The EU 2020 innovation indicator: A step forward in measuring innovation outputs and outcomes?

Jürgen Janger, Torben Schubert, Petra Andries, Christian Rammer and Machteld Hoskens

No 16-072, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: In October 2013, the European Commission presented a new indicator intended to capture innovation outputs and outcomes and thereby "support policy-makers in establishing new or reinforced actions to remove bottlenecks that prevent innovators from translating ideas into products and services that can be successful on the market". This article aims to evaluate the usefulness of the new indicator against the background of the difficulties in measuring innovation outputs and outcomes. We develop a unique conceptual framework for measuring innovation outcomes that distinguishes structural change and structural upgrading as two key dimensions in both manufacturing and services. We conclude that the new indicator is biased towards a somewhat narrowly defined "high-tech" understanding of innovation outcomes. We illustrate our framework proposing a broader set of outcome indicators capturing also structural upgrading. We find that the results for the modified indicator differ substantially for a number of countries, with potentially wide-ranging consequences for innovation and industrial policies.

Keywords: Innovation Output; Innovation Outcome; Innovation Measurement; Structural Change; Structural Upgrading; EU 2020 Strategy; Innovation Policy (search for similar items in EconPapers)
JEL-codes: O25 O31 O38 O52 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-hme, nep-ino, nep-knm, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: The EU 2020 innovation indicator: A step forward in measuring innovation outputs and outcomes? (2017)
Working Paper: The EU 2020 Innovation Indicator. A Step Forward in Measuring Innovation Outputs and Outcomes? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:16072

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