WP2: Technology, Innovation and Intangible Indicators
· To review indicators of technology, innovation and intangible investments
· To construct indicators of innovation and use of ICT
· To construct indicators of intangible investments
· To consider the impact of ICT use, innovation and intangible investments on international productivity performance
(Full details of the workpackage can be found in the description of work)
Part 1: Review of Indicators
WP2 will begin with a review of indicators that have been employed in the existing literature to measure innovation in service sectors. In addition to general innovations, this work package will consider ICT as a specific new technology which is likely to have had a major impact on many aspects of service sector growth and productivity.
Parallel to the review on innovation measures will be a review of the available measures for intangible investments in market services sectors. The definition of intangibles will be guided by previous literature, which has included areas such as workforce training, software, R&D, brand equity and organizational change in their classifications and will draw on previous FP7 funded projects COINVEST and INNODRIVE. The work will go beyond the previous literature in attempting to capture creative activity by firms.
Part 2: Developing Indicators
WP2 will develop indicators which describe innovative activity and the use and application of ICT and will develop indicators on intangible investments for the service sectors. Following the literature review the project will consider the feasibility of developing industry estimates of intangibles that can be linked to EU KLEMS, and will be of relevance to most EU countries. It will also study a few countries in more detail to derive more complete and robust indicators – likely candidates include Finland, Germany and the UK, linked to US data.
The second part of WP2 is dedicated to indicator validation. Analysing and quantifying the effects of innovation and ICT activities on productivity and employment has a long tradition in empirical research relating to industrial organisation. In this project we will build upon the methodology developed in recent years for measuring productivity and employment effects of innovation based on innovation survey data, and will use descriptive techniques to consider correlations between innovation and ICT on productivity and growth in service sectors. The purpose of this exercise is to explore how useful the various indicators are likely to be in explaining differences in productivity and growth across countries for individual service sectors and across these service sectors. For the selected countries referred to above the project will undertake a full growth accounting exercise to measure the impact of intangibles on growth in service sectors.
Outputs of the workpackage