72 Yorkshire and The
0.49
Humber
78 North East
0.48
80 Wales
0.48
89 Scotland
0.45
113 Northern Ireland
0.41
Table 8.6: UK Regional Innovation Performance 2006 Source: EU Trend Chart (2006)
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This shows the ranking for UK regions with the South East of England highest for the UK and Scotland and Northern Ireland below Wales. Table 8.7 shows the impact on UK regions’ EU ranks from changes in methodology for calculating the composite innovation index between 2002 and 2006 (EU Trend Chart,
2006).
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RIS 2002
RIS 2003
RIS 2006
Transformation
NO
NO
YES
YES
Re-scaling
NO
YES
YES
YES
National weight
1/2
1/2
1/2
1/4
Region
RRSII Rank RRSII Rank RRSII Rank RRSII Rank
East Midlands
107
52
0.36
55
0.53
50 0.57
47
Eastern
147
18
0.5
18
0.66
18 0.69
17
London
112
42
0.41
38
0.56
40 0.59
35
North East
86
94
0.29
85
0.44
89 0.48
78
North West
102
65
0.34
68
0.5
61 0.54
56
Northern Ireland
72
134
0.23
131
0.37
129 0.41 113
Scotland
92
85
0.33
73
0.4
107 0.45
89
South East
150
14
0.54
15
0.69
12 0.72
12
South West
109
46
0.38
48
0.54
42 0.58
37
Wales
86
96
0.3
82
0.43
91 0.48
80
West Midlands
108
48
0.38
47
0.54
47 0.57
42
Yorkshire and The Humber
90
87
0.3
83
0.45
83 0.49
72
Table 8.7: Impact on UK regions’ EU ranks from changes in methodology
Source: EU Trend Chart (2006)
In 2002 a simple methodology was used with data not transformed or re-scaled and national and European components receiving equal weighting (EU Trend Chart, 2002). For 2003 re-scaling of indicators was
introduced and five indicators from the 2nd Community Innovation Survey (CIS) were included (EU Trend Chart, 2003). 2006 introduced the transformation of data with square root transformation for five
indicators and double square root transformation for two indicators (a smaller weight for the national component of ¼ instead of ½ is used in 2006) (EU Trend Chart, 2006). The EU Regional Innovation
Scoreboard 2006 UK data are shown in Table 8.8 for T-2, T-1 and T.
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Relative to EU
HRSTC
LIFE-LONG
MED/HI-TEC
HI-TECH
PUB R&D
BUS R&D
PATENTS
T-2
T-1
T
T-2
T-1
T
T-2
T-1
T
T-2
T-1
T
T-2
T-1
T
T-2
T-1
T
T-2
T-1
T
United Kingdom
121
119
119
281
277
266
98
103
105
138
145
142
89
89
93
98
103
103
95
97
94
East Midlands
101
99
99
266
254
257
116
124
117
122
123
112
61
61
58
127
121
122
73
87
90
Eastern
114
109
109
286
281
269
111
110
109
165
179
174
91
91
99
274
272
276
178
189
174
London
161
155
155
325
327
308
36
39
40
192
215
188
89
89
90
35
35
34
122
120
117
North East
88
96
96
254
248
230
129
131
135
97
143
108
56
56
55
42
45
52
48
49
65
North West
105
114
114
267
276
259
105
118
117
111
105
130
52
52
51
124
133
121
71
73
74
Northern Ireland
119
101
101
187
182
162
84
78
79
80
82
86
56
56
54
53
40
36
26
26
19
Scotland
132
126
126
270
255
240
84
89
91
101
112
118
123
123
128
41
44
51
0
0
0
South East
136
130
130
306
296
290
106
110
114
193
202
200
121
121
134
172
183
178
196
184
181
South West
120
121
121
291
298
293
102
105
119
127
120
113
88
88
101
96
106
119
62
65
56
Wales
114
117
117
262
231
228
96
97
114
83
87
95
77
77
72
33
49
33
19
19
16
West Midlands
104
103
103
268
276
263
153
165
156
132
121
122
71
71
72
61
81
86
95
99
105
Yorkshire/Humber
105
103
103
273
266
255
82
83
89
98
104
104
71
71
66
36
38
39
81
89
78
Table 8.8: EU Regional Innovation Scoreboard 2006 UK data
Source: EU Trend Chart (2006)
Key: HRSTC – Knowledge workers, LIFE-LONG – Life-long learning, MED/HI-TEC – Med/Hi-tech
manufacturing, HI-TECH – Hi-tech services, PUB R&D – Public R&D, BUS R&D – Business R&D, Patents.
