brynjolfsson and Hitt, 2000). \par\pard\ql \li793\sb0\sl241\slmult0 \par\pard\ql\li793\sb17\sl-241\slmult0 \up0 \expndtw0\charscalex122
\ul0\nosupersub\cf22\f23\fs21 4. Factors hampering innovation activities \par\pa
rd\qj \li1303\ri1171\sb72\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex109 \ul
0\nosupersub\cf23\f24\fs17 410. \tab \up0 \expndtw0\charscalex113 Innovation act
ivity may be hampered by a number of factors. There may be \line\up0 \expndtw0\c
harscalex116 reasons for not starting innovation activities at all, or factors t
hat slow innovation \line \up0 \expndtw0\charscalex121 activity or have a negati
ve effect on expected results. These include economic \line \up0 \expndtw0\chars
calex116 factors, such as high costs or lack of demand, enterprise factors, such
as a lack of \line \up0 \expndtw0\charscalex111 skilled personnel or knowledge,
and legal factors, such as regulations or tax rules. \par\pard\qj \li1303\ri117
3\sb70\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex109 411. \tab \up0 \expndt
w0\charscalex117 Questions on barriers to innovation can provide information on
a number \line\up0 \expndtw0\charscalex123 of issues relevant for innovation pol
icy. Small and medium sized enterprises \line \up0 \expndtw0\charscalex127 (SMEs
) may identify a lack of available finance as an important barrier to \line \up0
\expndtw0\charscalex116 investments in innovation. Enterprises may be concerned
about a lack of demand \line \up0 \expndtw0\charscalex118 for new products at t
he prices that enterprises would need to charge to make the \line \up0 \expndtw0
\charscalex116 innovation worthwhile. Enterprises may not have the skilled perso
nnel needed to \line \up0 \expndtw0\charscalex124 engage in innovation activitie
s, or their innovation activities may be slowed \line \up0 \expndtw0\charscalex1
18 because they are unable to find the necessary personnel on the labour market.
A \line \up0 \expndtw0\charscalex122 lack of infrastructure may be an important
barrier to innovation, in particular \line \up0 \expndtw0\charscalex117 outside
of large cities. Other reasons may be that the enterprise lacks knowledge \line
\up0 \expndtw0\charscalex132 relating to technologies or markets that would be
needed to develop an \line \up0 \expndtw0\charscalex125 innovation, or that the
enterprise is unable to find suitable partners for joint \line \up0 \expndtw0\ch
arscalex115 innovation projects. Table 7.2 lists factors that could act as barri
ers to innovation. \par\pard\qj \li1303\ri1174\sb50\sl-250\slmult0 \up0 \expndtw
0\charscalex114 412.
These barriers can be related to a specific type of inno
vation or to all types. \up0 \expndtw0\charscalex116 For example, cost factors c
an be relevant for all types of innovations, and market \up0 \expndtw0\charscale
x124 factors can affect both the development of product innovations and work on
\up0 \expndtw0\charscalex114 product design (\ul0\nosupersub\cf24\f25\fs17 i.e\u
l0\nosupersub\cf23\f24\fs17 . marketing innovations). The table also shows which
types of \up0 \expndtw0\charscalex114 innovations are relevant for each barrier
ex109 413. \tab \up0 \expndtw0\charscalex121 It is recommended to collect data o
n barriers to innovation activity and \line\up0 \expndtw0\charscalex121 their re
lative importance for the period under review. Questions on barriers to \line \u
p0 \expndtw0\charscalex126 innovation activity should be asked of both innovativ
e and non-innovative \up0 \expndtw0\charscalex123 enterprises. Questions on barr
iers can refer to all types of innovations or to a \up0 \expndtw0\charscalex116
subset of types, such as product and process innovations. \par\pard\li793\sb0\sl
793\sb157\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex106 \ul0\nosupersub
\cf19\f20\fs20 112\tab \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs1

}
INTERPRETING INNOVATION DATA \par\pard\ql \li2413\sb0\sl-195\slmult0 \par\pard\
ql\li2413\sb0\sl-195\slmult0 \par\pard\ql\li2413\sb141\sl-195\slmult0 \up0 \expn
dtw0\charscalex122 \ul0\nosupersub\cf23\f24\fs17 Table 7.2. Factors hampering in
novation activities\par\pard\sect\sectd\sbknone\cols2\colno1\colw4114\colsr160\c
olno2\colw4666\colsr160\ql \li1348\sb0\sl-161\slmult0 \par\pard\ql \li1348\sb122
\sl-161\slmult0 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf36\f37\fs14 Relev
ant for:\par\pard\column \ql \li4375\sb0\sl-161\slmult0 \par\pard\ql \li121\sb26
\sl-161\slmult0\tx1028\tx1761\tx2789 \up0 \expndtw0\charscalex107 Product\tab \u
p0 \expndtw0\charscalex104 Process\tab \up0 \expndtw0\charscalex105 Organisation
al\tab \up0 \expndtw0\charscalex107 Marketing\par\pard\ql \li20\sb30\sl-161\slmu
lt0\tx931\tx1838\tx2745 \up0 \expndtw0\charscalex107 innovations\tab \up0 \expnd
tw0\charscalex107 innovations\tab \up0 \expndtw0\charscalex107 innovations\tab \
up0 \expndtw0\charscalex107 innovations \par\pard\sect\sectd\sbknone \li1348\sb0
\sl-161\slmult0\par\pard\li1348\sb27\sl-161\slmult0\fi0 \up0 \expndtw0\charscale
x106 \ul0\nosupersub\cf41\f42\fs14 Cost factors:\par\pard\sect\sectd\sbknone \li
1348\sb60\sl-161\slmult0\fi170\tx4558\tx5465\tx6371\tx7278 \up0 \expndtw0\charsc
alex106 \ul0\nosupersub\cf36\f37\fs14 Excessive perceived risks\tab \up0 \expndt
w0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charsca
lex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\sectd\sbknone \li1348\
sb59\sl-161\slmult0\fi170\tx4557\tx5464\tx6370\tx7277 \up0 \expndtw0\charscalex1
06 Cost too high\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscale
x106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par
\pard\sect\sectd\sbknone \li1348\sb58\sl-161\slmult0\fi170\tx4558\tx5466\tx6372\
tx7279 \up0 \expndtw0\charscalex106 Lack of funds within the enterprise\tab \up0
\expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0
\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\sectd\sbknone
\li1348\sb60\sl-161\slmult0\fi170 \up0 \expndtw0\charscalex106 Lack of finance f
rom sources outside the\par\pard\sect\sectd\sbknone \li1348\sb29\sl-161\slmult0\
fi170 \up0 \expndtw0\charscalex106 enterprise:\par\pard\sect\sectd\sbknone \li13
48\sb58\sl-161\slmult0\fi340\tx4558\tx5465\tx6371\tx7278 \up0 \expndtw0\charscal
ex106 Venture capital\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\char
scalex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106
*\par\pard\sect\sectd\sbknone \li1348\sb60\sl-161\slmult0\fi340\tx4557\tx5464\tx
6370\tx7277 \up0 \expndtw0\charscalex106 Public sources of funding\tab \up0 \exp
ndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\char
scalex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\sectd\sbknone \li13
48\sb59\sl-161\slmult0\fi0 \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf41\f42
\fs14 Knowledge factors:\par\pard\sect\sectd\sbknone \li1348\sb58\sl-161\slmult0
\fi170 \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf36\f37\fs14 Innovation pot
ential (R&D, design, etc.)\par\pard\sect\sectd\sbknone \li1348\sb30\sl-161\slmul
t0\fi170\tx4557\tx5464\tx7277 \up0 \expndtw0\charscalex106 insufficient\tab \up0
\expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0
\charscalex106 *\par\pard\sect\sectd\sbknone \li1348\sb59\sl-161\slmult0\fi170 \
up0 \expndtw0\charscalex106 Lack of qualified personnel:\par\pard\sect\sectd\sbk
none \li1348\sb60\sl-161\slmult0\fi340\tx4557\tx5464\tx7277 \up0 \expndtw0\chars

calex106 Within the enterprise\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expn
dtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\sectd\sbkn
one \li1348\sb58\sl-161\slmult0\fi340\tx4557\tx5465\tx7278 \up0 \expndtw0\charsc
alex106 In the labour market\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndt
w0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\sectd\sbknon
e \li1348\sb59\sl-161\slmult0\fi170\tx4557\tx5464 \up0 \expndtw0\charscalex106 L
ack of information on technology\tab \up0 \expndtw0\charscalex106 *\tab \up0 \ex
pndtw0\charscalex106 *\par\pard\sect\sectd\sbknone \li1348\sb60\sl-161\slmult0\f
i170\tx4557\tx7277 \up0 \expndtw0\charscalex106 Lack of information on markets\t
ab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\se
ct\sectd\sbknone \li1348\sb58\sl-161\slmult0\fi170 \up0 \expndtw0\charscalex106
Deficiencies in the availability of external\par\pard\sect\sectd\sbknone \li1348
\sb29\sl-161\slmult0\fi170\tx4557\tx5464\tx6370\tx7277 \up0 \expndtw0\charscalex
106 services\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106
*\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par\par
d\sect\sectd\sbknone \li1348\sb60\sl-161\slmult0\fi170 \up0 \expndtw0\charscalex
106 Difficulty in finding co-operation partners for:\par\pard\sect\sectd\sbknone
\li1348\sb58\sl-161\slmult0\fi340\tx4557\tx5464 \up0 \expndtw0\charscalex106 Pr
oduct or process development\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndt
w0\charscalex106 *\par\pard\sect\sectd\sbknone \li1348\sb59\sl-161\slmult0\fi340
\tx7277 \up0 \expndtw0\charscalex106 Marketing partnerships\tab \up0 \expndtw0\c
harscalex106 *\par\pard\sect\sectd\sbknone \li1348\sb60\sl-161\slmult0\fi170 \up
0 \expndtw0\charscalex106 Organisational rigidities within the enterprise:\par\p
ard\sect\sectd\sbknone \li1348\sb58\sl-161\slmult0\fi340\tx4557\tx5464\tx6370\tx
7277 \up0 \expndtw0\charscalex106 Attitude of personnel towards change\tab \up0
\expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\
charscalex106 *\tab \up0 \expndtw0\charscalex106 *\par\pard\sect\sectd\sbknone \
li1348\sb59\sl-161\slmult0\fi340\tx4557\tx5464\tx6370\tx7277 \up0 \expndtw0\char
scalex106 Attitude of managers towards change\tab \up0 \expndtw0\charscalex106 *
\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0
\expndtw0\charscalex106 *\par\pard\sect\sectd\sbknone \li1348\sb60\sl-161\slmult
0\fi340\tx4558\tx5465\tx6371\tx7279 \up0 \expndtw0\charscalex106 Managerial stru
cture of enterprise\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charsc
alex106 *\tab \up0 \expndtw0\charscalex106 *\tab \up0 \expndtw0\charscalex106 *\
par\pard\ql \li1519\sb54\sl-161\slmult0 \up0 \expndtw0\charscalex104 Inability t
o devote staff to innovation activity due \par\pard\li1519\sb33\sl-161\slmult0\f
i0\tx4557\tx5464 \up0 \expndtw0\charscalex108 to production requirements\tab \up
0 \expndtw0\charscalex108 *\tab \up0 \expndtw0\charscalex108 *\par\pard\ql \li13
4 Market factors: \par\pard\ql \li1519\sb59\sl-161\slmult0 \up0 \expndtw0\charsc
alex106 \ul0\nosupersub\cf36\f37\fs14 Uncertain demand for innovative goods or \
par\pard\li1348\sb43\sl-161\slmult0\fi170\tx4557\tx7277 \up0 \expndtw0\charscale
x105 services\tab \up0 \expndtw0\charscalex105 *\tab \up0 \expndtw0\charscalex10
5 *\par\pard\li1348\sb60\sl-161\slmult0\fi170 \up0 \expndtw0\charscalex105 Poten
tial market dominated by established\par\pard\li1348\sb28\sl-161\slmult0\fi170\t
x4558\tx7278 \up0 \expndtw0\charscalex105 enterprises\tab \up0 \expndtw0\charsca
lex105 *\tab \up0 \expndtw0\charscalex105 *\par\pard\li1348\sb59\sl-161\slmult0\
fi0 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf41\f42\fs14 Institutional fac
tors:\par\pard\li1348\sb60\sl-161\slmult0\fi170\tx4558\tx5465\tx7278 \up0 \expnd
tw0\charscalex105 \ul0\nosupersub\cf36\f37\fs14 Lack of infrastructure\tab \up0
\expndtw0\charscalex105 *\tab \up0 \expndtw0\charscalex105 *\tab \up0 \expndtw0\
charscalex105 *\par\pard\li1348\sb58\sl-161\slmult0\fi170\tx4557\tx7277 \up0 \ex
pndtw0\charscalex105 Weakness of property rights\tab \up0 \expndtw0\charscalex10
5 *\tab \up0 \expndtw0\charscalex105 *\par\pard\li1348\sb59\sl-161\slmult0\fi170
\tx4556\tx5463\tx7277 \up0 \expndtw0\charscalex105 Legislation, regulations, sta
ndards, taxation\tab \up0 \expndtw0\charscalex105 *\tab \up0 \expndtw0\charscale
x105 *\tab \up0 \expndtw0\charscalex105 *\par\pard\li1348\sb60\sl-161\slmult0\fi
0 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf41\f42\fs14 Other reasons for n
ot innovating:\par\pard\li1348\sb58\sl-161\slmult0\fi170\tx4556\tx5463\tx6369\tx
7276 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf36\f37\fs14 No need to innov

ate due to earlier innovations\tab \up0 \expndtw0\charscalex105 *\tab \up0 \expn
dtw0\charscalex105 *\tab \up0 \expndtw0\charscalex105 *\tab \up0 \expndtw0\chars
calex105 *\par\pard\li1348\sb59\sl-161\slmult0\fi170 \up0 \expndtw0\charscalex10
5 No need because of lack of demand for\par\pard\li1348\sb30\sl-161\slmult0\fi17
0\tx4557\tx7277 \up0 \expndtw0\charscalex105 innovations\tab \up0 \expndtw0\char
scalex105 *\tab \up0 \expndtw0\charscalex105 *\par\pard\sect\sectd\sbknone\cols2
\colno1\colw7762\colsr160\colno2\colw1018\colsr160\ql \li824\sb0\sl-126\slmult0
\par\pard\ql \li824\sb0\sl-126\slmult0 \par\pard\ql \li824\sb0\sl-126\slmult0 \p
ar\pard\ql \li824\sb0\sl-126\slmult0 \par\pard\ql \li824\sb0\sl-126\slmult0 \par
\pard\ql \li824\sb0\sl-126\slmult0 \par\pard\ql \li824\sb0\sl-126\slmult0 \par\p
ard\ql \li824\sb0\sl-126\slmult0 \par\pard\ql \li824\sb0\sl-126\slmult0 \par\par
d\ql \li824\sb0\sl-126\slmult0 \par\pard\ql \li824\sb0\sl-126\slmult0 \par\pard\
ql \li824\sb0\sl-126\slmult0 \par\pard\ql \li824\sb87\sl-126\slmult0 \up0 \expnd
AN COMMUNITIES 2005\par\pard\column \ql \li7922\sb0\sl-180\slmult0 \par\pard\ql
\li7922\sb0\sl-180\slmult0 \par\pard\ql \li7922\sb0\sl-180\slmult0 \par\pard\ql
\li7922\sb0\sl-180\slmult0 \par\pard\ql \li20\sb175\sl-180\slmult0 \up0 \expndtw
0\charscalex116 \ul0\nosupersub\cf19\f20\fs20 113
}
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}
i793\sb232\sl-241\slmult0 \up0 \expndtw0\charscalex123 \ul0\nosupersub\cf22\f23\
fs21 5. Questions on the appropriability of innovations \par\pard\qj \li1303\ri1
\f24\fs17 414. \tab \up0 \expndtw0\charscalex120 The ability of enterprises to a
ppropriate the gains from their innovation \line\up0 \expndtw0\charscalex137 act
ivities is an important factor affecting innovation. If, for example, \line \up0
\expndtw0\charscalex136 enterprises are unable to protect their innovations fro
m imitations by \line \up0 \expndtw0\charscalex120 competitors, they will have l
ess incentive to innovate. On the other hand, if an \line \up0 \expndtw0\charsca
lex124 industry functions well without formal protection methods, promoting thes
e \line \up0 \expndtw0\charscalex121 may slow the flow of knowledge and technolo
gy and lead to higher prices for \line \up0 \expndtw0\charscalex121 goods and se
rvices. \par\pard\qj \li1303\ri1177\sb74\sl-246\slmult0\tx1870 \up0 \expndtw0\ch
arscalex109 415. \tab \up0 \expndtw0\charscalex122 Policy plays a central role i
n the design of legal methods of protecting \line\up0 \expndtw0\charscalex131 in
novations. Data on which types of methods are used and their relative \line \up0
\expndtw0\charscalex128 importance can help inform policies to maximise the eco
nomic and social \up0 \expndtw0\charscalex121 benefits from intellectual propert
y rights. \par\pard\li1303\sb119\sl-195\slmult0\fi0\tx1870 \up0 \expndtw0\charsc
alex119 416.\tab \up0 \expndtw0\charscalex119 The following list of methods of p
rotection is suggested:\par\pard\li1303\sb117\sl-195\slmult0\fi0 \up0 \expndtw0\
charscalex119 Formal methods:\par\pard\ql \li1303\sb113\sl-195\slmult0 \up0 \exp
ndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f2
4\fs17 Patents. \par\pard\ql \li1303\ri2857\sb2\sl-320\slmult0 \up0 \expndtw0\

charscalex118 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17
Registration of design. \line \up0 \expndtw0\charscalex119 \ul0\nosupersub\cf
27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Trademarks. \par\pard\ql \li1
14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Copyrights. \par\pard\qj \li1303\ri362
1\sb39\sl-300\slmult0\fi0 \up0 \expndtw0\charscalex120 \ul0\nosupersub\cf27\f28\
fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Confidentiality agreements and trade
secrecy. \up0 \expndtw0\charscalex121 Informal methods: \par\pard\qj \li1303\ri
s14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Secrecy that is not covered by legal
agreements. \up0 \expndtw0\charscalex120 \ul0\nosupersub\cf27\f28\fs14 \u9679?\u
l0\nosupersub\cf23\f24\fs17 Complexity of product design. \par\pard\ql \li1303
\sb107\sl-195\slmult0 \up0 \expndtw0\charscalex120 \ul0\nosupersub\cf27\f28\fs14
\u9679?\ul0\nosupersub\cf23\f24\fs17 Lead time advantage over competitors. \p
ar\pard\qj \li1303\ri1178\sb60\sl-250\slmult0 \up0 \expndtw0\charscalex121 An ad
ditional formal method that is used in some countries is petty patents or \up0 \
expndtw0\charscalex125 utility patents, which are rights for protection of inven
tions that are granted \up0 \expndtw0\charscalex119 without any formal review. \
09 417. \tab \up0 \expndtw0\charscalex124 Patent data, both applications and gra
nts, function as an intermediate \line\up0 \expndtw0\charscalex125 output indica
tor for innovation activity and also provide information on the \line \up0 \expn
dtw0\charscalex124 innovative capabilities of the enterprise. For example, an en
terprise that has \line \up0 \expndtw0\charscalex125 applied for patents can be
assumed to be capable of developing innovations \line \up0 \expndtw0\charscalex1
21 that are new to the world (occasionally only new to the market, depending on
\line \up0 \expndtw0\charscalex123 the patent strategies of other firms). Data o
n whether or not enterprises have \line \up0 \expndtw0\charscalex138 applied for
or been granted a patent can thus provide useful data for \line \up0 \expndtw0\
charscalex121 innovation surveys and be used in specialised surveys on intellect
ual property \line \up0 \expndtw0\charscalex120 rights (IPR). Note that patent d
ata should refer to the country where the patent \line \up0 \expndtw0\charscalex
126 was developed and not the country where the patent application was made. \li
ne \up0 \expndtw0\charscalex105 Patent data is discussed in greater detail in th
e \ul0\nosupersub\cf24\f25\fs17 Patent Manual\ul0\nosupersub\cf23\f24\fs17 (OEC
D, 1994). \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\p
ar\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb177\sl-230\slmult0\fi0\tx4899
\dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 114\tab \up0 \expndtw
COMMUNITIES 2005
}
osupersub\cf23\f24\fs17 418. \tab \up0 \expndtw0\charscalex119 Registration of d
esign is primarily a method of protecting the aesthetic \line\up0 \expndtw0\char
scalex118 design of products, to prevent other enterprises from using it. Enterp
rises may \line \up0 \expndtw0\charscalex120 also register trademarks related to
the enterprise as a whole or a product line, \line \up0 \expndtw0\charscalex119
thereby protecting the enterprise\u8217?s image and the association of products
with \line \up0 \expndtw0\charscalex118 the enterprise. Copyrights relate to th
e final use of some types of products and \line \up0 \expndtw0\charscalex118 est
ablish rights to claim payment for the use of copyright-protected products. \par
419. \tab \up0 \expndtw0\charscalex122 Patents are methods for protecting resear
ch and development results. \line\up0 \expndtw0\charscalex123 Confidentiality ag
reements between enterprises and other organisations are \line \up0 \expndtw0\ch
arscalex127 also designed to protect R&D work, while at the same time allowing t
he \up0 \expndtw0\charscalex120 enterprise to interact with other organisations
on this work. \par\pard\qj \li1303\ri1179\sb50\sl-250\slmult0\tx1870 \up0 \expnd
tw0\charscalex107 420. \tab \up0 \expndtw0\charscalex122 It is recommended to co
llect data on whether or not enterprises have \line\up0 \expndtw0\charscalex138
used various methods of protection for their innovations during the \line \up0 \
expndtw0\charscalex127 observation period. Questions can either use a binary or
an ordinal scale. \line \up0 \expndtw0\charscalex118 Protection methods can be r
elevant for all types of innovations, though asking \line \up0 \expndtw0\charsca
lex127 questions for all innovation types combined can make it more difficult to
\line \up0 \expndtw0\charscalex131 interpret the data (\ul0\nosupersub\cf24\f2
5\fs17 i.e.\ul0\nosupersub\cf23\f24\fs17 to link protection methods to specific
types of \line \up0 \expndtw0\charscalex118 innovations). \par\pard\ql \li1303\
sb116\sl-195\slmult0\tx1870 \up0 \expndtw0\charscalex109 421. \tab \up0 \expndtw
0\charscalex121 Among the options for questions on methods of protection are: \p
ar\pard\ql \li1303\ri1176\sb60\sl-250\slmult0\tx1508\tx1508\tx1508\tx1508 \up0 \
expndtw0\charscalex125 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23
\f24\fs17 Refer to product and process innovation only. A supplementary questi
on \line\tab \up0 \expndtw0\charscalex121 could be asked on marketing and organi
sational innovations (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24
\fs17 whether \line \tab \up0 \expndtw0\charscalex127 any formal methods of pro
tection were used for these innovations). An \line \tab \up0 \expndtw0\charscale
x124 ordinal scale can be used to ask about the relative importance of different
\line \tab \up0 \expndtw0\charscalex124 methods. \par\pard\ql \li1303\ri1175\sb
62\sl-260\slmult0\tx1508\tx1508\tx1508\tx1508\tx1508 \up0 \expndtw0\charscalex12
0 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Refer to
all types of innovations combined. An ordinal scale could be used. \up0 \expndtw
0\charscalex126 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs
17 Refer to each individual innovation type, allowing enterprises to choose \l
ine\tab \up0 \expndtw0\charscalex122 those innovations that are relevant for eac
h protection method. This would \line \tab \up0 \expndtw0\charscalex123 allow th
e greatest level of detail on the use of protection methods, such as \line \tab
\up0 \expndtw0\charscalex121 which formal methods are used for marketing methods
, which innovations \line \tab \up0 \expndtw0\charscalex128 patents are used for
, and whether secrecy or other methods are used for \line \tab \up0 \expndtw0\ch
arscalex122 organisational or other innovations. \par\pard\li824\sb0\sl-218\slmu
par\pard\li824\sb21\sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\charscalex106 \ul0\
nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab
\dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 115

}
116}{\bkmkend Pg116}\pard\par\pard\sect\sectd\fs24\paperw9080\paperh13040\pard\s
b0\sl-240{\bkmkstart Pg117}{\bkmkend Pg117}\par\pard\ql \li1360\sb0\sl-138\slmul
t0 \par\pard\ql\li1360\sb0\sl-138\slmult0 \par\pard\ql\li1360\sb0\sl-138\slmult0
\par\pard\ql\li1360\sb32\sl-138\slmult0 \up0 \expndtw0\charscalex107 \ul0\nosup
ersub\cf11\f12\fs12 ISBN 92-64-01308-3 \par\pard\qj \li1360\ri4375\sb8\sl-180\sl
mult0 \up0 \expndtw0\charscalex117 Oslo Manual: Guidelines for Collecting and In
terpreting \up0 \expndtw0\charscalex118 Innovation Data \par\pard\ql \li1360\sb3
5\sl-138\slmult0 \up0 \expndtw0\charscalex113 OECD/European Communities 2005 \pa
r\pard\ql \li3832\sb0\sl-368\slmult0 \par\pard\ql\li3832\sb0\sl-368\slmult0 \par
\pard\ql\li3832\sb0\sl-368\slmult0 \par\pard\ql\li3832\sb108\sl-368\slmult0 \up0
\expndtw0\charscalex69 \ul0\nosupersub\cf20\f21\fs32 Chapter 8 \par\pard\ql \li
Survey Procedures \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\
r\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb16\sl-218\slmult0\fi0\tx7922 \u
CD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf
19\f20\fs20 117
}
}}

}}
}
}}
}
}}
}}
}
\sb0\sl-241\slmult0 \par\pard\ql\li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb0
\sl-241\slmult0 \par\pard\ql\li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb146\s
l-241\slmult0 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf22\f23\fs21 1. Intr
oduction \par\pard\qj \li1303\ri1178\sb72\sl-250\slmult0\tx1870 \up0 \expndtw0\c
harscalex109 \ul0\nosupersub\cf23\f24\fs17 422. \tab \up0 \expndtw0\charscalex12

6 The correct application of statistical methodology is crucial for the \line\
up0 \expndtw0\charscalex126 collection and analysis of innovation data. Based on
theoretical knowledge \line \up0 \expndtw0\charscalex131 and on practical exper
ience in recent innovation surveys at national and \up0 \expndtw0\charscalex122
international levels, this chapter discusses and provides guidelines on central
\up0 \expndtw0\charscalex122 elements of the collection and analysis of innovati
on data. \par\pard\qj \li1303\ri1177\sb72\sl-248\slmult0\tx1870 \up0 \expndtw0\c
harscalex109 423. \tab \up0 \expndtw0\charscalex125 Following these guidelines w
ill generally lead to comparable results \line\up0 \expndtw0\charscalex132 over
time and across countries. Particular circumstances may require a \line \up0 \ex
pndtw0\charscalex123 country to use another methodology. In such cases, the meth
ods used should \line \up0 \expndtw0\charscalex127 be considered carefully so as
to ensure that the results remain comparable. \line \up0 \expndtw0\charscalex12
4 Divergence from the guidelines should be documented in sufficient detail to \l
ine \up0 \expndtw0\charscalex121 explain comparability issues with data from oth
er countries. \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb17\sl241\slmult0 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf22\f23\fs21 2. Popula
tions \par\pard\ql \li1303\sb119\sl-218\slmult0 \up0 \expndtw-8\charscalex77 \ul
0\nosupersub\cf28\f29\fs19 2.1. The target population \par\pard\qj \li1303\ri117
24\fs17 424. \tab \up0 \expndtw0\charscalex127 Innovation activities take pla
ce in all parts of an economy: in \line\up0 \expndtw0\charscalex132 manuf
acturing, the service industries, public administrations, the health \line \up0
\expndtw0\charscalex129 sector and even private households. In reality, for vari
ous theoretical and \up0 \expndtw0\charscalex126 practical reasons, a survey wil
l not cover all possible units. The concept of \up0 \expndtw0\charscalex120 inno
vation may be less clear in some parts of the economy, especially for non\up0 \e
xpndtw0\charscalex120 market-oriented activities. \par\pard\qj \li1303\ri1177\sb
harscalex120 As discussed in Chapter 1, it is therefore recommended that innovat
ion \line\up0 \expndtw0\charscalex122 surveys should refer to innovation activit
ies in the business enterprise sector. \line \up0 \expndtw0\charscalex123 Hence,
the target population for innovation surveys concerns statistical units \line \
up0 \expndtw0\charscalex118 (innovators and non-innovators, R&D performers and n
on-R&D performers) in \line \up0 \expndtw0\charscalex121 the business enterprise
sector. This sector includes both goods-producing and \line \up0 \expndtw0\char
scalex122 services industries. A proposed list of industrial classifications to
be included \line \up0 \expndtw0\charscalex122 in the target population for inno
vation surveys is shown in Chapter 4. \par\pard\qj \li1303\ri1177\sb70\sl-250\sl
Innovative activities take place in small and medium-sized units as \line\up0 \
expndtw0\charscalex123 well as in large units. In order to capture innovation ac
tivity in these smaller \line \up0 \expndtw0\charscalex134 units, it is recommen
ded that the target population should include, at a \line \up0 \expndtw0\charsca
lex130 minimum, all statistical units with at least ten employees. This threshol
d \line \up0 \expndtw0\charscalex124 may be higher for specific industries, such
as Construction and Retail trade. \line \up0 \expndtw0\charscalex115 Surveys ma
y also find it useful to include units with \ul0\nosupersub\cf24\f25\fs17 fewer\
ul0\nosupersub\cf23\f24\fs17 than ten employees. \line \up0 \expndtw0\charscale
x115 Innovation activities in these smaller units are of considerable policy int
erest \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\p
ard\li793\sb47\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex106 \ul0\nosup
ersub\cf19\f20\fs20 118\tab \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f1
9\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005

}
ub\cf23\f24\fs17 for a number of sectors, such as high-technology manufacturing
and \up0 \expndtw0\charscalex120 knowledge-intensive services. \par\pard\ql \li1
303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb37\sl-218\slmult0 \up0 \expndtw-8\c
harscalex75 \ul0\nosupersub\cf28\f29\fs19 2.2. The frame population \par\pard\qj
upersub\cf23\f24\fs17 427. \tab \up0 \expndtw0\charscalex128 The units from whic
h a survey sample or census is drawn form the \line\up0 \expndtw0\charscalex122
frame population. When preparing a survey, the target and frame populations \lin
e \up0 \expndtw0\charscalex129 should be as close as possible. In practice, the
population from which the \up0 \expndtw0\charscalex123 sample or census is drawn
may not be the same as the target population. For \up0 \expndtw0\charscalex121
example, the frame population underlying the survey (such as a register) may \up
0 \expndtw0\charscalex124 include units that no longer exist, or units that no l
onger belong to the target \up0 \expndtw0\charscalex124 population. At the same
time, it may not contain units that in fact do belong \up0 \expndtw0\charscalex1
24 to the target population. \par\pard\qj \li1303\ri1178\sb49\sl-252\slmult0\tx1
870 \up0 \expndtw0\charscalex109 428. \tab \up0 \expndtw0\charscalex120 The fra
me population is based on the last year of the observation \line\up0 \
expndtw0\charscalex121 period for surveys. Special attention should be paid to a
number of changes to \line \up0 \expndtw0\charscalex124 units that may have tak
en place during the observation period. Among these \line \up0 \expndtw0\charsca
lex122 are: changes in industrial classifications, new units created during the
period, \line \up0 \expndtw0\charscalex122 mergers, splits of units, and units t
hat ceased activities during the last year of \line \up0 \expndtw0\charscalex122
the period. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870 \up0 \expndt
w0\charscalex109 429. \tab \up0 \expndtw0\charscalex120 An ideal frame is an upto-date official business register established for \line\up0 \expndtw0\charscale
x126 statistical purposes. National statistical offices usually keep such regist
ers. \line \up0 \expndtw0\charscalex126 Other registers can be used as well, pro
vided their quality is comparable to \line \up0 \expndtw0\charscalex122 that of
the official register. The units in the register will in many countries be \line
\up0 \expndtw0\charscalex137 legal units, so the units may not all be statistic
al units in terms of the \line \up0 \expndtw0\charscalex120 innovation survey, a
s defined in Chapter 4. Guidelines to check the validity of \line \up0 \expndtw0
\charscalex120 the responding statistical unit should be given in the questionna
ire. \par\pard\qj \li1303\ri1177\sb72\sl-248\slmult0\tx1870 \up0 \expndtw0\chars
calex109 430. \tab \up0 \expndtw0\charscalex126 If the register forms the b
asis for several surveys, such as the \line\up0 \expndtw0\charscalex121 in
novation survey, the R&D survey and the general business statistics survey, \lin
e \up0 \expndtw0\charscalex123 the information collected in the innovation surve
y can be restricted to issues \up0 \expndtw0\charscalex122 specific to innovatio
n. Other information, for example on R&D or on general \up0 \expndtw0\charscalex
126 economic variables such as employment, turnover, exports or investments, \up
0 \expndtw0\charscalex129 can be taken directly from the other surveys b
ased on the register. \up0 \expndtw0\charscalex130 Accordingly, it is desirab
le to base different types of surveys on a single \up0 \expndtw0\charscalex121 b
usiness register compiled for statistical purposes. \par\pard\ql \li793\sb0\sl-2
ul0\nosupersub\cf22\f23\fs21 3. Survey methods \par\pard\ql \li1303\sb119\sl-218

