Oslo Manual 2018 PDF

The Measurement of Scientific, Technological and Innovation Activities Oslo Manual 2018 GUIDELINES FOR COLLECTING, REPORTING AND USING DATA ON INNOVATION 4th Edition The Measurement of Scientific, Technological and Innovation Activities Oslo Manual 2018 GUIDELINES FOR COLLECTING, REPORTING AND...

The Measurement of Scientific, Technological and Innovation Activities Oslo Manual 2018 GUIDELINES FOR COLLECTING, REPORTING AND USING DATA ON INNOVATION 4th Edition The Measurement of Scientific, Technological and Innovation Activities Oslo Manual 2018 GUIDELINES FOR COLLECTING, REPORTING AND USING DATA ON INNOVATION 4TH EDITION This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries or those of Eurostat or the European Union. This document, as well as any data and any map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Please cite this publication as: OECD/Eurostat (2018), Oslo Manual 2018: Guidelines for Collecting, Reporting and Using Data on Innovation, 4th Edition, The Measurement of Scientific, Technological and Innovation Activities, OECD Publishing, Paris/Eurostat, Luxembourg. https://doi.org/10.1787/9789264304604-en ISBN 978-92-64-30455-0 (print) ISBN 978-92-64-30460-4 (pdf) Series: The Measurement of Scientific, Technological and Innovation Activities ISSN 2413-2756 (print) ISSN 2413-2764 (online) European Union Print Catalogue number: KS-01-18-852-EN-C ISBN 978-92-79-92581-8 PDF Catalogue number: KS-01-18-852-EN-N ISBN 978-92-79-92578-8 The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. Photo credits: “Prometheus bringing fire to mankind”, fresco mural painting by Rufino Tamayo, 1958. Original work on display at UNESCO, Paris. Photo reproduced with permission from UNESCO and author’s heirs, depicted in full in the Acknowledgements section. © D.R. Rufino Tamayo / Herederos / México / 2018 / Fundación Olga y Rufino Tamayo, A.C. © All rights reserved UNESCO © Photo UNESCO/J.C.Bernath. Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda. © OECD, European Union, 2018 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgement of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected]. FOREWORD Foreword Addressing the current and emerging economic, social and environmental challenges requires novel ideas, innovative approaches and greater levels of multilateral co-operation. Innovation and digitalisation are playing an increasingly important role in virtually all sectors and in the daily lives of citizens around the world. As such, policy makers are placing the “innovation imperative” at the centre of their policy agendas. The design, development and implementation of policies, however, is fraught with difficulty – and even more so when international co-ordination is required. Innovation has often been regarded as ‘too fuzzy’ a concept to be measured and accounted for. The OECD Frascati Manual opened the way for measuring one key dimension of science, technology and innovation so that, nowadays, investment in research and development – R&D – is systematically encouraged and monitored around the world. However, policymaking today is still largely focused on what is easier to measure. There is, therefore, an urgent need to capture how ideas are developed and how they can become the tools that transform organisations, local markets, countries, the global economy and the very fabric of society. In 1991, the city of Oslo witnessed the first agreement within the global community of practitioners in the OECD Working Party of National Experts on Science and Technology Indicators on how to conceptualise and measure business innovation. These guidelines became known as the Oslo Manual, which was published and put to the test with the support of the European Union. The fast adoption and diffusion of the manual’s proposals, both within and beyond the OECD and the EU, are a clear indication of the value of this initiative; in fact, innovation surveys covering more than 80 countries have been carried out thus far. Moreover, the OECD and Eurostat have jointly led further revisions of the manual to extend the scope and increase the robustness of the data collected according to the Oslo guidelines. These revisions have been based on the experience gained from collecting data on innovation in OECD member and partner countries. This fourth edition of the Oslo Manual takes account of major trends such as, the pervasive role of global value chains; the emergence of new information technologies and how they influence new business models; the growing importance of knowledge-based capital; as well as the progress made in understanding innovation processes and their economic impact. Its guidance seeks to contribute to measuring the process of digital transformation and thus supports the goals of the OECD’s Going Digital initiative. The manual is a truly international resource benefitting from inputs by UNESCO, the World Bank and a number of regional development banks, who, like the OECD, are strongly committed to developing an evidence base to support investments in innovation and promote economic and social development. The 2018 edition is relevant for economies worldwide, regardless of their levels of economic development, and supports the assessment of the Sustainable Development Goals (SDGs). The manual rises to the challenges of being globally relevant – as set out by the G20 at its 2016 summit in OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 │3 4 │ FOREWORD Hangzhou (China); and continuing to improve measurement systems to better capture the key features of science, technology and innovation – as stated in the Declaration of Science and Innovation Ministers Meeting in Daejeon (Korea) in 2015. For the first time, the Oslo Manual provides a common framework for measuring innovation in a more inclusive manner across the economy, in government, in non-profit organisations and in households. This provides a path for realising many of the proposals put forward at the OECD Blue Sky Forum held in Ghent (Belgium) in 2016. For example, the inclusion of a new chapter in the manual focuses on the use of innovation data for constructing indicators and conducting analysis and evaluation. The Oslo Manual has earned a pre-eminent place in the family of continuously evolving instruments devoted to the definition, collection, analysis and use of data related to science, technology and innovation. As a statistical manual, it represents a meeting point between users’ needs for practical concepts, definitions and evidence on innovation, and the expert consensus on what can be robustly measured. Conceived as an open, voluntary standard, the Oslo Manual seeks to inspire dialogue, encourage new data collection efforts and experimentation. As highlighted by the OECD Innovation Strategy, better measurement of innovation and its impact on economic growth, sustainability and inclusiveness is key to fulfilling the promise of better co-ordinated innovation policies in the digital era. The OECD has long argued for a whole-of-government approach to innovation policy and has stressed the importance of understanding the complex array of factors that influence innovation and the way it impacts our societies, anticipating and addressing their unintended outcomes. The Oslo Manual represents an extremely valuable additional tool for a