Innovation Statistics in Russia: Methodology and Results

Innovation Statistics in Russia: Methodology and

Results

Innovation Statistics in Russia: Methodology and

Results

Prof. Leonid GokhbergProf. Leonid Gokhberg

STATE UNIVERSITY – HIGHER SCHOOL OF ECONOMICS

Institute for Statistical Studies and Economics of Knowledge

STATE UNIVERSITY – HIGHER SCHOOL OF ECONOMICS

Institute for Statistical Studies and Economics of Knowledge

2

OutlineOutline

Policy demand for data on innovation The measurement of inovation:

international standards Innovation statistics in Russia:

methodology and organisation Results from the Russian innovation

survey Conclusions and perspectives

Policy demand for data on innovation The measurement of inovation:

international standards Innovation statistics in Russia:

methodology and organisation Results from the Russian innovation

survey Conclusions and perspectives

3

Technology and innovation are key drivers of increased growth performance

Technology and innovation are key drivers of increased growth performance

Correlation between

expenditure on R&D / innovation and GDP growth

1% 0.05-0.15%

Correlation between

expenditure on R&D / innovation and GDP growth

1% 0.05-0.15%

(OECD, 2000)(OECD, 2000)

Increasing R&D intensity and innovation activities of all economy sectors

Technology & innovation cycles shortened Stronger orientation of R&D to market demand

Increasing R&D intensity and innovation activities of all economy sectors

Technology & innovation cycles shortened Stronger orientation of R&D to market demand Networked economy

– Nonlinear innovation model – Overcoming institutional barriers – Networks & linkages

Networked economy– Nonlinear innovation model – Overcoming institutional barriers – Networks & linkages

4

Innovation Companies /

universities Small firms Private

capital / ventures

Innovation Companies /

universities Small firms Private

capital / ventures

R&D Research

Institutes Large

enterprises Government

financing

R&D Research

Institutes Large

enterprises Government

financing

Nations - leaders of the new economy Nations - leaders

of the new economy RussiaRussia

5

The Oslo Manual and the Community Inovation Survey (CIS)The Oslo Manual and the Community Inovation Survey (CIS)

Oslo Manual (2005)

A single broader definition of innovation

Oslo Manual (2005)

A single broader definition of innovation

CIS1 (1993). Period 1990-92Manufacturing

CIS2 (1997). Period 1996-96Manufacturing + selected services

CIS1 (1993). Period 1990-92Manufacturing

CIS2 (1997). Period 1996-96Manufacturing + selected services

Oslo Manual (1992)

Technological innovation

Oslo Manual (1992)

Technological innovation

Oslo Manual (1997)

Technological innovation+ Organizational innovation

Oslo Manual (1997)

Technological innovation+ Organizational innovation

CIS3 (2001). Period 1998-2000Manufacturing + services




6

An innovation is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations.

Types of innovation: product process marketing organisational (strategy) (management) (aesthetic)

An innovation is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations.

Types of innovation: product process marketing organisational (strategy) (management) (aesthetic)

The Oslo Manual – 2005The Oslo Manual – 2005

7

Non-technological innovationNon-technological innovation

Strategy– implementation of new or significantly

changed corporate strategies

Management– implementation of advanced management

techniques

Organisation– implementation of new organisational

structures

Marketing– changing significantly firm’s marketing

concepts

Aesthetic– changing aesthetic appearance or design or

other subjective changes in products

Strategy– implementation of new or significantly

changed corporate strategies

Management– implementation of advanced management

techniques

Organisation– implementation of new organisational

structures

Marketing– changing significantly firm’s marketing

concepts

Aesthetic– changing aesthetic appearance or design or

other subjective changes in products

8

Issues addressed by the CISIssues addressed by the CIS

General information about the firm Type of innovation (product,

process) Sources of information for

innovation Objectives of innovation Factors hampering innovation Cost of innovation Impact of innovation R&D Cooperation in innovation

General information about the firm Type of innovation (product,

process) Sources of information for

innovation Objectives of innovation Factors hampering innovation Cost of innovation Impact of innovation R&D Cooperation in innovation

9

Key indicators from the innovation surveyKey indicators from the innovation survey