\slmult0 \up0 \expndtw-8\charscalex78 \ul0\nosupersub\cf28\f29\fs19 3.1. Mandato
ry or voluntary survey \par\pard\qj \li1303\ri1178\sb76\sl-250\slmult0\tx1870 \u
0\charscalex125 Innovation surveys can be either mandatory or voluntary. If they
are \line\up0 \expndtw0\charscalex122 voluntary, higher non-response rates shou
ld be expected. Low response rates \line \up0 \expndtw0\charscalex125 mean a sma
ller sample than expected and thus higher variance. This can be \line \up0 \expn
dtw0\charscalex134 compensated to some extent, in the case of sample surveys, by
higher \line \up0 \expndtw0\charscalex120 sampling fractions. However, increasi
ng the sampling fractions does not solve \par\pard\li824\sb0\sl-218\slmult0\par\
pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb77\sl-218\slmult0\fi0\tx7922 \up0
\expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD
/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19
\f20\fs20 119
}
cf23\f24\fs17 the basic problem of bias in the estimates for the target populati
on that is due \line \up0 \expndtw0\charscalex122 to a high non-response rate, m
aking further analyses less representative. \par\pard\ql \li1303\sb0\sl-218\slmu
supersub\cf28\f29\fs19 3.2. Census or sample survey \par\pard\qj \li1303\ri1177\
sb76\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24
\fs17 432. \tab \up0 \expndtw0\charscalex126 Innovation data can be collected th
rough census or sample surveys. \line\up0 \expndtw0\charscalex132 Resource limit
ations and response burdens will in most cases rule out a \line \up0 \expndtw0\c
harscalex126 survey of the entire population (census). If sample surveys are uti
lised, the \line \up0 \expndtw0\charscalex123 units should be selected on the ba
sis of a random procedure (random sample \line \up0 \expndtw0\charscalex132 surv
eys with known selection probabilities). Sample surveys should be \line \up0 \ex
pndtw0\charscalex128 representative of the basic characteristics of the target p
opulation, such as \line \up0 \expndtw0\charscalex120 industry, size and region,
so a stratified sample is necessary. \par\pard\qj \li1303\ri1177\sb70\sl-250\sl
A census may be unavoidable in some cases. It may be a legal \line\
up0 \expndtw0\charscalex122 requirement that all business surveys must be census
es. In addition, when the \line \up0 \expndtw0\charscalex118 frame population is
fairly small (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17
in small countries), proper sampling may \up0 \expndtw0\charscalex127 produce sa
mple sizes for some strata that are relatively close in size to the \up0 \expndt
w0\charscalex138 frame population of the strata. In such cases censuses may be w
orth \up0 \expndtw0\charscalex125 considering. Finally, it may be decided that a
ll units in the frame with more \up0 \expndtw0\charscalex121 than a given number
of employees should be included. \par\pard\qj \li1303\ri1177\sb50\sl-251\slmult
0\tx1870 \up0 \expndtw0\charscalex109 434. \tab \up0 \expndtw0\charscalex122 For
sample surveys, the sample of enterprises should be large enough \line\up0 \exp
ndtw0\charscalex121 to give reliable results for the units in the target populat
ion and characteristics \line \up0 \expndtw0\charscalex130 of interest in the ta
rget population, such as specific sectors. Estimates of \line \up0 \expndtw0\cha
rscalex132 acceptable coefficients of variation can be used to estimate the requ
ired \line \up0 \expndtw0\charscalex121 number of responses for reliable results
. The total sampling fraction will vary \line \up0 \expndtw0\charscalex132 depen
ding on the size of the total frame population, while the sampling \line \up0 \e
xpndtw0\charscalex124 fractions of each stratum will depend on the number of uni
ts, the size of the \line \up0 \expndtw0\charscalex130 units and the variability
of the main indicators. In general, the necessary \line \up0 \expndtw0\charscal
ex123 sample fraction will decrease with the number of units in the population a
nd \line \up0 \expndtw0\charscalex123 increase with the size of the units and th
e variability of the sample. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\q
l\li1303\sb39\sl-218\slmult0 \up0 \expndtw-8\charscalex78 \ul0\nosupersub\cf28\f
29\fs19 3.3. Domains \par\pard\qj \li1303\ri1176\sb78\sl-248\slmult0\tx1870 \up0
\expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 435. \tab \up0 \expndtw0\
charscalex120 Particular subsets of the target population may be of special inte
rest to \line\up0 \expndtw0\charscalex128 users or users may need detailed infor
mation at sector or regional levels. \line \up0 \expndtw0\charscalex121 These su
bsets are called domains (or sub-populations). To get representative \line \up0
\expndtw0\charscalex123 results for the domains, the domains must be subsets of
the sampling strata. \line \up0 \expndtw0\charscalex121 The most frequent approa
ch is \u8220?over-allocation\u8221? in order to produce reliable \line \up0 \exp
ndtw0\charscalex119 results for the domains. Additionally, establishing domains
may allow for the \line \up0 \expndtw0\charscalex136 co-ordination of different
business enterprise surveys, as well as for \line \up0 \expndtw0\charscalex119 c
omparisons over time between enterprises with similar characteristics. Some \lin
e \up0 \expndtw0\charscalex120 potential sub-populations that can be considered
are: industry groupings, size \line \up0 \expndtw0\charscalex119 classes, region
s, units that engage in R&D and innovation-active units. \par\pard\li793\sb0\sl230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\
par\pard\li793\sb157\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex106 \ul0
\nosupersub\cf19\f20\fs20 120\tab \up0 \expndtw0\charscalex106 \ul0\nosupersub\c
f18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
ql\li1303\sb0\sl-195\slmult0 \par\pard\ql\li1303\sb81\sl-195\slmult0\tx1870 \up0
\expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 436. \tab \up0 \expndtw0\
charscalex120 Some guidelines for the use of domains are: \par\pard\qj \li1303\r
27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Statistical units and classif
ications should be the same in all parts of the \line\tab \up0 \expndtw0\charsca
lex121 sample including domains. \par\pard\qj \li1303\ri1178\sb80\sl-240\slmult0
\tx1508 \up0 \expndtw0\charscalex119 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\n
osupersub\cf23\f24\fs17 Methods used (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0
\nosupersub\cf23\f24\fs17 weighting methods) to calculate results for sub

sets \line\tab \up0 \expndtw0\charscalex119 should be consistent with those used
for results from the main sample. \par\pard\qj \li1303\ri1177\sb80\sl-240\slmul
t0\tx1508 \up0 \expndtw0\charscalex120 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0
\nosupersub\cf23\f24\fs17 Deviations in data treatment or differences in the q
uality of the results from \line\tab \up0 \expndtw0\charscalex120 the domains sh
ould be documented. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\
sb61\sl-218\slmult0 \up0 \expndtw-8\charscalex76 \ul0\nosupersub\cf28\f29\fs19 3
.4. Sampling techniques \par\pard\qj \li1303\ri1175\sb76\sl-250\slmult0\fi0\tx18
pndtw0\charscalex119 Innovation surveys are in general random sample surveys. Th
e relevant \line\up0 \expndtw0\charscalex130 literature offers various sampling
techniques, such as the simple random \line \up0 \expndtw0\charscalex127 sample
technique, stratification techniques, cluster sample techniques and \line \up0 \
expndtw0\charscalex123 pps-sample\ul0\super\cf25\f26\fs20 1\ul0\nosupersub\cf23\
f24\fs17 techniques. The techniques may even be combined. In the past, \line \u
p0 \expndtw0\charscalex120 stratified sample surveys have proved to lead to reli
able results. \par\pard\qj \li1303\ri1176\sb50\sl-251\slmult0\tx1870 \up0 \expnd
tw0\charscalex109 438. \tab \up0 \expndtw0\charscalex121 If stratification tec
hniques are used, some general rules should be \line\up0 \expndtw0\charsc
alex135 observed with regard to the selection of the stratification variables. I
n \line \up0 \expndtw0\charscalex131 principle, stratification of the population
should lead to strata that are as \up0 \expndtw0\charscalex130 homogeneous as p
ossible in terms of their innovation or non-innovation \up0 \expndtw0\charscalex
124 activities. Given that the innovation activities of units in different indus
tries \up0 \expndtw0\charscalex125 and in different size classes can differ sign
ificantly, it is recommended that \up0 \expndtw0\charscalex127 the stratificatio
n of random sample innovation surveys should be based on \up0 \expndtw0\charscal
ex124 the size and principal activity of the units. \par\pard\qj \li1303\ri1177\
\charscalex123 The size of units should be measured by number of emplo
yees. \line\up0 \expndtw0\charscalex143 Recommended size classes are provide
d in Chapter 4 . Some \line \up0 \expndtw0\charscalex131 recommendations for
analytical purposes, which might also be used for \up0 \expndtw0\charscalex118 s
tratification, are given below. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\
tx1870 \up0 \expndtw0\charscalex109 440. \tab \up0 \expndtw0\charscalex122 The s
tratification of units according to their principal activities should \line\up0
\expndtw0\charscalex117 be based on the ISIC Rev. 3.1/NACE Rev. 1.1 classificati
ons. The classification \line \up0 \expndtw0\charscalex130 level largely depends
on national circumstances. Take as an example an \line \up0 \expndtw0\charscale
x120 economy specialised in the production of wood (Division 20 of ISIC Rev. 3.1
/ \line \up0 \expndtw0\charscalex121 NACE Rev. 1.1). For this country a further
subdivision at group or even class \line \up0 \expndtw0\charscalex124 level migh
t be useful, but would not be useful in another economy in which \line \up0 \exp
ndtw0\charscalex128 wood production is unimportant. However, sampling strata sho
uld not be \line \up0 \expndtw0\charscalex129 aggregated above the division leve
l (second-digit level of ISIC Rev. 3.1/ \line \up0 \expndtw0\charscalex102 NACE
Rev. 1.1). \par\pard\qj \li1303\ri1177\sb70\sl-250\slmult0\tx1870 \up0 \expndtw
0\charscalex109 441. \tab \up0 \expndtw0\charscalex119 If regional aspects ar
e of importance, the stratification should also \line\up0 \expndtw0\charsc
alex120 include a regional dimension. An appropriate regional classification sho
uld be \line \up0 \expndtw0\charscalex120 used. See the discussion of regional a
nalyses in Chapter 4. \par\pard\li1303\sb109\sl-195\slmult0\fi0\tx1870 \up0 \exp
ndtw0\charscalex123 442.\tab \up0 \expndtw0\charscalex124 Sampling fractions sho
uld not be the same for all strata. It is generally\par\pard\li1303\sb56\sl-195\
slmult0\fi0 \up0 \expndtw0\charscalex124 recommended that the sampling fraction
of a stratum should be higher for\par\pard\li824\sb0\sl-218\slmult0\par\pard\li8
24\sb0\sl-218\slmult0\par\pard\li824\sb184\sl-218\slmult0\fi0\tx7922 \up0 \expnd
AN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs
20 121
}
cf23\f24\fs17 more heterogeneous strata (optimal allocation), and also higher fo
r smaller \line \up0 \expndtw0\charscalex122 strata. The sampling fractions shou
ld be up to 100% in strata with only a few \line \up0 \expndtw0\charscalex139 un
its, as may be the case in strata consisting of large units in certain \line \up
0 \expndtw0\charscalex123 industries (or certain regions). The size of the units
should also be taken into \line \up0 \expndtw0\charscalex130 consideration by u
sing the pps-sampling approach and thus using lower \line \up0 \expndtw0\charsca
lex121 sampling fractions in strata with smaller units. Also, the units in each
stratum \line \up0 \expndtw0\charscalex124 may be sorted by size or turnover and
then sampled systematically. Another \line \up0 \expndtw0\charscalex134 factor,
which should be taken into account when fixing the individual \line \up0 \expnd
tw0\charscalex122 sampling fractions, is the expected response rate in each stra
tum. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb59\sl-218\slm
ult0 \up0 \expndtw-8\charscalex75 \ul0\nosupersub\cf28\f29\fs19 3.5. Panel data
surveys \par\pard\qj \li1303\ri1178\sb76\sl-250\slmult0\fi0\tx1870 \up0 \expndtw
0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 443. \tab \up0 \expndtw-1\charscal
ex100 The standard approach for innovation surveys is \ul0\nosupersub\cf24\f25\f
s17 repeated cross-sections\ul0\nosupersub\cf23\f24\fs17 , \line\up0 \expndtw0\c
harscalex131 where a new random sample is drawn from a given population for each
\line \up0 \expndtw0\charscalex122 innovation survey. An alternative or supplem
entary approach is to impose an \line \up0 \expndtw0\charscalex107 explicit \ul0
\nosupersub\cf24\f25\fs17 panel data \ul0\nosupersub\cf23\f24\fs17 structure, wh
ereby a given sample of units is surveyed more \line \up0 \expndtw0\charscalex10
7 frequently and in every subsequent survey using the same set of questions. \pa
444. \tab \up0 \expndtw0\charscalex119 Panel data provide the opportunity to fo
llow the development over time \line\up0 \expndtw0\charscalex123 of the innovati
on process at the microeconomic level. In particular, it allows \line \up0 \expn
dtw0\charscalex132 for the analysis of effects of various innovation indicators
over time on \line \up0 \expndtw0\charscalex120 economic variables such as sales
, productivity, exports and employees. \par\pard\qj \li1303\ri1177\sb50\sl-250\s
lmult0\tx1870 \up0 \expndtw0\charscalex109 445. \tab \up0 \expndtw0\charscalex12
4 Panel data surveys can be conducted in parallel to larger cross-\lin
e\up0 \expndtw0\charscalex128 sectional innovation surveys. However, a number of
guidelines should be \line \up0 \expndtw0\charscalex114 followed: \par\pard\ql
\li1303\ri1176\sb74\sl-246\slmult0\tx1508\tx1508\tx1508 \up0 \expndtw0\charscale
x120 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Units
should be integrated with full-scale cross-sectional surveys in years in \line\t
ab \up0 \expndtw0\charscalex132 which both are conducted, in order to reduce bur
dens on units and to \line \tab \up0 \expndtw0\charscalex122 ensure an acceptabl
e level of consistency between the results from the two \line \tab \up0 \expndtw
0\charscalex119 surveys. \par\pard\qj \li1303\ri1177\sb79\sl-240\slmult0\tx1508

b\cf23\f24\fs17 Panels should be constructed in such a way that they do not af
fect the main \line\tab \up0 \expndtw0\charscalex119 cross-sectional survey. \pa
r\pard\ql \li1303\ri1176\sb72\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw0\charsc
alex126 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 If
possible, information from other surveys on employment, sales, value \line\tab \
up0 \expndtw0\charscalex125 added and investment should be linked to the panel s
urvey as well as the \line \tab \up0 \expndtw0\charscalex120 larger cross-sectio
nal innovation survey for empirical analyses. \par\pard\ql \li1303\sb0\sl-218\sl
mult0 \par\pard\ql\li1303\sb39\sl-218\slmult0 \up0 \expndtw-8\charscalex76 \ul0\
nosupersub\cf28\f29\fs19 3.6. Survey methods and suitable respondents \par\pard\
osupersub\cf23\f24\fs17 446. \tab \up0 \expndtw0\charscalex121 A variety of m
ethods can be used to conduct innovation surveys, \line\up0 \expndtw0\cha
rscalex123 including postal surveys and personal interviews. Each of these metho
ds has \line \up0 \expndtw0\charscalex125 different strengths and weaknesses. Po
stal surveys are well established and \line \up0 \expndtw0\charscalex123 compara
tively less expensive, but may present problems. Several reminders, \line \up0 \
expndtw0\charscalex128 including telephone reminders, are usually necessary to i
ncrease response \line \up0 \expndtw0\charscalex127 rates to an acceptable level
. Actions that can be taken to increase response \line \up0 \expndtw0\charscalex
124 rates further include: contacting respondents prior to conducting the survey
, \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb177\sl-230\slmult0\fi0\tx4
899 \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 122\tab \up0 \exp
ndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EURO
PEAN COMMUNITIES 2005
}
ub\cf23\f24\fs17 sending a cover letter from the minister, sending basic results
of previous \up0 \expndtw0\charscalex124 innovation surveys, providing the poss
ibility of reporting to an \u8220?intelligent \up0 \expndtw0\charscalex127 quest
ionnaire\u8221? via the Internet or a promise to send respondents the main \up0
\expndtw0\charscalex118 findings from the current survey.\ul0\super\cf25\f26\fs2
0 2 \par\pard\qj \li1303\ri1178\sb50\sl-250\slmult0\tx1870 \up0 \expndtw0\charsc
alex107 \ul0\nosupersub\cf23\f24\fs17 447. \tab \up0 \expndtw0\charscalex122 Man
y of the problems with postal surveys can be avoided when data \line\up0 \expndt
w0\charscalex131 are collected by personal interview, using for example, CATI or
CAPI \line \up0 \expndtw0\charscalex120 techniques. Interviewers can give guide
lines on answering the questionnaire. \line \up0 \expndtw0\charscalex123 The qua
lity of the results for CAPI (computer-assisted personal interviews) \line \up0
\expndtw0\charscalex125 techniques is in general expected to be higher and item
non-response rates \line \up0 \expndtw0\charscalex116 are expected to be lower.
However, CAPI methods in particular are more costly \line \up0 \expndtw0\charsca
lex116 than postal surveys. \par\pard\qj \li1303\ri1177\sb72\sl-248\slmult0\tx18
70 \up0 \expndtw0\charscalex107 448. \tab \up0 \expndtw0\charscalex120 A drawbac
k to CATI (computer-assisted telephone interviews) is the \line\up0 \expndtw0\c

harscalex120 question of collecting quantitative data on innovation activity. Th
is generally \line \up0 \expndtw0\charscalex127 takes time to calculate, so that
respondents may not be able to answer the \line \up0 \expndtw0\charscalex131 en
tire questionnaire in a single call . Additionally, in large units , \l
ine \up0 \expndtw0\charscalex123 questionnaires are answered jointly by differen
t offices or branches, so that \line \up0 \expndtw0\charscalex119 several calls
may be needed to complete a single questionnaire. \par\pard\qj \li1303\ri1177\sb
harscalex124 An alternative approach is the use of online or automated
data \line\up0 \expndtw0\charscalex121 exchange collection technologies. It pre
sents a difference in terms of the use \line \up0 \expndtw0\charscalex122 of fil
tering questions. In a paper questionnaire respondents see all questions \line \
up0 \expndtw0\charscalex124 and are able to modify their responses to a filterin
g question. An electronic \line \up0 \expndtw0\charscalex125 questionnaire can b
e designed so that respondents do not see all questions \line \up0 \expndtw0\cha
rscalex119 and therefore cannot alter their answers in light of additional infor
mation (the \line \up0 \expndtw0\charscalex114 same may be true for CATI and CAP
I formats). One option could be to allow all \line \up0 \expndtw0\charscalex130
respondents to see the entire questionnaire, including the questions that \line
\up0 \expndtw0\charscalex122 respondents may not be required to answer. This app
roach also raises issues \line \up0 \expndtw0\charscalex120 of confidentiality a
nd continuity (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17
returning to the questionnaire several \line \up0 \expndtw0\charscalex117 times
before it is finished). \par\pard\qj \li1303\ri1177\sb50\sl-251\slmult0\tx1870 \
up0 \expndtw0\charscalex107 450. \tab \up0 \expndtw0\charscalex120 Choosing the
unit\u8217?s most suitable respondent is particularly important \line\up0 \expnd
tw0\charscalex132 in innovation surveys, as the questions are very specialised a
nd can be \line \up0 \expndtw0\charscalex118 answered by only a few people in th
e unit, often not those who complete other \line \up0 \expndtw0\charscalex123 st
atistical questionnaires. In small units, managing directors are often good \lin
e \up0 \expndtw0\charscalex122 respondents. In larger units, several people are
often involved, but one must \line \up0 \expndtw0\charscalex128 be responsible f
or co-ordinating the replies. It is highly recommended to \line \up0 \expndtw0\c
harscalex122 make a special effort to identify respondents by name before data c
ollection \line \up0 \expndtw0\charscalex122 starts. \par\pard\ql \li1303\sb0\sl
-218\slmult0 \par\pard\ql\li1303\sb39\sl-218\slmult0 \up0 \expndtw-8\charscalex7
6 \ul0\nosupersub\cf28\f29\fs19 3.7. The questionnaire \par\pard\li1303\sb135\sl
17 451.\tab \up0 \expndtw0\charscalex124 Some basic rules should be followed whe
n designing the questionnaire\par\pard\li1303\sb56\sl-195\slmult0\fi0 \up0 \expn
dtw0\charscalex125 for an innovation survey. Each questionnaire should be tested
before it is used\par\pard\li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charsc
alex125 in the field (pre-test). Pre-testing can include interviewing a group o
f\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\l
i824\sb175\sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\charscalex106 \ul0\nosupersu
b\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \ex
pndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 123
}

cf23\f24\fs17 managers or experts concerning their understanding of the
draft \up0 \expndtw0\charscalex123 questionnaire and sending the questionnaire t
o a small sample of units. Both \up0 \expndtw0\charscalex121 steps can be valuab
le for improving the quality of the questionnaire. \par\pard\qj \li1303\ri1176\s
charscalex122 The questionnaire should be as simple and short as possible, logic
ally \line\up0 \expndtw0\charscalex124 structured, and have clear definitions an
d instructions. Generally, the longer \line \up0 \expndtw0\charscalex124 the que
stionnaire, the lower the unit and item response rates. This effect can \line \u
p0 \expndtw0\charscalex120 be minimised by devoting special attention to design
and layout and by giving \line \up0 \expndtw0\charscalex136 clear and sufficient
explanatory notes and examples. It is particularly \line \up0 \expndtw0\charsca
lex134 important to design the questionnaire in such a way that units with no \l
ine \up0 \expndtw0\charscalex123 innovation activities will nonetheless reply an
d answer the questions that are \line \up0 \expndtw0\charscalex123 relevant for
them. \par\pard\qj \li1303\ri1177\sb74\sl-246\slmult0\tx1870 \up0 \expndtw0\char
scalex107 453. \tab \up0 \expndtw0\charscalex119 Respondents\u8217? understandin
g of the questionnaire may well increase as \line\up0 \expndtw0\charscalex127 th
ey move from question to question. This means that their answers may \line \up0
\expndtw0\charscalex128 depend on the order of the questions. Adding or deleting
a question may \up0 \expndtw0\charscalex121 influence subsequent answers. \par\
54. \tab \up0 \expndtw0\charscalex119 Questions on a number of qualitative indic
ators can use either a binary \line\up0 \expndtw0\charscalex117 scale (yes or no
), or an ordinal scale, \ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f
24\fs17 when enterprises are asked whether \line \up0 \expndtw0\charscalex130 t
he factor is relevant and, if so, its importance. The binary scale has the \line
\up0 \expndtw0\charscalex127 advantage of being simple and reliable, but
it provides only limited \line \up0 \expndtw0\charscalex128 information on th
e factors considered. However, it may introduce a high \line \up0 \expndtw0\char
scalex132 degree of subjectivity if the answer cannot be based on facts, owing t
o \line \up0 \expndtw0\charscalex123 differences in the interpretation of the qu
estion. An ordinal scale allows the \line \up0 \expndtw0\charscalex121 ranking o
f factors in terms of their importance, although this also introduces \line \up0
\expndtw0\charscalex131 a degree of subjectivity. Analytical methods are availa
ble, however, to \line \up0 \expndtw0\charscalex119 minimise such problems with
ordinal response scales. \par\pard\qj \li1303\ri1177\sb72\sl-248\slmult0\tx1870
\up0 \expndtw0\charscalex107 455. \tab \up0 \expndtw0\charscalex123 In the cas
e of international innovation surveys, special attention \line\up0 \expndt
w0\charscalex118 should be given to the translation and design of the questionna
ire. Even minor \line \up0 \expndtw0\charscalex121 differences between national
questionnaires can restrict the comparability of \line \up0 \expndtw0\charscalex
125 the results. Such differences can stem, for example, from translation, from
\line \up0 \expndtw0\charscalex124 changes in the order of questions, or from ad
ding or deleting categories. A \line \up0 \expndtw0\charscalex120 sound translat
ion which takes account of particular local circumstances (such \line \up0 \expn
dtw0\charscalex124 as a country\u8217?s legal system) will help avoid misunderst
andings of concepts \line \up0 \expndtw0\charscalex120 and definitions. \par\par
d\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb59\sl-218\slmult0 \up0 \ex
pndtw-8\charscalex75 \ul0\nosupersub\cf28\f29\fs19 3.7.1. Short-form questionnai
res \par\pard\qj \li1303\ri1177\sb78\sl-248\slmult0\tx1870 \up0 \expndtw0\charsc
alex107 \ul0\nosupersub\cf23\f24\fs17 456. \tab \up0 \expndtw0\charscalex118 For
many small units and units in sectors with little innovation activity, \line\up
0 \expndtw0\charscalex125 the response burden for a full innovation questionnair
e may be quite large \line \up0 \expndtw0\charscalex128 relative to their innova
tion activity. Unit non-response rates may also be \line \up0 \expndtw0\charscal
ex121 higher for these units. In such cases, shorter survey questionnaires that
focus \line \up0 \expndtw0\charscalex118 on a set of core questions can be usefu
l. Short-form questionnaires can also be \line \up0 \expndtw0\charscalex118 used
in surveying units that have not reported innovation activity in previous \par\
b67\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\
f20\fs20 124\tab \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN
92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
ub\cf23\f24\fs17 innovation surveys. Conversely, for individual units in the abo
ve-mentioned \up0 \expndtw0\charscalex120 groups (small units or less innovative
sectors) which have previously reported \up0 \expndtw0\charscalex120 substantia
l innovation activity, full questionnaires may be used. \par\pard\ql \li1303\sb0
ex76 \ul0\nosupersub\cf28\f29\fs19 3.8. Innovation and R&D surveys \par\pard\qj
persub\cf23\f24\fs17 457. \tab \up0 \expndtw0\charscalex122 Because R&D and inno
vation are related phenomena, some countries \line\up0 \expndtw0\charscalex125 m
ay consider the combination of R&D and innovation surveys. There are a \line \up
0 \expndtw0\charscalex122 number of arguments for and against: \par\pard\ql \li1
303\ri1176\sb50\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw0\charscalex121 \ul0\n
osupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 With a combined s
urvey, the overall response burden of the reporting units \line\tab \up0 \expndt
w0\charscalex128 will be reduced (a single questionnaire, instead of two separat
e surveys \line \tab \up0 \expndtw0\charscalex121 asking some of the same questi
ons). \par\pard\qj \li1303\ri1177\sb79\sl-240\slmult0\tx1508 \up0 \expndtw0\char
scalex121 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 I
f the length of the questionnaire for combined surveys is much longer than \line
\tab \up0 \expndtw0\charscalex121 for a separate survey, response rates may decl
ine. \par\pard\ql \li1303\ri1176\sb76\sl-246\slmult0\tx1508\tx1508\tx1508 \up0 \
\f24\fs17 A combined survey offers scope for analysing the relations between R
&D \line\tab \up0 \expndtw0\charscalex124 and innovation activities at the unit
level. There is less scope for this with \line \tab \up0 \expndtw0\charscalex135
separate surveys, especially when these are carried out by different \line \tab
\up0 \expndtw0\charscalex125 institutions. \par\pard\qj \li1303\ri1178\sb79\sl240\slmult0\tx1508 \up0 \expndtw0\charscalex120 \ul0\nosupersub\cf27\f28\fs14 \u
9679?\ul0\nosupersub\cf23\f24\fs17 There is a risk that units not famil
iar with the concepts of R&D and \line\tab \up0 \expndtw0\charscalex120 in
novation may confuse them in a combined survey. \par\pard\qj \li1303\ri1177\sb80
4 \u9679?\ul0\nosupersub\cf23\f24\fs17 Combined surveys offer an efficient met
hod of increasing the frequency of \line\tab \up0 \expndtw0\charscalex122 innova
tion surveys. \par\pard\ql \li1303\ri1177\sb72\sl-250\slmult0\tx1508\tx1508 \up0

\expndtw0\charscalex120 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf
23\f24\fs17 Country experiences (for example, Denmark, Finland, the Net
herlands, \line\tab \up0 \expndtw0\charscalex123 Norway and Spain) indicate that
it is possible to obtain reliable results for \line \tab \up0 \expndtw0\charsca
lex118 R&D expenditures in combined surveys. \par\pard\ql \li1303\ri1175\sb49\sl
-252\slmult0\tx1508\tx1508\tx1508\tx1508\tx1508 \up0 \expndtw0\charscalex126 \ul
0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 The frames for
the two surveys are generally different. For example, the \line\tab \up0 \expnd
tw0\charscalex138 frame population for innovation surveys may cover indus
trial \line \tab \up0 \expndtw0\charscalex129 classifications (and small units)
that are not included in R&D surveys. \line \tab \up0 \expndtw0\charscalex128 C
ombining them may involve sending questions about R&D to a large \line \tab \up0
\expndtw0\charscalex122 number of non-R&D performers that are included in the f
rame population \line \tab \up0 \expndtw0\charscalex120 for the innovation surve
y. This would increase the cost of the joint survey. \par\pard\qj \li1303\ri1176
0\charscalex122 In principle, business surveys other than for R&D can also be me
rged \line\up0 \expndtw0\charscalex126 with innovation surveys. Some experiences
in merging innovation surveys \line \up0 \expndtw0\charscalex121 with structura
l business surveys have been conducted (for example, Bulgaria, \up0 \expndtw0\ch
arscalex122 Italy and the Netherlands). Additionally, business surveys on the di
ffusion of \up0 \expndtw0\charscalex133 ICTs, and on the adoption of knowledge m
anagement practices can be \up0 \expndtw0\charscalex121 considered for integrati
on with innovation surveys. \par\pard\li1303\sb109\sl-195\slmult0\fi0\tx1870 \up
0 \expndtw0\charscalex121 459.\tab \up0 \expndtw0\charscalex121 While the Manual
does not recommend the use of combined surveys,\par\pard\li1303\sb55\sl-195\slm
ult0\fi0 \up0 \expndtw0\charscalex122 country experience indicates that they pro
vide a feasible option for increasing\par\pard\li824\sb0\sl-218\slmult0\par\pard
l-218\slmult0\par\pard\li824\sb189\sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\char
scalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMU
NITIES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 125
}
cf23\f24\fs17 the frequency of data collection. Some guidelines for conducting c
ombined \up0 \expndtw0\charscalex119 surveys are: \par\pard\ql \li1303\ri1177\sb
46\sl-253\slmult0\tx1508\tx1508\tx1508 \up0 \expndtw0\charscalex119 \ul0\nosuper
sub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 In order to reduce
the risk of conceptual confusion between R&D and \line\tab \up0 \expndtw0
\charscalex125 innovation, the questionnaire should have two distinct sections.
Separate \line \tab \up0 \expndtw0\charscalex124 sections should also be used wh
en combining innovation with other types \line \tab \up0 \expndtw0\charscalex117
of surveys. \par\pard\ql \li1303\ri1177\sb50\sl-250\slmult0\tx1508\tx1508 \up0
3\f24\fs17 To avoid declines in response rates, individual sections fo

r R&D and \line\tab \up0 \expndtw0\charscalex125 innovation should be smaller
than in separate surveys, so that the overall \line \tab \up0 \expndtw0\charscal
ex121 length of the combined survey is comparable to that of a separate survey.
\par\pard\ql \li1303\ri1176\sb70\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw0\cha
rscalex125 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17
Comparisons of results from combined surveys with those from separate \line\tab
\up0 \expndtw0\charscalex131 innovation surveys should be done with care, and su
rveying methods \line \tab \up0 \expndtw0\charscalex121 should be reported. \par
\ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Samples to
carry out such surveys should be extracted from a common \line\tab \up0 \expndtw
0\charscalex121 business register in order to avoid inconsistencies in the frame
populations. \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb15\sl241\slmult0 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf22\f23\fs21 4. Estima
tion of results \par\pard\ql \li1303\sb119\sl-218\slmult0 \up0 \expndtw-8\charsc
alex80 \ul0\nosupersub\cf28\f29\fs19 4.1. Weighting methods \par\pard\qj \li1303
cf23\f24\fs17 460. \tab \up0 \expndtw0\charscalex129 The results of sample s
urveys need to be weighted to obtain \line\up0 \expndtw0\charscalex123 inf
ormation that is representative for the target population. There are various \li
ne \up0 \expndtw0\charscalex128 methods for weighting sampling results. The simp
lest is weighting by the \line \up0 \expndtw0\charscalex123 inverse of the sampl
ing fractions of the sampling units, corrected by the unit \line \up0 \expndtw0\
charscalex131 non-response. If a stratified sampling technique with different sa
mpling \line \up0 \expndtw0\charscalex122 fractions is used, weights should be c
alculated individually for each stratum. \par\pard\qj \li1303\ri1177\sb72\sl-248
\slmult0\tx1870 \up0 \expndtw0\charscalex109 461. \tab \up0 \expndtw0\charscalex
127 The weights can be further refined by calibration if the frame \li
ne\up0 \expndtw0\charscalex123 population includes some quantitative or qualitat
ive information on all units, \line \up0 \expndtw0\charscalex121 such as number
of employees, turnover, legal status or region. The calibration \line \up0 \expn
dtw0\charscalex138 will ensure that the weighted sample sums to the total popula
tion or \line \up0 \expndtw0\charscalex122 distribution and in that way will inc
rease precision and reduce bias. Effective \line \up0 \expndtw0\charscalex115 ca
libration software, in particular CLAN from Statistics Sweden, CALMAR from \line
\up0 \expndtw0\charscalex117 INSEE (France) and CALJACK from Statistics Canada,
are available for use by \line \up0 \expndtw0\charscalex117 other countries. \p
9 462. \tab \up0 \expndtw0\charscalex124 Weights are most commonly based on the
number of enterprises in a \line\up0 \expndtw0\charscalex120 stratum. However, i
t may be beneficial for quantitative variables to weight the \line \up0 \expndtw
0\charscalex133 results by number of employees or turnover. In international and
other \line \up0 \expndtw0\charscalex131 comparisons it is important to ensure
that the same weighting method is \line \up0 \expndtw0\charscalex123 used. \par\
pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb39\sl-218\slmult0 \up0
\expndtw-8\charscalex78 \ul0\nosupersub\cf28\f29\fs19 4.2. Non-response \par\par
d\li1303\sb135\sl-195\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex121 \ul0\nosup
ersub\cf23\f24\fs17 463.\tab \up0 \expndtw0\charscalex122 In practice response
s to innovation surveys are always incomplete,\par\pard\li1303\sb55\sl-195
\slmult0\fi0 \up0 \expndtw0\charscalex122 irrespective of the survey method used
. Two types of missing values can be\par\pard\li793\sb0\sl-230\slmult0\par\pard\
li793\sb0\sl-230\slmult0\par\pard\li793\sb35\sl-230\slmult0\fi0\tx4899 \dn4 \exp
ndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 126\tab \up0 \expndtw0\charsca
IES 2005