wide range of innovation experts and policy practitioners worldwide. Angel Gurría OECD Secretary-General OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 ACKNOWLEDGEMENTS Acknowledgements This joint publication of the OECD and Eurostat is the outcome of a collective effort of all national delegates and representatives from international organisations participating in the OECD Working Party of National Experts on Science and Technology Indicators (NESTI). Several people invested considerable time and effort to help steer the revision process on behalf of the entire NESTI group. The present fourth edition came together thanks to the leadership and dedication of the members of the Oslo Manual revision steering group (OMSG). Chaired by the NESTI Chair Svein Olav Nås (Research Council, Norway), the OMSG was set up by OECD and Eurostat to steer the revision process from inception to publication. A diverse group of experts comprising Ales Capek (Eurostat), Alessandra Colecchia (OECD), Tomohiro Ijichi (NISTEP and Seijo University, Japan), John Jankowski (NSF/NCSES, United States), Carsten Olsson (Eurostat), Christian Rammer (ZEW, Germany), Monica Salazar (Inter-American Development Bank) and Martin Schaaper (ITU, formerly UNESCO Institute for Statistics) stepped up to the challenges set out in the revision’s terms of reference. The OMSG deliberated frequently, using (and sometimes abusing) the opportunities provided by online remote communication across different time zones, to provide a collegial and effective interface between the working party and the drafting team. This allowed the work to progress in between meetings and fulfil the NESTI vision and agreements. Anthony Arundel (University of Maastricht and consultant to the OECD secretariat), Fernando Galindo-Rueda (OECD) and Christian Rammer (ZEW) prepared, on request from the OMSG, a series of chapter outlines and drafts for discussion and review. These drafts represented the backbone of the present manual. Anthony Arundel took responsibility for editing the entire manual, ensuring consistency and the timely delivery of the manual for discussion and approval by delegates. Vladimir López-Bassols (consultant to the OECD secretariat) supported the OECD in the final copy and style editing of the manuscript and the preparation of the glossary of terms. Fred Gault (UNU-MERIT, TUT-IERI and consultant to the OECD secretariat) provided additional editorial support and assisted the NESTI Chair in outreach and liaison activities with other international organisations such as the International Organization for Standardization (ISO). The revision work undertaken by NESTI was facilitated by the S&T indicators unit in the Economic Analysis and Statistics (EAS) Division of the OECD Directorate for Science, Technology and Innovation (STI), led by Fernando Galindo-Rueda with support from Michela Bello and Daniel Ker. On the part of the Eurostat STI Working Group (STI WG) Secretariat, Giulio Perani and Gregor Kyi within Unit G4 Innovation and Digitalisation at Eurostat’s Business and Trade Statistics Directorate played an instrumental role getting the revision off the ground and defining its final scope. Carsten Olsson, as the Unit G4 head, co-chaired the OMSG in the initial phase of the project. His successor, Ales Capek, facilitated the final signature of the co-publication agreement between the OECD and Eurostat. Formal oversight within the OECD was provided by Alessandra Colecchia as OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 │5 6 │ ACKNOWLEDGEMENTS Head of the EAS division. STI Director Andrew Wyckoff and Deputy Director Dirk Pilat provided guidance and comments on the drafts. This edition would not have been possible without the financial and human resources provided by the following organisations: the United States’ National Science Foundation/National Center for Science and Engineering Statistics, the German Federal Ministry for Research and Education, the Research Council of Norway, Eurostat, and the European Commission. These organisations supported work directly related to the revision as well as preparatory, exploratory and methodological work in the years preceding the revision. Participants in four revision workshops (Oslo, December 2016; Ghent, September 2016; a NESTI meeting in Paris, March 2017; and a NESTI meeting in Madrid, December 2017) provided valuable insights to the discussions and contributed discussion documents and presentations. Additionally, webinars were carried out in June 2016 and October 2017. The December 2017 NESTI meeting was kindly hosted by the Spanish Foundation for Science and Technology (FECYT), during which the manual was agreed to in principle by delegates. Workshops organised by the US National Academies of Science and Engineering in Washington DC (through a grant from NSF/NCSES), ZEW in Mannheim, RICYT in San José (Costa Rica), and the OECD Blue Sky Forum in Ghent, provided excellent opportunities to float ideas and proposals with members of the external academic and policy users community. We would also like to gratefully acknowledge the input from individual and institutional submissions to the online stakeholder consultation process and the chairpersons and delegates of the OECD Committee for Scientific and Technological Policy (CSTP) and Committee for Statistics and Statistical Policy (CSSP), as well as their national teams, for the feedback provided up until declassification approval. This work would not have been possible without the additional input of the NESTI Bureau and that of several other OECD and Eurostat colleagues, including IT, publications, communication and administrative support staff. They all contributed to the final printed and online (http://oe.cd/oslomanual) versions of this Manual. Special gratitude is owed to the experts who initially conceived this manual and worked on it for nearly 30 years to enhance its relevance and quality, overcoming several challenges along the way. It is hoped that they will see this edition as a substantive and worthwhile “innovation” as it is implemented worldwide and inspires new measurement and analysis. The NESTI and STI WG communities, in partnership with experts from all over the world, will strive to make the Oslo Manual guidelines accessible and useful in the coming months and years. OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 ACKNOWLEDGEMENTS Cover image The cover image of this manual is part of a photographic reproduction of a fresco mural painting by Mexican artist Rufino Tamayo. He was commissioned in 1957 by the International Committee of Art Advisors of UNESCO to contribute to the artistic decoration of Room II upon the completion of the Fontenoy building at UNESCO Headquarters in Paris. The fresco was executed in situ and completed in 1958. The subject portrayed, “Prometheus bringing the fire to mankind”, comes from the ancient Greek mythology and has been recurrent theme in the arts for centuries. The titan Prometheus disobeys the gods giving the human race the gift of fire and the skill of metalwork, an action for which both he and humankind are punished, albeit not fatally, ultimately being freed byanother heroic character, Heracles. As noted in the UNESCO Works of Art Collection website, “Tamayo’s fresco seems to be an exaltation of the red colour through its different tones: the carmines and the vermilions bring the fire to life”. We would like to express our gratitude to María Eugenia Bermúdez Flores de Ferrer, representative of the heirs of Rufino Tamayo’s legacy, the “Fundación Olga y Rufino Tamayo”, and Ms. Tania Fernández de Toledo, Chief of Section at UNESCO, for kindly allowing us to reproduce this image that so well symbolises the essence of this publication and the meaning of innovation. TAMAYO, Rufino (1899-1991) PROMETHEUS BRINGING FIRE TO MANKIND, 1958 Fresco, signed lower right 'Tamayo 9-58', 500 x 450 cm http://www.unesco.org/artcollection/ OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 │7 TABLE OF CONTENTS │9 Table of contents Foreword ................................................................................................................................................ 