Innovation and Competitiveness Indicators. Andrea Saltelli, Paola Annoni, Stefano Tarantola
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1 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Innovation and Competitiveness Indicators Andrea Saltelli, Paola Annoni, Stefano Tarantola Joint Research Centre Ispra Andrea.saltelli@jrc.ec.europa.eu
2 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Measuring Innovation and Competitiveness
3 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Measuring Innovation and Competitiveness C H A L L E N G E S
4 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Measuring Innovation and Competitiveness Not agreed definition in the literature challenges Several dimensions (social, economic, institutional, ) Implies understanding the link between the dimensions At which scale? (countries/regions/firms.)
5 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Measuring Regional Innovation and Competitiveness Scale M a c r o M i c r o Competitiveness: Set of institutions, policies and factors that determine the level of productivity of a country (Schwab-Porter 2007) Regional scale Clusters of firms Spillovers Geographical concentation of linked industries, available knowledge and technology, Competitiveness: inclination and skills to compete, to win and retain position in the market, increasing market share and profitability (Filo, 2007)
6 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Measuring Regional Competitiveness and Innovation Define measurable concepts Obtain sound data Aggregate them
7 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Regional Competitiveness 2010 RCI measures the level of competitiveness of about 270 NUTS2 regions in EU Three dimensions Basic drivers Efficiency Innovation 69 indicators Basic pillars 1. Institutions 2. Macroeconomic stability 3. Infrastructure 4. Health 5. Quality of Primary and Secondary Education Efficiency pillars increasing potential of the regional economy increasing weight on efficiency and innovation pillar groups Innovation pillars 9. Technological Readiness 10. Business Sophistication 11. Innovation NACE 7,8 sectors empl. 6. Higher Education/Training and Lifelong Learning 7. Labor Market Efficiency 8. Market Size Including gender equity Debt, deficit, saving rate, inflation and long term bond yields
8 Robustness assessment (=sensitivity analysis) of indices A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5,
9 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, RCI differential weighting scheme w basic w efficiency Regional Competitiveness Index - RCI w innovation
10 Best performers Region Competitiveness index A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Utrecht 100 Hovedstaden (including Copenhagen) 96 Noord-Holland 95 London 94 Stockholm 94 Etelä-Suomi (including Helsinki) 93 Zuid-Holland 92 Île de France (including Paris) 92 Noord-Brabant 91 Warsaw Berkshire, Buckinghamshire and Oxfordshire 90 Prague Paris Bratislava Madrid Budapest Bucharest Lisboa The darker the better Vienna Athens Sofia
11 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Regional Competitiveness Index 2010 Results Capital regions consistently score higher than surrounding regions Metropolitan regions in northwestern EU score best The darker the better
12 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, High heterogeneity within countries: regional level does matter Aggregate index at the country level
13 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Regional Competitiveness Index 2010 Poor performers Romania, Bulgaria (pro: Higher edu.; con: institutions, primary & second. edu), Hungary (pro: infrastructure; con: macro stability, health) Greece (pro: Health and Higher edu; con: Institutions, Macro stability, Primary & second. edu.) Italy (pro: infrastructure, Health; con: Institutions, Primary & second. edu.)
14 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, The blue banana (Brunet, 1989) has the blue banana lost a part?
15 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, INNOVATION Regional Competitiveness Indicator and Regional innovation Scoreboard
16 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Regional Innovation Scoreboard 2009 RIS measures innovation performance across 201 regions in the EU and Norway (done with ENTR-D1 and University of Maastricht) 16 indicators Budapest Enablers (education, public R&D, infrastructure) Firm activity (patents, SMEs innovation, private R&D) Output (new products/markets, technological and non-tech. innovators) Focus on SMEs
17 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, High heterogeneity within countries: regional level do matter Regional Innovation Scoreboard 2009 Aggregate index at the country level
18 Interesting similarities A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Regional Competitiveness 2010 Regional Innovation Scoreboard 2009
19 1.5 RCI vs GDP Relation between RCI and GDP-2007 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Regional Competitiveness Index (2009) Regional Competitiveness Regional Innovation Scoreboard (2004) Regional Innovation Scoreboard RIS RCI GDP per head RIS vs GDP GDP per head
20 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Innovation and Competitiveness Indicators more on
21 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, References Filó, C. (2007) Territorial Competitiveness and the Human Factors. International Conference of Territorial Intelligence, Huelva 2007 (CAENTI) Schwab, K. (2010) The Global Competitiveness Report World Economic Forum. Geneva, Switzerland. Schwab, K. and Porter, M. E. (2007) The Global Competitiveness Report World Economic Forum. Geneva, Switzerland. Further reading JRC work on indicators Annoni, P. Bruggemann, R., Saltelli, A. (2011) Partial order investigation of multiple indicator systems using variance based sensitivity analysis, Environmental Modeling and Software, 26 (2011) Annoni P. and Kozovska K. (2010) EU Regional Competitiveness Index EUR EN, European Commission. Hollanders, H., Tarantola, S., Loschky, A. (2009) The 2009 Regional Innovation Scoreboard. Inno Metrics OECD, European Commission, Joint Research Centre. (2008). Handbook on constructing composite indicators: methodology and user guide. In Nardo, M. M. Saisana, A. Saltelli and S. Tarantola (EC/JRC), A. Hoffman and E. Giovannini (OECD), OECD publication Code: E1. Saisana, M., d Hombres, B., Saltelli, A. (2011) Rickety numbers: Volatility of university rankings and policy implications, Research Policy, Saltelli, A., D Hombres, B., Jesinghaus, J., Manca, A., Mascherini, M., Nardo, M., and Saisana, M. (2010) Indicators for European Union Policies. Business as usual?, Social Indicators Research, 102(2), Saltelli, A., Saisana, A., and Paruolo P. (2011) Ratings and rankings: Voodoo or Science? Submitted to the Journal Royal Statistical Society A, March 2011.
22 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Five Basic Pillars Institutions (country level) Macro-economic stability (country level) Infra-structure Health Primary and Secondary Education (country level) Corruption Fraud Governance Indicators Ease of doing business Government deficit Saving rate Inflation Long term bond yields Road Rail Air Road fatalities Healthy life expectancy Infant Mortality Cancer and heart disease death rate Suicide death rates OECD PISA for Reading Maths Science (list of variables eventually included in the index)
23 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Three Efficiency Pillars Higher education and training Labour Market Efficiency Market Size Graduates Lifelong learning Early school leavers Accessibility to universities Higher education expenditure Labour productivity Employment rate in industry and services Unemployment rate Long-term unemployment Gender balance employment Gender balance unemployment Potential market size expressed in GDP Potential market size expressed in population GDP Compensation of employees Disposable income (list of variables eventually included in the index)
24 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Three Innovation Pillars Technological readiness Household access to broadband or internet Individuals who ordered online for private use Household with access to internet Enterprises use of computers, access to internet, website, intranet, internal networks Persons employed by enterprises with an extranet or internet access Business sophistication Employment and GVA in Financial and business services (NACE J_K) FDI intensity Aggregate indicator for strength of regional clusters (European Cluster Observatory) Innovation Patents Core Creative Class Knowledge workers Scientific publications R&D Human Resources in Science Technology (HRST) Hight tech and Knowledgeintensive employment High-tech, ICT, Biotechnology inventors (list of variables eventually included in the index)
25 A. Saltelli Innovation and Competitiveness Indicators - Budapest April 5, Regional Innovation Scoreboard Indicators from CIS (Eurostat) Enablers Firm Activities Output Focus on SMEs only
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