}
ub\cf23\f24\fs17 distinguished: item and unit non-responses. \ul0\nosupersub\cf2
4\f25\fs17 Unit non-response\ul0\nosupersub\cf23\f24\fs17 means that a \line \u
p0 \expndtw0\charscalex121 reporting unit does not reply at all. Possible reason
s are, for example, that the \line \up0 \expndtw0\charscalex125 surveying instit
ute cannot reach the reporting unit or that the reporting unit \line \up0 \expnd
tw0\charscalex103 refuses to answer. In contrast, \ul0\nosupersub\cf24\f25\fs17
item non-response\ul0\nosupersub\cf23\f24\fs17 refers to the response rate to a
\line \up0 \expndtw0\charscalex124 specific question and is equal to the percen
tage of blank or missing answers \line \up0 \expndtw0\charscalex124 among the re
porting units. Item non-response rates are frequently higher for \line \up0 \exp
ndtw0\charscalex128 quantitative questions than for questions using binary or or
dinal response \line \up0 \expndtw0\charscalex120 categories. \par\pard\qj \li13
\expndtw0\charscalex126 Item and unit non-responses would be less a problem if
the missing \line\up0 \expndtw0\charscalex121 values were randomly distributed o
ver all sampling units and all questions. In \line \up0 \expndtw0\charscalex123
reality, however, both types of missing values may be biased with respect to \up
0 \expndtw0\charscalex123 certain characteristics of the population and the ques
tionnaire. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870 \up0 \expndtw0
\charscalex109 465. \tab \up0 \expndtw0\charscalex119 Disregarding missing value
s and applying simple weighting procedures \line\up0 \expndtw0\charscalex130 bas
ed only on the responses received implicitly assumes that non -\line \u
p0 \expndtw0\charscalex139 respondents are distributed in the same way as respon
dents. If non-\line \up0 \expndtw0\charscalex122 respondents do not follow the s
ame distribution, for example if non-response \line \up0 \expndtw0\charscalex119
units have a lower propensity to innovate, this practice will give biased resul
ts. \par\pard\qj \li1303\ri1176\sb74\sl-246\slmult0\tx1870 \up0 \expndtw0\charsc
alex109 466. \tab \up0 \expndtw0\charscalex125 A number of methods can be used t
o minimise the problems of non-\line \up0 \expndtw0\charscalex127 response. As d
ifferent methods may lead to different results, some general \line \up0 \expndtw
0\charscalex132 guidelines should be followed. An appropriate first step in deal
ing with \line \up0 \expndtw0\charscalex121 missing values is to contact the res
pondent to collect the missing information. \par\pard\qj \li1303\ri1177\sb73\sl248\slmult0\tx1870 \up0 \expndtw0\charscalex109 467. \tab \up0 \expndtw0\charsca
lex125 For practical as well as theoretical reasons, one way to minimise the \li
ne\up0 \expndtw0\charscalex132 problem of item non-response is to use imputation
methods to estimate \line \up0 \expndtw0\charscalex122 missing values on the ba
sis of additional information. The idea is that the use \line \up0 \expndtw0\cha
rscalex131 of additional information will allow more accurate estimates of missi
ng \line \up0 \expndtw0\charscalex127 values than simply using the mean observed
value and will minimise non-\line \up0 \expndtw0\charscalex122 response bias. \
par\pard\qj \li1303\ri1176\sb71\sl-250\slmult0\fi0\tx1870 \up0 \expndtw0\charsca
lex109 468. \tab \up0 \expndtw0\charscalex125 Among imputation methods, cold-dec
k techniques can be employed \line\up0 \expndtw0\charscalex135 first, in which m
issing information is estimated using data from other \line \up0 \expndtw0\chars
calex122 statistical surveys (including previous surveys) or from other related
sources. \line \up0 \expndtw0\charscalex124 For any remaining missing values, su
rveys may consider hot-deck methods. \line \up0 \expndtw0\charscalex130 Hot-deck

methods cover a large variety of options, such as replacing the \line \up0 \exp
ndtw0\charscalex124 missing values for each variable by the mean of the strata,
by predicting the \line \up0 \expndtw0\charscalex124 value using regression tech
niques, or by using nearest neighbour techniques \line \up0 \expndtw0\charscalex
122 where the missing values are replaced by the values of the unit which is mos
t \line \up0 \expndtw0\charscalex124 similar with respect to other relevant vari
ables. The decision about the most \line \up0 \expndtw0\charscalex128 appropriat
e hot-deck method should also be based on the type of variable \line \up0 \expnd
tw0\charscalex120 (quantitative or qualitative). \par\pard\li1303\sb114\sl-195\s
lmult0\fi0\tx1870 \up0 \expndtw0\charscalex123 469.\tab \up0 \expndtw0\charscale
x123 The choice of method to treat the problem of unit non-response will\par\par
d\li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex124 depend on the leve
l of non-response. If the non-response rate is fairly low,\ul0\super\cf25\f26\fs
20 3\par\pard\li1303\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex124 \ul0\n
osupersub\cf23\f24\fs17 the weighting should be calculated on the basis of the u
nits that replied. This\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl218\slmult0\par\pard\li824\sb110\sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\charsc
TIES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 127
}
cf23\f24\fs17 procedure assumes that the innovative behaviour of responding and
non\up0 \expndtw0\charscalex127 responding units is identical. The assumption ca
n be tested through a non\up0 \expndtw0\charscalex120 response analysis. Even if
the assumption is wrong, the bias introduced can be \up0 \expndtw0\charscalex12
0 disregarded if the fraction of non-responding units is fairly small. \par\pard
\qj \li1303\ri1177\sb47\sl-253\slmult0\tx1870 \up0 \expndtw0\charscalex109 470.
\tab \up0 \expndtw0\charscalex120 In contrast, if the unit non-response rate is
very high, no method can be \line\up0 \expndtw0\charscalex138 recommended to sol
ve the problem. In such a case the results of the \line \up0 \expndtw0\charscale
x121 innovation survey can only be used as case studies. No conclusions should b
e \line \up0 \expndtw0\charscalex121 drawn about the target population in genera
l, as the bias may be too great. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0
\tx1870 \up0 \expndtw0\charscalex109 471. \tab \up0 \expndtw0\charscalex118 In a
ll other cases, \ul0\nosupersub\cf24\f25\fs17 i.e.\ul0\nosupersub\cf23\f24\fs17
when the unit non-response rate is above a lower \line\up0 \expndtw0\charscalex
125 threshold but below an upper threshold, some more complicated and partly \li
ne \up0 \expndtw0\charscalex124 more expensive techniques can be used. One is to
select reporting units that \up0 \expndtw0\charscalex118 have answered randomly
until the response rate is 100%, \ul0\nosupersub\cf24\f25\fs17 i.e.\ul0\nosuper
sub\cf23\f24\fs17 to use the results \up0 \expndtw0\charscalex118 of randomly s
elected units twice or even more often. \par\pard\qj \li1303\ri1178\sb72\sl-248\
00 Other methods are based on the results of a \ul0\nosupersub\cf24\f25\fs17 non
-response analysis\ul0\nosupersub\cf23\f24\fs17 . The \line\up0 \expndtw0\charsc

alex123 objective of non-response analysis is to obtain information on why repor
ting \line \up0 \expndtw0\charscalex121 units did not answer. Non-reporting unit
s should be contacted by phone or by \up0 \expndtw0\charscalex124 mail (using a
very simple questionnaire not exceeding one page) and should \up0 \expndtw0\char
scalex119 be asked for general information such as their sector of activity and
size (if not \up0 \expndtw0\charscalex126 already available from other sources),
the reason why they did not answer. \up0 \expndtw0\charscalex122 They should be
asked to answer a few key questions in the original survey to \up0 \expndtw0\ch
arscalex132 see whether the results are biased. This information can then be use
d to \up0 \expndtw0\charscalex126 adjust the weights. The results of the non-res
ponse analysis should only be \up0 \expndtw0\charscalex121 used if the response
rate is very high. \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb1
7\sl-241\slmult0 \up0 \expndtw0\charscalex123 \ul0\nosupersub\cf22\f23\fs21 5. P
resentation of results \par\pard\qj \li1303\ri1177\sb92\sl-250\slmult0\tx1870 \u
0\charscalex123 The results of innovation surveys can be used either for descrip
tive or \line\up0 \expndtw0\charscalex104 for inferential analysis. The objectiv
e of \ul0\nosupersub\cf24\f25\fs17 descriptive analysis\ul0\nosupersub\cf23\f24\
fs17 is to describe the \line \up0 \expndtw0\charscalex133 statistical units in
terms of their innovative or non-innovative activities \line \up0 \expndtw0\cha
rscalex132 without drawing any conclusions about the underlying survey or target
\line \up0 \expndtw0\charscalex123 population (if it is not a census). In this
type of analysis the results are taken \line \up0 \expndtw0\charscalex130 withou
t further weighting, as observed for the individual units. No \line \up
0 \expndtw0\charscalex125 generalisation of the results at the level of the surv
ey or target population is \line \up0 \expndtw0\charscalex120 possible, because
the figures only refer to the participating units. For this kind \line \up0 \exp
ndtw0\charscalex120 of analysis, unit non-response rate is of minor importance.
109 474. \tab \up0 \expndtw0\charscalex103 In contrast, the objective of \ul0\no
supersub\cf24\f25\fs17 inferential analysis\ul0\nosupersub\cf23\f24\fs17 is to
draw conclusions \line\up0 \expndtw0\charscalex131 about the target populatio
n . In this case the results should give a \line \up0 \expndtw0\charscal
ex127 representative estimation of the situation for the observed and unobserved
\up0 \expndtw0\charscalex123 statistical units taken together. Inferential anal
ysis requires weighted results. \up0 \expndtw0\charscalex125 For this type of an
alysis, the unit non-response rate is very important: if the \up0 \expndtw0\char
scalex124 unit non-response rate exceeds a certain threshold, the potential bias
may be \up0 \expndtw0\charscalex121 so large that inferential analysis is usele
ss. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\par
d\li793\sb47\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex106 \ul0\nosuper
sub\cf19\f20\fs20 128\tab \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\
fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}

osupersub\cf23\f24\fs17 475. \tab \up0 \expndtw0\charscalex123 As mentioned ab
ove, most innovation surveys are carried out as \line\up0 \expndtw0\chars
calex120 random sample surveys. The results of these surveys will include two ty
pes of \line \up0 \expndtw0\charscalex125 error: random errors due to the random
process used to select the units, and \line \up0 \expndtw0\charscalex125 system
atic errors containing all non-random errors (bias). To get at least an \line \u
p0 \expndtw0\charscalex133 idea of the variance for the results, it is recommend
ed to calculate both \line \up0 \expndtw0\charscalex133 (average) values for inn
ovation indicators and also their coefficients of \line \up0 \expndtw0\charscale
x130 variation and/or confidence intervals. Such intervals include the true but
\line \up0 \expndtw0\charscalex133 unknown values in the survey population with
a very high probability, \line \up0 \expndtw0\charscalex127 assuming no bias. St
andard errors give a lower threshold for the unknown \line \up0 \expndtw0\charsc
alex122 total error of the indicators under consideration. \par\pard\qj \li1303\
xpndtw0\charscalex128 The presentation of results should contain metadata,
including \line\up0 \expndtw0\charscalex135 information on the procedure used
to collect data, sampling methods, \line \up0 \expndtw0\charscalex127 procedures
for dealing with non-response and quality indicators. This will \up0 \expndtw0\
charscalex122 allow users to better interpret the data and judge its quality. \p
ar\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb16\sl-241\slmult0 \up0
\expndtw0\charscalex120 \ul0\nosupersub\cf22\f23\fs21 6. Frequency of data coll
ection \par\pard\qj \li1303\ri1176\sb72\sl-250\slmult0\tx1870 \up0 \expndtw0\cha
Theoretical and practical considerations, as well as user needs at the \line\up0
\expndtw0\charscalex136 international, national and regional level, determine t
he frequency of \line \up0 \expndtw0\charscalex120 innovation surveys. The incre
asing importance of innovation for the growth of \line \up0 \expndtw0\charscalex
132 economies requires more frequent and more up-to-date data. From this \line \
up0 \expndtw0\charscalex126 viewpoint, information on innovation activities shou
ld ideally be collected \line \up0 \expndtw0\charscalex133 annually. Moreover, t
heoretical considerations indicate that innovation \line \up0 \expndtw0\charscal
ex133 activities occur in waves so that the results of less regular surveys very
\line \up0 \expndtw0\charscalex124 dependent on the time when the survey is car
ried out. Only a few countries, \line \up0 \expndtw0\charscalex119 however, can
afford or are willing to run innovation surveys every year. \par\pard\qj \li1303
expndtw0\charscalex123 Taking into account both practical considerations and use
r needs, it is \line\up0 \expndtw0\charscalex129 recommended to conduct innovati
on surveys every two years. However, \line \up0 \expndtw0\charscalex128 where th
is is not economically feasible, a frequency of three or four years \up0 \expndt
w0\charscalex124 may be chosen. \par\pard\qj \li1303\ri1178\sb72\sl-249\slmult0\
tx1870 \up0 \expndtw0\charscalex109 479. \tab \up0 \expndtw0\charscalex122 To en
sure comparability among respondents, surveys must specify an \line\up0 \expndtw
0\charscalex125 observation period for questions on innovation. The choice of th
e length of \line \up0 \expndtw0\charscalex127 the observation period is a compr
omise between different requirements. A \line \up0 \expndtw0\charscalex132 long
observation period allows for the collection of data on intermittent \line \up0
\expndtw0\charscalex124 innovation activities and the effects of innovations. Fo
r example, firms with \line \up0 \expndtw0\charscalex119 products that have long
er life cycles may innovate less frequently. Conversely, \line \up0 \expndtw0\ch
arscalex121 a short observation period improves respondent recall and the accura
cy of the \line \up0 \expndtw0\charscalex123 results. For longer observation per
iods, organisational memory may be poor, \line \up0 \expndtw0\charscalex120 owin
g either to staff turnover or to less reliable respondent recall. Other issues \
line \up0 \expndtw0\charscalex123 concern the relation between the frequency of
collection and the observation \line \up0 \expndtw0\charscalex124 period. An obs
ervation period that is longer than the frequency of collection \line \up0 \expn
dtw0\charscalex121 (creating overlap in the coverage of innovation surveys) has
some drawbacks. \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slm

ult0\par\pard\li824\sb217\sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\charscalex106
}
cf23\f24\fs17 The overlap in coverage may make it difficult to attribute innovat
ion fully to \line \up0 \expndtw0\charscalex125 the time period since the preced
ing survey. It can also affect comparison of \line \up0 \expndtw0\charscalex131
results over time, since it may be unclear whether changes in results are \line
\up0 \expndtw0\charscalex121 mainly due to innovation activities in the period s
ince the last survey or in the \line \up0 \expndtw0\charscalex115 year that is a
lso covered in the previous survey. As stated in Chapter 3, Section 8, \line \up
0 \expndtw0\charscalex127 it is recommended that the length of the observation p
eriod for innovation \line \up0 \expndtw0\charscalex127 surveys should not excee
d three years nor be less than one year. \par\pard\ql \li1303\sb0\sl-218\slmult0
\up0 \expndtw-8\charscalex88 \ul0\nosupersub\cf28\f29\fs19 Notes \par\pard\qj \
ersub\cf30\f31\fs15 1. pps-sampling = The units are included with Probabilities
Proportional to their \line\tab \up0 \expndtw0\charscalex120 Size, often measur
ed as number of employees in the business sector. \par\pard\qj \li1401\ri1194\sb
117\sl-180\slmult0\tx1587 \up0 \expndtw0\charscalex120 2. Further guidelines for
improving response rates for postal surveys can be found in \line\tab \up0 \exp
ndtw0\charscalex113 Dillman (1978) and in Moore and Baxter (1993). \par\pard\qj
\li1401\ri1194\sb104\sl-200\slmult0\tx1587\tx1587 \up0 \expndtw0\charscalex120 3
. It is difficult, if not impossible, to define when a unit non-response rate is
deemed \line\tab \up0 \expndtw0\charscalex122 to be high or low. However, it is
generally acknowledged that the higher the unit \line \tab \up0 \expndtw0\chars
calex122 non-response rate, the lower the comparability of the results of innova
tion \par\pard\ql \li1587\sb4\sl-172\slmult0 \up0 \expndtw0\charscalex118 survey
s. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\pard
pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb51\sl-230\slmult0\fi0\tx4899 \dn4
\expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 130\tab \up0 \expndtw0\ch
arscalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COM

MUNITIES 2005
}
32\sl-138\slmult0 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf11\f12\fs12 ISB
N 92-64-01308-3 \par\pard\qj \li1360\ri4375\sb8\sl-180\slmult0 \up0 \expndtw0\ch
arscalex117 Oslo Manual: Guidelines for Collecting and Interpreting \up0 \expndt
w0\charscalex118 Innovation Data \par\pard\ql \li1360\sb35\sl-138\slmult0 \up0 \
expndtw0\charscalex113 OECD/European Communities 2005 \par\pard\ql \li3792\sb0\s
l-368\slmult0 \par\pard\ql\li3792\sb0\sl-368\slmult0 \par\pard\ql\li3792\sb0\sl368\slmult0 \par\pard\ql\li3792\sb108\sl-368\slmult0 \up0 \expndtw0\charscalex69
\ul0\nosupersub\cf20\f21\fs32 References \par\pard\ql \li1303\sb0\sl-190\slmult
0 \par\pard\ql\li1303\ri1132\sb150\sl-190\slmult0\tx1587\tx1587 \up0 \expndtw0\c
harscalex114 \ul0\nosupersub\cf30\f31\fs15 Brynjolfsson, E. and L.M. Hitt (2000)
, \u8220?Beyond Computation: Information Technology, \line\tab \up0 \expndtw0\ch
arscalex103 Organizational Transformation and Business Performance\u8221?, \ul0\
nosupersub\cf31\f32\fs15 Journal of Economic \line \tab \up0 \expndtw-6\charscal
ex95 Perspectives\ul0\nosupersub\cf30\f31\fs15 14 (4), pp. 23-48 \par\pard\ql \
li1303\ri1133\sb102\sl-200\slmult0\tx1587\tx1587 \up0 \expndtw0\charscalex115 Co
mmission of the European Communities (CEC), International Monetary Fund (IMF), \
line\tab \up0 \expndtw0\charscalex114 Organisation for Economic Co-operation and
Development (OECD), United Nations \line \tab \up0 \expndtw-6\charscalex94 (UN)
and World Bank, (1994), \ul0\nosupersub\cf31\f32\fs15 System of National Accoun
ts 1993\ul0\nosupersub\cf30\f31\fs15 , New York. \par\pard\qj \li1303\ri1134\sb8
1\sl-200\slmult0\tx1587 \up0 \expndtw-6\charscalex86 Christensen, C.M. (1997), \
ul0\nosupersub\cf31\f32\fs15 The Innovator\u8217?s Dilemma: When New Technologie
s Cause Great \line\tab \up0 \expndtw-6\charscalex86 Firms to Fail\ul0\nosupersu
b\cf30\f31\fs15 , Harvard Business School Press, Boston. \par\pard\ql \li1303\ri
1133\sb106\sl-193\slmult0\tx1587\tx1587\tx1587 \up0 \expndtw0\charscalex114 Dier
kes, M. (2003), \u8220?Visions, Technology, and Organizational Knowledge: An Ana
lysis \line\tab \up0 \expndtw0\charscalex115 of the Interplay between Enabling F
actors and Triggers of Knowledge Generation\u8221?, \line \tab \up0 \expndtw-2\c
harscalex100 in John de la Mothe and Dominique Foray (eds.), \ul0\nosupersub\cf
31\f32\fs15 Knowledge Management in the \line \tab \up0 \expndtw-3\charscalex100
Innovation Process\ul0\nosupersub\cf30\f31\fs15 , Kluwer Academic Publishers, B
oston. \par\pard\ql \li1303\sb125\sl-172\slmult0 \up0 \expndtw-6\charscalex96 Di
llman, D. (1978), \ul0\nosupersub\cf31\f32\fs15 The Total Design Method\ul0\nosu
persub\cf30\f31\fs15 , Wiley, New York. \par\pard\qj \li1303\ri1194\sb122\sl-180
\slmult0\tx1587 \up0 \expndtw0\charscalex117 Earl, L. (2003), \u8220?Innovation
and Change in the Public Sector: A Seeming Oxymoron\u8221?, \line\tab \up0 \expn
dtw0\charscalex111 Statistics Canada SIEID Working Paper Series No. 2002-01. \pa
1 Earl, L. (2003), \u8220?Knowledge management in practice in Canada, 2001\u8
221?, Statistics \line\tab \up0 \expndtw0\charscalex116 Canada, Ottawa. \par\par
d\ql \li1303\sb124\sl-172\slmult0 \up0 \expndtw-6\charscalex81 Eurostat (1996),
\ul0\nosupersub\cf31\f32\fs15 The Regional Dimension of R&D and Innovation Stati
stics, \ul0\nosupersub\cf30\f31\fs15 Brussels. \par\pard\qj \li1303\ri1136\sb85\
sl-200\slmult0\tx1587 \up0 \expndtw-6\charscalex92 Foray, D. and F. Gault (eds.)
(2003), \ul0\nosupersub\cf31\f32\fs15 Measuring Knowledge Management in the Bus

iness \line\tab \up0 \expndtw-6\charscalex92 Sector: First Steps\ul0\nosupersub\
cf30\f31\fs15 , OECD/Statistics Canada, OECD, Paris. \par\pard\ql \li1303\sb124\
sl-172\slmult0 \up0 \expndtw0\charscalex114 Hall, B. (2005), \u8220?Innovation a
nd Diffusion\u8221?, Chapter 17 in J. Fagerberg, D. Mowery and \par\pard\qj \li1
587\ri1140\sb22\sl-180\slmult0 \up0 \expndtw-3\charscalex100 R.R. Nelson (eds.)
, \ul0\nosupersub\cf31\f32\fs15 The Oxford Handbook of Innovation\ul0\nosupersub
\cf30\f31\fs15 , Oxford University Press, \up0 \expndtw-4\charscalex100 Oxford.
\par\pard\qj \li1303\ri1133\sb104\sl-200\slmult0\tx1587 \up0 \expndtw-6\charscal
ex88 Hauknes, J. (1998\ul0\nosupersub\cf31\f32\fs15 ) Services in Innovation, In
novation in Services\ul0\nosupersub\cf30\f31\fs15 , SI4S Final Report, STEP \lin
e\tab \up0 \expndtw-6\charscalex88 Group, Oslo. \par\pard\ql \li1303\ri1192\sb10
9\sl-190\slmult0\tx1587\tx1587 \up0 \expndtw0\charscalex125 Howells, J.R.L. and
B.S Tether (2004), \u8220?Innovation in Services: Issues at Stake \line\tab \u
p0 \expndtw0\charscalex116 and Trends - A Report for the European Commission\u8
221?, INNO-Studies 2001: Lot 3 \line \tab \up0 \expndtw0\charscalex106 (ENTR-C/2
001), Brussels. \par\pard\qj \li1303\ri1181\sb102\sl-200\slmult0\tx1587 \up0 \ex
pndtw-6\charscalex84 Hunt , S .D. ( 1 9 8 3 ) , \ul0\nosupersub\cf31\f32\fs15
Marketing Theory : the Philosophy of Marketing Science\ul0\nosupersub\cf3
0\f31\fs15 , \line\tab \up0 \expndtw-6\charscalex84 Richard D. Irwin, Inc., New
York. \par\pard\qj \li1303\ri1133\sb81\sl-200\slmult0\tx1587 \up0 \expndtw-5\ch
arscalex100 de Jong, J.P.J., A. Bruins, W. Dolfsma and J. Meijaard (2003), \ul0\
nosupersub\cf31\f32\fs15 Innovation in Services Firms \line\tab \up0 \expndtw-6\
charscalex91 Explored: What, How and Why?\ul0\nosupersub\cf30\f31\fs15 , EIM Rep
ort, Zoetermeer. \par\pard\ql \li1303\sb124\sl-172\slmult0 \up0 \expndtw0\charsc
alex117 Kline, S.J. and N. Rosenberg (1986), \u8220?An Overview of Innovation\u8
221?, in R. Landau and \par\pard\qj \li1587\ri1136\sb22\sl-180\slmult0 \up0 \exp
ndtw-6\charscalex84 N. Rosenberg (eds.), \ul0\nosupersub\cf31\f32\fs15 The Posit
ive Sum Strategy: Harnessing Technology for Economic \up0 \expndtw-6\charscalex8
4 Growth\ul0\nosupersub\cf30\f31\fs15 , National Academies Press, Washington D.C
li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb13\s
s11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\chars
calex106 \ul0\nosupersub\cf19\f20\fs20 131
}
}}
}}
}
}}
}
}}
}}
}
li1303\sb0\sl-172\slmult0 \par\pard\ql\li1303\sb146\sl-172\slmult0 \up0 \expndtw
0\charscalex113 \ul0\nosupersub\cf30\f31\fs15 Lam, A. (2005), \u8220?Organizatio
nal Innovation\u8221?, Chapter 5 in J. Fagerberg, D. Mowery and \par\pard\qj \li
1587\ri1140\sb22\sl-180\slmult0 \up0 \expndtw-3\charscalex100 R.R. Nelson (eds.
), \ul0\nosupersub\cf31\f32\fs15 The Oxford Handbook of Innovation\ul0\nosupersu
b\cf30\f31\fs15 , Oxford University Press, \up0 \expndtw-4\charscalex100 Oxford.
\par\pard\ql \li1303\ri1194\sb104\sl-200\slmult0\tx1587\tx1587 \up0 \expndtw0\c
harscalex104 Lugones, G. and F. Peirano (2004), \u8220?Proposal for an Annex to
the \ul0\nosupersub\cf31\f32\fs15 Oslo Manual\ul0\nosupersub\cf30\f31\fs15 as a
Guide \line\tab \up0 \expndtw0\charscalex116 for Innovation Surveys in Less Dev
eloped Countries Non-Members of the OECD\u8221?, \line \tab \up0 \expndtw0\chars
calex106 Centro REDES/RICYT, Buenos Aires. \par\pard\qj \li1303\ri1135\sb81\sl-2

00\slmult0\tx1587 \up0 \expndtw-6\charscalex81 Lundvall, B.-A. (ed.) (1992), \ul
0\nosupersub\cf31\f32\fs15 National Systems of Innovation: Towards a Theory of I
nnovation \line\tab \up0 \expndtw-6\charscalex81 and Interactive Learning\ul0\no
supersub\cf30\f31\fs15 , Pinter Publishers, London. \par\pard\ql \li1303\ri1133\
sb109\sl-190\slmult0\tx1587\tx1587 \up0 \expndtw0\charscalex122 Malerba, F. (20
05), \u8220?Sectoral Systems: How and Why Innovation Differs Across \line\tab \
up0 \expndtw0\charscalex106 Sectors\u8221?, Chapter 14 in J. Fagerberg, D. Mower
y and R.R. Nelson (eds.), \ul0\nosupersub\cf31\f32\fs15 The Oxford \line \tab \u
p0 \expndtw-6\charscalex97 Handbook of Innovation\ul0\nosupersub\cf30\f31\fs15 ,
Oxford University Press, Oxford. \par\pard\ql \li1303\sb125\sl-172\slmult0 \up0
\expndtw0\charscalex117 Miles, I. (2005), \u8220?Innovation in Services\u8221?,
Chapter 16 in J. Fagerberg, D. Mowery and \par\pard\qj \li1587\ri1140\sb5\sl-20
0\slmult0 \up0 \expndtw-3\charscalex100 R.R. Nelson (eds.), \ul0\nosupersub\cf3
1\f32\fs15 The Oxford Handbook of Innovation\ul0\nosupersub\cf30\f31\fs15 , Oxfo
rd University Press, \up0 \expndtw-4\charscalex100 Oxford. \par\pard\ql \li1303\
ri1194\sb85\sl-195\slmult0\tx1587\tx1587\tx1587\tx1587 \up0 \expndtw0\charscalex
123 Moore, D. and R. Baxter (1993), \u8220?Increasing Mail Questionnaire Compl
etion for \line\tab \up0 \expndtw0\charscalex119 Business Populations: The Effec
ts of Personalization and a Telephone Follow-up \line \tab \up0 \expndtw0\charsc
alex123 Procedure as Elements of the Total Design Method\u8221?, Proceed
ings of the \line \tab \up0 \expndtw0\charscalex131 International Conference o
n Establishment Surveys, American Statistical \line \tab \up0 \expndtw0\charsca
lex114 Association, Alexandria, Virginia. \par\pard\qj \li1303\ri1133\sb101\sl-2
00\slmult0\tx1587 \up0 \expndtw-6\charscalex92 Nelson R. and S. Winter (1982), \
ul0\nosupersub\cf31\f32\fs15 An Evolutionary Theory of Economic Change\ul0\nosup
ersub\cf30\f31\fs15 , Belknap Press \line\tab \up0 \expndtw-6\charscalex92 of Ha
rvard University Press, Cambridge, Massachusetts. \par\pard\ql \li1303\sb124\sl172\slmult0 \up0 \expndtw-6\charscalex93 Nelson R. (1993), \ul0\nosupersub\cf31\
f32\fs15 National Innovation Systems\ul0\nosupersub\cf30\f31\fs15 , Oxford UP, O
xford. \par\pard\qj \li1303\ri1158\sb85\sl-200\slmult0\tx1587 \up0 \expndtw0\cha
rscalex115 OECD (1994), \u8220?Using Patent Data as Science and Technology Ind
icators - \ul0\nosupersub\cf31\f32\fs15 Patent \line\tab \up0 \expndtw-6\charsc
alex94 Manual\ul0\nosupersub\cf30\f31\fs15 \u8221?\ul0\nosupersub\cf31\f32\fs15
,\ul0\nosupersub\cf30\f31\fs15 OECD GD. \par\pard\qj \li1303\ri1139\sb101\sl-20
0\slmult0\tx1587 \up0 \expndtw-6\charscalex82 OECD (2001), \ul0\nosupersub\cf31
\f32\fs15 Innovative Networks: Co-operation in National Innovation Systems\ul0\n
osupersub\cf30\f31\fs15 , OECD, \line\tab \up0 \expndtw-6\charscalex82 Paris. \p
ar\pard\qj \li1303\ri1146\sb81\sl-200\slmult0\tx1587 \up0 \expndtw-6\charscalex8
3 OECD (2002), \ul0\nosupersub\cf31\f32\fs15 Proposed Standard Practice for Sur
veys for Research and Experimental \line\tab \up0 \expndtw-6\charscalex81 Develo
pment, Frascati Manual 2002\ul0\nosupersub\cf30\f31\fs15 , OECD, Paris. \par\par
d\qj \li1303\ri1133\sb101\sl-200\slmult0\tx1587 \up0 \expndtw-6\charscalex79 OEC
D (2004), \ul0\nosupersub\cf31\f32\fs15 The Economic Impact of ICT: Measurement,
Evidence and Implications\ul0\nosupersub\cf30\f31\fs15 , OECD, \line\tab \up0 \
expndtw-6\charscalex79 Paris. \par\pard\ql \li1303\sb104\sl-172\slmult0 \up0 \ex
pndtw-6\charscalex84 OECD (2005), \ul0\nosupersub\cf31\f32\fs15 Handbook on Econ
omic Globalisation Indicators\ul0\nosupersub\cf30\f31\fs15 , OECD, Paris. \par\p
ard\qj \li1303\ri1152\sb105\sl-200\slmult0\tx1587 \up0 \expndtw-6\charscalex84 O
ECD/Eurostat (1997), \ul0\nosupersub\cf31\f32\fs15 OECD Proposed Guidelines
for Collecting and Interpreting \line\tab \up0 \expndtw-6\charscalex79 Techn
ological Innovation Data - Oslo Manual\ul0\nosupersub\cf30\f31\fs15 , OECD, Pari
s. \par\pard\qj \li1303\ri1133\sb117\sl-180\slmult0\tx1587 \up0 \expndtw-6\chars
calex91 Perreault, W.D and E.J. McCarthy (2005), \ul0\nosupersub\cf31\f32\fs15 B
asic Marketing: A Global Managerial Approach, \line\tab \up0 \expndtw-6\charscal
ex87 McGraw-Hill, \ul0\nosupersub\cf30\f31\fs15 New York. \par\pard\ql \li1303\s
b127\sl-172\slmult0 \up0 \expndtw-3\charscalex100 Rogers, E.M. (1995), \ul0\nosu
persub\cf31\f32\fs15 Diffusion of Innovations\ul0\nosupersub\cf30\f31\fs15 , Fou
rth edition. The Free Press, New York. \par\pard\qj \li1303\ri1152\sb105\sl-200\
slmult0\tx1587 \up0 \expndtw-6\charscalex89 Rosenberg, N. (1994), \ul0\nosupers
ub\cf31\f32\fs15 Exploring the Black Box: Technology, Economics, and History\ul0

