The EU 2020 Innovation Indicator: A Step Forward in Measuring Innovation Outputs and Outcomes?

40 Pages Posted: 16 Nov 2016

See all articles by Juergen Janger

Juergen Janger

Austrian Institute of Economic Research (WIFO)

Torben Schubert

Fraunhofer Institut für Systemtechnik und Innovationsforschung

Petra Andries

KU Leuven - Department of Economics

Christian Rammer

ZEW – Leibniz Centre for European Economic Research - Industrial Economics and International Management Research

Machteld Hoskens

ECOOM, KU Leuven

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Date Written: October 15, 2016

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

JEL Classification: O25; O31; O38; O52

Suggested Citation

Janger, Juergen and Schubert, Torben and Andries, Petra and Rammer, Christian and Hoskens, Machteld, The EU 2020 Innovation Indicator: A Step Forward in Measuring Innovation Outputs and Outcomes? (October 15, 2016). ZEW - Centre for European Economic Research Discussion Paper No. 16-072. Available at SSRN: https://ssrn.com/abstract=2869760 or http://dx.doi.org/10.2139/ssrn.2869760

Juergen Janger

Austrian Institute of Economic Research (WIFO) ( email )

P.O. Box 91
Wien, A-1103
Austria

Torben Schubert

Fraunhofer Institut für Systemtechnik und Innovationsforschung ( email )

Breslauer Str. 48
Karlsruhe, 76139
United States

Petra Andries

KU Leuven - Department of Economics ( email )

Leuven, B-3000
Belgium

Christian Rammer (Contact Author)

ZEW – Leibniz Centre for European Economic Research - Industrial Economics and International Management Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Machteld Hoskens

ECOOM, KU Leuven ( email )

Naamsestraat 61
Leuven, Vlaams-Brabant 3000
Belgium

HOME PAGE: http://www.ecoom.be

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