Percentage of innovating firms Innovation expenditure Percentage of sales due to innovative

products

Percentage of innovating firms Innovation expenditure Percentage of sales due to innovative

products

ImplicationsImplications

external: markets & competitiveness

external: markets & competitiveness

internal: employment, technology, organisation

internal: employment, technology, organisation

Public policies for innovation

Company strategies

Public policies for innovation

Company strategies

10

Innovation Surveys in Russia Innovation Surveys in Russia

Since 1994 Compatible with international

standards (OECD / Eurostat Oslo Manual, EU CIS)

Key methodological principles:– Initial focus on technological innovations;

now – organisational and marketing innovations also

– Considering enterprises as statistical units– Classification of innovation activities– Distinguishing product and process

innovations new for a surveyed enterprise

Annual mandatory survey

Since 1994 Compatible with international

standards (OECD / Eurostat Oslo Manual, EU CIS)

Key methodological principles:– Initial focus on technological innovations;

now – organisational and marketing innovations also

– Considering enterprises as statistical units– Classification of innovation activities– Distinguishing product and process

innovations new for a surveyed enterprise

Annual mandatory survey

11

Identification of innovating enterprisesIdentification of innovating enterprises

= participation in innovative activities (during the period under review)

Research and development Acquisition of embodied technology

(machinery & equipment) for the implementation of innovations

Acquisition of disembodied technology – patents, licenses, industrial prototypes, utility models, know-how, engineering services

Acquisition of software for the implementation of innovations

Industrial design Tooling up and industrial engineering Training and retraining of personnel Marketing of new or improved products

= participation in innovative activities (during the period under review)

Research and development Acquisition of embodied technology

(machinery & equipment) for the implementation of innovations

Acquisition of disembodied technology – patents, licenses, industrial prototypes, utility models, know-how, engineering services

Acquisition of software for the implementation of innovations

Industrial design Tooling up and industrial engineering Training and retraining of personnel Marketing of new or improved products

12

Russian Innovation Surveys in ProgressRussian Innovation Surveys in Progress

Annual innovation surveys in industry (extracting & manufacturing, large & medium enterprises)

+ services

+ small enterprises

Revision (CIS-3)+ organisational

innovation

Revision (CIS-4)+ marketing

innovation

1994 1998 1999 2000 2006

13

Major IssuesMajor Issues

Innovative vs. non-innovative enterprises Expenditure on technological innovation (by innovative

activity, source of funds, type of innovation) Intramural R&D units Sales of innovative products & services

(by novelty, e.g. exports) Effects of innovation Hampering factors Sources of information for innovation Innovation co-operation Technology acquisition & transfer IPR protection methods Organisational innovations Marketing innovations (since 2006) Expenditure on organisational and marketing innovation

(since 2006)

Innovative vs. non-innovative enterprises Expenditure on technological innovation (by innovative

activity, source of funds, type of innovation) Intramural R&D units Sales of innovative products & services

(by novelty, e.g. exports) Effects of innovation Hampering factors Sources of information for innovation Innovation co-operation Technology acquisition & transfer IPR protection methods Organisational innovations Marketing innovations (since 2006) Expenditure on organisational and marketing innovation

(since 2006)

14

Statistical Surveying of Innovative Activity of Small CompaniesStatistical Surveying of Innovative Activity of Small Companies

Coverage – industry Focus – technological innovation only Frequency – biennially Abridged questionnaire

– Expenditure on technological innovation (by innovative activity & source of funds)

– Sales of innovative products– R&D expenditure & personnel

Coverage – industry Focus – technological innovation only Frequency – biennially Abridged questionnaire

– Expenditure on technological innovation (by innovative activity & source of funds)

– Sales of innovative products– R&D expenditure & personnel

15

ScopeScope

2005: large & medium enterprises – 27.8 thousand

e.g. industry – 25.8

services (telecom, IT, etc.) – 2.0

Small enterprises – 62.6 thousand

2005: large & medium enterprises – 27.8 thousand

e.g. industry – 25.8

services (telecom, IT, etc.) – 2.0

Small enterprises – 62.6 thousand

16

Innovation Activity in IndustryInnovation Activity in Industry

16.317.3

19.5

5.6 5.24.7 5.0

6.2

10.69.6 9.8 10.3 10.5

9.3

0

2

4

6

8

10

12

14

16

18

20

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Percentage

17

Innovation Activity in Russia and the EUInnovation Activity in Russia and the EU

27

37 39 39 4045 46 47 49 49

52 53 54 5559

66

75

9.3

0

10

20

30

40

50

60

70

80

Russ

ia

Gre

ece

Spain

Gre

at

Bri

tain

Norw

ay

Italy

Port

ugal

France

Sw

eden

Luxem

bourg

Finla

nd

Denm

ark

Aust

ria

Icela

nd

Neth

erl

ands

Belg

ium

Germ

any

Irela

nd

Percentage

18

Innovating Enterprises in Industry by Economic Activity: 2005Innovating Enterprises in Industry by Economic Activity: 2005

