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Innovation Measurement - Present and Future Challenges
Innovation Measurement - Present and Future Challenges
The Danish Centre for Studies in Research and Research Policy, Finlandsgade 4, 8200 Aarhus N., Denmark;
Tel. (+45) 8942 2398, Email: carter.bloch@cfa.au.dk.
that is driven by consumer or market demands. The regional dimension of innovation is also
important, as are public sector innovation and improving the system for intellectual property
rights (IPR).
The new Oslo Manual has undergone a number of substantial revisions, with the aim of
keeping innovation measurement abreast of policy needs and changes in innovation theory
and the economy. Among the most important changes to the manual are: a broadened
definition of innovation used in innovation surveys, a much expanded coverage of knowledge
flows and the role of linkages in the innovation process, and an adaptation of the manual to
reflect the importance of innovation in less R&D-intensive industries, such as services and
low-tech manufacturing.
The broadening of the definition of innovation reflects a number of developments. First,
innovation is more market driven than in the past. This places focus not only on the design
and development of new products, but also on new marketing strategies and concepts.
Second, there is an increasing recognition of the importance of organizational practices for
firms innovation, knowledge transfer and general economic performance.
Marketing innovations are defined in the Oslo Manual as the implementation of new
marketing methods involving significant changes in product design or packaging, product
placement, product promotion or pricing. They thus include many design changes that are not
considered product innovations and new marketing practices in sales channels, branding and
pricing strategies.
Organizational innovations are defined as the implementation of new organizational methods
in firms business practices, workplace organization or external relations. They include
organizational changes designed to improve efficiency, to foster innovation activities in the
firm, and to increase knowledge exchange with other firms or institutions.
Recent innovation surveys, among them CIS3 and CIS4, include questions on firms transfer
of knowledge. The new Oslo Manual devotes considerable attention to knowledge transfers,
identifying three types of linkages for innovation activity: open information sources,
acquisition of knowledge and technology, and innovation cooperation.
The guidelines in the new Oslo Manual allow for wider coverage of firm innovations and
types of knowledge transfer. However, policy needs require not only a broader coverage of
firm innovation but also a better use of data to understand firm innovation. Data on the
implementation of innovations, knowledge transfer and from auxiliary questions can be used
to compile composite indicators that provide valuable information on how firms innovate.
Examples are indicators that identify whether firms are leaders or adopters, whether their
innovation is primarily R&D or technology driven or market driven, and whether firms
innovations are integrated over various firm activities.
Other areas of relevance for innovation policy are not covered by the Oslo Manual, such as
innovation in the public sector, or receive only limited coverage, such as the role of human
resources. Work remains in these areas to develop indicators and to existing work with that of
general innovation measurement.