\nosupersub\cf30\f31\fs15 , \line\tab \up0 \expndtw-6\charscalex89 Cambridge Uni
versity Press, Cambridge. \par\pard\qj \li1303\ri1133\sb81\sl-200\slmult0\tx1587
\up0 \expndtw-1\charscalex100 Salazar, M. and A. Holbrook (2004), \u8220?A Deba
te on Innovation Surveys\u8221?, \ul0\nosupersub\cf31\f32\fs15 Science and Publi
c \line\tab \up0 \expndtw-6\charscalex90 Policy\ul0\nosupersub\cf30\f31\fs15 , 3
1, 4. \par\pard\qj \li1303\ri1137\sb101\sl-200\slmult0\tx1587 \up0 \expndtw-4\ch
arscalex100 Schumpeter, J. (1934), \ul0\nosupersub\cf31\f32\fs15 The Theory of E
conomic Development\ul0\nosupersub\cf30\f31\fs15 , Harvard University Press, \li
ne\tab \up0 \expndtw-5\charscalex100 Cambridge, Massachusetts. \par\pard\qj \li1
303\ri1213\sb81\sl-200\slmult0\tx1587 \up0 \expndtw0\charscalex118 Statistics Ca
nada (1999), \u8220?The Biotechnology Use and Development Survey 1999\u8221?,
\line\tab \up0 \expndtw0\charscalex118 Statistics Canada, Ottawa. \par\pard\li79
}
qj\li1303\ri1133\sb103\sl-290\slmult0\fi0 \up0 \expndtw-5\charscalex100 \ul0\nos
upersub\cf30\f31\fs15 Sutton, J. (1992), \ul0\nosupersub\cf31\f32\fs15 Sunk Cost
s and Market Structure\ul0\nosupersub\cf30\f31\fs15 , MIT Press, Cambridge, Mass
achusetts. \up0 \expndtw-5\charscalex100 Sutton, J. (1998), \ul0\nosupersub\cf31
\f32\fs15 Technology and Market Structure\ul0\nosupersub\cf30\f31\fs15 , MIT Pre
ss, Cambridge, Massachusetts. \up0 \expndtw-6\charscalex85 Tirole, J. (1995), \u
l0\nosupersub\cf31\f32\fs15 The Theory of Industrial Organization\ul0\nosupersub
\cf30\f31\fs15 , MIT Press. \par\pard\qj \li1303\ri1139\sb85\sl-200\slmult0\tx15
87 \up0 \expndtw-6\charscalex85 United Nations (2002), \ul0\nosupersub\cf31\f32
\fs15 International Standard Industrial Classification of All Economic \line\tab
\up0 \expndtw-6\charscalex85 Activities, Rev. 3.1\ul0\nosupersub\cf30\f31\fs15
, United Nations, New York. \par\pard\ql \li1303\ri1134\sb109\sl-190\slmult0\tx1
587\tx1587 \up0 \expndtw0\charscalex120 Von Tunzelmann, N. and V. Acha (2005),
\u8220?Innovation in \u8220?Low Tech\u8217? Industries\u8221?, \line\tab \up0
\expndtw-2\charscalex100 Chapter 15 in J. Fagerberg, D. Mowery and R.R. Nelson (
eds), \ul0\nosupersub\cf31\f32\fs15 The Oxford Handbook of \line \tab \up0 \expn
dtw-3\charscalex100 Innovation\ul0\nosupersub\cf30\f31\fs15 , Oxford University
Press, Oxford. \par\pard\ql \li1303\ri1192\sb111\sl-190\slmult0\tx1587\tx1587 \u
p0 \expndtw0\charscalex109 Wengel, J.\ul0\nosupersub\cf31\f32\fs15 et al. \ul0\
nosupersub\cf30\f31\fs15 (2000), \u8220?Analysis of Empirical Surveys on Organis
ational Innovation \line\tab \up0 \expndtw0\charscalex119 and Lessons for Future
Community Innovation Surveys\u8221?, Scientific Follow-up of \line \tab \up0 \e
xpndtw0\charscalex112 the Community Innovation Survey (CIS) Project CIS 98/191.
calex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUN
ITIES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 133
}
134}{\bkmkend Pg134}\pard\par\pard\sect\sectd\fs24\paperw9080\paperh13040\pard\s
b0\sl-240{\bkmkstart Pg135}{\bkmkend Pg135}\par\pard\ql \li2241\sb0\sl-161\slmul
t0 \par\pard\ql\li2241\sb0\sl-161\slmult0 \par\pard\ql\li2241\sb65\sl-161\slmult
0 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf21\f22\fs14 OSLO MANUAL: GUIDEL
INES FOR COLLECTING AND INTERPRETING INNOVATION DATA \par\pard\ql \li3980\sb0\sl
\slmult0 \par\pard\ql\li3980\sb0\sl-276\slmult0 \par\pard\ql\li3980\sb168\sl-276
\slmult0 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf1\f2\fs24 ANNEX A \par\
pard\ql \li1423\sb0\sl-368\slmult0 \par\pard\ql\li1423\sb0\sl-368\slmult0 \par\p
ard\ql\li1423\sb32\sl-368\slmult0 \up0 \expndtw0\charscalex65 \ul0\nosupersub\cf
20\f21\fs32 Innovation Surveys in Developing Countries \par\pard\ql \li793\sb0\s
l-241\slmult0 \par\pard\ql\li793\sb116\sl-241\slmult0 \up0 \expndtw0\charscalex1
20 \ul0\nosupersub\cf22\f23\fs21 1. Introduction \par\pard\qj \li1303\ri1178\sb9
2\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs
17 480. \tab \up0 \expndtw0\charscalex122 This annex provides guidelines for the
implementation of innovation \line\up0 \expndtw0\charscalex118 surveys in devel
oping countries. The term \u8220?developing countries\u8221? is used here \line
\up0 \expndtw0\charscalex121 with the assumption that it does not refer to a hom
ogeneous set of countries, \up0 \expndtw0\charscalex122 and that the annex needs
to reflect the different characteristics of economies \up0 \expndtw0\charscalex
115 and societies in a rapidly evolving \u8220?developing world\u8221?. \par\par
\tab \up0 \expndtw0\charscalex111 After the publication of the second edition o
f the \ul0\nosupersub\cf24\f25\fs17 Oslo Manual\ul0\nosupersub\cf23\f24\fs17 , m
any \line\up0 \expndtw0\charscalex124 developing countries in various regions of
the world conducted innovation \line \up0 \expndtw0\charscalex115 surveys. The
design of these surveys was usually intended to comply with \ul0\nosupersub\cf24
\f25\fs17 Oslo \line \up0 \expndtw0\charscalex113 Manual\ul0\nosupersub\cf23\f24
\fs17 standards. However, almost all of these innovation measurement \l
ine \up0 \expndtw0\charscalex123 exercises resulted in adaptations of the propos
ed methodologies, in order to \line \up0 \expndtw0\charscalex120 capture the p
articular characteristics of innovation processes in countries \line \up0 \
expndtw0\charscalex124 with economic and social structures different from

those of the more \line \up0 \expndtw0\charscalex118 developed OECD countrie
s. These adaptations were prepared by each country \line \up0 \expndtw0\charscal
ex116 and adopted different approaches. Outside the OECD and EU, the first effor
t to \line \up0 \expndtw0\charscalex126 compile these particularities and gu
ide the design of cross-nationally \line \up0 \expndtw0\charscalex121 compar
able innovation surveys was conducted in Latin America by RICYT \line \up0 \expn
dtw0\charscalex113 (Ibero-American Network on Science and Technology
Indicators -\ul0\nosupersub\cf24\f25\fs17 Red \line \up0 \expndtw-7\charscalex
82 Iberoamericana de Indicadores de Ciencia y Tecnologa\ul0\nosupersub\cf23
\f24\fs17 ) and resulted in the \line \up0 \expndtw0\charscalex123 publicati
on of the Bogot Manual, which was later used in most innovation \line \up0 \expnd
tw0\charscalex118 surveys conducted in Latin American countries and extended to
other regions. \line \up0 \expndtw0\charscalex124 The importance and impact
of this standard-setting work inspired the \line \up0 \expndtw0\charscalex1
20 production of this annex. \par\pard\qj \li1303\ri1177\sb49\sl-252\slmult0\fi0
\tx1870 \up0 \expndtw0\charscalex107 482. \tab \up0 \expndtw0\charscalex116 Prep
aration of the annex was co-ordinated by the UNESCO Institute for \line\up0 \exp
ndtw0\charscalex114 Statistics (UIS). A base document provided by RICYT\ul0\supe
r\cf25\f26\fs20 1\ul0\nosupersub\cf23\f24\fs17 was submitted to a panel \line \
up0 \expndtw0\charscalex118 of researchers and practitioners with experienc
e in innovation surveys in \up0 \expndtw0\charscalex118 developing countries
.\ul0\super\cf25\f26\fs20 2\ul0\nosupersub\cf23\f24\fs17 This annex is based on
the conclusions of this exercise. \up0 \expndtw0\charscalex118 Proposals and re
commendations may be more or less applicable depending on \up0 \expndtw0\charsca
lex118 the characteristics of the region and countries concerned. \par\pard\li82
8\slmult0\fi0\tx7922 \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11
ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscale
x106 \ul0\nosupersub\cf19\f20\fs20 135
}
li1303\ri1177\sb176\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex109 \ul0\nosu
persub\cf23\f24\fs17 483. \tab \up0 \expndtw0\charscalex121 Recommendations in t
his annex are mainly based on the experience of \line\up0 \expndtw0\charscalex12
3 countries that have already conducted innovation surveys, most of which are \l
ine \up0 \expndtw0\charscalex125 among the higher- and medium-income countries o
f the developing world, \line \up0 \expndtw0\charscalex124 where innovation ha
s already become a policy issue. Nevertheless, the \line \up0 \expndtw0\c
harscalex123 knowledge gained by these countries should help other developing co
untries \line \up0 \expndtw0\charscalex122 to acquire their own experience
without having to build exclusively on \line \up0 \expndtw0\charscalex122 i
nnovation measurement exercises carried out in developed countries. \par\pard\ql
\li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb97\sl-241\slmult0 \up0 \expndtw0
\charscalex122 \ul0\nosupersub\cf22\f23\fs21 2. The characteristics of innovatio
n in developing countries \par\pard\qj \li1303\ri1177\sb115\sl-246\slmult0\tx187
0 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 484. \tab \up0 \exp

ndtw0\charscalex123 It is widely accepted that dissemination mechanisms and incr
emental \line\up0 \expndtw0\charscalex120 change account for most of the innovat
ion occurring in developing countries,\ul0\super\cf25\f26\fs20 3 \line \up0 \exp
ndtw0\charscalex120 \ul0\nosupersub\cf23\f24\fs17 owing to the particular charac
teristics of the society and the economy in many \line \up0 \expndtw0\charscalex
120 of these countries which influence innovation processes in many ways. \par\p
ard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb40\sl-218\slmult0 \up0 \
expndtw-8\charscalex73 \ul0\nosupersub\cf28\f29\fs19 2.1. Size and structure of
markets and firms \par\pard\qj \li1303\ri1177\sb75\sl-251\slmult0\tx1869 \up0 \e
xpndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 485. \tab \up0 \expndtw0\cha
rscalex118 It is important to know about the size and structure of fi
rms and \line\up0 \expndtw0\charscalex123 markets in order to understand develo
ping countries\u8217? innovation processes. \line \up0 \expndtw0\charscalex119 W
hile the sector of small and medium-sized enterprises (SMEs) is very \
line \up0 \expndtw0\charscalex119 significant \up0 \expndtw0\charscalex120 (incl
uding a large number of micro and small and, in some \line \up0 \expnd
tw0\charscalex118 countries, medium-sized businesses which are often not
registered), even \line \up0 \expndtw0\charscalex119 enterprises considered \u8
220?large\u8221? in most developing countries usually operate at \line \up0 \exp
ndtw0\charscalex126 suboptimal production scales, with higher unit costs and far
from optimal \line \up0 \expndtw0\charscalex123 efficiency. Competitiveness is
mostly based on the exploitation of natural \line \up0 \expndtw0\charscalex11
8 resources or cheap labour, rather than on efficiency or differentiated product
s. \line \up0 \expndtw0\charscalex118 This leads to an informal organisation of
innovation and fewer R&D projects. \par\pard\qj \li1303\ri1178\sb50\sl-250\slmul
t0\tx1870 \up0 \expndtw0\charscalex107 486. \tab \up0 \expndtw0\charscalex121 Im
portant market failures related to economies of scale and \line\
up0 \expndtw0\charscalex119 externalities present high barriers to innovati
on. For instance, productive \line \up0 \expndtw0\charscalex121 processes a
nd, more specifically, innovation activities are subject to \up0 \ex
pndtw0\charscalex118 indivisibilities and a lack of economies of scale,
and this influences the \up0 \expndtw0\charscalex111 viability of R&D project
s. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb59\sl-218\slmul
t0 \up0 \expndtw-8\charscalex75 \ul0\nosupersub\cf28\f29\fs19 2.2. The innovatio
n landscape in developing countries \par\pard\qj \li1303\ri1177\sb76\sl-250\slmu
lt0\tx1870 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 487. \tab
\up0 \expndtw0\charscalex125 A number of exogenous systemic factors shape
the innovation \line\up0 \expndtw0\charscalex120 landscape in developing co
untries, such as: macroeconomic uncertainty; \line \up0 \expndtw0\charscalex
119 instability; physical infrastructure (lack of basic services such as electri
city or \line \up0 \expndtw0\charscalex119 \u8220?old\u8221? communications te
chnologies); institutional fragility; lack of social \line \up0 \expndtw0\c
harscalex125 awareness about innovation; risk-averse nature of enterprises
; lack of \line \up0 \expndtw0\charscalex120 entrepreneurs; existence of barri
ers to business start-up; lack of public policy \line \up0 \expndtw0\charscalex1
20 instruments for business support and management training. \par\pard\li793\sb0
lt0\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb47\sl-230\slmult0\fi0\tx4
899 \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 136\tab \up0 \exp
ndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EURO
PEAN COMMUNITIES 2005
}

ql\li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb36\sl-218\slmult0 \up0 \expnd
tw-8\charscalex72 \ul0\nosupersub\cf28\f29\fs19 2.2.1. Instability \par\pard\qj
persub\cf23\f24\fs17 488. \tab \up0 \expndtw0\charscalex127 Instability in micro
and small businesses may mean that some have \line\up0 \expndtw0\charscalex126
good potential to upgrade national innovative performance and function as \line
\up0 \expndtw0\charscalex125 cradles of innovators, while some lack resour
ces and support for any \line \up0 \expndtw0\charscalex120 innovation. Macro
level uncertainty limits any long-term innovation activity. \par\pard\ql \li130
3\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb140\sl-218\slmult0 \up0 \expndtw-8\ch
arscalex70 \ul0\nosupersub\cf28\f29\fs19 2.2.2. Informality \par\pard\qj \li1303
cf23\f24\fs17 489. \tab \up0 \expndtw0\charscalex119 Developing countries\u821
7? economies rely significantly on informal \line\up0 \expndtw0\charsc
alex126 practice. Informality is not a favourable context for innovation
. The \line \up0 \expndtw0\charscalex120 sometimes great creativity invested
in solving problems in the informal \up0 \expndtw0\charscalex124 economy
does not lead to systematic application and thus tends to result in \up0 \expndt
w0\charscalex119 isolated actions which neither increase capabilities nor
help establish an \up0 \expndtw0\charscalex119 innovation-based development p
ath. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb119\sl-218\sl
mult0 \up0 \expndtw-8\charscalex70 \ul0\nosupersub\cf28\f29\fs19 2.2.3. Particul
ar economic and innovation environments \par\pard\qj \li1303\ri1177\sb96\sl-250\
tab \up0 \expndtw0\charscalex118 Many enterprises in developing countries operat
e in unusual economic \line\up0 \expndtw0\charscalex119 and innovation environ
ments owing to the existence, and in some cases \line \up0 \expndtw0\cha
rscalex119 prevalence, of state-owned enterprises \up0 \expndtw0\charscale
x119 (China) or massive parastatal \par\pard\qj \li1303\ri1178\sb0\sl-250\
slmult0\tx2351 \up0 \expndtw0\charscalex123 enterprises \tab \up0 \expndtw0\char
scalex120 (some Arab states), where a lack of competition sometimes \lin
e\up0 \expndtw0\charscalex122 discourages innovation or drains local market
s of innovative potential., \line \up0 \expndtw0\charscalex118 although big
state-owned enterprises (for example in sectors such as oil, \line \up0
\expndtw0\charscalex122 aerospace or telecommunications) sometimes become techn
ological leaders \line \up0 \expndtw0\charscalex119 through important investme
nts in experimental development work (as in \line \up0 \expndtw0\charscale
x120 some Latin American countries). Moreover, in countries with less developed
\line \up0 \expndtw0\charscalex117 economic systems, major government S&T p
olicies and programmes may \line \up0 \expndtw0\charscalex123 have more impac
t on innovation than the activities and strategies of private \line \up0 \expndt
w0\charscalex123 enterprises. \par\pard\qj \li1303\ri1178\sb64\sl-246\slmult0\tx
1870 \up0 \expndtw0\charscalex107 491. \tab \up0 \expndtw0\charscalex120 Past
techno-economic
paradigms
have
continuing
economic \line\up0 \expnd
tw0\charscalex123 importance in some cases; in others, a paradigm switch is dela
yed owing to \line \up0 \expndtw0\charscalex118 the high costs involved, insuffi
cient supplies of local capital and lack of credit \up0 \expndtw0\charscalex118
for big technological investments. \par\pard\qj \li1303\ri1177\sb75\sl-246\slmul
t0\tx1870 \up0 \expndtw0\charscalex107 492. \tab \up0 \expndtw0\charscalex117 Lo
cal markets in developing countries tend to be small, sometimes as a \line\up0 \
expndtw0\charscalex127 result of a less developed infrastructure, and this reduc
es the scope of the \line \up0 \expndtw0\charscalex118 enterprise\u8217?s actio
ns and the relevance of actual innovations (\u8220?new to the \up0 \exp

ndtw0\charscalex118 market\u8221? may have a different meaning in such environme
nts). \par\pard\li1303\sb124\sl-195\slmult0\fi0\tx1870 \up0 \expndtw0\charscalex
122 493.\tab \up0 \expndtw0\charscalex122 Innovations in the agricultural sector
have a high economic impact,\par\pard\li1303\sb56\sl-195\slmult0\fi0 \up0 \expn
dtw0\charscalex122 owing to the sector\u8217?s significant overall economic weig
ht.\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard
l-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb18\sl-218\slmul
t0\fi0\tx7922 \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92
-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex106 \u
l0\nosupersub\cf19\f20\fs20 137
}
li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb36\sl-218\slmult0 \up0 \expndtw8\charscalex70 \ul0\nosupersub\cf28\f29\fs19 2.2.4. Reduced innovation decisionmaking powers \par\pard\qj \li1303\ri1176\sb96\sl-250\slmult0\tx1870 \up0 \expnd
tw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 494. \tab \up0 \expndtw0\charsca
lex123 The dominance of externally controlled or multinational corporations \lin
e\up0 \expndtw0\charscalex122 results in less decision making by local enterpris
es or subsidiaries (especially \line \up0 \expndtw0\charscalex120 in the area of
innovation), mainly because of the division of functions in these \up0 \expndtw
0\charscalex125 organisations. In the last few years, this division has even bee
n extended to \up0 \expndtw0\charscalex120 independent local enterprises in the
framework of international manufacturing \up0 \expndtw0\charscalex122 networks.
Technology transfer from multinational corporations and from \up0 \expndt
w0\charscalex122 abroad is therefore a fundamental source of innovation. \par\pa
rd\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb119\sl-218\slmult0 \up0 \
expndtw-8\charscalex73 \ul0\nosupersub\cf28\f29\fs19 2.2.5. Weak innovation syst
ems \par\pard\qj \li1303\ri1176\sb99\sl-246\slmult0\tx1870 \up0 \expndtw0\charsc
alex109 \ul0\nosupersub\cf23\f24\fs17 495. \tab \up0 \expndtw0\charscalex122 Few
er resources are devoted to innovation activities system-wide, \line\up0
\expndtw0\charscalex122 thereby reducing the innovation potential of enterprises
. The government is a \line \up0 \expndtw0\charscalex123 major player in R&D exe
cution and funding, mainly owing to a low level of \up0 \expndtw0\charscalex117
resources devoted to R&D by businesses. \par\pard\qj \li1303\ri1176\sb71\sl-250\
25 Flows of information within national systems of innovation are \line\
up0 \expndtw0\charscalex121 fragmented, and in some cases there is an ab
sence of linkages between \line \up0 \expndtw0\charscalex124 science and ente
rprises. Weak or absent linkages challenge the capacities of \line \up0 \expndtw
0\charscalex120 firms to overcome (technology-related) problems and draw
firms towards \line \up0 \expndtw0\charscalex120 solutions that mostly rely on
acquisition of embodied technology. \par\pard\qj \li1303\ri1177\sb48\sl-253\slmu
lt0\tx1870 \up0 \expndtw0\charscalex109 497. \tab \up0 \expndtw0\charscalex127 B
arriers to accumulation of capabilities by enterprises are high and \line\up0 \e
xpndtw0\charscalex124 difficult to tackle, particularly in the case of highly qu

alified human capital, \line \up0 \expndtw0\charscalex128 local and internatio
nal linkages, and tacit knowledge incorporated in \up0 \expndtw0\charscale
x122 organisational routines. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\
ql\li1303\sb118\sl-218\slmult0 \up0 \expndtw-8\charscalex70 \ul0\nosupersub\cf28
\f29\fs19 2.2.6. Characteristics of innovation \par\pard\qj \li1303\ri1178\sb104
7 498. \tab \up0 \expndtw0\charscalex121 The acquisition of embodied technology
(equipment) for both product \line\up0 \expndtw0\charscalex122 and process innov
ation is a major component of innovation. \par\pard\qj \li1303\ri1178\sb72\sl-25
x120 Minor or incremental changes are the most frequent type of innovation \line
\up0 \expndtw0\charscalex124 activity in some developing countries, together wit
h innovative applications \line \up0 \expndtw0\charscalex120 of existing product
s or processes. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870 \up0 \exp
ndtw0\charscalex107 500. \tab \up0 \expndtw0\charscalex125 Organisational chang
e is an extremely significant aspect of the \line\up0 \expndtw0\charscale
x125 innovation process. Besides its direct impact on enterprise performance, it
\line \up0 \expndtw0\charscalex124 also contributes to the enterprise\u8217
?s ability to absorb new technologies \line \up0 \expndtw0\charscalex125 in
corporated in machinery and other equipment (the most frequent type of \line \up
0 \expndtw0\charscalex121 innovation). Heterogeneity frequently prevails
with regard to firms\u8217? \par\pard\li1303\sb63\sl-195\slmult0\fi0\tx72
47 \up0 \expndtw0\charscalex123 technological, organisational and manageri
al patterns, with\tab \up0 \expndtw0\charscalex123 \u8220?high-\par\pard\li1
303\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex124 technology\u8221? firm
s coexisting with informal businesses, and with many\par\pard\li1303\sb57
\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex124 enterprises lacking a formal or
ganisational structure. This creates a need for\par\pard\li1303\sb55\sl-195\slmu
lt0\fi0 \up0 \expndtw0\charscalex124 organisational change, often independent of
product and process innovation.\par\pard\li793\sb0\sl-230\slmult0\par\pard\li79
w0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 138\tab \up0 \expndtw0\charscalex
2005
}
23\fs21 3. Innovation measurement in developing countries \par\pard\qj \li1303\r
23\f24\fs17 501. \tab \up0 \expndtw0\charscalex124 Innovation measurement in
developing countries has to produce \line\up0 \expndtw0\charscalex120 result
s comparable to those obtained in developed countries that use the \ul0\nosupers
ub\cf24\f25\fs17 Oslo \line \up0 \expndtw0\charscalex116 Manual\ul0\nosupersub\c
f23\f24\fs17
in order to enable benchmarking and construct a
coherent \line \up0 \expndtw0\charscalex125 international system of innovation i
ndicators. At the same time, innovation \line \up0 \expndtw0\charscalex120 surve

ys need to respect and be able to pick up the characteristics of innovation \lin
e \up0 \expndtw0\charscalex126 in developing countries presented in Section 2. T
herefore, the definition of \line \up0 \expndtw0\charscalex123 innovation, its
subtypes \up0 \expndtw0\charscalex122 (product, process, marketing and orga
nisational \par\pard\qj \li1303\ri1179\sb19\sl-240\slmult0 \up0 \expndtw0\charsc
alex128 innovation), innovation activities and the innovative firm, as presented
in \line \up0 \expndtw0\charscalex121 Chapter 3, should be applied in innovatio
ns surveys in developing countries. \par\pard\qj \li1303\ri1176\sb74\sl-248\slmu
lt0\tx1870 \up0 \expndtw0\charscalex107 502. \tab \up0 \expndtw0\charscalex122 W
hile most of the issues presented in Section 2 are addressed below, \line\up0 \e
xpndtw0\charscalex119 some continue to present problems from the measurement poi
nt of view. This \line \up0 \expndtw0\charscalex117 is mainly due to the difficu
lty of applying existing definitions. One of the main \up0 \expndtw0\charscalex1
20 issues, also mentioned in Section 5, is the problem of measuring incremental
\up0 \expndtw0\charscalex119 changes, which may not result in \u8220?new or sign
ificantly improved\u8221? products or \up0 \expndtw0\charscalex120 processes. An
other pending issue is related to the scope of innovations, since \up0 \expndtw0
\charscalex124 concepts such as \u8220?new to the market\u8221? may have differe
nt interpretations in \up0 \expndtw0\charscalex120 environments with less develo
ped infrastructure. \par\pard\qj \li1303\ri2276\sb239\sl-240\slmult0 \up0 \expnd
tw-8\charscalex72 \ul0\nosupersub\cf28\f29\fs19 3.1. Specific needs for public p
olicy and private strategies: \up0 \expndtw-8\charscalex73 the potentially innov
ative firms \par\pard\qj \li1303\ri1178\sb71\sl-251\slmult0\tx1870 \up0 \expndtw
0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 503. \tab \up0 \expndtw0\charscale
x122 Innovation surveys in developing countries need to be based on \li
ne\up0 \expndtw0\charscalex128 methods and procedures that take into account the
aspects mentioned in \line \up0 \expndtw0\charscalex122 Section 1 in order to
become useful instruments for public and private \up0 \expndtw0\charscal
ex126 decision making. In developing countries, the main reason for conducting \
up0 \expndtw0\charscalex119 innovation surveys is to inform public policy
making and the design of \up0 \expndtw0\charscalex125 business strategies,
with the main focus on the generation, diffusion, \up0 \expndtw0\charsc
alex120 appropriation and use of new knowledge in businesses. Less priority is g
iven \up0 \expndtw0\charscalex120 to cross-country comparisons and benchmarking.
x107 504. \tab \up0 \expndtw0\charscalex122 Measurement exercises should ther
efore focus on the innovation \line\up0 \expndtw0\charscalex125 process rath
er than its outputs and emphasise how capabilities, efforts and \line \up0 \expn
dtw0\charscalex128 results are dealt with. The efforts made by firms an
d organisations \up0 \expndtw0\charscalex120 (innovation activities) and capabi
lities (stocks and flows) are, for this reason, \up0 \expndtw0\charscalex127 equ
ally or even more important to determine and analyse than the results \up0 \expn
dtw0\charscalex124 (innovations). Factors hampering or facilitating innovation a
re seen as key \up0 \expndtw0\charscalex120 indicators in this context. \par\par
\tab \up0 \expndtw0\charscalex128 A particular subject of interest in dev
eloping countries is the \line\up0 \expndtw0\charscalex118 \u8220?potentially
innovative firm\u8221?. Innovation-active firms are those \u8220?that have had
\line \up0 \expndtw0\charscalex126 innovation activities during the period under
review, including those with \line \up0 \expndtw0\charscalex117 ongoing and aba
ndoned activities\u8221?. Potentially innovative firms are a subset of \line \up
0 \expndtw0\charscalex117 these, those that have made innovation efforts
(\ul0\nosupersub\cf24\f25\fs17 i.e.\ul0\nosupersub\cf23\f24\fs17 conducted inn
ovation \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par
\pard\li824\sb117\sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\charscalex106 \ul0\no
supersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \
dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 139
}
cf23\f24\fs17 activities) but have not achieved results (innovations) during th
e period of \up0 \expndtw0\charscalex121 analysis. \par\pard\qj \li1303\ri1177\s
charscalex121 Inside this group, might be found businesses that have innovated i
n the \line\up0 \expndtw0\charscalex124 past, or businesses that may innova
te in the near future. Nevertheless, \line \up0 \expndtw0\charscalex127 con
sidering that products and processes become obsolete rapidly, the \line
\up0 \expndtw0\charscalex121 existence of a large number of potentially innovati
ve enterprises may suggest \line \up0 \expndtw0\charscalex124 strong barriers
to innovation, or premature attempts to innovate in the \line \up0 \expn
dtw0\charscalex125 absence of the necessary resources. A key element in innovati
on policies in \line \up0 \expndtw0\charscalex122 developing countries is to ass
ist potentially innovative firms to overcome the \line \up0 \expndtw0\charscalex
121 obstacles that prevent them from being innovative and to convert their effor
ts \line \up0 \expndtw0\charscalex121 into innovations. \par\pard\ql \li1303\sb0
ex77 \ul0\nosupersub\cf28\f29\fs19 3.2. Measurement priorities \par\pard\qj \li1
ub\cf23\f24\fs17 507. \tab \up0 \expndtw0\charscalex123 Measurement priorities
in developing countries have to take into \line\up0 \expndtw0\charscalex1
00 account different responses to common questions (\ul0\nosupersub\cf24\f
25\fs17 why do we measure \line \up0 \expndtw-7\charscalex76 innovation\ul0\n
osupersub\cf23\f24\fs17 , \ul0\nosupersub\cf24\f25\fs17 what should we measu
re, and how should we measure\ul0\nosupersub\cf23\f24\fs17 ), which \line
\up0 \expndtw0\charscalex126 result in different priorities when designing an in
novation survey. The first \line \up0 \expndtw0\charscalex121 question refers to
the aims or the main functions of these surveys. The second \line \up0 \expndtw
0\charscalex131 and third help to clarify the object to be measured and the most
suitable \line \up0 \expndtw0\charscalex121 methods and procedures. The third q
uestion is closely related or even derived \line \up0 \expndtw0\charscalex121 fr
om the first. \par\pard\qj \li1303\ri1177\sb71\sl-250\slmult0\tx1870 \up0 \expnd
tw0\charscalex109 508. \tab \up0 \expndtw0\charscalex120 In developing countries
, the responses sought from innovation surveys \line\up0 \expndtw0\charscalex121
are less the number of innovative enterprises, or even innovation counts, than
\line \up0 \expndtw0\charscalex129 information that will allow public and privat
e stakeholders to analyse the \line \up0 \expndtw0\charscalex129 various innova
tion strategies present in the innovation system under \line \up0 \expndt
w0\charscalex129 scrutiny, and to evaluate and understand how these patterns con
tribute to \line \up0 \expndtw0\charscalex129 strengthening the competitivenes
s of particular enterprises and more \line \up0 \expndtw0\charscalex123 gen
erally to economic and social development. These data also allow for the \line \
up0 \expndtw0\charscalex122 construction of different models of technologic
al behaviour followed by \line \up0 \expndtw0\charscalex122 enterprises. \par
509. \tab \up0 \expndtw0\charscalex125 This approach requires linking the a
nalysis of micro, meso and \line\up0 \expndtw0\charscalex124 macroeconomic l