1. Total2. Mining3. Food, beverages & tobacco 4. Textiles & wearing5. Leather & shoes6. Wood 7. Paper & printing8. Coke & petrol9. Chemicals

10. Rubber & plastic products11. Other non-metallic mineral products12. Basic metals, fabricated metal products13. Machinery & equipment14. Electrical equipment, electronics,

instruments15. Transport equipment16. Furniture, manufacturing n.e.c.17. Recycling18. Electricity, gas & water

9.3

5.68.0

4.36.1

4.63.3

31.4

23.5

10.79.3

11.913.5

26.8

23.8

8.2

3.4 4.2

0

4

8

12

16

20

24

28

32

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Percentage

19

Organisational Innovation by Economic Activity: 2005Organisational Innovation by Economic Activity: 2005

Major innovations: Quality control MarketingICT-based management systems

Major innovations: Quality control MarketingICT-based management systems

25.720.7

28.9

19.9 21.418.7

11.5

57.0

49.4

38.5

29.935.8 33.4

47.8 48.9

28.8

21.0

11.9

0

10

20

30

40

50

60

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Percentage

1. Total2. Mining3. Food, beverages & tobacco 4. Textiles & wearing5. Leather & shoes6. Wood 7. Paper & printing8. Coke & petrol9. Chemicals

10. Rubber & plastic products11. Other non-metallic mineral products12. Basic metals, fabricated metal products13. Machinery & equipment14. Electrical equipment, electronics,

instruments15. Transport equipment16. Furniture, manufacturing n.e.c.17. Recycling18. Electricity, gas & water

20

Percentage of Industrial Enterprises Implementing Organisational Innovation

Percentage of Industrial Enterprises Implementing Organisational Innovation

50.0

44.9

40.1 38.435.4

33.3 33.0 32.1 31.827.4 25.8 25.7

20.3

8.1

57.4

0

10

20

30

40

50

60

70

Luxem

bourg

Germ

any

Aust

ria

Belg

ium

Sw

eden

Port

ugal

Gre

at

Bri

tain

Italy

Spain

Finla

nd

Gre

ece

Neth

erl

ands

Russ

ia

Denm

ark

France

Percentage

21

Innovating Enterprises by Type of Innovation ActivityInnovating Enterprises by Type of Innovation Activity

Types of Innovation Activity:1 – R&D2 – Acquisition of machinery & equipment3 – Acquisition of technology4 – of which patent rights & licenses

5 – Acquisition of software6 – Industrial design7 – Personnel training 8 – Market research

57.9

49.1

18.9

11.4

25.5

21.3

16.1

42.7

62.2

18.3

10.5

26.2

37.8

25.4

19.5

35.5

61.0

16.0

8.6

25.0

39.7

22.9

20.1

33.6

61.6

16.6

9.4

23.9

37.2

23.6

20.1

30.2

63.8

16.7

9.4

25.0

36.9

23.6

19.5

33.0

63.0

16.8

10.3

27.4

35.5

24.8

21.1

31.6

63.5

14.9

27.2 3

2.3

22.5

18.7 2

3.4

0

10

20

30

40

50

60

70

1 2 3 4 5 6 7 8

1995 2000 2001 2002 2003 2004 2005

Percentage

22

Expenditure on Technological InnovationExpenditure on Technological Innovation

2005: 1.2% of total sales in industry2005: 1.2% of total sales in industry

12124

125678122851

105445

86394

61313

49428

2445113864

90029150725414186

5364

145511359111140104637122696662760

20000

40000

60000

80000

100000

120000

140000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

At current prices At fixed 1995 prices

Million roubles

23

Expenditure on Technological Innovation by Type of Innovation Activity (per cent)

Expenditure on Technological Innovation by Type of Innovation Activity (per cent)

26.9

1.0

1.4

19.3

43.5

6.9

0.60.4

19951995 20052005

15.7

10.7

60.3

8.9

0.60.8

2.1

0.60.4

24

Distribution of Expenditure on Technological Innovation by Type of Innovation Activity