3 Acknowledgements ................................................................................................................................ 5 Abbreviations and acronyms .............................................................................................................. 17 Executive summary ............................................................................................................................. 19 What is the Oslo Manual?.................................................................................................................. 19 Why a manual for measuring innovation? ......................................................................................... 19 What is innovation? ........................................................................................................................... 20 Why and how was the manual revised? ............................................................................................. 21 What are the main novelties of this edition? ...................................................................................... 21 How are the guidelines intended to be used? ..................................................................................... 23 Where to find additional relevant resources? ..................................................................................... 23 Part I. Introduction to the measurement of innovation ................................................................... 25 Chapter 1. Introduction to innovation statistics and the Oslo Manual........................................... 27 1.1. Objectives and background of the Oslo Manual ......................................................................... 28 1.1.1. The origins of the Oslo Manual ............................................................................................ 28 1.1.2. Main objectives of the fourth edition ................................................................................... 29 1.1.3. Scope and approach of the fourth edition ............................................................................. 30 1.1.4. The Oslo Manual and other statistical standards .................................................................. 31 1.2. Structure and contents of the Oslo Manual 2018........................................................................ 32 1.2.1. Introduction to the measurement of innovation (Part I) ....................................................... 32 1.2.2. Framework and guidelines for measuring business innovation (Part II) .............................. 32 1.2.3. Methods for collecting, analysing and reporting statistics on business innovation (Part III)36 1.2.4. Cross-cutting issues covered within this manual.................................................................. 37 1.2.5. Digitalisation and innovation ............................................................................................... 37 1.2.6. Globalisation and innovation................................................................................................ 39 1.3. Implementing the guidance in this manual ................................................................................. 39 1.3.1. Nature of the guidance in this manual .................................................................................. 39 1.3.2. Transition and implementation............................................................................................. 40 References.......................................................................................................................................... 41 Chapter 2. Concepts for measuring innovation ................................................................................ 43 2.1. Introduction................................................................................................................................. 44 2.2. The concept of innovation .......................................................................................................... 45 2.2.1. Conceptual foundations ........................................................................................................ 45 2.2.2. Knowledge ........................................................................................................................... 46 2.2.3. Novelty with respect to potential uses .................................................................................. 46 OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 10 │ TABLE OF CONTENTS 2.2.4. Implementation and actual use ............................................................................................. 47 2.2.5. Value creation ...................................................................................................................... 47 2.3. User needs and relevance of statistical evidence on innovation ................................................. 48 2.3.1. Research academics.............................................................................................................. 48 2.3.2. Business managers ............................................................................................................... 49 2.3.3. Innovation and other public policy makers .......................................................................... 49 2.4. Elements of an innovation measurement framework .................................................................. 50 2.4.1. Scope of innovation measurement: SNA sectors and jurisdictions ...................................... 50 2.4.2. Innovation phenomena for measurement ............................................................................. 53 2.5. General strategies for measuring innovation .............................................................................. 56 2.5.1. Subject- versus object-based approaches ............................................................................. 56 2.5.2. Qualitative and quantitative data .......................................................................................... 57 2.5.3. Sources of innovation data ................................................................................................... 57 2.5.4. Responsibility for primary source data collection ................................................................ 58 2.5.5. Summary of the measurement approach in this manual ....................................................... 