evels; relating innovation data to the technological content \line \up0 \expndtw
0\charscalex121 of exports; studying strengths and weaknesses of particul
ar industries or \line \up0 \expndtw0\charscalex122 innovation systems in
general; assessing the absorption capacity of \line \up0 \expndtw0\c
harscalex122 innovation systems; identifying networks; exploring the relationshi
p between \line \up0 \expndtw0\charscalex122 the formal education system and
employment; and obtaining indications \line \up0 \expndtw0\charscalex129 ab
out the effectiveness of different public instruments for supporting and \line \
up0 \expndtw0\charscalex121 promoting innovation. \par\pard\li1303\sb109\sl-195\
slmult0\fi0\tx1870 \up0 \expndtw0\charscalex123 510.\tab \up0 \expndtw0\charscal
ex124 In order to construct indicators of potentially innovative firms,\
par\pard\li1303\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex124 measurement
instruments need to take account of all enterprises (\ul0\nosupersub\cf24\f25\
fs17 i.e.\ul0\nosupersub\cf23\f24\fs17 both\par\pard\li1303\sb55\sl-195\slmult0
\fi0 \up0 \expndtw0\charscalex124 innovative and non-innovative), particularly w
hen addressing the main issues\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\
sb0\sl-230\slmult0\par\pard\li793\sb65\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\
charscalex106 \ul0\nosupersub\cf19\f20\fs20 140\tab \up0 \expndtw0\charscalex106
05
}
ub\cf23\f24\fs17 related to innovation strategies, such as innovation act
ivities, obstacles, \up0 \expndtw0\charscalex123 capabilities, linkages and res
ults. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb117\sl-218\s
lmult0 \up0 \expndtw-8\charscalex71 \ul0\nosupersub\cf28\f29\fs19 3.2.1. Innovat
ion capabilities \par\pard\qj \li1303\ri1177\sb96\sl-250\slmult0\tx1870 \up0 \ex
scalex120 Innovation capabilities are extremely helpful for classifying firms an
d \line\up0 \expndtw0\charscalex119 industrial sectors in developing countri
es. A firm\u8217?s capabilities are what \line \up0 \expndtw0\charscalex125
mainly allow it to take advantage of market opportunities. The most \
line \up0 \expndtw0\charscalex122 significant innovation capability is the knowl
edge accumulated by the firm, \line \up0 \expndtw0\charscalex127 which is mainly
embedded in human resources, but is also in procedures, \line \up0 \expndtw0\ch
arscalex121 routines and other characteristics of the firm. Innovation capabilit
ies, as well \line \up0 \expndtw0\charscalex123 as technological capabilities, a
re the result of learning processes, which are \line \up0 \expndtw0\charscalex12
3 conscious and purposeful, costly and time-consuming, non-linear and path-\line
\up0 \expndtw0\charscalex124 dependent and cumulative. Because of the interacti
ve, technology-specific \line \up0 \expndtw0\charscalex125 and culturally inf
luenced nature of trajectories, a range of possible \line \up0 \expndtw
0\charscalex127 development paths exists, particularly in developing count
ries where \line \up0 \expndtw0\charscalex129 innovativeness and entrepreneur
ship may be infrequent and possess \line \up0 \expndtw0\charscalex120 parti

cular characteristics. \par\pard\qj \li1303\ri1178\sb48\sl-253\slmult0\tx1870 \u
p0 \expndtw0\charscalex107 512. \tab \up0 \expndtw0\charscalex120 Knowledge abo
ut innovation capabilities and the firm\u8217?s efforts to \line\up0 \exp
ndtw0\charscalex124 increase these are key to understanding its present and futu
re performance. \line \up0 \expndtw0\charscalex125 Innovation capabilities con
dition the design of strategies to introduce \line \up0 \expndtw0\charscal
ex120 changes, improvements and/or innovations \up0 \expndtw0\charscalex12
0 (innovation strategies). If \par\pard\qj \li1303\ri1177\sb0\sl-250\slmult0
\up0 \expndtw0\charscalex119 innovation strategies are at the heart of policy i
nterest, innovation capabilities \up0 \expndtw0\charscalex120 are the most im
portant issue for the design of an innovation survey in \up0 \expndtw0\
charscalex118 developing countries. \par\pard\qj \li1303\ri1178\sb60\sl-250\slmu
lt0\tx1870 \up0 \expndtw0\charscalex107 513. \tab \up0 \expndtw0\charscalex117 M
any difficulties are involved in measuring innovation capabilities, \line
\up0 \expndtw0\charscalex118 since it is necessary to measure knowledge that is
not codified, but \u8220?stored\u8221? in \line \up0 \expndtw0\charscalex120 ind
ividuals\u8217? minds or organisational routines. At the same time, it is not ea
sy \up0 \expndtw0\charscalex118 to obtain reliable data from firms about the exc
hange of knowledge with other \up0 \expndtw0\charscalex118 agents or organisatio
ns. \par\pard\qj \li1303\ri1179\sb50\sl-250\slmult0\tx1870 \up0 \expndtw0\charsc
alex107 514. \tab \up0 \expndtw0\charscalex125 The priority given in developing
countries to measuring innovation \line\up0 \expndtw0\charscalex121 capabilities
motivates placing additional emphasis on certain aspects of \line \up0
\expndtw0\charscalex116 surveys: \par\pard\ql \li1303\ri3027\sb29\sl-300\slmult0
\up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupers
ub\cf23\f24\fs17 Human resources. \line \up0 \expndtw0\charscalex116 \ul0\nosu
persub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Linkages. \par\pard\
osupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Information and c
ommunication technologies (ICTs), their incorporation \line\tab \up0 \expndtw0\
charscalex124 and use. \par\pard\li1303\sb125\sl-195\slmult0\fi0\tx1870 \up0 \ex
pndtw0\charscalex124 515.\tab \up0 \expndtw0\charscalex124 There is also an incr
eased need to examine more complex issues such\par\pard\li1303\sb56\sl-195\slmul
t0\fi0 \up0 \expndtw0\charscalex125 as the types of decision-making support syst
ems put in place by the firm\u8217?s\par\pard\li1303\sb57\sl-195\slmult0\fi0 \up
0 \expndtw0\charscalex125 direction and management, as well as the firm\u
8217?s actual potential for\par\pard\li1303\sb55\sl-195\slmult0\fi0 \up0 \exp
ndtw0\charscalex124 knowledge absorption.\par\pard\li824\sb0\sl-218\slmult0\par\
pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb150\sl-218\slmult0\fi0\tx7922 \up
D/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf1
9\f20\fs20 141
}
li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb36\sl-218\slmult0 \up0 \expndtw0
\charscalex64 \ul0\nosupersub\cf28\f29\fs19 3.2.2. Expenditure on innovation act

ivities \par\pard\qj \li1303\ri1176\sb97\sl-249\slmult0\tx1870 \up0 \expndtw0\ch
arscalex107 \ul0\nosupersub\cf23\f24\fs17 516. \tab \up0 \expndtw0\charscalex122
In order to measure firms\u8217? innovation efforts appropriately, it
is \line\up0 \expndtw0\charscalex122 essential to understand the intensity of in
novation activities carried out. It is \line \up0 \expndtw0\charscalex123 theref
ore recommended to obtain more details about which innovation \line \up0
\expndtw0\charscalex127 activities were undertaken by the firm in the reference
period and, where \line \up0 \expndtw0\charscalex117 deemed feasible, to col
lect data on expenditure by innovation activity, as \line \up0 \expndtw0\
charscalex123 indicated in Chapter 6. This indicator serves as a powerful discri
minator of \line \up0 \expndtw0\charscalex122 firms\u8217? behaviour and stra
tegies. In order to explain firm development, \line \up0 \expndtw0\charsca
lex128 innovation expenditure needs to be complemented by more general \
line \up0 \expndtw0\charscalex122 information on the development of the sector o
f economic activity in which \line \up0 \expndtw0\charscalex120 the firm is a
ctive. This information can be obtained through innovation \line \up0 \ex
pndtw0\charscalex119 surveys if it is not readily available through other source
s at national statistics \line \up0 \expndtw0\charscalex113 offices. \par\pard\q
l \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb139\sl-218\slmult0 \up0 \expn
dtw-8\charscalex71 \ul0\nosupersub\cf28\f29\fs19 3.2.3. Organisational innovatio
n \par\pard\qj \li1303\ri1176\sb76\sl-250\slmult0\tx1870 \up0 \expndtw0\charscal
ex107 \ul0\nosupersub\cf23\f24\fs17 517. \tab \up0 \expndtw0\charscalex118 The a
bsorption of new technologies, mostly incorporated in machinery \line\up0 \expnd
tw0\charscalex121 and other equipment, can require significant organisational ch
ange for many \line \up0 \expndtw0\charscalex120 enterprises in developing count
ries. Since innovation in developing countries \line \up0 \expndtw0\charscalex12
9 has a strong component of absorption of technologies generated in \li
ne \up0 \expndtw0\charscalex126 industrialised countries, organisational c
hange acquires substantive \line \up0 \expndtw0\charscalex126 relevance. Th
e enterprise\u8217?s behaviour in this field therefore becomes \line \up0
\expndtw0\charscalex120 important for explaining differences in performance and
competitiveness.\ul0\super\cf25\f26\fs20 4 \par\pard\qj \li1303\ri1178\sb70\sl250\slmult0\tx1870 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 51
8. \tab \up0 \expndtw0\charscalex118 In order to gain additional information on
the innovative capabilities of \line\up0 \expndtw0\charscalex121 enterprises in
developing countries, questions on the implementation of \line \up0 \exp
ndtw0\charscalex120 organisational innovations can be supplemented by ques
tions on human \line \up0 \expndtw0\charscalex127 resources and training and t
he incorporation of ICTs. Both would help to \line \up0 \expndtw0\charscalex118
provide an indication of an enterprise\u8217?s innovative capabilities. \par\par
d\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb97\sl-241\slmult0 \up0 \expn
dtw0\charscalex121 \ul0\nosupersub\cf22\f23\fs21 4. Principal adaptations \par\p
ard\qj \li1303\ri1177\sb84\sl-260\slmult0\tx1870 \up0 \expndtw0\charscalex107 \u
l0\nosupersub\cf23\f24\fs17 519. \tab \up0 \expndtw0\charscalex120 Three main to
pics might be taken into account in adapting innovation \line\up0 \expndtw0\char
scalex118 surveys for developing countries: ICTs, linkages and innovation activi
ties. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb37\sl-218\sl
mult0 \up0 \expndtw-8\charscalex75 \ul0\nosupersub\cf28\f29\fs19 4.1. ICTs in in
novation surveys \par\pard\qj \li1303\ri1178\sb84\sl-240\slmult0\tx1870 \up0 \ex
scalex115 The role of ICTs in innovation is related both to \u8220?fro
nt-office\u8221? and \line\up0 \expndtw0\charscalex115 \u8220?back-office\u8221
? applications \up0 \expndtw0\charscalex115 (see Box A.1). In developing
countries, the \par\pard\qj \li1303\ri1176\sb12\sl-250\slmult0 \up0 \expndt
w0\charscalex122 incorporation of ICTs in enterprises has frequently
been limited to \line \up0 \expndtw0\charscalex117 sophisticated \u8220?fron
t-office\u8221? applications (such as Web page, call centre, e-mail \line \up0 \
expndtw0\charscalex121 or digital brochures and catalogues). However, it is cons
idered that the main \line \up0 \expndtw0\charscalex126 impact on the enterprise
\u8217?s performance can be obtained by implementing \line \up0 \expndtw0\charsc

alex122 ICTs to support or automate critical activities or processes (\u8220?b
ack-office\u8221?). \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230
\slmult0\par\pard\li793\sb67\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex
106 \ul0\nosupersub\cf19\f20\fs20 142\tab \up0 \expndtw0\charscalex106 \ul0\nosu
persub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
ql\li2635\sb0\sl-218\slmult0 \par\pard\ql\li2635\sb0\sl-218\slmult0 \par\pard\ql
7\fs19 Box A.1. \u8220?Front office\u8221? \ul0\nosupersub\cf28\f29\fs19 vs.\ul
0\nosupersub\cf26\f27\fs19 \u8220?back office\u8221? \par\pard\qj \li1530\ri140
Front-office applications include those focused on sales and marketing, \up0 \e
xpndtw0\charscalex118 customer self service, Web portals and call centres. The c
ommon thread \up0 \expndtw0\charscalex119 is a high level of employee or custome
r interaction. \par\pard\qj \li1530\ri1405\sb70\sl-250\slmult0 \up0 \expndtw0\ch
arscalex119 A back-office is a part of most corporations and carries out tasks n
eeded \up0 \expndtw0\charscalex119 for the running of the company itself.
Back-office activities are an \up0 \expndtw0\charscalex124 organisation\u821
7?s internal operations that support core processes and are \up0 \expndtw0\chars
calex121 not accessible or visible to the general public. Back-office applicatio
ns \up0 \expndtw0\charscalex119 support or automate critical activities or proce
sses. \par\pard\qj \li1303\sb0\sl-250\slmult0 \par\pard\qj\li1303\ri1177\sb220\s
l-250\slmult0 \up0 \expndtw0\charscalex122 Thus, innovation surveys in developin
g countries should focus on the use of \up0 \expndtw0\charscalex120 ICTs, which
is a powerful tool for differentiating situations, since even \up0 \ex
pndtw0\charscalex122 medium and large firms frequently do not have a consolidate
d management \up0 \expndtw0\charscalex125 system, the lack of which constitutes
a serious obstacle to achieving better \up0 \expndtw0\charscalex120 performance
in the various areas of the business. \par\pard\qj \li1303\ri1177\sb71\sl-249\sl
This analysis of the \u8220?deeper\u8221? dimensions of ICT implementation in
\line\up0 \expndtw0\charscalex120 firms would help to expose the differences bet
ween enterprise characteristics \line \up0 \expndtw0\charscalex120 in developin
g and in industrialised countries, especially in the medium-\line \up0 \
expndtw0\charscalex122 income developing countries where the difference may not
be evident when \line \up0 \expndtw0\charscalex115 analysing only the more \u822
0?superficial\u8221? front-office ICTs. It is still not possible to \line \up0 \
expndtw0\charscalex124 carry out a definitive statistical analysis of the relati
on between deeper and \line \up0 \expndtw0\charscalex123 more complex integratio
n of ICTs and business performance in developing \line \up0 \expndtw0\charscalex
123 countries. However, partial evidence and case studies have shown th
e \line \up0 \expndtw0\charscalex124 potential for further research, particu
larly through innovation surveys. \line \up0 \expndtw0\charscalex120 Further
evidence will help to clarify the relationship between ICTs and \line
\up0 \expndtw0\charscalex122 innovation, complementing the more readily availabl

e literature on ICT and \line \up0 \expndtw0\charscalex116 productivity. \par\pa
. \tab \up0 \expndtw0\charscalex120 Taking into account the fact that questionna
ires should be as short and \line\up0 \expndtw0\charscalex115 simple as possible
, in cases where no specific surveys on ICTs in businesses are \line \up0 \expnd
tw0\charscalex117 available, innovation surveys should enquire about available i
nfrastructure; use \line \up0 \expndtw0\charscalex115 of ICTs (separating frontand back-office activities) and the ultimate purpose of \line \up0 \expndtw0\ch
arscalex115 ICT usage; existence of internal ICT management and development capa
bilities; \line \up0 \expndtw0\charscalex115 ICT expenditure and its relationshi
p with organisational innovation. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\p
ard\ql\li1303\sb59\sl-218\slmult0 \up0 \expndtw-8\charscalex77 \ul0\nosupersub\c
f28\f29\fs19 4.2. Linkages \par\pard\li1303\sb126\sl-195\slmult0\fi0\tx1870 \up0
\expndtw0\charscalex120 \ul0\nosupersub\cf23\f24\fs17 523.\tab \up0 \expndtw0\c
harscalex120 Following the recommendations in Chapter 5, emphasis should be put\
par\pard\li1303\sb55\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex121 on measurin
g linkages. In order to enable the weighting of the firm\u8217?s different\par\p
ard\li1303\sb57\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex121 linkages, a prox
y measure of complexity can be developed by crossing \u8220?type\u8221?\par\pard
\li1303\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex121 and \u8220?objectiv
e\u8221? of the linkages. This can be done by establishing a matrix of\par\pard\
li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb153\
sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\
fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\char
scalex106 \ul0\nosupersub\cf19\f20\fs20 143
}
}}
}
cf23\f24\fs17 linkage agents (\ul0\nosupersub\cf24\f25\fs17 i.e.\ul0\nosupersub\
cf23\f24\fs17 universities, technical and vocational training institutions, \li
ne \up0 \expndtw0\charscalex120 technological centres, test labs, suppliers,
clients, head office, enterprises \line \up0 \expndtw0\charscalex119 belong
ing to the same group, other firms, consultants, R&D firms, public S&T \line \up
0 \expndtw0\charscalex119 agencies), and types of linkage \up0 \expndtw0\cha

rscalex119 (including open information sources, \par\pard\ql \li1303\sb35\sl195\slmult0 \up0 \expndtw0\charscalex124 acquisition of knowledge and techno
logy, and innovation co-operation, \par\pard\qj \li1303\ri1117\sb28\sl-240\sl
mult0 \up0 \expndtw0\charscalex62 \ul0\nosupersub\cf24\f25\fs17 supplemented by
complementary activities, particularly access to new sources of \up0 \e
xpndtw0\charscalex62 financing and to commercial information\ul0\nosupersub\cf23
\f24\fs17 ). \par\pard\qj \li1303\ri1177\sb74\sl-248\slmult0\tx1870 \up0 \expndt
w0\charscalex109 524. \tab \up0 \expndtw0\charscalex120 The innovation success o
f developed countries is related to the fact that \line\up0 \expndtw0\charscalex
128 they offer regional environments in which firms can reach the knowledge \lin
e \up0 \expndtw0\charscalex123 sources they need, combined with broad access to
leading global knowledge \up0 \expndtw0\charscalex126 bases. Firms in developing
countries most frequently do not have access to \up0 \expndtw0\charscalex125 hi
gh-end knowledge, and therefore the local environment is very important \up0 \ex
pndtw0\charscalex122 for them. Consequently, it is recommended to include
questions on the \up0 \expndtw0\charscalex122 geographical location of linka
ges. One possible breakdown is local, regional, \up0 \expndtw0\charscalex122 nat
ional and international locations. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\
pard\ql\li1303\sb59\sl-218\slmult0 \up0 \expndtw-8\charscalex74 \ul0\nosupersub\
cf28\f29\fs19 4.3. Innovation activities \par\pard\qj \li1303\ri1177\sb79\sl-246
\slmult0\tx1870 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 525.
\tab \up0 \expndtw0\charscalex126 The need to focus on the activities and capabi
lities of firms leads to \line\up0 \expndtw0\charscalex127 more attention to
some specific innovation activities, as classified in \line \up0 \expndtw0
\charscalex123 Chapter 6. In order to comply with the priority criteria
presented, it is \up0 \expndtw0\charscalex121 recommended to include activiti
es such as: \par\pard\li1303\sb120\sl-195\slmult0\fi0\tx4015\tx5947 \up0 \expndt
s17 \u8220?Hardware purchase\u8221?, and\tab \up0 \expndtw0\charscalex122 \u
8220?Software purchase\u8221?\tab \up0 \expndtw0\charscalex122 (separately, no
t just\par\pard\li1303\sb55\sl-195\slmult0\fi205\tx2651 \up0 \expndtw0\charscal
ex122 included in\tab \up0 \expndtw0\charscalex122 \u8220?Acquisition of mach
inery, equipment and other capital\par\pard\li1303\sb57\sl-195\slmult0\fi205
\up0 \expndtw0\charscalex122 goods\u8221?).\par\pard\li1303\sb116\sl-195\slmult
0\fi0\tx3790\tx5958 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf27\f28\fs14 \
u9679?\ul0\nosupersub\cf23\f24\fs17 \u8220?Industrial design\u8221?, and\tab
\up0 \expndtw0\charscalex119 \u8220?Engineering activities\u8221?\tab \up0 \ex
pndtw0\charscalex122 (separately, not just\par\pard\li1303\sb55\sl-195\slmult0
\fi205 \up0 \expndtw0\charscalex122 included in \u8220?Other product and process
development\u8221?).\par\pard\qj \li1303\ri1854\sb0\sl-320\slmult0 \up0 \expndt
s17 \u8220?Lease or rental of machinery, equipment and other capital goods\u82
21?. \up0 \expndtw0\charscalex119 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosu
persub\cf23\f24\fs17 \u8220?In-house software system development\u8221?. \par\
pard\ql \li1303\sb84\sl-195\slmult0 \up0 \expndtw0\charscalex114 \ul0\nosupersub
\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 \u8220?Reverse engineering
\u8221?. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li1303\sb49\sl-218
\slmult0 \up0 \expndtw-8\charscalex76 \ul0\nosupersub\cf28\f29\fs19 4.4. Additio
nal adaptations \par\pard\qj \li1303\ri1173\sb76\sl-250\slmult0\tx1869 \up0 \exp
ndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 526. \tab \up0 \expndtw0\chars
calex121 It is recommended to collect data on human resources, from th
e \line\up0 \expndtw0\charscalex119 perspective of both its composition (by qual
ification, type of occupation - see \line \up0 \expndtw0\charscalex117 Chapter 6
- and gender) and its management. From the point of view of human \up0 \expndtw
0\charscalex115 resource management, it is particularly important to coll
ect information on \up0 \expndtw0\charscalex116 actions taken by firms with re
gard to training, including the resources involved. \up0 \expndtw0\charscalex116
In order to obtain information on the innovative capabilities of enterprises, d
ata \up0 \expndtw0\charscalex116 can be collected not only on training activitie
s that are linked to innovation, but \up0 \expndtw0\charscalex118 also on gene

ral training in areas such as management and administrative \up0 \expndt
w0\charscalex112 training, ICT, industrial security and quality control. \par\pa
47\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f
20\fs20 144\tab \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN
92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
23\fs21 5. Methodological issues for developing country contexts \par\pard\ql \l
i1303\sb139\sl-218\slmult0 \up0 \expndtw-8\charscalex74 \ul0\nosupersub\cf28\f29
\fs19 5.1. Information system specificities \par\pard\qj \li1303\ri1178\sb76\sl250\slmult0\tx1870 \up0 \expndtw0\charscalex109 \ul0\nosupersub\cf23\f24\fs17 52
7. \tab \up0 \expndtw0\charscalex120 The design and planning of innovation surve
ys in developing countries \line\up0 \expndtw0\charscalex123 needs to take in
to account the relative weakness of statistical systems. \line \up0 \expn
dtw0\charscalex120 Linkages between surveys and data sets tend to be we
ak or nonexistent, \up0 \expndtw0\charscalex121 preventing the use of informat
ion from other surveys both in the design of the \up0 \expndtw0\charscalex120 ex
ercise and in the analysis of its results. The weakness, or sometimes lack, of \
up0 \expndtw0\charscalex120 official business registers, which are normally
used as sample frames, is \up0 \expndtw0\charscalex120 another example of
this type of problem. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1870 \up
0 \expndtw0\charscalex109 528. \tab \up0 \expndtw0\charscalex121 It is particula
rly important to involve national statistics offices (NSOs) \line\up0 \expndtw0\
charscalex121 in innovation surveys, even if such surveys do not constitute a hi
gh priority in \line \up0 \expndtw0\charscalex126 the national statistical
programmes of some developing countries. \line \up0 \expndtw0\charscale
x128 Involvement of NSOs may sometimes include the signing of formal \l
ine \up0 \expndtw0\charscalex128 agreements between the various institutions
\up0 \expndtw0\charscalex123 (which frequently include \par\pard\qj \li1303\r
i1178\sb10\sl-250\slmult0 \up0 \expndtw0\charscalex122 government departments
and universities). The participation of NSOs in \up0 \expndtw0\charscalex1
29 innovation surveys brings to the table experience in the design and
\up0 \expndtw0\charscalex123 application of surveys and allows the resolution o
f problems in registers and \up0 \expndtw0\charscalex125 other background inform
ation. It also helps to obtain higher response rates, \up0 \expndtw0\charscalex1
23 and raises the possibility of making the survey compulsory. Moreover, if the
\up0 \expndtw0\charscalex122 sample used is the same as for other econom
ic surveys, it presents the \up0 \expndtw0\charscalex119 possibility of wide
r-ranging analysis. \par\pard\qj \li1303\ri1178\sb42\sl-260\slmult0\tx1870 \up0
\expndtw0\charscalex109 529. \tab \up0 \expndtw0\charscalex128 Statistical syst
ems in developing countries frequently lack the \line\up0 \expndtw0\chars
calex124 necessary information about firm performance \up0 \expndtw0\charsca
lex125 (such as data on sales, \par\pard\qj \li1303\ri1178\sb0\sl-250\slmult
0 \up0 \expndtw0\charscalex127 investments, exports), only have outdated data or

cannot provide data in a \up0 \expndtw0\charscalex119 suitable form for statist
ical analysis. In such cases, a number of basic variables \up0 \expndtw0\charsca
lex127 can be included in the innovation survey in order to enable analysis of t
he \up0 \expndtw0\charscalex124 relationship between actions taken by firms
for innovation and market \up0 \expndtw0\charscalex120 performance (compet
itiveness). However, a tension between the need for \up0 \expndtw0\charsc
alex126 extra questions and the response burden exists. In order to ma
ximise \up0 \expndtw0\charscalex122 response rates and improve coverage, a balan
ce should be sought, taking into \up0 \expndtw0\charscalex129 account that opera
tional simplicity and fluidity may be detrimental to the \up0 \expndtw0\charscal
ex121 analytical potential of the exercise. \par\pard\ql \li1303\sb0\sl-218\slmu
supersub\cf28\f29\fs19 5.2. General methodological considerations \par\pard\ql \
li1303\sb103\sl-218\slmult0 \up0 \expndtw-8\charscalex71 5.2.1. Application of t
he survey \par\pard\qj \li1303\ri1178\sb96\sl-250\slmult0\tx1870 \up0 \expndtw0\
18 Interviews made in person (instead of surveys by mail or by phone) and \line\
up0 \expndtw0\charscalex122 by adequately trained staff (for instance, undergrad
uate or graduate students) \line \up0 \expndtw0\charscalex126 are recommended, s
ince they have proved to have a positive impact on the \line \up0 \expndtw0\char
scalex124 response rate and on the quality of the results obtained.\ul0\super\cf
25\f26\fs20 5\ul0\nosupersub\cf23\f24\fs17 This is particularly \line \up0 \exp
ndtw0\charscalex124 important in developing country contexts where postal servic
es may not be \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmul
t0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb19\sl-218\slmult0\fi0\tx79
- OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\nosupers
ub\cf19\f20\fs20 145
}
cf23\f24\fs17 reliable. Moreover, interviews conducted by qualified staff
provide the \up0 \expndtw0\charscalex127 respondent with immediate and rel
evant assistance in completing the \up0 \expndtw0\charscalex121 questionnair
e, thereby improving the quality of the results. \par\pard\ql \li1303\sb0\sl-218
\slmult0 \par\pard\ql\li1303\sb139\sl-218\slmult0 \up0 \expndtw-8\charscalex72 \
ul0\nosupersub\cf28\f29\fs19 5.2.2. Questionnaire design \par\pard\qj \li1303\ri
3\f24\fs17 531. \tab \up0 \expndtw0\charscalex125 The questionnaire can be d
esigned so that the sections can be \line\up0 \expndtw0\charscalex121 sepa
rated to allow different persons in the firm to reply to different sections. \li
ne \up0 \expndtw0\charscalex119 This is particularly valid for questions relatin
g to the firm\u8217?s general economic \up0 \expndtw0\charscalex125 data, which
may be provided by the finance division, or specific questions \up0 \expndtw0\ch
arscalex118 about the innovation process, which may be completed by the product
or plant \up0 \expndtw0\charscalex126 manager. This may result in more reliable

information.\ul0\super\cf25\f26\fs20 6\ul0\nosupersub\cf23\f24\fs17 It is never
theless \up0 \expndtw0\charscalex121 important to avoid delaying the survey
or losing a partially completed \up0 \expndtw0\charscalex119 questionnaire
because of this strategy. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx187
0 \up0 \expndtw0\charscalex107 532. \tab \up0 \expndtw0\charscalex123 It is also
advisable to include guidance in the main questionnaire, in \line\up0 \expndtw0
\charscalex122 order to help the respondent understand and avoid losing the inst
ructions. It \line \up0 \expndtw0\charscalex121 is important to recognise that i
n some developing countries respondents may \up0 \expndtw0\charscalex122 not und
erstand the concept of \u8220?innovation\u8221? or even the word. If this may be
\up0 \expndtw0\charscalex122 the case, questions must include definitions. \par
533. \tab \up0 \expndtw0\charscalex124 Special attention has to be given t
o the language in which the \line\up0 \expndtw0\charscalex121 questionnaire
is written. The wording needs to be adapted to meet the \line \up0 \
expndtw0\charscalex120 knowledge and experience of an \u8220?average\u8221? resp
ondent. In some cases, it may \line \up0 \expndtw0\charscalex127 be necessary to
present questionnaires in more than one language to help \line \up0 \expndtw0\c
harscalex121 respondents.\ul0\super\cf25\f26\fs20 7 \par\pard\ql \li1303\sb0\sl218\slmult0 \par\pard\ql\li1303\sb119\sl-218\slmult0 \up0 \expndtw-8\charscalex7
2 \ul0\nosupersub\cf28\f29\fs19 5.2.3. Frequency and other recommendations \par\
pard\qj \li1303\ri1176\sb96\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex107 \
ul0\nosupersub\cf23\f24\fs17 534. \tab \up0 \expndtw0\charscalex117 While Chapt
er 8 of the Manual recommends conducting innovation \line\up0 \expndtw0\cha
rscalex121 surveys every two years, it is recognised that in developing country
contexts \line \up0 \expndtw0\charscalex119 the periodicity should be every thre
e or four years. If possible, the innovation \line \up0 \expndtw0\charscalex122
surveys should be timed to coincide with the major international innovation \lin
e \up0 \expndtw0\charscalex117 surveys, such as the Community Innovation Survey
(CIS) rounds in Europe, in \line \up0 \expndtw0\charscalex120 order to obtain co
mparable data for similar time periods. It is also convenient \line \up0 \expndt
w0\charscalex121 to update a minimum set of variables every year (the main quant
itative ones, \line \up0 \expndtw0\charscalex122 for example), if resources
permit. A less costly strategy is to attach a \line \up0 \expndtw0\chars
calex119 significantly reduced questionnaire to an existing business survey. \pa
535. \tab \up0 \expndtw0\charscalex124 The results of the innovation surve
ys should be published and \line\up0 \expndtw0\charscalex118 distributed wid
ely, in order to encourage further participation by businesses in \line \up0 \ex
pndtw0\charscalex125 future rounds and to increase awareness and use by research
ers and policy \line \up0 \expndtw0\charscalex120 makers. Diffusion mechanisms n
eed to be included in the budget early in the \line \up0 \expndtw0\charscalex116
exercise. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\
par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb157\sl-230\slmult0\fi0\tx4899
\dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 146\tab \up0 \expndt
N COMMUNITIES 2005
}

osupersub\cf23\f24\fs17 536. \tab \up0 \expndtw0\charscalex119 A frequent diffic
ulty in obtaining reliable information on innovation in \line\up0 \expndtw0\char
scalex119 countries with a less developed statistical tradition is busin
ess\u8217?s lack of \line \up0 \expndtw0\charscalex123 appreciation of the imp
ortance of innovation and the relevant public policy \line \up0 \expndtw0\charsc
alex120 instruments. Managers are frequently secretive about finance, and qualit
ative \line \up0 \expndtw0\charscalex125 information is sometimes more reliable
than quantitative information. The \line \up0 \expndtw0\charscalex120 purpose o
f surveys needs to be clearly stated and the questions clearly \line \
up0 \expndtw0\charscalex123 formulated. Under these circumstances, an adequate l
egislative base for the \line \up0 \expndtw0\charscalex129 collection of innovat
ion statistics can help ensure the success of such an \line \up0 \expndtw0\chars
calex123 exercise. In some cases, simplified questionnaires can be designed to c
over \line \up0 \expndtw0\charscalex120 small firms, in order to encourage their
participation in innovation surveys. \par\pard\ql \li793\sb0\sl-241\slmult0 \pa
r\pard\ql\li793\sb97\sl-241\slmult0 \up0 \expndtw0\charscalex122 \ul0\nosupersub
\cf22\f23\fs21 6. Thinking ahead \par\pard\qj \li1303\ri1178\sb90\sl-253\slmult0
\tx1870 \up0 \expndtw0\charscalex107 \ul0\nosupersub\cf23\f24\fs17 537. \tab \up
0 \expndtw0\charscalex122 A number of important questions regarding innovation m
easurement \line\up0 \expndtw0\charscalex123 in developing countries remain unan
swered. However, various approaches \line \up0 \expndtw0\charscalex121 have bee
n tried out in different countries and deserve further research, \up0 \
expndtw0\charscalex117 involving issues such as: \par\pard\ql \li1303\sb95\sl-19
5\slmult0 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0
\nosupersub\cf23\f24\fs17 The role of entrepreneurs and their attitudes toward
s innovation. \par\pard\ql \li1303\ri1177\sb80\sl-250\slmult0\tx1508\tx1508 \up0
23\f24\fs17 The intention to capture innovations driven by factors other than
market \line\tab \up0 \expndtw0\charscalex120 forces, and in particular innovati
ons conducted by the public sector (Salazar \line \tab \up0 \expndtw0\charscalex
114 and Holbrook, 2004). \par\pard\qj \li1303\ri1177\sb42\sl-260\slmult0\tx1508
b\cf23\f24\fs17 The adaptation of methodology to measure innovation in
the primary \line\tab \up0 \expndtw0\charscalex119 sector (particularly in agr
iculture). \par\pard\qj \li1303\ri1177\sb40\sl-260\slmult0\tx1508 \up0 \expndtw0
\charscalex120 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs1
7 The development of indicators reflecting sub-national (regional) innovation
\line\tab \up0 \expndtw0\charscalex120 systems. \par\pard\qj \li1303\ri1177\sb49
rscalex120 The application of the suggestions made here can lead to br
oader \line\up0 \expndtw0\charscalex127 experience with innovation surveys in de
veloping countries. It is expected \line \up0 \expndtw0\charscalex120 that some
countries with better S&T statistics experience will soon go beyond \line \up0 \
expndtw0\charscalex125 conducting R&D surveys and include innovation surveys in
their statistical \line \up0 \expndtw0\charscalex128 programmes. The consolidati
on of standards, concepts, formats and other \line \up0 \expndtw0\charscalex125
issues better suited for developing countries, such as those proposed in this \l
ine \up0 \expndtw0\charscalex128 annex, should help build awareness and capacity
. Further efforts in direct \line \up0 \expndtw0\charscalex128 capacity building
for innovation surveys will be key to the success of this \line \up0 \expndtw0\
charscalex120 endeavour. \par\pard\ql \li1303\sb0\sl-218\slmult0 \par\pard\ql\li
charscalex88 \ul0\nosupersub\cf28\f29\fs19 Notes \par\pard\qj \li1401\ri1193\sb1
26\sl-190\slmult0\tx1587\tx1587 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf3
0\f31\fs15 1. Lugones and Peirano (2004). This document was based on contributio
ns made as \line\tab \up0 \expndtw0\charscalex115 part of the activities of RICY