Distribution of Expenditure on Technological Innovation by Type of Innovation Activity

11.5

51.6

37.5 38.9

51.3 51.0 50.0

30.7 29.224.0

60.4 55.7

10.8

57.0

4.2

5.5

7.6 4.4

3.7 6.7 6.9

9.66.1

2.5

14.0 20.5

6.9

11.5

60.3

27.9

30.6 31.9

28.1

7.6

21.4

41.3 50.158.4

13.714.9

68.9

17.9

2.7

3.8 3.0

4.0 4.16.3 2.2

2.722.612.3

20.6 21.915.1

34.2

20.512.2 10.6 11.1

5.6 6.7 10.65.8

8.0

1.4

1.7 1.2

0.4

6.2

0

10

20

30

40

50

60

70

80

90

100

Aust

ria

Belg

ium

Gre

at Bri

tain

Germ

any

Denm

ark

Icela

nd

Spain

Italy

Luxem

bourg

Neth

erl

ans

Norw

ay

Port

ugal

Fin

land

Russ

ia

Percentage

25

Sources of Information for Innovation by Rate of Importance: 2005Sources of Information for Innovation by Rate of Importance: 2005

Internal sources:

1 – within an enterprise

2 – within a group

of enterprises

External commercial sources:

3 – suppliers of materials, equipment, and components

4 – consumers of products

5 – competitors in the same sector

6 – consulting and information firms

R&D institutions:

7 – academy

8 – industry

9 – higher education

Generally accessible information:

10 – invention descriptions, official

publications by Rospatent, etc.

11 – conferences, workshops, symposia

12 – S&T literature

13 – exhibitions, fairs, and other advertising events

1.7 1.7 1.61.9

1.7

1.3 1.31.6

1.3 1.41.6

1.8 1.9

0.0

1.0

2.0

3.0

1 2 3 4 5 6 7 8 9 10 11 12 13

26

Ranking of Innovation Objectives (Effects): 2005Ranking of Innovation Objectives (Effects): 2005

1 – Replacing products being phased out

2 – Quality improvement

3 – Enlargement of product range

4 – Preservation of traditional markets

Creation of new markets:

5 – Russia

6 – CIS countries

7 – EU/EFTA countries

8 – US and Canada

9 – Southeast Asia

10 – elsewhere

11 – Concordance with modern standards

12 – Production flexibility

13 – Increase in production capacities

14 – Reduction of labour costs

15 – Reduction of material costs

16 – Reduction of energy costs

17 – Reduction of environment pollution

18 – Improvement of labour conditions

2.02.3 2.4 2.3

2.11.8

1.6 1.61.4 1.5

2.21.9 1.9

1.51.7 1.7 1.7

1.9

0.0

1.0

2.0

3.0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

27

Innovative Products as a % of Sales in Industry by R&D IntensityInnovative Products as a % of Sales in Industry by R&D Intensity