59 2.6. Measuring innovation beyond the Business sector ..................................................................... 60 2.6.1. Innovation in the General government sector ...................................................................... 60 2.6.2. Innovation and non-profit institutions .................................................................................. 61 2.6.3. Innovation, households and individuals ............................................................................... 61 References.......................................................................................................................................... 62 Part II. Framework and guidelines for measuring business innovation ........................................ 65 Chapter 3. Concepts and definitions for measuring business innovation ...................................... 67 3.1. Introduction................................................................................................................................. 68 3.2. Innovation in the Business enterprise sector ............................................................................... 68 3.2.1. Definition of innovation activities and innovation ............................................................... 68 3.2.2. Division of innovation effort and responsibilities ................................................................ 70 3.3. Taxonomies of innovation .......................................................................................................... 70 3.3.1. Innovation types by object: Product and business process innovations ............................... 70 3.3.2. Types of innovation according to novelty and impacts ........................................................ 77 3.4. Changes that are not innovations ................................................................................................ 78 3.5. Innovation and business profiling ............................................................................................... 80 3.5.1. Innovative and innovation-active firms ................................................................................ 80 3.6. Use of innovation definitions in data collection ......................................................................... 81 3.6.1. Use of the term “innovation” in surveys .............................................................................. 81 3.6.2. Innovation profiles ............................................................................................................... 82 3.6.3. Priorities for data collection about innovations .................................................................... 82 References.......................................................................................................................................... 83 Chapter 4. Measuring business innovation activities ....................................................................... 85 4.1. Introduction and main features of innovation activities.............................................................. 86 4.2. Types of activities of relevance to innovation ............................................................................ 87 4.2.1. Research and experimental development activities .............................................................. 87 4.2.2. Engineering, design and other creative work activities ........................................................ 87 4.2.3. Marketing and brand equity activities .................................................................................. 88 4.2.4. Intellectual property related activities .................................................................................. 89 4.2.5. Employee training activities ................................................................................................. 89 4.2.6. Software development and database activities ..................................................................... 89 4.2.7. Activities related to the acquisition or lease of tangible assets ............................................ 90 4.2.8. Innovation management ....................................................................................................... 91 OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 TABLE OF CONTENTS │ 11 4.3. Collecting qualitative data on the incidence of innovation activities ......................................... 91 4.3.1. Internal and externally sourced activities ............................................................................. 91 4.3.2. Qualitative data on specific activities related to innovation ................................................. 92 4.4. Collecting expenditure data on innovation activities .................................................................. 93 4.4.1. Conceptual issues in measuring innovation expenditures .................................................... 93 4.4.2. Expenditures for specific innovation activities .................................................................... 94 4.4.3. Expenditures by accounting categories for innovation-active firms .................................... 97 4.4.4. Sources of funds for innovation activities ............................................................................ 98 4.5. Other data on innovation activities ............................................................................................. 99 4.5.1. Collecting data on human resources for innovation activities.............................................. 99 4.5.2. Data on innovation projects.................................................................................................. 99 4.5.3. Follow-on activities ............................................................................................................ 100 4.5.4. Planned innovation activities and expenditures ................................................................. 100 4.6. Summary of recommendations ................................................................................................. 101 References........................................................................................................................................ 102 Chapter 5. Measuring business capabilities for innovation ........................................................... 103 5.1. Introduction............................................................................................................................... 104 5.2. General resources of the firm .................................................................................................... 104 5.2.1. Firm size ............................................................................................................................. 105 5.2.2. Business assets ................................................................................................................... 105 5.2.3. Age ..................................................................................................................................... 105 5.2.4. Financing and ownership ................................................................................................... 