The EU Regional Innovation Scoreboard 2006 UK composite indicator scores are shown in Table 8.9 for RNSII, REUSII and RRSII T-4, T-3, T-2, T-1 and T.
RNSII
REUSII
RRSII
T-4
T-3
T-2
T-1
T
T-4
T-3
T-2
T-1
T
T-4
T-3
T-2
T-1
T
United Kingdom
0.55
0.52
0.52 0.48
0.49
0.65
0.68
0.66
0.64
0.63
East Midlands
0.48 0.46 0.46 0.41 0.45
0.6 0.64 0.62 0.59
0.6 0.57 0.59 0.58 0.54 0.57
Eastern
0.69 0.66 0.67 0.58 0.59 0.75 0.78 0.77 0.73 0.72 0.73 0.75 0.74
0.7 0.69
London
0.53 0.53 0.52 0.46 0.48 0.64 0.69 0.66 0.63 0.63 0.61 0.65 0.63 0.59 0.59
North East
0.41
0.4 0.34 0.32 0.36 0.54 0.59 0.53 0.52 0.52 0.51 0.54 0.48 0.47 0.48
North West
0.5 0.46 0.43 0.41 0.42 0.62 0.64
0.6
0.6 0.58 0.59 0.59 0.56 0.55 0.54
Northern Ireland
0.23 0.22 0.26 0.24 0.27 0.43 0.47 0.49 0.47 0.46 0.38 0.41 0.44 0.41 0.41
Scotland
0.35
0.3 0.29
0.3 0.31 0.52 0.53 0.52 0.52
0.5 0.48 0.48 0.46 0.47 0.45
South East
0.75
0.7 0.71 0.65 0.63 0.78 0.81 0.79 0.78 0.75 0.77 0.78 0.77 0.75 0.72
South West
0.55
0.5 0.49 0.47 0.47 0.64 0.66 0.64 0.64 0.62 0.62 0.62
0.6
0.6 0.58
Wales
0.35 0.32 0.31
0.3 0.35 0.51 0.54 0.52 0.51 0.52 0.47 0.48 0.46 0.46 0.48
West Midlands
0.53 0.51 0.49 0.45 0.47 0.63 0.66 0.63 0.61 0.61
0.6 0.62
0.6 0.57 0.57
Yorkshire/Humber
0.39 0.37 0.36 0.35 0.37 0.53 0.56 0.55 0.54 0.53
0.5 0.52
0.5 0.49 0.49
Table 8.9: EU Regional Innovation Scoreboard 2006 UK composite indicator scores
Source: EU Trend Chart (2006)
Key: RNSII – Regional National Summary Innovation Index, REUSII – Regional European Summary
Innovation Index, RRSII – Revealed Regional Summary Innovation index (RRSII).
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The composite indicator scores in Table 8.9 take the average for RNSII, REUSII and RRSII T-4, T-3, T-2, T-1 and T (consistent with the findings Table 8.6).
Table 8.10 shows nine UK Regional Innovation Indicators for the 12 regions compared with those for the EU.