T by a group of Latin American experts (M. B. Baptista \line \tab \up0 \expndtw0
\charscalex115 (DINACYT-Uruguay), J. E. Cassiolato (IE/UFRJ-Brazil), M. Mainier
i (SENACYT-\par\pard\ql \li1587\sb25\sl-172\slmult0 \up0 \expndtw0\charscalex11
9 Panama), F. Malaver Rodrguez and M. Vargas Prez (Comcyt/OCyT-Colombia), \par\pa
\sl-218\slmult0\par\pard\li824\sb153\sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\ch
arscalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COM
MUNITIES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 147
}
li1587\sb0\sl-200\slmult0 \par\pard\qj\li1587\ri1193\sb67\sl-200\slmult0 \up0 \e
xpndtw0\charscalex117 \ul0\nosupersub\cf30\f31\fs15 A. Martinez Echeverria (INE
-Chile); M. Salazar Acosta (Simon Fraser University, \up0 \expndtw0\charscalex1
17 Canada). \par\pard\qj \li1401\ri1194\sb81\sl-200\slmult0\tx1587\tx1587 \up0 \
expndtw0\charscalex122 2. The UIS panel was co-ordinated by Simon Ellis and Erne
sto Fernndez Polcuch, \line\tab \up0 \expndtw0\charscalex121 and included as cont
ributors the authors of the base document (Gustavo Lugones \line \tab \up0 \expn
dtw0\charscalex115 and Fernando Peirano, RICYT); Pierre Tremblay, IDRC, Canada;
Gao Changlin, and \par\pard\qj \li1587\ri1193\sb6\sl-193\slmult0 \up0 \expndtw0\
charscalex116 Jiancheng Guan, China; Javier Revilla Diez, Germany (with experien
ce in Thailand, \line \up0 \expndtw0\charscalex130 Singapore and Penang State
, Malaysia ) ; Annamria Inzelt , Hungary ; \line \up0 \expndtw0\charscalex127
Laxman Prasad, India; Antoine Zahlan, Lebanon; Fadzilah Ahmad Din (with \line
\up0 \expndtw0\charscalex127 Anita Bahari and Dr. Cassey), MASTIC, Malaysia; Ann
a Ong, Penang State, \line \up0 \expndtw0\charscalex127 Malaysia ; Michael Kahn
(with William Blankley and Simon Mpele ) and \line \up0 \expndtw0\charscal
ex119 Tinus Pretorius (with Andre Buys), South Africa; Bitrina Diyamett, Tanzani
a; and \line \up0 \expndtw0\charscalex120 Patarapong Intarakumnerd, Thailand. Va
luable comments were received from the \line \up0 \expndtw0\charscalex115 OECD S
ecretariat, as well as various NESTI members (particularly Carter Bloch and \lin
e \up0 \expndtw0\charscalex125 Frank Foyn). However, contents of this annex are
the sole responsibility of the \line \up0 \expndtw0\charscalex106 UNESCO Institu
te for Statistics and the publishers of the \ul0\nosupersub\cf31\f32\fs15 Oslo M
anual\ul0\nosupersub\cf30\f31\fs15 . \par\pard\qj \li1401\ri1194\sb102\sl-200\sl
mult0\tx1587 \up0 \expndtw0\charscalex124 3. For example, the first South Africa
n innovation survey found, for instance, that \line\tab \up0 \expndtw0\charscale
x120 86% of innovations in South African industry are of incremental nature. \pa
r\pard\qj \li1401\ri1192\sb109\sl-190\slmult0\tx1587\tx1587 \up0 \expndtw0\chars
calex124 4. In the particular case of many Latin American countries, the need fo
r firms to \line\tab \up0 \expndtw0\charscalex125 permanently adapt and adjust t
o recurrent alterations in the economic context \line \tab \up0 \expndtw0\charsc
alex120 reinforces the idea that organisational change is an essential dimension
of firms\u8217? \par\pard\ql \li1587\sb25\sl-172\slmult0 \up0 \expndtw0\charsca
lex119 competitiveness. \par\pard\qj \li1401\ri1193\sb114\sl-190\slmult0\tx1587\
tx1587 \up0 \expndtw0\charscalex116 5. This was found to be of particular import
ance in Latin America, and also in Africa, \line\tab \up0 \expndtw0\charscalex12

4 where experience has shown that the response rate to mailed questionnaires is
\line \tab \up0 \expndtw0\charscalex114 extremely low. \par\pard\qj \li1401\ri11
93\sb102\sl-200\slmult0\tx1587 \up0 \expndtw0\charscalex117 6. The multiple info
rmants approach has proved to increase reliability and validity of \line\tab \up
0 \expndtw0\charscalex117 the innovation survey in China. \par\pard\qj \li1401\r
i1194\sb81\sl-200\slmult0\tx1587\tx1587 \up0 \expndtw0\charscalex117 7. In the c
ase of the Thai survey, questions were presented in English and Thai, since \lin
e\tab \up0 \expndtw0\charscalex130 it was considered that sometimes people can u
nderstand technical terms in \line \tab \up0 \expndtw0\charscalex118 English mor
e easily than in their native language. \par\pard\li793\sb0\sl-230\slmult0\par\p
\par\pard\li793\sb176\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex106 \ul
0\nosupersub\cf19\f20\fs20 148\tab \up0 \expndtw0\charscalex106 \ul0\nosupersub\
}
\li3993\sb0\sl-276\slmult0 \par\pard\ql\li3993\sb0\sl-276\slmult0 \par\pard\ql\l
i3993\sb0\sl-276\slmult0 \par\pard\ql\li3993\sb168\sl-276\slmult0 \up0 \expndtw1\charscalex100 \ul0\nosupersub\cf1\f2\fs24 ANNEX B \par\pard\ql \li2792\sb0\sl368\slmult0 \par\pard\ql\li2792\sb0\sl-368\slmult0 \par\pard\ql\li2792\sb32\sl-3
68\slmult0 \up0 \expndtw0\charscalex66 \ul0\nosupersub\cf20\f21\fs32 Examples of
Innovations \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb116\sl241\slmult0 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf22\f23\fs21 1. Introd
This annex provides a list of examples for each type of innovation. \line\up0 \e
xpndtw0\charscalex132 These lists are intended as illustrations and should not b
y any means be \line \up0 \expndtw0\charscalex121 considered exhaustive. They ar
e intended to give survey practitioners a better \line \up0 \expndtw0\charscalex
121 understanding of each innovation type, but they are not designed to be shown
\line \up0 \expndtw0\charscalex129 to enterprises as examples of innovations. T
here are two reasons for this. \line \up0 \expndtw0\charscalex123 First, their i
nclusion might bias firms into excluding innovations that are not \line \up0 \ex
pndtw0\charscalex129 on the list. Second, the list is dated, with many innovatio
ns impossible to \line \up0 \expndtw0\charscalex124 foresee. It is also wort
hwhile emphasising that two central criteria for \line \up0 \expndtw0\char
scalex123 innovations are that they represent significant changes and that they
are new \line \up0 \expndtw0\charscalex130 to the firm. Thus, a change can be an
innovation for one firm and not for \line \up0 \expndtw0\charscalex122 another.
Often, more detailed descriptions are needed to determine whether a \line \up0
\expndtw0\charscalex122 change is to be classified as an innovation and of which
type. \par\pard\ql \li793\sb0\sl-241\slmult0 \par\pard\ql\li793\sb97\sl-241\slm
ult0 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf22\f23\fs21 2. Examples of i
126 A product innovation is the introduction of a good or service that is \line\
up0 \expndtw0\charscalex125 new or significantly improved with respect to its ch
aracteristics or intended \line \up0 \expndtw0\charscalex123 uses. This includ
es significant improvements in technical specifications, \up0 \expndtw0\cha
rscalex125 components and materials, incorporated software, user friendliness or
other \up0 \expndtw0\charscalex122 functional characteristics. \par\pard\qj \li
1303\ri3411\sb29\sl-300\slmult0\tx1870 \up0 \expndtw0\charscalex109 541. \tab \u
p0 \expndtw0\charscalex122 Product innovations exclude the following: \line\up0
3\f24\fs17 Minor changes or improvements. \par\pard\ql \li1303\sb107\sl-195\sl
mult0 \up0 \expndtw0\charscalex120 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nos
upersub\cf23\f24\fs17 Routine upgrades. \par\pard\ql \li1303\sb106\sl-195\slmu
ersub\cf23\f24\fs17 Regular seasonal changes (such as for clothing lines). \pa
\ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Customisat
ion for a single client that does not include significantly \line\tab \
up0 \expndtw0\charscalex122 different attributes compared to products made for o
ther clients. \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmul
li824\sb63\sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\charscalex106 \ul0\nosupersu
}
persub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Design changes that
do not alter the function, intended use or technical \line\tab \up0 \expndtw0\ch
arscalex119 characteristics of a good or service. \par\pard\qj \li1303\ri1178\sb
s14 \u9679?\ul0\nosupersub\cf23\f24\fs17 The simple resale of new goods
and services purchased from other \line\tab \up0 \expndtw0\charscalex125 ent
erprises. \par\pard\li1303\sb111\sl-195\slmult0\fi0\tx1870 \up0 \expndtw0\charsc
alex121 542.\tab \up0 \expndtw0\charscalex121 Examples of product innovations:\p
ar\pard\li1303\sb117\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex121 Goods\par\p
ard\ql \li1303\ri1177\sb52\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw0\charscale
x123 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Replac
ing inputs with materials with improved characteristics (breathable \line\tab \u
p0 \expndtw0\charscalex125 textiles,
light
but
strong
composites,
environmentally
friendly \line \tab \up0 \expndtw0\charscalex118 plastics, e
tc.). \par\pard\qj \li1303\ri2660\sb29\sl-300\slmult0 \up0 \expndtw0\charscalex1
19 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Global p
ositioning systems (GPS) in transport equipment. \up0 \expndtw0\charscalex120 \u
l0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Cameras in mo
bile telephones. \par\pard\ql \li1303\sb107\sl-195\slmult0 \up0 \expndtw0\charsc
alex120 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Fas
tening systems in clothing. \par\pard\ql \li1303\ri1176\sb60\sl-250\slmult0\tx15
08\tx1508 \up0 \expndtw0\charscalex128 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0
\nosupersub\cf23\f24\fs17 Household appliances that incorporate software
that improves user \line\tab \up0 \expndtw0\charscalex128 friendliness or conv
enience, such as toasters that automatically shut off \line \tab \up0 \expndtw0\
charscalex123 when the bread is toasted. \par\pard\qj \li1303\ri1177\sb79\sl-240
\slmult0\tx1508 \up0 \expndtw0\charscalex126 \ul0\nosupersub\cf27\f28\fs14 \u967
9?\ul0\nosupersub\cf23\f24\fs17 Anti-fraud software that profiles and
tracks individual financial \line\tab \up0 \expndtw0\charscalex126 transac
tions. \par\pard\ql \li1303\sb118\sl-195\slmult0 \up0 \expndtw0\charscalex120 \u
l0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Inbuilt wirel
ess networking in laptops. \par\pard\ql \li1303\ri1176\sb60\sl-250\slmult0\tx150
8\tx1508 \up0 \expndtw0\charscalex123 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\
nosupersub\cf23\f24\fs17 Food products with new functional characteristics (ma
rgarine that reduces \line\tab \up0 \expndtw0\charscalex125 blood cholesterol
levels, yoghurts produced using new types of \line \tab \up0 \expn
dtw0\charscalex119 cultures, etc.). \par\pard\qj \li1303\ri1177\sb79\sl-240\slmu
lt0\tx1508 \up0 \expndtw0\charscalex123 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul
0\nosupersub\cf23\f24\fs17 Products with significantly reduced energy consumpt
ion (energy efficient \line\tab \up0 \expndtw0\charscalex118 refrigerators, etc.
). \par\pard\qj \li1303\ri1920\sb31\sl-300\slmult0 \up0 \expndtw0\charscalex122
\ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Significant
changes in products to meet environmental standards. \up0 \expndtw0\charscalex1
23 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Programm
able radiators or thermostats. \par\pard\ql \li1303\sb107\sl-195\slmult0 \up0 \e
xpndtw0\charscalex119 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\
f24\fs17 IP (Internet protocol) telephones. \par\pard\qj \li1303\ri3245\sb2\sl
-320\slmult0\fi0 \up0 \expndtw0\charscalex119 \ul0\nosupersub\cf27\f28\fs14 \u96
79?\ul0\nosupersub\cf23\f24\fs17 New medicine with significantly improved effe
cts. \up0 \expndtw0\charscalex120 Services \par\pard\qj \li1303\ri1177\sb30\sl-2
679?\ul0\nosupersub\cf23\f24\fs17 New services that significantly improve
customers\u8217? access to goods or \line\tab \up0 \expndtw0\charscalex118
services, such as home pick-up and drop-off service for rental cars. \par\pard\q
l \li1303\ri1176\sb49\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw0\charscalex124
\ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 DVD subscri
ption service where for a monthly fee customers can order a \line\tab \up0 \expn
dtw0\charscalex119 predefined number of DVDs via the Internet with mail delivery
to the home, \line \tab \up0 \expndtw0\charscalex119 with return via a pre-addr
essed envelope. \par\pard\ql \li1303\sb116\sl-195\slmult0 \up0 \expndtw0\charsca
lex120 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Vide
o on demand via broadband Internet. \par\pard\ql \li1303\sb106\sl-195\slmult0 \u
cf23\f24\fs17 Internet services such as banking, or bill payment systems. \par
sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb157\sl-230
\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 1

}
ql\li1303\ri1177\sb176\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw0\charscalex129
\ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 New forms
of warranty, such as an extended warranty on new or used \line\tab \up0 \expndtw
0\charscalex120 goods, or bundling warranties with other services, such as with
credit cards, \line \tab \up0 \expndtw0\charscalex120 bank accounts or customer
loyalty cards. \par\pard\ql \li1303\ri1176\sb57\sl-266\slmult0\tx1508\tx1508 \up
0 \expndtw0\charscalex119 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\c
f23\f24\fs17 New types of loans, for example variable rate loans with a fixed
rate ceiling. \line \up0 \expndtw0\charscalex123 \ul0\nosupersub\cf27\f28\fs14 \
u9679?\ul0\nosupersub\cf23\f24\fs17 Creation of Web sites on the Internet, whe
re new services such as product \line\tab \up0 \expndtw0\charscalex123 informati
on and various support functions can be offered to clients free of \line \tab \u
p0 \expndtw0\charscalex119 charge. \par\pard\qj \li1303\ri2099\sb26\sl-300\slmul
t0 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupe
rsub\cf23\f24\fs17 The introduction of smart cards and multipurpose plastic ca
rds. \up0 \expndtw0\charscalex116 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosu
persub\cf23\f24\fs17 A new, self-service bank office. \par\pard\qj \li1303\ri1
\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Offering customers a new \u8220
?supply control system\u8221? which allows clients to \line\tab \up0 \expndtw0\c
harscalex120 check that deliveries from contractors meet specifications. \par\pa
. \tab \up0 \expndtw0\charscalex122 A process innovation is the implementation o
f a new or significantly \line\up0 \expndtw0\charscalex119 improved production o
r delivery method. This includes significant changes in \line \up0 \expndtw0\cha
rscalex119 techniques, equipment and/or software. \par\pard\qj \li1303\ri3417\sb
0\sl-320\slmult0\tx1870 \up0 \expndtw0\charscalex109 544. \tab \up0 \expndtw0\ch
arscalex123 Process innovations exclude the following: \line\up0 \expndtw0\chars
calex120 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Mi
nor changes or improvements. \par\pard\ql \li1303\ri1177\sb31\sl-250\slmult0\tx1
508\tx1508 \up0 \expndtw0\charscalex126 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul
0\nosupersub\cf23\f24\fs17 An increase in production or service capabilities t
hrough the addition of \line\tab \up0 \expndtw0\charscalex121 manufacturing or l
ogistical systems which are very similar to those already \line \tab \up0 \expnd
tw0\charscalex121 in use. \par\pard\li1303\sb123\sl-195\slmult0\fi0\tx1870 \up0
\expndtw0\charscalex121 545.\tab \up0 \expndtw0\charscalex121 Examples of proces
s innovations:\par\pard\li1303\sb117\sl-195\slmult0\fi0 \up0 \expndtw0\charscale
x121 Production\par\pard\qj \li1303\ri1176\sb70\sl-240\slmult0\tx1508 \up0 \expn
dtw0\charscalex126 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24
\fs17 Installation of new or improved manufacturing technology, such a
s \line\tab \up0 \expndtw0\charscalex123 automation equipment or real-time senso
rs that can adjust processes. \par\pard\qj \li1303\ri2773\sb31\sl-300\slmult0 \u
cf23\f24\fs17 New equipment required for new or improved products. \up0 \expnd
fs17 Laser cutting tools. \par\pard\ql \li1303\sb107\sl-195\slmult0 \up0 \expn
dtw0\charscalex119 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24
\fs17 Automated packaging. \par\pard\qj \li1303\ri3982\sb2\sl-320\slmult0 \up0

23\f24\fs17 Computer-assisted product development. \up0 \expndtw0\charscalex11
9 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Digitisat
ion of printing processes. \par\pard\ql \li1303\ri2515\sb0\sl-310\slmult0\fi0 \u
cf23\f24\fs17 Computerised equipment for quality control of production. \up0 \
\f24\fs17 Improved testing equipment for monitoring production. \up0 \expndtw0
\charscalex122 Delivery and operations \par\pard\ql \li1303\sb95\sl-195\slmult0
b\cf23\f24\fs17 Portable scanners/computers for registering goods and inventor
y. \par\pard\qj \li1303\ri1177\sb52\sl-260\slmult0\tx1508 \up0 \expndtw0\charsca
lex121 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Intr
oduction of bar coding or passive radio frequency identification (RFID) \line\ta
b \up0 \expndtw0\charscalex121 chips to track materials through the supply chain
. \par\pard\ql \li1303\sb94\sl-195\slmult0 \up0 \expndtw0\charscalex120 \ul0\nos
upersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 GPS tracking system
s for transport equipment. \par\pard\ql \li1303\sb126\sl-195\slmult0 \up0 \expnd
fs17 Introduction of software to identify optimal delivery routes. \par\pard\l
i824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl218\slmult0\par\pard\li824\sb69\sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\charsca
IES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 151
}
persub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 New or improved s
oftware or routines for purchasing, accounting or \line\tab \up0 \expndtw0
\charscalex123 maintenance systems. \par\pard\ql \li1303\sb94\sl-195\slmult0 \up
0 \expndtw0\charscalex120 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\c
f23\f24\fs17 Introduction of electronic clearing systems. \par\pard\ql \li1303
\sb126\sl-195\slmult0 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14
\u9679?\ul0\nosupersub\cf23\f24\fs17 Introduction of automated voice-response
system. \par\pard\ql \li1303\sb106\sl-195\slmult0 \up0 \expndtw0\charscalex120
\ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Introductio
n of electronic ticketing system. \par\pard\qj \li1303\ri2946\sb39\sl-300\slmult
0 \up0 \expndtw0\charscalex119 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosuper
sub\cf23\f24\fs17 New software tools designed to improve supply flows. \line \
up0 \expndtw0\charscalex120 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub
\cf23\f24\fs17 New or significantly improved computer networks. \par\pard\qj \
li1303\ri1178\sb62\sl-250\slmult0\tx1870 \up0 \expndtw0\charscalex109 546. \tab
\up0 \expndtw0\charscalex129 A marketing innovation is the implementation of a n
ew marketing \line\up0 \expndtw0\charscalex120 method involving significant chan
ges in product design or packaging, product \line \up0 \expndtw0\charscalex120 p
lacement, product promotion or pricing. \par\pard\ql \li1303\sb96\sl-195\slmult0

\tx1870 \up0 \expndtw0\charscalex109 547. \tab \up0 \expndtw0\charscalex119 Mark
eting innovations exclude the following: \par\pard\ql \li1303\ri1176\sb80\sl-250
\slmult0\tx1508\tx1508 \up0 \expndtw0\charscalex123 \ul0\nosupersub\cf27\f28\fs1
4 \u9679?\ul0\nosupersub\cf23\f24\fs17 Changes in product design or packa
ging, product placement, product \line\tab \up0 \expndtw0\charscalex123 promo
tion or pricing that are based on marketing methods that have \line \t
ab \up0 \expndtw0\charscalex121 previously been used by the enterprise. \par\par
d\ql \li1303\sb96\sl-195\slmult0 \up0 \expndtw0\charscalex123 \ul0\nosupersub\cf
27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Seasonal, regular and other r
outine changes in marketing instruments. \par\pard\qj \li1303\ri1177\sb88\sl-240
\slmult0\tx1508 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14 \u967
9?\ul0\nosupersub\cf23\f24\fs17 The use of already applied marketing methods t
o target a new geographical \line\tab \up0 \expndtw0\charscalex118 market or a n
ew market segment (\ul0\nosupersub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs
17 socio-demographic group of clients). \par\pard\ql \li1303\sb118\sl-195\slmul
t0\tx1870 \up0 \expndtw0\charscalex109 548. \tab \up0 \expndtw0\charscalex123 Ex
amples of marketing innovations: \par\pard\ql \li1303\ri1175\sb60\sl-250\slmult0
\tx1508\tx1508 \up0 \expndtw0\charscalex122 \ul0\nosupersub\cf27\f28\fs14 \u9679
?\ul0\nosupersub\cf23\f24\fs17 Marketing innovations can refer to any marketin
g method (product design/ \line\tab \up0 \expndtw0\charscalex122 packaging, plac
ement, pricing, promotion) as long as it is used for the first \line \tab \up0 \
expndtw0\charscalex120 time by the firm. \par\pard\ql \li1303\sb116\sl-195\slmul
t0 \up0 \expndtw0\charscalex123 Design and packaging \par\pard\qj \li1303\ri1177
8\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Implementation of a significant ch
ange in the design of a furniture line to \line\tab \up0 \expndtw0\charscalex119
give it a new look and widen its appeal. \par\pard\qj \li1303\ri1177\sb40\sl-26
79?\ul0\nosupersub\cf23\f24\fs17 Implementation of a fundamentally new design
of bottles for a body lotion \line\tab \up0 \expndtw0\charscalex120 intended to
give the product a distinctively exclusive look. \par\pard\ql \li1303\sb94\sl-19
5\slmult0 \up0 \expndtw0\charscalex123 Placement (sales channels) \par\pard\ql \
8\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 First-time introduction of product
licensing. \par\pard\ql \li1303\sb106\sl-195\slmult0 \up0 \expndtw0\charscalex1
19 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 First-ti
me introduction of direct selling or exclusive retailing. \par\pard\ql \li1303\r
i1176\sb80\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw0\charscalex127 \ul0\nosupe
rsub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Implementation of a ne
w concept for product presentation such as sales \line\tab \up0 \expndtw0\charsc
alex125 rooms for furniture that are designed according to themes, allo
wing \line \tab \up0 \expndtw0\charscalex120 customers to view products in fully
decorated rooms. \par\pard\ql \li1303\ri1177\sb50\sl-250\slmult0\tx1508\tx1508
b\cf23\f24\fs17 Implementation of a personalised information system, \ul0\nosu
persub\cf24\f25\fs17 e.g.\ul0\nosupersub\cf23\f24\fs17 obtained from \line\tab
\up0 \expndtw0\charscalex123 loyalty cards, to tailor the presentation of produc
ts to the specific needs of \line \tab \up0 \expndtw0\charscalex123 individual c
ustomers. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\p
f19\f20\fs20 152\tab \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11
ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005

}
ql\li1303\sb0\sl-195\slmult0 \par\pard\ql\li1303\sb81\sl-195\slmult0 \up0 \expnd
tw0\charscalex119 \ul0\nosupersub\cf23\f24\fs17 Pricing \par\pard\ql \li1303\ri1
178\sb80\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw0\charscalex128 \ul0\nosupers
ub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Introduction of a new me
thod that allows customers to choose desired \line\tab \up0 \expndtw0\charscalex
120 product specifications on the firm\u8217?s Web site and then see the price f
or the \line \tab \up0 \expndtw0\charscalex118 specified product. \par\pard\qj \
ersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 First-time use of
a method for varying the price of a good or service \line\tab \up0 \ex
pndtw0\charscalex120 according to demand for it. \par\pard\qj \li1303\ri1177\sb4
0\sl-260\slmult0\tx1508 \up0 \expndtw0\charscalex118 \ul0\nosupersub\cf27\f28\fs
14 \u9679?\ul0\nosupersub\cf23\f24\fs17 First-time use of in-store special off
ers that are only accessible to holders of \line\tab \up0 \expndtw0\charscalex11
8 the store\u8217?s credit card or reward card. \par\pard\ql \li1303\sb94\sl-195
\slmult0 \up0 \expndtw0\charscalex120 Promotion \par\pard\ql \li1303\sb126\sl-19
5\slmult0 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0
\nosupersub\cf23\f24\fs17 First-time use of trademarks. \par\pard\ql \li1303\s
b106\sl-195\slmult0 \up0 \expndtw0\charscalex121 \ul0\nosupersub\cf27\f28\fs14 \
u9679?\ul0\nosupersub\cf23\f24\fs17 First-time use of product placement in mov
ies or television programmes. \par\pard\qj \li1303\ri1177\sb88\sl-240\slmult0\tx
1508 \up0 \expndtw0\charscalex119 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosu
persub\cf23\f24\fs17 Introduction of a fundamentally new brand symbol intended
to position the \line\tab \up0 \expndtw0\charscalex119 firm\u8217?s product on
a new market. \par\pard\qj \li1303\ri1177\sb80\sl-240\slmult0\tx1508 \up0 \expnd
fs17 First-time use of product seeding through opinion leaders, celebrities or
\line\tab \up0 \expndtw0\charscalex123 particular groups that are fashion or pr
oduct trend setters. \par\pard\qj \li1303\ri1178\sb72\sl-250\slmult0\tx1870 \up0
\expndtw0\charscalex107 549. \tab \up0 \expndtw0\charscalex128 An organisation
al innovation is the implementation of a new \line\up0 \expndtw0\charscal
ex125 organisational method in the firm\u8217?s business practices,
workplace \line \up0 \expndtw0\charscalex120 organisation or external relation
s. \par\pard\ql \li1303\sb96\sl-195\slmult0\tx1870 \up0 \expndtw0\charscalex107
550. \tab \up0 \expndtw0\charscalex117 Organisational innovations exclude the fo
llowing: \par\pard\qj \li1303\ri1176\sb88\sl-240\slmult0\tx1508 \up0 \expndtw0\c
harscalex121 \ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17
Changes in business practices, workplace organisation or external relations \l
ine\tab \up0 \expndtw0\charscalex121 that are based on organisational methods al
ready in use in the firm \par\pard\qj \li1303\ri1178\sb80\sl-240\slmult0\tx1508
b\cf23\f24\fs17 Changes in management strategy, unless accompanied by the intr
oduction \line\tab \up0 \expndtw0\charscalex123 of a new organisational method \
par\pard\qj \li1303\ri3432\sb31\sl-300\slmult0\fi0 \up0 \expndtw0\charscalex120
\ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Mergers wit
h, and the acquisition of other firms \line \up0 \expndtw0\charscalex109 551. \u
p0 \expndtw0\charscalex121 Examples of organisational innovations: \par\pard\ql
\li1303\ri1176\sb62\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw0\charscalex126 \u
l0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 Organisationa
l innovations can refer to any organisational method in a \line\tab \up0 \expnd
tw0\charscalex123 firm\u8217?s business practices, workplace organisation or ext

ernal relations as \line \tab \up0 \expndtw0\charscalex118 long as it is used fo
r the first time by the firm. \par\pard\ql \li1303\sb96\sl-195\slmult0 \up0 \exp
ndtw0\charscalex122 Business practices \par\pard\qj \li1303\ri1176\sb88\sl-240\s
lmult0\tx1508 \up0 \expndtw0\charscalex126 \ul0\nosupersub\cf27\f28\fs14 \u9679?
\ul0\nosupersub\cf23\f24\fs17 Establishing of a new database of best pr
actices, lessons and other \line\tab \up0 \expndtw0\charscalex120 knowledge s
o that they are more easily accessible to others. \par\pard\qj \li1303\ri1176\sb
s14 \u9679?\ul0\nosupersub\cf23\f24\fs17 First-time introduction of an int
egrated monitoring system for firm \line\tab \up0 \expndtw0\charscalex119 ac
tivities (production, finance, strategy, marketing). \par\pard\ql \li1303\ri1176
\sb72\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw0\charscalex124 \ul0\nosupersub\
cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 First-time introduction of
management systems for general production or \line\tab \up0 \expndtw0\charscalex
128 supply operations, such as supply chain management, business re-\lin
e \tab \up0 \expndtw0\charscalex122 engineering, lean production, quality manage
ment system. \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult
i824\sb141\sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\charscalex106 \ul0\nosupersu
}
li1303\ri1176\sb176\sl-250\slmult0\tx1508\tx1508 \up0 \expndtw0\charscalex122 \u
l0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 First-time i
ntroduction of training programmes to create efficient and \line\tab \up0
\expndtw0\charscalex122 functional teams that integrate staff from different ba
ckgrounds or areas of \line \tab \up0 \expndtw0\charscalex118 responsibility. \p
ar\pard\ql \li1303\sb116\sl-195\slmult0 \up0 \expndtw0\charscalex123 Workplace o
rganisation \par\pard\ql \li1303\ri1176\sb60\sl-250\slmult0\tx1508\tx1508 \up0 \
\f24\fs17 First-time implementation of decentralised job responsibility for th
e firm\u8217?s \line\tab \up0 \expndtw0\charscalex121 workers, such as giving su
bstantially more control and responsibility over \line \tab \up0 \expndtw0\chars
calex119 work processes to production, distribution or sales staff. \par\pard\ql
ul0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 First-time e
stablishment of formal or informal work teams to improve the \line\tab \up0 \exp
ndtw0\charscalex122 access and sharing of knowledge from different depart
ments, such as \line \tab \up0 \expndtw0\charscalex122 marketing, research and
production. \par\pard\ql \li1303\ri1176\sb50\sl-250\slmult0\tx1508\tx1508 \up0
3\f24\fs17 First-time implementation of an anonymous incident reporting system
to \line\tab \up0 \expndtw0\charscalex120 encourage the reporting of errors or
hazards in order to identify their causes \line \tab \up0 \expndtw0\charscalex12
0 and reduce their frequency. \par\pard\ql \li1303\sb116\sl-195\slmult0 \up0 \ex