106 5.3. Management capabilities .......................................................................................................... 106 5.3.1. Business strategy ................................................................................................................ 106 5.3.2. Organisational and managerial capabilities ........................................................................ 108 5.3.3. Characteristics of the business owner and top management .............................................. 109 5.3.4. Innovation management capabilities .................................................................................. 110 5.3.5. Intellectual property management and appropriation ......................................................... 113 5.4. Workforce skills and human resource management ................................................................. 115 5.4.1. Workforce qualifications, occupational structure and competences .................................. 115 5.4.2. Human resource management ............................................................................................ 117 5.5. Technological capabilities ........................................................................................................ 117 5.5.1. Technical expertise ............................................................................................................. 118 5.5.2. Design capabilities ............................................................................................................. 119 5.5.3. Capabilities related to digital technologies and data analytics ........................................... 121 5.6. Summary of recommendations ................................................................................................. 123 References........................................................................................................................................ 124 Chapter 6. Business innovation and knowledge flows.................................................................... 127 6.1. Introduction............................................................................................................................... 128 6.2. Knowledge flows and innovation: Key concepts and definitions ............................................. 129 6.2.1. Diffusion of innovation ...................................................................................................... 129 6.2.2. Knowledge flows................................................................................................................ 129 6.2.3. Open innovation ................................................................................................................. 132 6.3. Collecting data on knowledge flows and their relationship to innovation ................................ 134 6.3.1. General issues..................................................................................................................... 134 6.3.2. Data on knowledge flows from innovation activities ......................................................... 135 6.3.3. Sources of ideas or information for innovation .................................................................. 139 6.3.4. Interactions with higher education and public research institutions .................................. 140 OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 12 │ TABLE OF CONTENTS 6.3.5. IP rights and knowledge flows ........................................................................................... 141 6.3.6. Barriers and undesirable consequences of knowledge flows ............................................. 141 6.4. Summary of recommendations ................................................................................................. 142 References........................................................................................................................................ 143 Chapter 7. Measuring external factors influencing innovation in firms ...................................... 145 7.1. Introduction............................................................................................................................... 146 7.2. Main elements of the external environment for business innovation ....................................... 146 7.3. Location of business activities .................................................................................................. 148 7.4. Markets and the environment for business innovation ............................................................. 149 7.4.1. Markets for the firm’s products .......................................................................................... 149 7.4.2. Competition and collaboration in markets ......................................................................... 151 7.4.3. The market for inputs ......................................................................................................... 153 7.4.4. Intermediaries and digital platforms................................................................................... 155 7.5. The public policy environment for business innovation ........................................................... 156 7.5.1. Regulations ......................................................................................................................... 156 7.5.2. Government support programmes ...................................................................................... 156 7.5.3. Innovation and public infrastructure .................................................................................. 158 7.5.4. Macroeconomic policy environment .................................................................................. 159 7.6. The social and natural environment for innovation .................................................................. 159 7.6.1. The social context for innovation ....................................................................................... 159 7.6.2. The natural environment .................................................................................................... 159 7.7. External factors as drivers and obstacles to business innovation .............................................. 160 7.7.1. External factors as drivers of innovation ............................................................................ 160 7.7.2. External factors as barriers or obstacles to innovation ....................................................... 160 7.8. Summary of recommendations ................................................................................................. 161 References........................................................................................................................................ 162 Chapter 8. Objectives and outcomes of business innovation ......................................................... 163 8.1. Introduction............................................................................................................................... 164 8.2. Qualitative measures of business innovation objectives and outcomes .................................... 164 8.2.1. Types of innovation objectives and outcomes.................................................................... 164 8.2.2. Innovation objectives and outcomes in relation to business strategies .............................. 