REGION
INDICATOR
1
2
3
4
5
6
7
8
9
European Union
21.78 a
8.52 a
7.41 a 3.57 a 0.68 b
1.3 b 31.6 b 161.1 b 22603 c
United Kingdom
29.36
a
22.29 a
6.72 a
4.47 a
0.6
d
1.28
b
35.6
b
133.5
b
26096
c
East Midlands
24.29 a 21.12 a
7.93 a 3.96 a 0.38 d 1.45 b 13.5 b 108.9 b 24411 c
Eastern
26.96 a 23.04 a
7.6 a 5.35 a 0.55 d 3.11 b 94.2 b 261.3 b 27031 c
London
41.66 a
25.2 a
2.45 a 6.23 a 0.64 d 0.41 b
41 b 112.5 b 38230 c
North East
22.41 a 20.43 a
8.82 a 3.14 a 0.38 d 0.35 b
6 b
64.6 b 20136 c
North West
24.8 a 21.22 a
7.22 a 3.59 a 0.34 d 1.52 b 12.2 b 103.4 b 22670 c
Northern Ireland
25.23 a 14.69 a
5.75 a
2.6 a 0.38 d 0.69 b
7.7 b
42.5 b 20224 c
Scotland
32.83 a 21.88 a
5.75 a 3.28 a 0.82 d 0.62 b
18 b
91.2 b 25290 c
South East
33.78 a 24.11 a
7.28 a 6.25 a 0.78 d 2.49 b 74.6 b 233.2 b 28754 c
South West
29.34 a 22.98 a
6.98 a
4.1 a
0.6 d 1.37 b 49.6 b 145.4 b 23675 c
Wales
26.13 a 19.94 a
6.58 a 2.69 a 0.49 d 0.34 b 10.4 b
69.9 b 20959 c
West Midlands
25.45 a 21.41 a 10.49 a 4.28 a 0.46 d 0.78 b 11.8 b
97.3 b 23919 c
Yorkshire/Humber
25.09 a 21.76 a
5.59 a 3.16 a 0.46 d
0.4 b 15.3 b
86.9 b 22927 c
Key:
Year
a 2002 b 2001 c 2000 d 1999
Indicator
1 Tertiary education
2 Lifelong learning
3 Med/hi-tech employment in manufacturing
4 High-tech employment in services
5 Public R&D
6 Business R&D
7 High-tech patent applications
8 Patent applications
9 GDP per capita
Table 8.10: UK Regional Innovation Indicators Source: EC (2003)
Using the initial framework for identifying indicators relevant to small firms (Table 8.5) for the three performance areas of generation of new knowledge (public R&D), industry-science linkages (med/high tech employment in manufacturing and high-tech patent applications) and industrial innovation (business R&D and patent applications) a comparison of regional profiles can be made.
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Conclusions
The chapter has reviewed the current innovation performance indicators relevant to small firms and has presented an approach that can be used to provide analysis of innovation activity for the comparison of countries and regions. A framework for selecting and placing indicators in three performance areas has been explored. Results according to the performance areas have been derived from databases including the EC and OECD. The chapter identifies those indicators useful to entrepreneurs, policy makers,
practitioners, researchers and educators and these include public R&D, med/high tech employment in manufacturing, high tech patent applications, business R&D and patent applications.
Recommended Reading
Thomas, B. and Murphy, L. (2009) A review of innovation performance indicators relevant to small firms in Wales, 32nd Institute for Small Business and Entrepreneurship Conference, 3-6 November, ISBE
Handbook, Liverpool.
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References
Acs, Z.J. and Audretsch, D.B. (1990) Innovation and Small Firms, Cambridge Mass: MIT Press.
Acs, Z.J. and Audretsch, D.B. (1993) Analysing innovation output indicators: the US experience. In: Kleinknecht, A., Bain, D. (Eds.), New Concepts in Innovation Output Measurement, St. Martin’s Press, New York, pp. 10–41.
Audretsch, D.B. and Feldman, M.P. (1996a) Innovative Clusters and the Industry Life-cycle, The Review of Industrial Organization, 11, pp. 253-273.
Audretsch, D.B. and Feldman, M.P. (1996b) Knowledge spillovers and the geography of innovation and
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Audretsch, D.B. and Stephan, P.E. (1996) Company-scientist locational links: the case of biotechnology, The American Economic Review, 86(3), pp. 641–652.
Audretsch, D.B. (1995) Innovation, growth and survival, International Journal of Industrial Organization, 13(4), pp. 441-457.
Conference Board of Canada (CBC) (2004) Exploring Canada’s Innovation Character: Benchmarking
Against Global Best, CBC, Ottawa, Ontario, June.
Dunne, T. (1994) Plant age and technology use in U.S. manufacturing industries. Rand Journal of Economics, 25, pp. 488–499.
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European Commission (EC) (2001) European Innovation Scorebaord 2001, Luxembourg, SEC 1414.
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Brussels, EUR 20025 EN.
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European Commission (EC) (2005) European Innovation Scoreboard 2005, Brussels.
E