An Indicator for National Systems of Innovation: Methodology and Application to 17 Industrialized Countries

37 Pages Posted: 7 Jun 2011

See all articles by Heike Belitz

Heike Belitz

German Institute for Economic Research (DIW Berlin) - Innovation, Management, Service

Marius Clemens

affiliation not provided to SSRN

Christian von Hirschhausen

German Institute for Economic Research (DIW Berlin) - Department of International Economics

Jens Schmidt-Ehmcke

German Institute for Economic Research (DIW Berlin)

Axel Werwatz

German Institute for Economic Research (DIW Berlin)

Petra Zloczysti

German Institute for Economic Research (DIW Berlin)

Date Written: May 1, 2011

Abstract

We develop a composite indicator measuring the performance of national innovation systems. The indicator takes into account both "hard" factors that are quantifiable (such as R&D spending, number of patents) and "soft" factors like the assessment of preconditions for innovation by managers. We apply the methodology to a set of 17 industrialized countries on a yearly basis between 2007 and 2009. The indicator combines results from public opinion surveys on the process of change, social capital, trust and science and technology to achieve an assessment of a country's social climate for innovation. After calculating and ranking the innovation indicator scores for the 17 countries, we group them into three classes: innovation leader, middle group and end section. Using multiple sensitivity analysis approaches, we show that the indicator reacts robustly to different weights within these country groups. While leading countries like Switzerland, the USA and the Nordic countries have an innovation system with high scores and ranks in every sub indicator, the middle group consisting among others of Germany Japan, the UK and France, can be characterized by higher variation within ranks. In the end section, countries like Italy and Spain have bad scores for almost all indicators.

Keywords: National systems of innovation, composite indicators, ranking

JEL Classification: O30, C81, H52

Suggested Citation

Belitz, Heike and Clemens, Marius and von Hirschhausen, Christian and Schmidt-Ehmcke, Jens and Werwatz, Axel and Zloczysti, Petra, An Indicator for National Systems of Innovation: Methodology and Application to 17 Industrialized Countries (May 1, 2011). DIW Berlin Discussion Paper No. 1129, Available at SSRN: https://ssrn.com/abstract=1858751 or http://dx.doi.org/10.2139/ssrn.1858751

Heike Belitz (Contact Author)

German Institute for Economic Research (DIW Berlin) - Innovation, Management, Service ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Marius Clemens

affiliation not provided to SSRN ( email )

Christian Von Hirschhausen

German Institute for Economic Research (DIW Berlin) - Department of International Economics ( email )

Mohrenstraße 58
Berlin, 10117
Germany
+49-30-89789-343 (Phone)
+49/30/897 89 -200 (Fax)

Jens Schmidt-Ehmcke

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Axel Werwatz

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Petra Zloczysti

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

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