166 8.3. Quantitative measures of innovation outcomes ........................................................................ 168 8.3.1. Quantitative measures for product innovation ................................................................... 168 8.3.2. Quantitative outcome data for business process innovations ............................................. 170 8.4. Issues for measurement ............................................................................................................. 172 8.5. Summary of recommendations ................................................................................................. 172 References........................................................................................................................................ 173 Part III. Methods for collecting, analysing and reporting statistics on business innovation ...... 175 Chapter 9. Methods for collecting data on business innovation.................................................... 177 9.1. Introduction............................................................................................................................... 178 9.2. Population and other basic characteristics for a survey ............................................................ 179 9.2.1. Target population ............................................................................................................... 179 9.2.2. Statistical units and reporting units .................................................................................... 180 9.2.3. Data linkage........................................................................................................................ 184 9.2.4. Frequency of data collection .............................................................................................. 185 9.2.5. Observation and reference periods ..................................................................................... 185 9.3. Question and questionnaire design ........................................................................................... 186 OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 TABLE OF CONTENTS │ 13 9.3.1. Question design .................................................................................................................. 187 9.3.2. Questionnaire design .......................................................................................................... 188 9.3.3. Short-form questionnaires .................................................................................................. 189 9.3.4. Combining innovation and other business surveys ............................................................ 189 9.3.5. Questionnaire testing .......................................................................................................... 191 9.4. Sampling ................................................................................................................................... 191 9.4.1. The survey frame ................................................................................................................ 191 9.4.2. Census versus sample ......................................................................................................... 192 9.4.3. Longitudinal panel data and cross-sectional surveys ......................................................... 194 9.5. Data collection methods............................................................................................................ 194 9.5.1. Postal surveys ..................................................................................................................... 194 9.5.2. Online surveys .................................................................................................................... 195 9.5.3. Telephone and face-to-face interviews............................................................................... 196 9.5.4. Combined survey methods ................................................................................................. 196 9.6. Survey protocol ......................................................................................................................... 196 9.6.1. Respondent identification ................................................................................................... 197 9.6.2. Support for respondents ..................................................................................................... 197 9.6.3. Mandatory and voluntary surveys ...................................................................................... 197 9.6.4. Non-response...................................................................................................................... 197 9.6.5. Conducting non-response surveys ...................................................................................... 198 9.7. Post-survey data processing ...................................................................................................... 199 9.7.1. Error checks........................................................................................................................ 199 9.7.2. Imputation of missing data ................................................................................................. 200 9.7.3. Calculating weights ............................................................................................................ 201 9.8. Publication and dissemination of results................................................................................... 201 9.8.1. Metadata and quality reports .............................................................................................. 202 9.8.2. Data access ......................................................................................................................... 202 References........................................................................................................................................ 202 Chapter 10. The object method for innovation measurement....................................................... 205 10.1. Introduction ............................................................................................................................. 206 10.2. Including an “object module” in an innovation survey........................................................... 206 10.2.1. Identifying a focal innovation within surveys .................................................................. 207 10.2.2. Non-innovative firms ....................................................................................................... 208 10.3. Questions on a focal innovation.............................................................................................. 209 10.3.1. Characteristics of the focal, most important innovation ................................................... 209 10.3.2. Innovation activities contributing to the focal innovation ................................................ 209 10.3.3. Business capabilities contributing to the focal innovation ............................................... 210 10.3.4. Knowledge flows contributing to and generated by the focal innovation ........................ 