Various Approaches to Measuring Business Innovation: Their Relevance for Capturing Social Innovation

Institute of Economics, CERS HAS Discussion Papers MT-DP 2015/54

52 Pages Posted: 23 Jan 2016 Last revised: 5 Apr 2017

See all articles by Attila Havas

Attila Havas

Hungarian Academy of Sciences (HAS) - Research Centre for Economic and Regional Studies (HAS)

Date Written: November 30, 2015

Abstract

This paper reviews various approaches to measuring business innovation from the angle of capturing social innovations and offers several methodological and policy conclusions. First, the Innovation Union Scoreboard (IUS) indicators in principle could be useful in settings where the dominant mode of innovation is based on R&D activities. In practice, however, both R&D and non-R&D-based modes of innovation are fairly important. IUS, therefore, only provides a partial picture. Social innovations can certainly rely on R&D-based technological innovations. Their essence, however, tends to be organisational, managerial and behavioural changes. The IUS indicators do not capture these types of changes. Second, an assessment of the 81 indicators used to compile the Global Innovation Index reveals that it would neither be a fruitful effort to rely on those indicators to capture social innovations. Third, given the diversity among innovation systems, a poor performance signalled by a composite indicator does not automatically identify the area(s) necessitating the most urgent policy actions. Only tailored, thorough comparative analyses can do so. Fourth, analysts and policy-makers need to be aware of the differences between measuring (i) social innovation activities (efforts) themselves, (ii) the framework conditions (pre-requisites, available inputs, skills, norms, values, behavioural patterns, etc.) of being socially innovative, and (iii) the economic, societal or environmental impacts of social innovations.

Keywords: Evolutionary economics of innovation, Business innovation, Social innovation, Measurement of innovation, Composite indicators, Scoreboards, league tables, Unit of analysis

JEL Classification: B52, C80, O31, O35, O38, Y10

Suggested Citation

Havas, Attila, Various Approaches to Measuring Business Innovation: Their Relevance for Capturing Social Innovation (November 30, 2015). Institute of Economics, CERS HAS Discussion Papers MT-DP 2015/54, Available at SSRN: https://ssrn.com/abstract=2720881 or http://dx.doi.org/10.2139/ssrn.2720881

Attila Havas (Contact Author)

Hungarian Academy of Sciences (HAS) - Research Centre for Economic and Regional Studies (HAS) ( email )

Toth Kalman u. 4.
Budapest, H-1097
Hungary
+36-30-8164266 (Phone)

HOME PAGE: http://www.mtakti.hu/en/kutatok/attila-havas/8185/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
53
Abstract Views
505
rank
442,869
PlumX Metrics