The Innovation Index Project
Brainstorming on measuring innovation on education
OECD, 11 June 2009
Why a new Innovation Index for the UK?
Most traditional innovation
indicators (e.g., R&D, patents):
• Biased towards manufacturing innovations
based on basic scientific breakthroughs (the
“linear” model of innovation)
• Fail to capture innovation in the UK’s
increasingly important services sectors,
creative industries and in the delivery of public
services.
• And focus innovation policy on improving
“incomplete” metrics
 DIUS White Paper: A new innovation index is needed
Aims & Timetable
Policy makers are the main audience, but output must be credible with
the private sector and the academic community
Provide a better account of innovation in the UK, which includes `hidden
innovation’, user-led innovation and innovation in public services
As far as practicable, be comparable across similar sectors across
different countries
September 2008:
Scoping “MiniProjects”
January 2009:
Commission
Main
Components
Autumn 2009:
Publication
Pilot “Index”
Autumn 2010:
Publication
Full “Index”
Private Sector Index Update
1. Innovation growth accounting (18 months)
•
Imperial College and ONS (Jonathan Haskel and Tony Clayton)
2. Firm-level innovation performance (7 months)
•
University of Warwick (Stephen Roper, Jim Love and John Bryson)
3. Wider/Framework Conditions (7 months)
•
GHK, Technopolis and Manchester University (Manchester Institute
of Innovation Research)
4. Measuring user-led innovation (7 months)
•
CENTRIM, MIT and EIM (Steve Flowers, Eric von Hippel and Jeroen
de Jong)
1. Innovation growth accounting
•
•
Main indicators:
•
Investment in innovation, going beyond R&D
•
Contribution of investment in innovation to labour productivity
growth, distinguishing between different types of investment
•
Total Factor Productivity (TFP) growth, accounting for the role of
intangibles.
Process:
•
Focus on software, R&D, design spending, financial services,
marketing, human capital and organisational capital
•
Exploit labour force survey data to build measures of investment
•
Run extended R&D survey and conduct industry fora
•
Test assumptions underlying metrics and growth accounting
2. Firm-level innovation performance
• Main indicators:
• Sector-specific indicators of innovation activity
• Innovation capabilities map (per sector and innovation process stage)
• 6 areas of the UK economy in 2009 (10 sectors):
legal services, consultancy services, accountancy services (as part of
knowledge intensive business services); software and IT services;
architecture and design (as part of creative services); aerospace,
automotive (as part of high-value manufacturing); construction; and
energy production.
• Process:
• Implement a peer review process with industry practitioners to
validate indicator choice (sector-specific)
• Run firm survey to collect data on the selected indicators
3.Wider/Framework Conditions
•
•
Main indicators:
•
Indicators for the most important drivers of innovation activity
outside the firm/organization
•
It may include, among others, skills, entrepreneurship and growth,
finance, “demand”, intellectual property rights, collaboration and
competition
Process:
•
Develop selection criteria to choose among potential frameworks
and different indicators
•
Compile data based on existing sources on the selected indicators at
a national and regional level
•
Consider the distinctive role that specific conditions have for some
industries
4. Measuring user-led innovation
• Main indicators
• Indicators for user innovation by firms and individual end
consumers
• Process:
• Undertake a firm level survey to measure user innovation in UK
firms
• Undertake two surveys on end consumers to measure the
involvement of UK end-consumers in the innovation process
5. The Public Sector/Services: Work so far
• Commissioning two scoping projects on public sector
innovation – LSE, Technopolis
• Engaging with and advising on other initiatives in the UK
and internationally including:
o National Audit Office study
o NHS Innovation metrics project
o OECD revision of ‘Oslo Manual’
o UKIPO measurement of intangible assets
o Nordic Initiative
• Organising OECD-DIUS-Nordic-NESTA conference to share
thinking and developing international co-operation
Determining parameters: some choices
Public sector
Public services
Performance tool
Sector statistics
Balanced score card
‘Return on investment’ data
Health innovation metrics: DH/NHS approach
Innovation metric
Support for collection
No. of ideas identified
SHA National Grid for Innovation
No. of ideas grown, piloted and
adopted (financial/human resources
invested)
SHA National Grid for Innovation
No. of ideas diffused
SHA National Grid for Innovation
Economic value of innovations (£s)
Valuation models
Patient value of innovations (QALYs
and others)
Valuation models
Staff perception of innovation
environment
NHS staff survey
What’s relevant to measure?
Characteristics of an innovative public sector
•
Culture of continuous improvement that incentivises public
bodies, their staff and stakeholders to innovate
•
Openness to innovative ideas and able to source innovations
from outside and within
•
Making decisions and allocating funding quickly to develop, trial
and test innovations
•
Identifying what works and comparing with existing delivery
methods
•
Allocating funding to scale and rolling out successful innovations
with support for adopters
•
Closing down unsuccessful innovation projects
Within the Index conceptual framework:
generic indicators for the public sector
Inputs
Outputs of
innovation
activity
Adoption
of
innovation
Wider Conditions
Outcomes
Aspect of
innovation
Some potential indicators
Inputs
Investment in innovation or capability to innovate: spending;
procurement & commissioning strategies; sourcing; support for
innovators
Outputs
New products, services, processes, delivery models; patents;
copyrights
Adoption
Adoption of new to organisation products, services processes,
procedures , delivery models; mechanisms for sharing learning
and encouraging adoptions across and between organisations
Outcomes
Cost-benefit analysis and other assessments of ‘value added’ of
innovation; customer and staff satisfaction measures;
productivity and quality measures; performance measures
Proposed public sector outputs
1. A set of input, output, adoption and outcome
indicators that measure some or all dimensions of
public sector innovation processes
2. A methodology piloted by NESTA for capturing public
sector innovation data that can be later adopted by
others
3. Depending on progress on the private sector
components of the Index, additional outputs such as
work on framework conditions and public sector
productivity
Next steps – Phase 1 2009-10
May-Aug 09
Stakeholder consultation on data collection and
willingness to participate in trial; survey design
Sept 09
Trial surveying and data collection (c.10 orgs.)
Oct-Nov 09
Interim report: present findings in UK and at
international workshop
Nov-Jan 10
Main pilot surveying and data gathering
March 10
Pilot study report published, including indicators
and some ’worked examples’ of interpretation
Next steps – Phase 2 2010 -11
April-June 2010
Stakeholder consultation and development
of indicators with additional public service
delivery areas – for example Education,
Policing, Social Care; refinement of Phase
1 indicators
April 2010-Jan 2011
Further work on outcome indicators and
Phase 2 surveying
March 2011
Final report/outputs: indicators,
methodological ’toolkit’ and outcome
measures
www.innovationindex.org.uk
innovationindex@nesta.org.uk