210 10.3.5. External factors influencing the focal innovation ............................................................ 210 10.3.6. Objectives and outcomes of the focal innovation............................................................. 211 10.4. Summary of recommendations ............................................................................................... 211 References........................................................................................................................................ 212 Chapter 11. Use of innovation data for statistical indicators and analysis .................................. 213 11.1. Introduction ............................................................................................................................. 214 11.2. Data and indicators on business innovation ............................................................................ 214 11.2.1. What are innovation indicators and what are they for? .................................................... 214 11.2.2. Desirable properties of innovation indicators .................................................................. 215 11.2.3. Recommendations and resources for innovation indicators ............................................. 216 OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 14 │ TABLE OF CONTENTS 11.3. Methodologies for constructing business innovation indicators ............................................. 217 11.3.1. Aggregation of statistical indicators ................................................................................. 217 11.3.2. Indicator development and presentation for international comparisons ........................... 219 11.3.3. Firm-level innovation rankings ........................................................................................ 221 11.4. A blueprint for indicators on business innovation .................................................................. 222 11.4.1. Choice of innovation indicators ....................................................................................... 222 11.4.2. Breakdown categories, scaling, and typologies................................................................ 227 11.4.3. Choice of statistical data for innovation indicators .......................................................... 228 11.5. Using data on innovation to analyse innovation performance, policies and their impacts ..... 229 11.5.1. Modelling dependencies and associations ........................................................................ 230 11.5.2. Inference of causal effects in innovation analysis ............................................................ 230 11.5.3. Analysing the impact of public innovation policies ......................................................... 233 11.5.4. Co-ordinated analysis of innovation microdata across countries ..................................... 236 11.6. Conclusions............................................................................................................................. 237 References........................................................................................................................................ 237 Glossary of terms ............................................................................................................................... 241 Tables Table 3.1. Functional categories for identifying the type of business process innovations .................. 73 Table 3.2. Comparing types of innovation in the current and previous Oslo Manual editions ............. 75 Table 3.3. Innovative and innovation-active firms ................................................................................ 81 Table 4.1. Collection of qualitative data on activities relevant to innovation ....................................... 93 Table 4.2. Collecting expenditure data on specific activities of relevance to innovation ..................... 95 Table 4.3. Accounting method for collecting expenditure data on activities for innovation ................ 97 Table 5.1. Types of intellectual property protection for data collection ............................................. 114 Table 6.1. Typology and examples of mechanisms for intentional knowledge flows......................... 131 Table 6.2. Measuring the contribution of inbound knowledge flows to innovation............................ 135 Table 6.3. Sources of inbound knowledge flows for innovation ......................................................... 137 Table 6.4. Measuring direct mechanisms for outbound knowledge flows .......................................... 138 Table 6.5. Types of collaboration partners for innovation .................................................................. 138 Table 6.6. Measurement of sources of ideas and information for innovation ..................................... 139 Table 6.7. Measuring channels for knowledge-based interactions between firms and HEIs/PRIs ..... 140 Table 6.8. Potential questions on the use of IP rights for knowledge flows........................................ 141 Table 6.9. Measuring barriers and unintended outcomes of knowledge interactions.......................... 142 Table 7.1. Business activities by location ........................................................................................... 148 Table 7.2. Competition and product market characteristics that can influence innovation ................. 152 Table 7.3. Types of finance for general and specific innovation activities ......................................... 155 Table 7.4. Possible approaches for classifying government policy instruments in innovation surveys157 Table 7.5. Main types of policy instruments to support innovation .................................................... 158 Table 7.6. Types of public infrastructure of potential relevance to innovation in firms ..................... 158 Table 7.7. Collecting information on characteristics of the firm’s social environment ...................... 159 Table 7.8. Proposal for integrated collection of data on external drivers of innovation ..................... 160 Table 8.1. Innovation objectives and outcomes for measurement, by area of influence ..................... 166 Table 8.2. Measurement of innovation objectives and outcomes for business strategies ................... 167 Table 8.3. Measurement of potential market impacts from business innovation ................................ 168 Table 9.1. Economic activities for inclusion in international comparisons of business innovation .... 183 Table 11.1. Desirable properties of business innovation indicators .................................................... 215 Table 11.2. Descriptive statistics and methods for constructing innovation indicators ...................... 218 OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 TABLE OF CONTENTS │ 15 Table 11.3. Thematic areas for business innovation indicators ........................................................... 222 Table 11.4. Indicators of innovation incidence and characteristics ..................................................... 223 Table 11.5. Indicators of knowledge-based capital/innovation activities............................................ 224 Table 11.6. Indicators of potential or actual innovation capabilities ................................................... 