pndtw0\charscalex123 External relations \par\pard\qj \li1303\ri1178\sb52\sl-260\
slmult0\tx1508 \up0 \expndtw0\charscalex124 \ul0\nosupersub\cf27\f28\fs14 \u9679
?\ul0\nosupersub\cf23\f24\fs17 First-time introduction of quality control
standards for suppliers and \line\tab \up0 \expndtw0\charscalex124 subcontra
ctors. \par\pard\ql \li1303\sb94\sl-195\slmult0 \up0 \expndtw0\charscalex120 \ul
0\nosupersub\cf27\f28\fs14 \u9679?\ul0\nosupersub\cf23\f24\fs17 First-time use
of outsourcing of research or production. \par\pard\qj \li1303\ri1177\sb88\sl-2
679?\ul0\nosupersub\cf23\f24\fs17 First-time entering into research collaborat
ion with universities or other \line\tab \up0 \expndtw0\charscalex122 research o
rganisations. \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmul
sb99\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19
\f20\fs20 154\tab \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11 ISB
N 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
\li3718\sb0\sl-253\slmult0 \par\pard\ql\li3718\sb0\sl-253\slmult0 \par\pard\ql\l
22 Acronyms \par\pard\li793\sb0\sl-195\slmult0\par\pard\li793\sb0\sl-195\slmult0
\par\pard\li793\sb103\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex111 \ul
0\nosupersub\cf23\f24\fs17 CA\tab \up0 \expndtw0\charscalex111 Controlled affili
ate\par\pard\li793\sb86\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex111 C
API\tab \up0 \expndtw0\charscalex111 Computer-assisted personal interview\par\pa
rd\li793\sb85\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex111 CATI\tab \u
p0 \expndtw0\charscalex111 Computer-assisted telephone interview\par\pard\li793\
sb87\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex111 CEC\tab \up0 \expndt
w0\charscalex111 Commission of the European Communities\par\pard\li793\sb86\sl-1
95\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex111 CIS\tab \up0 \expndtw0\charsc
alex111 Community Innovation Survey\par\pard\li793\sb85\sl-195\slmult0\fi0\tx192
7 \up0 \expndtw0\charscalex111 EEC\tab \up0 \expndtw0\charscalex111 European Eco
nomic Community\par\pard\li793\sb87\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\cha
rscalex111 EU\tab \up0 \expndtw0\charscalex111 European Union\par\pard\li793\sb8
6\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex111 GPS\tab \up0 \expndtw0\
charscalex111 Global Positioning System\par\pard\li793\sb85\sl-195\slmult0\fi0\t

x1927 \up0 \expndtw0\charscalex111 ICT\tab \up0 \expndtw0\charscalex111 Informat
ion and communication technology\par\pard\li793\sb87\sl-195\slmult0\fi0\tx1927 \
up0 \expndtw0\charscalex111 INSEE\tab \up0 \expndtw0\charscalex111 Institut Nati
onal de la Statistique et des tudes conomiques\par\pard\li793\sb86\sl-195\slmult0\
fi0\tx1927 \up0 \expndtw0\charscalex111 IP\tab \up0 \expndtw0\charscalex111 Inte
rnet protocol\par\pard\li793\sb87\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\chars
calex111 IPRs\tab \up0 \expndtw0\charscalex111 Intellectual property rights\par\
pard\li793\sb85\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex111 ISCED\tab
\up0 \expndtw0\charscalex111 International Standard Classification of Education
\par\pard\li793\sb86\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex111 ISIC
\tab \up0 \expndtw0\charscalex112 International Standard Industrial Classificati
on of Economic Activities\par\pard\li793\sb87\sl-195\slmult0\fi0\tx1927 \up0 \ex
pndtw0\charscalex111 KAU\tab \up0 \expndtw0\charscalex111 Kind of activity unit\
par\pard\li793\sb85\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex111 LBIO\
tab \up0 \expndtw0\charscalex111 Literature-based indicators of innovation outpu
t\par\pard\li793\sb86\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex111 LMT
s\tab \up0 \expndtw0\charscalex111 Low- and medium-technology industries\par\par
d\li793\sb87\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex111 MNE\tab \up0
\expndtw0\charscalex111 Multinational enterprise\par\pard\li793\sb85\sl-195\slm
ult0\fi0\tx1927 \up0 \expndtw0\charscalex111 NACE\tab \up0 \expndtw-7\charscalex
72 \ul0\nosupersub\cf24\f25\fs17 Nomenclature statistique des Activits conomiques
de la Communaut\par\pard\li793\sb56\sl-195\slmult0\fi1474 \up0 \expndtw0\charscal
ex100 Europenne\ul0\nosupersub\cf23\f24\fs17 (Statistical Classification of Econ
omic Activities\par\pard\li793\sb57\sl-195\slmult0\fi1474 \up0 \expndtw0\charsca
lex100 in the European Community)\par\pard\li793\sb85\sl-195\slmult0\fi0\tx1927
\up0 \expndtw0\charscalex100 NSO\tab \up0 \expndtw0\charscalex100 National stati
stical office\par\pard\li793\sb86\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\chars
calex100 PPS\tab \up0 \expndtw0\charscalex100 Probabilities proportional to size
\par\pard\li793\sb87\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex100 R&D\
tab \up0 \expndtw0\charscalex100 Research and development\par\pard\li793\sb85\sl
-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex100 RFID\tab \up0 \expndtw0\cha
rscalex100 Radio frequency identification\par\pard\li793\sb86\sl-195\slmult0\fi0
\tx1927 \up0 \expndtw0\charscalex100 RICYT\tab \up0 \expndtw0\charscalex100 \ul0
\nosupersub\cf24\f25\fs17 Red Iberoamericana de Indicadores de Cienca y Tecnologa
\par\pard\li793\sb57\sl-195\slmult0\fi1474 \up0 \expndtw0\charscalex117 \ul0\nos
upersub\cf23\f24\fs17 (Ibero-American Network on Science and Technology Indicato
rs)\par\pard\li793\sb85\sl-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex117 S
&T\tab \up0 \expndtw0\charscalex117 Science and technology\par\pard\li793\sb86\s
l-195\slmult0\fi0\tx1927 \up0 \expndtw0\charscalex117 SNA\tab \up0 \expndtw0\cha
rscalex117 System of National Accounts\par\pard\li793\sb87\sl-195\slmult0\fi0\tx
1927 \up0 \expndtw0\charscalex117 TPP\tab \up0 \expndtw0\charscalex117 Technolog
ical product and process\par\pard\li793\sb85\sl-195\slmult0\fi0\tx1927 \up0 \exp
ndtw0\charscalex117 UIS\tab \up0 \expndtw0\charscalex117 UNESCO Institute for St
atistics\par\pard\sect\sectd\sbknone\cols2\colno1\colw7762\colsr160\colno2\colw1
018\colsr160\ql \li824\sb0\sl-126\slmult0 \par\pard\ql \li824\sb0\sl-126\slmult0
\par\pard\ql \li824\sb0\sl-126\slmult0 \par\pard\ql \li824\sb0\sl-126\slmult0 \
par\pard\ql \li824\sb7\sl-126\slmult0 \up0 \expndtw0\charscalex105 \ul0\nosupers
ub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005\par\pard\co
lumn \ql \li7922\sb0\sl-180\slmult0 \par\pard\ql \li7922\sb0\sl-180\slmult0 \par
\pard\ql \li20\sb166\sl-180\slmult0 \up0 \expndtw0\charscalex116 \ul0\nosupersub
\cf19\f20\fs20 155
}

li4144\sb0\sl-368\slmult0 \par\pard\ql\li4144\sb0\sl-368\slmult0 \par\pard\ql\li
4144\sb0\sl-368\slmult0 \par\pard\ql\li4144\sb316\sl-368\slmult0 \up0 \expndtw0\
charscalex68 \ul0\nosupersub\cf20\f21\fs32 Index \par\pard\li1303\sb0\sl-195\slm
ult0\par\pard\li1303\sb87\sl-195\slmult0\fi0\tx6083 \up0 \expndtw0\charscalex123
\ul0\nosupersub\cf23\f24\fs17 Keyword\tab \up0 \expndtw0\charscalex123 Paragrap
h numbers\par\pard\ql \li1303\sb159\sl-195\slmult0 \up0 \expndtw0\charscalex122
acquisition \par\pard\li1644\sb74\sl-195\slmult0\fi0\tx4911 \up0 \expndtw0\chars
calex113 of external knowledge\tab \up0 \expndtw0\charscalex113 41, 238, 269, 31
3, 316, 323-325, 340,\par\pard\li1644\sb55\sl-195\slmult0\fi5083 \up0 \expndtw0\
charscalex113 342, 351, 367\par\pard\li1644\sb57\sl-195\slmult0\fi0\tx5264 \up0
\expndtw0\charscalex113 of knowledge and technology\tab \up0 \expndtw0\charscale
x113 51, 238, 264, 269, 278, 283, 313,\par\pard\li1303\sb56\sl-195\slmult0\fi582
7 \up0 \expndtw0\charscalex115 323-325\par\pard\li1303\sb55\sl-195\slmult0\fi340
\tx4840 \up0 \expndtw0\charscalex115 of machinery, equipment and other\tab \up0
\expndtw0\charscalex115 313, 316, 326-330, 340, 342, 351-352,\par\pard\li1303\sb
57\sl-195\slmult0\fi340\tx7105 \up0 \expndtw0\charscalex115 capital goods\tab \u
p0 \expndtw0\charscalex115 363, 368\par\pard\li1303\sb116\sl-195\slmult0\fi0\tx6
847 \up0 \expndtw0\charscalex115 appropriability\tab \up0 \expndtw0\charscalex11
5 81, 414-421\par\pard\li1303\sb115\sl-195\slmult0\fi0\tx7200 \up0 \expndtw0\cha
rscalex115 biotechnology\tab \up0 \expndtw0\charscalex115 67, 113\par\pard\ql \l
i1303\sb109\sl-195\slmult0 \up0 \expndtw0\charscalex121 borderlines \par\pard\li
1303\sb64\sl-195\slmult0\fi340\tx5671 \up0 \expndtw0\charscalex116 between types
of innovations\tab \up0 \expndtw0\charscalex116 185-186, 194-197, 347-349\par\p
ard\li1303\sb57\sl-195\slmult0\fi340 \up0 \expndtw0\charscalex116 between innova
tions and other\par\pard\li1303\sb55\sl-195\slmult0\fi340\tx7130 \up0 \expndtw0\
charscalex116 changes\tab \up0 \expndtw0\charscalex116 198-204\par\pard\li1303\s
b56\sl-195\slmult0\fi340 \up0 \expndtw0\charscalex116 between R&D and non-R&D\pa
r\pard\li1303\sb57\sl-195\slmult0\fi340\tx7131 \up0 \expndtw0\charscalex116 inno
vation activities\tab \up0 \expndtw0\charscalex116 347-349\par\pard\li1303\sb115
\sl-195\slmult0\fi0\tx6162 \up0 \expndtw0\charscalex116 business practices\tab \
up0 \expndtw0\charscalex116 33, 75, 146, 180, 551\par\pard\li1303\sb116\sl-195\s
lmult0\fi0\tx5005 \up0 \expndtw0\charscalex116 capital goods\tab \up0 \expndtw0\
charscalex116 41, 51, 278, 316, 321, 326-330, 342,\par\pard\li1303\sb57\sl-195\s
lmult0\fi4668 \up0 \expndtw0\charscalex112 351, 352, 363, 368, 525\par\pard\li13
03\sb115\sl-195\slmult0\fi0\tx4900 \up0 \expndtw0\charscalex112 classification\t
ab \up0 \expndtw0\charscalex112 63, 64, Box 1.2, 213, Chapter 4, 301,\par\pard\l
i1303\sb56\sl-195\slmult0\fi5449 \up0 \expndtw0\charscalex113 374, 440-441\par\p
ard\li1303\sb57\sl-195\slmult0\fi340\tx5274 \up0 \expndtw0\charscalex113 industr
ial\tab \up0 \expndtw0\charscalex113 64, 246-248, Table 4.1, 425, 440\par\pard\l
i1303\sb55\sl-195\slmult0\fi340\tx7105 \up0 \expndtw0\charscalex113 by size\tab
\up0 \expndtw0\charscalex113 153, 249\par\pard\li1303\sb56\sl-195\slmult0\fi340\
tx7482 \up0 \expndtw0\charscalex113 by type of institution\tab \up0 \expndtw0\ch
arscalex113 250\par\pard\li1303\sb117\sl-195\slmult0\fi0\tx6822 \up0 \expndtw0\c
harscalex113 codified knowledge\tab \up0 \expndtw0\charscalex113 93, 105, 266\pa
r\pard\li1303\sb115\sl-195\slmult0\fi0\tx7010 \up0 \expndtw0\charscalex113 Commu
nity Innovation Survey (CIS)\tab \up0 \expndtw0\charscalex113 3, 13, 534\par\par
d\li1303\sb116\sl-195\slmult0\fi0\tx7483 \up0 \expndtw0\charscalex113 controlled
affiliate (CA)\tab \up0 \expndtw0\charscalex113 250\par\pard\li1303\sb117\sl-19
5\slmult0\fi0\tx4706 \up0 \expndtw0\charscalex113 co-operation\tab \up0 \expndtw
0\charscalex113 47, 51, 206, 258, 263-264, 271-274, 278,\par\pard\li1303\sb55\sl
-195\slmult0\fi4340 \up0 \expndtw0\charscalex110 284, 287-289, 292, 298-299\par\
pard\li1303\sb56\sl-195\slmult0\fi0\tx4841 \up0 \expndtw0\charscalex110 costs\ta
b \up0 \expndtw0\charscalex110 20, 43, 45, 77-78, 80-81, 91, 101, 139,\par\pard\
li4815\sb57\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex109 164, 178, 187, 193-1
96, 352, 369, 384,\par\pard\li4815\sb55\sl-195\slmult0\fi362 \up0 \expndtw0\char
scalex109 Table 7.1, 405-408, 410, 485, 491\par\pard\li793\sb0\sl-230\slmult0\pa
r\pard\li793\sb169\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex106 \ul0\n
osupersub\cf19\f20\fs20 156\tab \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf1
}
INTERPRETING INNOVATION DATA \par\pard\li1303\sb0\sl-195\slmult0\par\pard\li130
w0\charscalex116 \ul0\nosupersub\cf23\f24\fs17 Keyword\tab \up0 \expndtw0\charsc
alex116 Paragraph numbers\par\pard\li1303\sb176\sl-195\slmult0\fi0\tx6754 \up0 \
expndtw0\charscalex116 customisation\tab \up0 \expndtw0\charscalex116 201-202, 5
41\par\pard\li1303\sb117\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex116 definit
ion\par\pard\li1303\sb55\sl-195\slmult0\fi340\tx5387 \up0 \expndtw0\charscalex11
6 of innovation\tab \up0 \expndtw0\charscalex116 7, 18, 31-35, 144-148, 205-211\
par\pard\li1303\sb56\sl-195\slmult0\fi340\tx7132 \up0 \expndtw0\charscalex116 of
innovation activities\tab \up0 \expndtw0\charscalex116 149-151\par\pard\li1303\
sb57\sl-195\slmult0\fi340\tx6400 \up0 \expndtw0\charscalex116 of innovative firm
\tab \up0 \expndtw0\charscalex116 152-154, 212-216\par\pard\li1303\sb55\sl-195\s
lmult0\fi340\tx6754 \up0 \expndtw0\charscalex116 of marketing innovation\tab \up
0 \expndtw0\charscalex116 169-176, 346\par\pard\li1303\sb56\sl-195\slmult0\fi340
\tx7132 \up0 \expndtw0\charscalex116 of organisational innovation\tab \up0 \expn
dtw0\charscalex116 177-184\par\pard\li1303\sb57\sl-195\slmult0\fi340\tx7131 \up0
\expndtw0\charscalex116 of process innovation\tab \up0 \expndtw0\charscalex116
163-168\par\pard\li1303\sb55\sl-195\slmult0\fi340\tx7131 \up0 \expndtw0\charscal
ex116 of product innovation\tab \up0 \expndtw0\charscalex116 156-162\par\pard\li
1303\sb56\sl-195\slmult0\fi340\tx7010 \up0 \expndtw0\charscalex116 of TPP\tab \u
p0 \expndtw0\charscalex116 5, 34, 154\par\pard\li1303\sb117\sl-195\slmult0\fi0\t
x4908 \up0 \expndtw0\charscalex116 delivery\tab \up0 \expndtw0\charscalex116 32,
163-164, 166, 187, 193, 195, 202,\par\pard\ql \li5152\sb38\sl-195\slmult0 \up0
\expndtw0\charscalex109 336, 351, Table 7.1, 389, 543, 545 \par\pard\li1303\sb13
3\sl-195\slmult0\fi0\tx4720 \up0 \expndtw0\charscalex112 demand\tab \up0 \expndt
w0\charscalex112 12, 45, 77-78, 83, 88, 95, 100, 101, 133,\par\pard\ql \li4753\s
b39\sl-195\slmult0 \up0 \expndtw0\charscalex109 139-140, 175, 301, 384, Table 7.
1, 388, \par\pard\li1303\sb73\sl-195\slmult0\fi5402 \up0 \expndtw0\charscalex110
410-411, 548,\par\pard\li1303\sb116\sl-195\slmult0\fi0\tx5167 \up0 \expndtw0\ch
arscalex110 design\tab \up0 \expndtw0\charscalex110 162, 169, 172, 176, 188, 203
, 334,\par\pard\li1303\sb57\sl-195\slmult0\fi5071 \up0 \expndtw0\charscalex116 3
44-346, 418, 548\par\pard\li1303\sb115\sl-195\slmult0\fi0\tx5242 \up0 \expndtw0\
charscalex116 developer of an innovation\tab \up0 \expndtw0\charscalex116 206, 2
08, 213, 238, 258, 290-292\par\pard\li1303\sb116\sl-195\slmult0\fi0\tx7046 \up0
\expndtw0\charscalex116 developing countries\tab \up0 \expndtw0\charscalex116 An
nex A\par\pard\li1303\sb57\sl-195\slmult0\fi340\tx6402 \up0 \expndtw0\charscalex
116 adaptation of innovation surveys\tab \up0 \expndtw0\charscalex116 481-483, 5
19-526\par\pard\li1303\sb55\sl-195\slmult0\fi340\tx7132 \up0 \expndtw0\charscale
x116 characteristics of innovation\tab \up0 \expndtw0\charscalex116 484-500\par\

pard\li1303\sb56\sl-195\slmult0\fi340\tx7130 \up0 \expndtw0\charscalex116 measur
ement priorities\tab \up0 \expndtw0\charscalex116 507-518\par\pard\li1303\sb57\s
l-195\slmult0\fi340\tx7131 \up0 \expndtw0\charscalex116 methodological issues\ta
b \up0 \expndtw0\charscalex116 527-536\par\pard\li1303\sb115\sl-195\slmult0\fi0\
tx5268 \up0 \expndtw0\charscalex116 diffusion\tab \up0 \expndtw0\charscalex116 3
6-39, 90-97, 131-134, 205-208,\par\pard\li1303\sb56\sl-195\slmult0\fi340\tx7131
\up0 \expndtw0\charscalex116 inbound\tab \up0 \expndtw0\charscalex116 262-299\pa
r\pard\li1303\sb57\sl-195\slmult0\fi340\tx6753 \up0 \expndtw0\charscalex116 outb
und\tab \up0 \expndtw0\charscalex116 257, 300-301\par\pard\li1303\sb115\sl-195\s
lmult0\fi0\tx5081 \up0 \expndtw0\charscalex116 enterprise\tab \up0 \expndtw0\cha
rscalex116 44-49, 114-115, 118-119, 230-240,\par\pard\li1303\sb56\sl-195\slmult0
\fi5096 \up0 \expndtw0\charscalex113 244-245, 386-390\par\pard\li1303\sb117\sl-1
95\slmult0\fi0\tx7130 \up0 \expndtw0\charscalex113 establishment\tab \up0 \expnd
tw0\charscalex113 241-245\par\pard\li1303\sb115\sl-195\slmult0\fi0\tx4705 \up0 \
expndtw0\charscalex113 expenditure\tab \up0 \expndtw0\charscalex113 43, 69, 125,
308-309, 352-356, 360-373,\par\pard\li1303\sb56\sl-195\slmult0\fi5449 \up0 \exp
ndtw0\charscalex113 377-381, 516\par\pard\li1303\sb57\sl-195\slmult0\fi340\tx713
1 \up0 \expndtw0\charscalex113 by source of funds\tab \up0 \expndtw0\charscalex1
13 374-376\par\pard\li1303\sb55\sl-195\slmult0\fi340\tx6066 \up0 \expndtw0\chars
calex113 capital\tab \up0 \expndtw0\charscalex113 69, 352, 364, 368, 373\par\par
d\li1303\sb56\sl-195\slmult0\fi340\tx5713 \up0 \expndtw0\charscalex113 current\t
ab \up0 \expndtw0\charscalex113 69, 308, 352, 368, 371-372\par\pard\li1303\sb117
\sl-195\slmult0\fi0\tx4910 \up0 \expndtw0\charscalex113 external relations\tab \
up0 \expndtw0\charscalex113 33, 146, 177, 179, 182-183, 196, 260,\par\pard\li130
3\sb55\sl-195\slmult0\fi5402 \up0 \expndtw0\charscalex111 343, 549-551,\par\pard
\li1303\sb56\sl-195\slmult0\fi0\tx5336 \up0 \expndtw0\charscalex111 firm size\ta
b \up0 \expndtw0\charscalex111 55, 249, 426, 438-439, 442, 485\par\pard\li824\sb
ult0\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb4\sl-218\slmult0\fi0\tx7
922 \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-013083 - OECD/EUROPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\nosuper
sub\cf19\f20\fs20 157
}
TERPRETING INNOVATION DATA \par\pard\li1303\sb0\sl-195\slmult0\par\pard\li1303\s
b0\sl-195\slmult0\par\pard\li1303\sb98\sl-195\slmult0\fi0\tx6082 \up0 \expndtw0\
charscalex116 \ul0\nosupersub\cf23\f24\fs17 Keyword\tab \up0 \expndtw0\charscale
x116 Paragraph numbers\par\pard\li1303\sb176\sl-195\slmult0\fi0\tx5294 \up0 \exp
ndtw0\charscalex116 Frascati Manual\tab \up0 \expndtw0\charscalex116 59, 63, 103
, Table 4.1, 250, 310,\par\pard\li1303\sb57\sl-195\slmult0\fi3987 \up0 \expndtw0
\charscalex114 317-322, 331, 333-335, 348-349\par\pard\li1303\sb115\sl-195\slmul
t0\fi0\tx6753 \up0 \expndtw0\charscalex114 frequency of data collection\tab \up0
\expndtw0\charscalex114 477-479, 534\par\pard\li1303\sb116\sl-195\slmult0\fi0\t
x6376 \up0 \expndtw0\charscalex114 frame population\tab \up0 \expndtw0\charscale
x114 427-430, 457, 461\par\pard\li1303\sb117\sl-195\slmult0\fi0\tx6848 \up0 \exp
ndtw0\charscalex114 globalisation\tab \up0 \expndtw0\charscalex114 62, 118-120\p
ar\pard\li1303\sb115\sl-195\slmult0\fi0\tx5407 \up0 \expndtw0\charscalex114 hamp

ering factors\tab \up0 \expndtw0\charscalex114 45-46, 138, 141, 261, 410-413,\pa
r\pard\li1303\sb56\sl-195\slmult0\fi5739 \up0 \expndtw0\charscalex113 Table 7.2\
par\pard\li1303\sb117\sl-195\slmult0\fi0\tx5972 \up0 \expndtw0\charscalex113 hum
an resources\tab \up0 \expndtw0\charscalex113 141, 511, 514, 518, 526\par\pard\l
i1303\sb115\sl-195\slmult0\fi0\tx4891 \up0 \expndtw0\charscalex113 impact\tab \u
p0 \expndtw0\charscalex113 48-49, 52-53, 101, 135-136, 300-301,\par\pard\li1303\
sb56\sl-195\slmult0\fi4279 \up0 \expndtw0\charscalex115 382-383, 387-409, Table
7.1\par\pard\li1303\sb57\sl-195\slmult0\fi340\tx7130 \up0 \expndtw0\charscalex11
5 on turnover\tab \up0 \expndtw0\charscalex115 397-404\par\pard\li1303\sb55\sl-1
95\slmult0\fi340\tx7130 \up0 \expndtw0\charscalex115 on costs and employment\tab
\up0 \expndtw0\charscalex115 405-408\par\pard\li1303\sb56\sl-195\slmult0\fi340\
tx7483 \up0 \expndtw0\charscalex115 on productivity\tab \up0 \expndtw0\charscale
ex115 imputation methods\tab \up0 \expndtw0\charscalex115 467-469\par\pard\li130
3\sb115\sl-195\slmult0\fi0\tx5003 \up0 \expndtw0\charscalex115 information and c
ommunication\tab \up0 \expndtw0\charscalex115 65-66, 113, 131, 168, 195, 311, 39
3,\par\pard\li1303\sb56\sl-195\slmult0\fi0\tx6752 \up0 \expndtw0\charscalex115 t
echnology (ICT)\tab \up0 \expndtw0\charscalex115 409, 519-522\par\pard\li1303\sb
117\sl-195\slmult0\fi0\tx5228 \up0 \expndtw0\charscalex115 information sources\t
ab \up0 \expndtw0\charscalex115 51, 264-268, Table 5.1, 278, 284,\par\pard\li130
3\sb55\sl-195\slmult0\fi5827 \up0 \expndtw0\charscalex115 287-289\par\pard\li130
3\sb116\sl-195\slmult0\fi0\tx5361 \up0 \expndtw0\charscalex115 industrial classi
fication\tab \up0 \expndtw0\charscalex115 See classification / industrial\par\pa
rd\li1303\sb117\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex115 innovation\par\p
ard\li1303\sb55\sl-195\slmult0\fi340\tx5928 \up0 \expndtw0\charscalex115 definit
ion of\tab \up0 \expndtw0\charscalex115 5, 7, 18, 31-35, 144-148\par\pard\li1303
\sb56\sl-195\slmult0\fi340\tx7130 \up0 \expndtw0\charscalex115 capabilities\tab
\up0 \expndtw0\charscalex115 511-515\par\pard\li1303\sb57\sl-195\slmult0\fi340\t
x4706 \up0 \expndtw0\charscalex115 activities\tab \up0 \expndtw0\charscalex115 4
0-43, 103-104, 126, 149, 151, 214-215,\par\pard\li1643\sb55\sl-195\slmult0\fi458
2 \up0 \expndtw0\charscalex116 Chapter 6, 410-413\par\pard\li1643\sb56\sl-195\sl
mult0\fi0\tx5892 \up0 \expndtw0\charscalex116 barriers to\tab \up0 \expndtw0\cha
rscalex116 See hampering factors\par\pard\li1643\sb57\sl-195\slmult0\fi0\tx6368
\up0 \expndtw0\charscalex116 co-operation\tab \up0 \expndtw0\charscalex116 See c
o-operation\par\pard\li1643\sb55\sl-195\slmult0\fi0\tx7320 \up0 \expndtw0\charsc
alex116 economics of\tab \up0 \expndtw0\charscalex116 74-97\par\pard\li1643\sb56
\sl-195\slmult0\fi0\tx4771 \up0 \expndtw0\charscalex116 effects\tab \up0 \expndt
w0\charscalex116 47-49, 52, 135-136, 140, 257, 300-301,\par\pard\li1643\sb57\sl195\slmult0\fi4289 \up0 \expndtw0\charscalex115 383, 386-409, Table 7.1\par\pard
\li1643\sb55\sl-195\slmult0\fi0\tx7065 \up0 \expndtw0\charscalex115 examples of\
tab \up0 \expndtw0\charscalex115 Annex B\par\pard\li1643\sb56\sl-195\slmult0\fi0
\tx6333 \up0 \expndtw0\charscalex115 expenditures\tab \up0 \expndtw0\charscalex1
15 See expenditures\par\pard\li1643\sb57\sl-195\slmult0\fi0\tx4817 \up0 \expndtw
0\charscalex115 incremental\tab \up0 \expndtw0\charscalex115 9, 76, 86, 106-107,
111, 113, 124, 151,\par\pard\li1643\sb55\sl-195\slmult0\fi4705 \up0 \expndtw0\c
harscalex116 254, 484, 499, 502\par\pard\li1643\sb56\sl-195\slmult0\fi0\tx5815 \
up0 \expndtw0\charscalex116 impact of\tab \up0 \expndtw0\charscalex116 See innov
ation / effects\par\pard\li1643\sb57\sl-195\slmult0\fi0 \up0 \expndtw0\charscale
x116 in low- and medium-technology\par\pard\li1643\sb55\sl-195\slmult0\fi0\tx713
1 \up0 \expndtw0\charscalex116 industries\tab \up0 \expndtw0\charscalex116 112-1
13\par\pard\li1643\sb56\sl-195\slmult0\fi0\tx5194 \up0 \expndtw0\charscalex116 i
n services\tab \up0 \expndtw0\charscalex116 9, 27, 34, 108-111, 161, 167, 187,\p
ar\pard\ql \li5996\sb39\sl-195\slmult0 \up0 \expndtw0\charscalex109 190-192, 333
, 348, 542 \par\pard\li793\sb0\sl-230\slmult0\par\pard\li793\sb0\sl-230\slmult0\
par\pard\li793\sb97\sl-230\slmult0\fi0\tx4899 \dn4 \expndtw0\charscalex106 \ul0\
nosupersub\cf19\f20\fs20 158\tab \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf
}
alex118 Paragraph numbers\par\pard\li1303\sb176\sl-195\slmult0\fi340\tx5460 \up0
\expndtw0\charscalex118 in small and medium-size\tab \up0 \expndtw0\charscalex1
18 See small and medium-size\par\pard\li1303\sb57\sl-195\slmult0\fi340\tx6234 \u
p0 \expndtw0\charscalex118 enterprises (SMEs)\tab \up0 \expndtw0\charscalex118 e
nterprises (SMEs)\par\pard\li1303\sb55\sl-195\slmult0\fi340\tx6737 \up0 \expndtw
0\charscalex118 linkages\tab \up0 \expndtw0\charscalex118 See linkages\par\pard\
li1303\sb56\sl-195\slmult0\fi340\tx4773 \up0 \expndtw0\charscalex118 marketing\t
ab \up0 \expndtw0\charscalex118 14-18, 33, 145, 155, 169-176, 188-194,\par\pard\
ql \li4753\sb49\sl-195\slmult0 \up0 \expndtw0\charscalex109 197, 340-341, 346, 3
51, Table 7.1, 404, \par\pard\li1643\sb63\sl-195\slmult0\fi4668 \up0 \expndtw0\c
harscalex115 Table 7.2, 546-548\par\pard\li1643\sb56\sl-195\slmult0\fi0\tx6658 \
up0 \expndtw0\charscalex115 measurement framework\tab \up0 \expndtw0\charscalex1
15 7, 98-105, 107\par\pard\li1643\sb57\sl-195\slmult0\fi0\tx6187 \up0 \expndtw0\
charscalex115 objectives of\tab \up0 \expndtw0\charscalex115 44, 77, 137, 386-39
1\par\pard\li1643\sb55\sl-195\slmult0\fi0\tx5892 \up0 \expndtw0\charscalex115 ob
stacles to\tab \up0 \expndtw0\charscalex115 See hampering factors\par\pard\li164
3\sb56\sl-195\slmult0\fi0\tx5101 \up0 \expndtw0\charscalex115 organisational\tab
\up0 \expndtw0\charscalex115 7, 11, 13, 17, 33, 85, 145, 177-184,\par\pard\li48
40\sb57\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex109 195-197, 225, 306, 316,
342-343, 351,\par\pard\li4840\sb55\sl-195\slmult0\fi227 \up0 \expndtw0\charscale
x109 Table 7.1, 408, Table 7.2, 517-518,\par\pard\li1643\sb56\sl-195\slmult0\fi5
486 \up0 \expndtw0\charscalex115 549-551\par\pard\li1643\sb57\sl-195\slmult0\fi0
\tx5813 \up0 \expndtw0\charscalex115 outcomes of\tab \up0 \expndtw0\charscalex11
5 See innovation / effects\par\pard\li1643\sb55\sl-195\slmult0\fi0\tx4961 \up0 \
expndtw0\charscalex115 process\tab \up0 \expndtw0\charscalex115 15, 17, 31-32, 7
7, 145-147, 154-155,\par\pard\ql \li4866\ri1177\sb0\sl-250\slmult0\tx5068 \up0 \
expndtw0\charscalex109 163-168, 187, 193-196, 212-213, 217, \line \up0 \expndtw0
\charscalex109 225, 315-316, 331-332, 338-339, 351, \line\tab \up0 \expndtw0\cha
rscalex110 Table 7.1, 403, 405-408, Table 7.2, \par\pard\ql \li7083\sb49\sl-195\
slmult0 \up0 \expndtw0\charscalex110 543-545, \par\pard\li1644\sb64\sl-195\slmul
t0\fi0\tx4867 \up0 \expndtw0\charscalex112 product\tab \up0 \expndtw0\charscalex
112 31-32, 49, 77, 155-162, 187-192, 204,\par\pard\li4753\sb55\sl-195\slmult0\fi
490 \up0 \expndtw0\charscalex109 225-226, 337-339, 345-346, 351,\par\pard\li4753
\sb56\sl-195\slmult0\fi0 \up0 \expndtw0\charscalex109 Table 7.1, 388, 393, 397-3
98, 404, 412,\par\pard\li1644\sb57\sl-195\slmult0\fi4668 \up0 \expndtw0\charscal
ex113 Table 7.2, 540-542\par\pard\li1644\sb55\sl-195\slmult0\fi0\tx5808 \up0 \ex
pndtw0\charscalex113 radical\tab \up0 \expndtw0\charscalex113 76, 86, 106-107, 2
11, 312\par\pard\li1644\sb56\sl-195\slmult0\fi0\tx7131 \up0 \expndtw0\charscalex
113 regional\tab \up0 \expndtw0\charscalex113 106-107\par\pard\li1644\sb57\sl-19
5\slmult0\fi0\tx4913 \up0 \expndtw0\charscalex113 types\tab \up0 \expndtw0\chars
calex113 31-35, 76, 99, 144-145, 147, 155-197\par\pard\li1644\sb55\sl-195\slmult
0\fi0\tx5250 \up0 \expndtw0\charscalex113 TPP\tab \up0 \expndtw0\charscalex113 S
ee technological product and\par\pard\li1303\sb56\sl-195\slmult0\fi4418 \up0 \ex
pndtw0\charscalex115 process (TPP) innovation\par\pard\li1303\sb117\sl-195\slmul
t0\fi0 \up0 \expndtw0\charscalex115 innovation activities\par\pard\li1303\sb55\s