1.82.7 2.4

1.6

0.8

1.41.0

0.7

1.6

3.3

1.0

1.6

0

1

2

3

4

5

6

7

8

9

10

11

12

13

1 2 3 4

Per cent

4.2

7.4

4.43.9

1.93.1

2.1 2.0

0.5

1.3

0.3 0.9

1.9

3.8

1.01.0

1 2 3 4

4.3

8.2

3.43.9

1.82.6 2.5

1.4

0.7

2.0

0.21.1

2.2

4.3

1.0 1.0

1 2 3 4

4.7

8.9

3.7 3.5

2.2

5.2

1.92.6

0.5

1.6

0.1

0.4

2.7

5.4

1.1

1.7

1 2 3 4

5.4

12.2

3.1

4.7

2.6

8.0

2.91.9

0.5

1.4

0.2

0.3

1.9

2.9

1.6

1.4

1 2 3 4

5.0

12.3

4.73.6

20012001 20022002 20032003 20042004 20052005

1 – Total2 – High-tech and medium-high-tech3 – Medium-high-tech4 – Low-tech

1 – Total2 – High-tech and medium-high-tech3 – Medium-high-tech4 – Low-tech

28

Percentage of New Products in IndustryPercentage of New Products in Industry

New for a marketNew for a market New for a companyNew for a company

8.9

13.6

15.8

17.5

18.4

18.4

20.7

21.6

23.1

23.8

24.2

25.8

30.1

31.1

32.1

40.3

1.9

0 10 20 30 40 50

Russia

Iceland

luxemburg

Belgium

France

Greece

Norway

Switzerland

Portugal

Austria

Netherlands

Denmark

Spain

Italy

Finland

Sweden

Germany

Per cent1.8

3.5

4.4

4.6

6.9

7.1

8.4

9.5

9.5

11.9

14.3

16

18.7

27.2

0.5

01020304050

Russia

Iceland

Sweden

Greece

Norway

Belgium

Germany

Austria

France

Great Britain

Spain

Denmark

Portugal

Italy

Finland

Per cent

29

Prerequisites for GrowthPrerequisites for Growth

Innovating enterprises

Non-innovating enterprises

Number 9.3 90.7

Employment 35.5 64.5

Sales 41.3 58.7

Investment 41.2 58.8

% of personnel with university degrees 20.2 17.4

Markets: regional 51.8 76.3

national 69.9 34.3

foreign 18.7 4.5

% of enterprises integrated into industrial groups 41.3 15.3

Innovating vs. Non-innovating Enterprises: 2005

(per cent)

Innovating vs. Non-innovating Enterprises: 2005

(per cent)

30

Services vs. Industry: 2005(per cent)Services vs. Industry: 2005(per cent)

Service sector Industry

Share of innovating enterprises for which innovations were developed:

mainly by other enterprises or organisations 28.1 14.7

at enterprises in co-operation with other enterprises or organizations 50.3 36.4

mainly by themselves 29.7 57.7

Share of innovating enterprises which

acquired new technologies and software 35.9 32.8

transferred new technologies and software 9.2 2.8

Share of innovating enterprises which performed R&D 13.7 31.6

Intensity of innovation expenditure 3.5 1.2

31

Innovative Activity of Small Enterprises in IndustryInnovative Activity of Small Enterprises in Industry

1999 2000 2001 2003 2005

Small enterprises surveyed45919

51501 50305 49572 55990

Innovating small enterprises 722 673 729 779 919

% of innovating small enterprises 1.6 1.3 1.5 1.6 1.6

Innovative product sales at small enterprises, million roubles 766.8 927.6 1087.

11119.

73103.

2

% of innovative products in total sales of innovating small enterprises 36.9 26.3 30.3 28.8 29.9

% of innovative products in total sales of small enterprises in industry 0.7 0.6 0.6 0.3 0.3

32

6 67 14 3 10

Frequently buy, try something new

I would like to buy, try something new, but don't have opportunities (means, time, etc.)

Indifferent to novelties

Don't accept any novelties, they bring just harms

Difficult to answer

What is your attitude towards innovations at household?What is your attitude towards innovations at household?

Source: Public Attitudes Toward S&T and Innovation Survey, HSE Institute for Statistical Studies and Economics of Knowledge Source: Public Attitudes Toward S&T and Innovation Survey, HSE Institute for Statistical Studies and Economics of Knowledge

Prerequisites for GrowthPrerequisites for Growth

Innovative Consumer Demand(per cent of respondents)

Innovative Consumer Demand(per cent of respondents)

33

Major PublicationsMajor Publications

Innovation IndicatorsMinistry of Education & Science / Rosstat / HSE-ISEK (annual)

Innovation in Industry and Services.Analytical ReportHSE-ISEK

Chapters on S&T and Innovation (contribution by HSE-ISEK) in:

Russian Statistical YearbookRegions of Russia

Innovation IndicatorsMinistry of Education & Science / Rosstat / HSE-ISEK (annual)

Innovation in Industry and Services.Analytical ReportHSE-ISEK

Chapters on S&T and Innovation (contribution by HSE-ISEK) in:

Russian Statistical YearbookRegions of Russia

34

PerspectivesPerspectives

Innovation data: a gold mine & background for designing evidence-based innovation policies

New dimensions: organisational & marketing innovations

Improvement of date collection & analysis: integration with industrial statistics

More sophisticated economic analyses (use of micro-data)

International comparability

Pilot projects?

Innovation data: a gold mine & background for designing evidence-based innovation policies

New dimensions: organisational & marketing innovations

Improvement of date collection & analysis: integration with industrial statistics

More sophisticated economic analyses (use of micro-data)

International comparability

Pilot projects?

Thank youThank you

[email protected]@hse.ru

Documents

Innovation Statistics in Russia: Methodology and Results