224 Table 11.7. Indicators of knowledge flows and innovation ................................................................ 225 Table 11.8. Indicators of external factors influencing innovation ....................................................... 226 Table 11.9. Indicators of innovation objectives and outcomes ........................................................... 226 Figures Figure 1.1. General representation of the relationship between chapters in Part II............................... 33 Figure 7.1. Main elements of the external environment for business innovation ................................ 147 Figure 9.1. From innovation theory to innovation data ....................................................................... 187 Figure 11.1. Logic model used in evaluation literature applied to innovation .................................... 231 Figure 11.2. The innovation policy evaluation problem to identifying causal effects ........................ 234 Boxes Box 6.1. Uses of the “open” concept in science and innovation ......................................................... 133 Box 11.1. Major resources for international innovation data using Oslo Manual guidelines ............. 217 Box 11.2. Examples of innovation scoreboards and innovation indexes ............................................ 221 lerts OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 ABBREVIATIONS AND ACRONYMS Abbreviations and acronyms AI Artificial intelligence ANZSIC Australian and New Zealand Standard Industrial Classification APSC Australian Public Service Commission CAD Computer-aided design CAPI Computer-assisted personal interviewing CATI Computer-assisted telephone interviewing CDM Crépon, Duguet and Mairesse CIS Community Innovation Survey (European Commission) CPC Central Product Classification (United Nations) EC European Commission EIS European Innovation Scoreboard ESS European Statistical System EU European Union EUIPO European Union Intellectual Property Office Eurostat European Commission’s Directorate-General for Statistics FTE Full-time equivalent G20 Group of Twenty GDP Gross domestic product HEI Higher education institution ICT Information and communication technology ILO International Labour Organization INSEE Institut national de la statistique et des études économiques (France) IP Intellectual property IPP Intellectual property product IPRs Intellectual property rights ISCED International Standard Classification of Education ISIC International Standard Industrial Classification of All Economic Activities ISO International Organization for Standardization OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 │ 17 18 │ ABBREVIATIONS AND ACRONYMS IT Information technology KAU Kind-of-activity unit KBC Knowledge-based capital MMD Micro-moments database MNE Multinational enterprise NACE Statistical classification of economic activities in the European Community NAICS North American Industry Classification System NEPAD New Partnership for Africa’s Development NESTI Working Party of National Experts on Science and Technology Indicators NPI Non-profit institution NPISHs Non-profit institutions serving households NSO National statistical organisation NSS National statistical system NTF New-to-firm NTM New-to-market OECD Organisation for Economic Co-operation and Development OM Oslo Manual PCT Patent Cooperation Treaty (World Intellectual Property Organization) PIAAC Programme for the International Assessment of Adult Competencies PRI Public research institution RICYT Ibero-American/Inter-American Network for Science and Technology Indicators R&D Research and experimental development RHG Response homogeneity group SIBS Survey of Innovation and Business Strategy (Canada) SMEs Small and medium-sized enterprises SNA System of National Accounts (United Nations) STI Science, technology and innovation TQM Total Quality Management TRIPS Trade-Related Aspects of Intellectual Property Rights UIS UNESCO Institute for Statistics UN United Nations UPOV International Union for the Protection of New Varieties of Plants WIPO World Intellectual Property Organization WTO World Trade Organization OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 EXECUTIVE SUMMARY Executive summary What is the Oslo Manual? The Oslo Manual provides guidelines for collecting and interpreting data data on innovation. It seeks to facilitate international comparability, and provides a platform for research and experimentation on innovation measurement. Its guidelines are principally intended to support national statistical offices and other producers of innovation data in designing, collecting, and publishing measures of innovation to meet a range of research and policy needs. In addition, the guidelines are also designed to be of direct value to users of information on innovation. These guidelines should be viewed as a combination of formal statistical standards, advice on best practices, as well as proposals for extending the measurement of innovation into new domains through the use of existing and new tools. At present, a large number of countries and international organisations recognise the importance of innovation measurement and have developed capabilities to collect such data. This manual supports this co-ordinated effort in pursuit of robust, internationally comparable data, indicators and analysis. Why a manual for measuring innovation? Innovation is central to improvements in living standards and can affect individuals, institutions, entire economic sectors, and countries in multiple ways. Sound measurement of innovation and the use of innovation data in research can help policy makers to better understand economic and social changes, assess the contribution (positive or negative) of innovation to social and economic goals, and monitor and evaluate the effectiveness and efficiency of their policies. The purpose of this manual is to guide innovation data collection and reporting efforts through a common vocabulary, agreed principles and practical conventions. These can enhance the comparability of statistical outputs and support the progressive development of a global statistical information infrastructure on innovation that is relevant and useful for researchers and decision makers alike. Jointly published by the OECD and Eurostat, the Oslo Manual is a key component of the series of measurement manuals produced by OECD under the title “The Measurement of Scientific, Technological and Innovation Activities”. As part of this family of manuals, it addresses the need to reflect how innovation systems operate beyond a description of the efforts made to invest in new knowledge (captured in the OECD Frascati Manual on resources dedicated to R&D), or the numbers and characteristics of patented inventions (as covered in the OECD Patent Statistics Manual). OSLO MANUAL 2018 © OECD/EUROPEAN UNION 2018 │ 19 20 │ EXECUTIVE SUMMARY The Oslo Manual plays a key role in demonstrating and communicating the multidimensional and often hidden nature of innovation. However, there are several outstanding research and policy questions that call for extended and more robust data. What is innovation? A key tenet of the Oslo Manual is that innovation can and should be measured. The requirement for measurability is an essential criterion