l-195\slmult0\fi340\tx4936 \up0 \expndtw0\charscalex115 definition of\tab \up0 \
expndtw0\charscalex115 40, 103, 149, 214-215, 310, 314-318,\par\pard\li1303\sb56
\sl-195\slmult0\fi5827 \up0 \expndtw0\charscalex117 347-349\par\pard\li1303\sb57
\sl-195\slmult0\fi340\tx7131 \up0 \expndtw0\charscalex117 for product and proces
s innovations\tab \up0 \expndtw0\charscalex117 323-339\par\pard\li1303\sb55\sl-1
95\slmult0\fi340 \up0 \expndtw0\charscalex117 for marketing and organisational\p
ar\pard\li1303\sb56\sl-195\slmult0\fi340\tx7131 \up0 \expndtw0\charscalex117 inn
ovations\tab \up0 \expndtw0\charscalex117 340-343\par\pard\li1303\sb57\sl-195\sl
mult0\fi340\tx7132 \up0 \expndtw0\charscalex117 qualitative data on\tab \up0 \ex
pndtw0\charscalex117 357-359\par\pard\li1303\sb55\sl-195\slmult0\fi340\tx7131 \u
p0 \expndtw0\charscalex117 quantitative data on\tab \up0 \expndtw0\charscalex117
360-365\par\pard\li1303\sb116\sl-195\slmult0\fi0\tx4867 \up0 \expndtw0\charscal
ex117 innovative firm\tab \up0 \expndtw0\charscalex117 18, 25, 47-49, 141, 152-1
54, 212-216,\par\pard\li1643\sb57\sl-195\slmult0\fi4683 \up0 \expndtw0\charscale
x115 227, 503-506, 510,\par\pard\li1643\sb55\sl-195\slmult0\fi0\tx6754 \up0 \exp
ndtw0\charscalex115 innovation-active firm\tab \up0 \expndtw0\charscalex115 215216, 505\par\pard\li1643\sb56\sl-195\slmult0\fi0\tx6376 \up0 \expndtw0\charscale
x115 potentially innovative firm\tab \up0 \expndtw0\charscalex115 490, 495, 503506\par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pard
\li824\sb0\sl-218\slmult0\par\pard\li824\sb12\sl-218\slmult0\fi0\tx7922 \up0 \ex
pndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUR
OPEAN COMMUNITIES 2005\tab \dn4 \expndtw0\charscalex106 \ul0\nosupersub\cf19\f20
\fs20 159
}
x114 Paragraph numbers\par\pard\li1303\sb176\sl-195\slmult0\fi340\tx6470 \up0 \e
xpndtw0\charscalex114 product-process innovative firm\tab \up0 \expndtw0\charsca
lex114 47, 154, 212-213\par\pard\li1303\sb57\sl-195\slmult0\fi0\tx5431 \up0 \exp
ndtw0\charscalex114 intangibles\tab \up0 \expndtw0\charscalex114 65, 69, 101, 32
7, 368, 371-372\par\pard\li1303\sb55\sl-195\slmult0\fi0\tx7483 \up0 \expndtw0\ch
arscalex114 ISCED\tab \up0 \expndtw0\charscalex114 359\par\pard\li1303\sb56\sl-1
95\slmult0\fi0\tx4873 \up0 \expndtw0\charscalex114 ISIC\tab \up0 \expndtw0\chars
calex114 64, 231-233, 242, 246-248, Table 4.1,\par\pard\li1303\sb57\sl-195\slmul
t0\fi6179 \up0 \expndtw0\charscalex114 440\par\pard\li1303\sb115\sl-195\slmult0\
fi0\tx7130 \up0 \expndtw0\charscalex114 kind of activity unit (KAU)\tab \up0 \ex
pndtw0\charscalex114 237-239\par\pard\li1303\sb116\sl-195\slmult0\fi0\tx6093 \up
0 \expndtw0\charscalex114 knowledge management (KM)\tab \up0 \expndtw0\charscale
x114 68, 259, 302-306, 458\par\pard\li1303\sb117\sl-195\slmult0\fi0\tx7578 \up0
\expndtw0\charscalex114 knowledge-based economy (KBE)\tab \up0 \expndtw0\charsca
lex114 71\par\pard\li1303\sb115\sl-195\slmult0\fi0\tx7105 \up0 \expndtw0\charsca
lex114 labour costs\tab \up0 \expndtw0\charscalex114 352, 369\par\pard\li1303\sb
116\sl-195\slmult0\fi0\tx5996 \up0 \expndtw0\charscalex114 legal unit\tab \up0 \
expndtw0\charscalex114 231-234, 237, 239, 429\par\pard\li1303\sb117\sl-195\slmul
t0\fi0\tx4954 \up0 \expndtw0\charscalex114 linkages\tab \up0 \expndtw0\charscale

x114 50-51, 131-134, Chapter 5, 523-524\par\pard\li1303\sb55\sl-195\slmult0\fi34
0\tx7130 \up0 \expndtw0\charscalex114 indicators of\tab \up0 \expndtw0\charscale
x114 278-299\par\pard\li1303\sb56\sl-195\slmult0\fi340\tx7131 \up0 \expndtw0\cha
rscalex114 types of\tab \up0 \expndtw0\charscalex114 265-277\par\pard\li1303\sb1
17\sl-195\slmult0\fi0\tx5290 \up0 \expndtw0\charscalex114 multinational enterpri
ses (MNEs)\tab \up0 \expndtw0\charscalex114 62, 119, 235, 238-239, 256, 277,\par
\pard\li1303\sb55\sl-195\slmult0\fi5449 \up0 \expndtw0\charscalex112 322-323, 32
6\par\pard\li1303\sb116\sl-195\slmult0\fi0\tx5604 \up0 \expndtw0\charscalex112 N
ACE\tab \up0 \expndtw0\charscalex112 64, 246-248, Table 4.1, 440,\par\pard\li130
3\sb117\sl-195\slmult0\fi0\tx7200 \up0 \expndtw0\charscalex112 national innovati
on system (NIS)\tab \up0 \expndtw0\charscalex112 24, 117\par\pard\li1303\sb115\s
l-195\slmult0\fi0\tx5004 \up0 \expndtw0\charscalex112 networks\tab \up0 \expndtw
0\charscalex112 48, 98, 133, 257, 260, 263, 266-268,\par\pard\li1303\sb56\sl-195
\slmult0\fi4630 \up0 \expndtw0\charscalex112 Table 5.1, 284, 296-299\par\pard\li
1303\sb117\sl-195\slmult0\fi0\tx5997 \up0 \expndtw0\charscalex112 non-response\t
ab \up0 \expndtw0\charscalex112 431, 447, 456, 463-474\par\pard\li1303\sb115\sl195\slmult0\fi0\tx5406 \up0 \expndtw0\charscalex112 novelty\tab \up0 \expndtw0\c
harscalex112 36-39, 205-211, 225, 291, 349,\par\pard\li1303\sb56\sl-195\slmult0\
fi340\tx5079 \up0 \expndtw0\charscalex112 new to the firm\tab \up0 \expndtw0\cha
rscalex112 37-38, 207, 238, 331-332, 398, 539\par\pard\li1303\sb57\sl-195\slmult
0\fi340\tx4707 \up0 \expndtw0\charscalex112 new to the market\tab \up0 \expndtw0
\charscalex112 37-38, 205, 208-210, 226, 398, 417, 492,\par\pard\li1303\sb55\sl195\slmult0\fi6179 \up0 \expndtw0\charscalex113 502\par\pard\li1303\sb56\sl-195\
slmult0\fi340\tx5432 \up0 \expndtw0\charscalex113 new to the world\tab \up0 \exp
ndtw0\charscalex113 37-38, 205, 208, 210, 226, 417\par\pard\li1303\sb117\sl-195\
slmult0\fi0\tx7130 \up0 \expndtw0\charscalex113 object approach\tab \up0 \expndt
w0\charscalex113 377-381\par\pard\li1303\sb115\sl-195\slmult0\fi0\tx4863 \up0 \e
xpndtw0\charscalex113 observation period\tab \up0 \expndtw0\charscalex113 224, 3
57, 362, 395-396, 398, 428, 479\par\pard\li1303\sb116\sl-195\slmult0\fi0\tx6374
\up0 \expndtw0\charscalex113 observation unit\tab \up0 \expndtw0\charscalex113 2
28-230, 238, 240\par\pard\li1303\sb117\sl-195\slmult0\fi0\tx4894 \up0 \expndtw0\
charscalex113 open information sources\tab \up0 \expndtw0\charscalex113 51, 264267, 271, Table 5.1, 278, 284\par\pard\li1303\sb115\sl-195\slmult0\fi0\tx6375 \u
p0 \expndtw0\charscalex113 panel\tab \up0 \expndtw0\charscalex113 395, 409, 443445\par\pard\li1303\sb116\sl-195\slmult0\fi0\tx4706 \up0 \expndtw0\charscalex113
patent\tab \up0 \expndtw0\charscalex113 58, 60, Box 1.2, 103, 255, 265, 269, 32
4,\par\pard\li1303\sb57\sl-195\slmult0\fi4315 \up0 \expndtw0\charscalex111 332,
347, 351, 416-419, 421\par\pard\li1303\sb115\sl-195\slmult0\fi0\tx4746 \up0 \exp
ndtw0\charscalex111 placement\tab \up0 \expndtw0\charscalex111 33, 88-89, 169, 1
73-174, 191, 225, 341,\par\pard\li1303\sb56\sl-195\slmult0\fi5449 \up0 \expndtw0
\charscalex112 404, 546-548\par\pard\li1303\sb117\sl-195\slmult0\fi0\tx5361 \up0
\expndtw0\charscalex112 population\tab \up0 \expndtw0\charscalex112 55, 424-438
, 443, 460-462, 464\par\pard\li1303\sb55\sl-195\slmult0\fi340\tx5996 \up0 \expnd
tw0\charscalex112 frame\tab \up0 \expndtw0\charscalex112 427-430, 457, 459, 461\
f19\f20\fs20 160\tab \up0 \expndtw0\charscalex106 \ul0\nosupersub\cf18\f19\fs11
ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2005
}
INTERPRETING INNOVATION DATA\par\pard\sect\sectd\sbknone\cols2\colno1\colw4718\
colsr60\colno2\colw4162\colsr160\ql \li1303\sb0\sl-195\slmult0 \par\pard\ql \li1
303\sb0\sl-195\slmult0 \par\pard\ql \li1303\sb98\sl-195\slmult0 \up0 \expndtw0\c
harscalex117 \ul0\nosupersub\cf23\f24\fs17 Keyword\par\pard\ql \li1643\sb176\sl195\slmult0 \up0 \expndtw0\charscalex124 target\par\pard\ql \li1303\sb57\sl-195\
slmult0 \up0 \expndtw0\charscalex124 preparations\par\pard\ql \li1643\sb55\sl-19
5\slmult0 \up0 \expndtw0\charscalex121 for marketing innovations\par\pard\ql \li
1643\sb56\sl-195\slmult0 \up0 \expndtw0\charscalex121 for organisational innovat
ions\par\pard\ql \li1643\sb57\sl-195\slmult0 \up0 \expndtw0\charscalex121 for pr
oduct and process innovations\par\pard\ql \li1643\sb55\sl-195\slmult0 \up0 \expn
dtw0\charscalex122 market preparations for product\par\pard\ql \li1643\sb56\sl-1
95\slmult0 \up0 \expndtw0\charscalex122 innovations\par\pard\ql \li1303\sb117\sl
-195\slmult0 \up0 \expndtw0\charscalex119 pricing\par\pard\ql \li1303\sb0\sl-195
\slmult0 \par\pard\ql \li1303\sb170\sl-195\slmult0 \up0 \expndtw0\charscalex121
product design\par\pard\ql \li1303\sb0\sl-195\slmult0 \par\pard\ql \li1303\sb0\s
l-195\slmult0 \par\pard\ql \li1303\sb0\sl-195\slmult0 \par\pard\ql \li1303\sb31\
sl-195\slmult0 \up0 \expndtw0\charscalex117 product life cycle\par\pard\ql \li13
03\sb117\sl-195\slmult0 \up0 \expndtw0\charscalex120 productivity\par\pard\ql \l
i1303\sb0\sl-195\slmult0 \par\pard\ql \li1303\sb170\sl-195\slmult0 \up0 \expndtw
0\charscalex122 promotion\par\pard\ql \li1303\sb117\sl-195\slmult0 \up0 \expndtw
0\charscalex123 protection methods\par\pard\ql \li1303\sb115\sl-195\slmult0 \up0
\expndtw0\charscalex124 questionnaire\par\pard\ql \li1303\sb0\sl-195\slmult0 \p
ar\pard\ql \li1303\sb172\sl-195\slmult0 \up0 \expndtw-1\charscalex100 R&D\par\pa
rd\ql \li1303\sb0\sl-195\slmult0 \par\pard\ql \li1303\sb0\sl-195\slmult0 \par\pa
rd\ql \li1303\sb0\sl-195\slmult0 \par\pard\ql \li1303\sb31\sl-195\slmult0 \up0 \
expndtw0\charscalex121 reference year\par\pard\ql \li1303\sb115\sl-195\slmult0 \
up0 \expndtw0\charscalex123 reporting unit\par\pard\ql \li1303\sb116\sl-195\slmu
lt0 \up0 \expndtw0\charscalex124 sales channels\par\pard\ql \li1303\sb117\sl-195
\slmult0 \up0 \expndtw0\charscalex124 sample\par\pard\ql \li1303\sb0\sl-195\slmu
lt0 \par\pard\ql \li1303\sb170\sl-195\slmult0 \up0 \expndtw0\charscalex119 Schum
peter, Joseph\par\pard\ql \li1303\sb117\sl-195\slmult0 \up0 \expndtw0\charscalex
119 sectoral coverage\par\pard\ql \li1303\sb0\sl-195\slmult0 \par\pard\ql \li130
3\sb170\sl-195\slmult0 \up0 \expndtw0\charscalex120 services\par\pard\ql \li1303
\sb0\sl-195\slmult0 \par\pard\ql \li1303\sb0\sl-195\slmult0 \par\pard\ql \li1303
\sb0\sl-195\slmult0 \par\pard\ql \li1303\sb31\sl-195\slmult0 \up0 \expndtw0\char
scalex123 small and medium-sized enterprises\par\pard\ql \li1303\sb57\sl-195\slm
ult0 \up0 \expndtw0\charscalex101 (SMEs)\par\pard\ql \li1303\sb115\sl-195\slmult
0 \up0 \expndtw0\charscalex120 social capital\par\pard\ql \li824\sb0\sl-126\slmu
lt0 \par\pard\ql \li824\sb0\sl-126\slmult0 \par\pard\ql \li824\sb0\sl-126\slmult
0 \par\pard\ql \li824\sb0\sl-126\slmult0 \par\pard\ql \li824\sb0\sl-126\slmult0
\par\pard\ql \li824\sb0\sl-126\slmult0 \par\pard\ql \li824\sb6\sl-126\slmult0 \u
CD/EUROPEAN COMMUNITIES 2005\par\pard\column \ql \li5008\sb0\sl-195\slmult0 \par
\pard\ql \li5008\sb0\sl-195\slmult0 \par\pard\ql \li1325\sb98\sl-195\slmult0 \up
0 \expndtw0\charscalex125 \ul0\nosupersub\cf23\f24\fs17 Paragraph numbers\par\pa
rd\ql \li250\sb176\sl-195\slmult0 \up0 \expndtw0\charscalex109 55, 424-427, 431435, 460, 473-474\par\pard\ql \li5099\sb0\sl-195\slmult0 \par\pard\ql \li888\sb1
11\sl-195\slmult0 \up0 \expndtw0\charscalex109 340-341, 346, 351-352, 368\par\pa
rd\ql \li1265\sb56\sl-195\slmult0 \up0 \expndtw0\charscalex109 342-343, 351-352,
368\par\pard\ql \li1618\sb57\sl-195\slmult0 \up0 \expndtw0\charscalex109 331-33
6, 345, 351\par\pard\ql \li5099\sb0\sl-195\slmult0 \par\pard\ql \li1687\sb110\sl
-195\slmult0 \up0 \expndtw0\charscalex109 41, 310, 337, 351\par\pard\ql \li341\s
b117\sl-195\slmult0 \up0 \expndtw0\charscalex109 33, 88-89, 169, 175, 200, 341,
404,\par\pard\ql \li2372\sb55\sl-195\slmult0 \up0 \expndtw0\charscalex110 546-54
8\par\pard\qj \li57\ri1114\sb70\sl-250\slmult0\fi162\tx114 \up0 \expndtw0\charsc
alex109 33, 89, 103, 162, 165, 169, 172, 176, \line \up0 \expndtw0\charscalex109
188, 203, 225, 280, 324, 334, 344-346, \line\tab \up0 \expndtw0\charscalex109 4
04, 412, 416, 418, 525, 541, 546-548\par\pard\ql \li2088\sb106\sl-195\slmult0 \u
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lt0\fi67\tx89 \up0 \expndtw0\charscalex108 1, 31, 48, 59, Box 1.2, 65, 77, 93, 1
31, \line\tab \up0 \expndtw0\charscalex109 135, 178, 200, 222, 383, 393, 409, 44
4 \line \up0 \expndtw0\charscalex109 33, 88-89, 169, 174, 225, 341, 546-548\par\
pard\ql \li1711\sb102\sl-195\slmult0 \up0 \expndtw0\charscalex109 46, 261, 414-4
21\par\pard\ql \li152\sb115\sl-195\slmult0 \up0 \expndtw0\charscalex109 56, 356,
429, 446-456, 457, 459, 464,\par\pard\qj \li246\ri1113\sb0\sl-310\slmult0\fi236
\up0 \expndtw0\charscalex109 472, 522, 530, 531-533, 534, 536 \line \up0 \expnd
tw0\charscalex109 58-59, 103, 107, 128, 149, 234, 238,\par\pard\ql \li460\sb1\sl
-188\slmult0 \up0 \expndtw0\charscalex109 251, 310, 316-322, 334-335, 345,\par\p
ard\ql \li910\sb57\sl-195\slmult0 \up0 \expndtw0\charscalex110 347-349, 351-352,
457-459\par\pard\ql \li1969\sb117\sl-195\slmult0 \up0 \expndtw0\charscalex109 2
24, 362, 398\par\pard\ql \li887\sb115\sl-195\slmult0 \up0 \expndtw0\charscalex10
9 228-230, 457, 463, 471-472\par\pard\ql \li1686\sb116\sl-195\slmult0 \up0 \expn
dtw0\charscalex109 89, 173, 194, 548\par\pard\ql \li529\sb117\sl-195\slmult0 \up
0 \expndtw0\charscalex109 55, 427, 431, 432-442, 443, 451,\par\pard\ql \li1616\s
b55\sl-195\slmult0 \up0 \expndtw0\charscalex109 459-461, 475, 528\par\pard\ql \l
i2536\sb116\sl-195\slmult0 \up0 \expndtw0\charscalex109 76, 80\par\pard\ql \li23
6\sb117\sl-195\slmult0 \up0 \expndtw0\charscalex110 27-28, 106-113, 246-248, Tab
le 4.1,\par\pard\ql \li2725\sb55\sl-195\slmult0 \up0 \expndtw0\charscalex109 425
\par\pard\qj \li20\ri1114\sb70\sl-250\slmult0\fi87 \up0 \expndtw0\charscalex109
9, 27, 34-35, 55, 71-72, 108-111, 161, \line \up0 \expndtw0\charscalex110 187, 1
90-192, Table 4.1, 333, 335-336,\par\pard\ql \li1922\sb45\sl-195\slmult0 \up0 \e
xpndtw0\charscalex109 348, 425, 542,\par\pard\ql \li4958\sb0\sl-195\slmult0 \par
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harscalex110 260, 296-297\par\pard\ql \li7922\sb0\sl-230\slmult0 \par\pard\ql \l
i7922\sb0\sl-230\slmult0 \par\pard\ql \li7922\sb0\sl-230\slmult0 \par\pard\ql \l
i3164\sb46\sl-230\slmult0 \up0 \expndtw0\charscalex116 \ul0\nosupersub\cf19\f20\
fs20 161
}
x116 Paragraph numbers\par\pard\li1303\sb0\sl-195\slmult0\par\pard\li1303\sb41\s
l-195\slmult0\fi0\tx5262 \up0 \expndtw0\charscalex116 software\tab \up0 \expndtw
0\charscalex116 66, 156, 163, 319, 327, 330, 336,\par\pard\li1303\sb57\sl-195\sl
mult0\fi4693 \up0 \expndtw0\charscalex112 350-351, 336, 525, 545\par\pard\li1303
\sb115\sl-195\slmult0\fi0\tx6823 \up0 \expndtw0\charscalex112 spillovers\tab \up
0 \expndtw0\charscalex112 48, 101, 383\par\pard\li1303\sb56\sl-195\slmult0\fi0\t
x4791 \up0 \expndtw0\charscalex112 standards\tab \up0 \expndtw0\charscalex112 58
-64, Box 1.2, 93, 142, 266, 336, 481,\par\pard\li1303\sb57\sl-195\slmult0\fi6179
\up0 \expndtw0\charscalex115 528\par\pard\li1303\sb115\sl-195\slmult0\fi0\tx529
1 \up0 \expndtw0\charscalex115 statistical unit\tab \up0 \expndtw0\charscalex115
227-251, 426-429, 436, 473-474\par\pard\li1303\sb56\sl-195\slmult0\fi340\tx7130

\up0 \expndtw0\charscalex115 primary\tab \up0 \expndtw0\charscalex115 233-240\p
ar\pard\li1303\sb57\sl-195\slmult0\fi340\tx7130 \up0 \expndtw0\charscalex115 sec
ondary\tab \up0 \expndtw0\charscalex115 241-245\par\pard\li1303\sb55\sl-195\slmu
lt0\fi340\tx7130 \up0 \expndtw0\charscalex115 enterprise unit\tab \up0 \expndtw0
\charscalex115 233-240\par\pard\li1303\sb56\sl-195\slmult0\fi340\tx7130 \up0 \ex
pndtw0\charscalex115 establishment unit\tab \up0 \expndtw0\charscalex115 241-243
\par\pard\li1303\sb57\sl-195\slmult0\fi340\tx7131 \up0 \expndtw0\charscalex115 k
ind of activity unit (KAU)\tab \up0 \expndtw0\charscalex115 237-239\par\pard\li1
303\sb115\sl-195\slmult0\fi0\tx4705 \up0 \expndtw0\charscalex115 strategies\tab
\up0 \expndtw0\charscalex115 52, 68, 86, 175, 183, 260, 301, 305, 417,\par\pard\
li1303\sb56\sl-195\slmult0\fi3937 \up0 \expndtw0\charscalex113 490, 503-506, 508
, 510, 512, 516\par\pard\li1303\sb117\sl-195\slmult0\fi0\tx6565 \up0 \expndtw0\c
harscalex113 subject approach\tab \up0 \expndtw0\charscalex113 52, 54, 377-381\p
ar\pard\li1303\sb115\sl-195\slmult0\fi0\tx4744 \up0 \expndtw0\charscalex113 surv
eys\tab \up0 \expndtw0\charscalex113 3-4, 6-7, 17, 21, 52-57, 65-70, Chapter\par
\pard\li1644\sb56\sl-195\slmult0\fi5213 \up0 \expndtw0\charscalex114 8, Annex A\
par\pard\li1644\sb57\sl-195\slmult0\fi0\tx7130 \up0 \expndtw0\charscalex114 cens
us\tab \up0 \expndtw0\charscalex114 432-434\par\pard\li1644\sb55\sl-195\slmult0\
fi0\tx6022 \up0 \expndtw0\charscalex114 frequency\tab \up0 \expndtw0\charscalex1
14 459, 477-479, 534-356\par\pard\li1644\sb56\sl-195\slmult0\fi0\tx7483 \up0 \ex
pndtw0\charscalex114 mandatory\tab \up0 \expndtw0\charscalex114 431\par\pard\li1
644\sb57\sl-195\slmult0\fi0\tx5997 \up0 \expndtw0\charscalex114 non-response\tab
\up0 \expndtw0\charscalex114 431, 447, 456, 463-474\par\pard\li1644\sb55\sl-195
\slmult0\fi0\tx6376 \up0 \expndtw0\charscalex114 panel data\tab \up0 \expndtw0\c
harscalex114 395, 409, 443-445\par\pard\li1644\sb56\sl-195\slmult0\fi0\tx5975 \u
p0 \expndtw0\charscalex114 questionnaire\tab \up0 \expndtw0\charscalex114 451-45
6, 530, 531-533,\par\pard\li1644\sb57\sl-195\slmult0\fi0\tx4935 \up0 \expndtw0\c
harscalex114 respondent\tab \up0 \expndtw0\charscalex114 56, 446-450, 453, 465-4
66, 479, 530,\par\pard\li1303\sb55\sl-195\slmult0\fi5827 \up0 \expndtw0\charscal
ex113 532-533\par\pard\li1303\sb56\sl-195\slmult0\fi340\tx5646 \up0 \expndtw0\ch
arscalex113 reporting unit\tab \up0 \expndtw0\charscalex113 228-230, 457, 463, 4
71-472\par\pard\li1303\sb57\sl-195\slmult0\fi340\tx6354 \up0 \expndtw0\charscale
x113 sampling\tab \up0 \expndtw0\charscalex113 432-442, 459-461,\par\pard\li1303
\sb55\sl-195\slmult0\fi340\tx7483 \up0 \expndtw0\charscalex113 voluntary\tab \up
0 \expndtw0\charscalex113 431\par\pard\li1303\sb56\sl-195\slmult0\fi340\tx5573 \
up0 \expndtw0\charscalex113 weighting methods\tab \up0 \expndtw0\charscalex113 4
36, 460-462, 465, 469, 523,\par\pard\li1303\sb117\sl-195\slmult0\fi0\tx5404 \up0
\expndtw0\charscalex113 tacit knowledge\tab \up0 \expndtw0\charscalex113 87, 92
, 103, 255, 265, 295, 497\par\pard\li1303\sb115\sl-195\slmult0\fi0\tx5009 \up0 \
expndtw0\charscalex113 target population\tab \up0 \expndtw0\charscalex113 55, 42
4-427, 431-435, 460, 473-474\par\pard\li1303\sb116\sl-195\slmult0\fi0\tx4747 \up
0 \expndtw0\charscalex113 technological\tab \up0 \expndtw0\charscalex113 5, 9-10
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p0 \expndtw0\charscalex113 149, 155, 273, 319, 326, 349\par\pard\li1303\sb115\sl
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3 innovation\tab \up0 \expndtw0\charscalex113 5, 34, 154\par\pard\li1303\sb117\s
l-195\slmult0\fi0\tx4719 \up0 \expndtw0\charscalex113 training\tab \up0 \expndtw
0\charscalex113 41, 68-69, 103, 105, 141, 180, 304, 316,\par\pard\ql \li4815\sb3
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tw0\charscalex106 \ul0\nosupersub\cf19\f20\fs20 162\tab \up0 \expndtw0\charscale
x106 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIE
S 2005

}
alex116 Paragraph numbers\par\pard\li1303\sb0\sl-195\slmult0\par\pard\li1303\sb4
1\sl-195\slmult0\fi0\tx4815 \up0 \expndtw0\charscalex116 turnover\tab \up0 \expn
dtw0\charscalex116 251, 254, 383, 396, 397-404, 430, 442,\par\pard\li1303\sb57\s
l-195\slmult0\fi5423 \up0 \expndtw0\charscalex113 461, 462, 479\par\pard\li1303\
sb115\sl-195\slmult0\fi0\tx5124 \up0 \expndtw0\charscalex113 uncertainty\tab \up
0 \expndtw0\charscalex113 23, 83-84, 101, 319, 349, 487-488,\par\pard\li1303\sb1
16\sl-195\slmult0\fi0\tx4842 \up0 \expndtw0\charscalex113 weighting methods\tab
\up0 \expndtw0\charscalex113 402, 436, 460-462, 465, 469, 472-474,\par\pard\ql \
li7483\sb49\sl-195\slmult0 \up0 \expndtw0\charscalex109 523 \par\pard\li1303\sb6
3\sl-195\slmult0\fi0\tx5262 \up0 \expndtw0\charscalex114 workplace organisation\
tab \up0 \expndtw0\charscalex114 33, 177, 179, 181, 183, 196, 343,\par\pard\ql \
li5556\sb49\sl-195\slmult0 \up0 \expndtw0\charscalex110 Table 7.1, 389, 551, 549
-551 \par\pard\li824\sb0\sl-218\slmult0\par\pard\li824\sb0\sl-218\slmult0\par\pa
mult0\par\pard\li824\sb143\sl-218\slmult0\fi0\tx7922 \up0 \expndtw0\charscalex10
6 \ul0\nosupersub\cf18\f19\fs11 ISBN 92-64-01308-3 - OECD/EUROPEAN COMMUNITIES 2
}

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charscalex108 (92 2005 11 1 P) ISBN 92-64-01308-3 - No. 54261 2005 \par\pard\sec
t\sectd\fs24}

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{\rtf1{\fonttbl

{\f2 Times New Roman;}

16 Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Tu

wn from \up0 \expndtw-7\charscalex74 results of previous surveys have also been

ine \up0 \expndtw-7\charscalex75 data in an internationally comparable manner. F

5}{\bkmkend Pg5}\par\pard\ql \li2241\sb0\sl-161\slmult0 \par\pard\ql\li2241\sb0\

-195\slmult0\fi0\tx7577 \up0 \expndtw0\charscalex117 \ul0\nosupersub\cf17\f18\fs

x117 46\par\pard\li1303\sb55\sl-195\slmult0\fi85\tx1700\tx7578 \up0 \expndtw0\ch

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t0\fi397\tx7577 \up0 \expndtw0\charscalex116 2.3. Activities for marketing and

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charscalex119 greater understanding of the innovation process and to cover a wid

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\expndtw0\charscalex122 have an important impact on firm performance on their o

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15}{\bkmkend Pg15}\par\pard\ql \li2241\sb0\sl-161\slmult0 \par\pard\ql\li2241\sb

rent types of innovations, and on the \line \up0 \expndtw0\charscalex119 objecti

ne\up0 \expndtw0\charscalex130 organisational methods. These can be changes in b

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40\slmult0\tx1508 \up0 \expndtw0\charscalex114 \ul0\nosupersub\cf27\f28\fs14 \u9

up0 \expndtw0\charscalex119 such as regulations or tax rules. \par\pard\qj \li13

e \up0 \expndtw0\charscalex127 Similar approaches can be used to measure the out

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0 \expndtw0\charscalex127 In the data collection phase, particular attention sho

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\cf23\f24\fs17 Statistics \line \up0 \expndtw0\charscalex116 Canada, 1999). \pa

xpndtw0\charscalex126 compromises and agreeing to conventions. Furthermore, the

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nce of links between \up0 \expndtw0\charscalex123 firms and other organisations

NTERPRETING INNOVATION DATA \par\pard\qj \li1303\sb0\sl-260\slmult0 \par\pard\qj

tw0\charscalex122 processes can make it possible to develop a new range of produ

tion relative to its competitors, for example by \line \up0 \expndtw0\charscalex

p0 \expndtw0\charscalex127 looser, more flexible form of organisation, which all

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pen to a firm that wants to change its \line\up0 \expndtw0\charscalex120 product

D activities \line\tab \up0 \expndtw0\charscalex124 that can be part of innovati

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pment, rate of technological change, linkages and access to knowledge, as \line

most services. \par\pard\qj \li1303\ri1177\sb50\sl-250\slmult0\tx1926 \up0 \exp

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up0 \expndtw0\charscalex129 finance and appropriation - are relatively straight

urces \par\pard\qj \li1303\ri1176\sb76\sl-250\slmult0\tx1927 \up0 \expndtw0\char

n of product and process \line \up0 \expndtw0\charscalex131 innovations can be r

constitute a significant change. \par\pard\qj \li1303\ri1118\sb42\sl-260\slmult

or \line\up0 \expndtw-7\charscalex76 significantly improved with respect to its

ge in a product\u8217?s functional characteristics or intended uses\par\pard\li1

development of new techniques for managing projects in a consultancy firm. \par

ample, the implementation of new \line \up0 \expndtw0\charscalex127 practices to

xpndtw0\charscalex104 New organisational methods in a firm\u8217?s \ul0\nosupers

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l0\nosupersub\cf23\f24\fs17 \u8220?auction\u8221? firms, Web site providers that

tween process and organisational innovations \par\pard\qj \li1303\ri1176\sb76\sl