Eindhoven Centre for Innovation Studies, The Netherlands. Working Paper 01.02

Transcription

1 Endhoven Centre for Innovaton Studes, The Netherlands Workng Paper 01.0 Research Desgn for the South Afrcan Innovaton Survey 001 L.A.G. Oerlemans, A.J. Buys & M.W. Pretorus Faculty of Technology Management Endhoven Unversty of Technology, The Netherlands Aprl 001 1

2 Research Desgn for the South Afrcan Innovaton Survey 001 L.A.G. Oerlemans Department of Technology and Polcy Faculty of Technology Management Endhoven Unversty of Technology The Netherlands A.J. Buys Insttute for Technologcal Innovaton Unversty of Pretora South Afrca M.W. Pretorus Department of Engneerng and Technology Management Unversty of Pretora South Afrca Abstract. The Unversty of Pretora n close cooperaton wth the Endhoven Unversty of Technology has decded to conduct a South Afrcan Innovaton Survey n 001. The purpose of the survey s twofold; frstly, to get a representatve, natonwde pcture of the nnovatve behavour and performance of South Afrcan frms n manufacturng and servces, and secondly, to compare the South Afrcan stuaton on nnovaton to the European one. The South Afrcan Innovaton Survey wll be modelled on the European Communty Innovaton Survey (CIS) conducted n European Unon countres. Ths paper descrbes the proposed research desgn and modfcatons to the CIS questonnare to sut the South Afrcan envronment. Keywords: Innovaton, Survey, Samplng, Questonnare

3 1. Introducton and research queston 1.1 Introducton In order to buld on the democratc poltcal momentum of the new South Afrca, t s vtally mportant that the economy must grow. In order to accomplsh economc growth, the country wll need to rely heavly on ts ndustres as the drver for economc growth. As the engne of economc growth, technology wll play an ncreasngly mportant role n natons ablty to prosper and grow. Technologcal nnovaton s the mechansm through whch technology can be leveraged to create wealth and contrbute towards a better qualty of lfe. Innovaton - the ntroducton of new and/or mprovement of products, servces and producton processes - s the drvng force of a naton's economc development and the mprovement of compettveness of ts frms. In South Afrca, there s a growng awareness, not only among entrepreneurs, but also among polcy makers and scentsts, that nnovaton should be n the centre of attenton of busness and polcy strateges. In order to formulate such strateges and polces, t s mportant that there s a clear pcture of the economc and nnovatve performance of South Afrcan companes. Exstng data sources, such as natonal R&D surveys, are wdely recognsed as beng nadequate to develop polcy and support analyss n the area of nnovaton. The man flaw n these surveys s that they use only a few ndcators, measurng often only nputs to the nnovaton process. As a result, a number of countres, ncludng South Afrca, have recently begun to measure nnovaton more broadly. Of partcular relevance are the European Communty Innovaton Survey and the 1996 Survey of Innovaton n South Afrcan Manufacturng Frms. The European Unon (EU) has ntated regular nnovaton surveys n the member countres. The European Communty Innovaton Survey (CIS) s a standardsed survey focusng, among others, on R&D nvestment, tranng efforts, techncal personnel, new product development and market success of new products. The CIS was jontly ntated and mplemented by Eurostat and DG XIII under the aegs of the European Innovaton Montorng System part of the Innovaton Programme. It was developed between 1991 and 1993 n co-operaton wth ndependent experts and the OECD. Based on the OECD Gudelnes for collectng and nterpretng data on technologcal nnovaton - the Oslo manual, a common questonnare was developed. The objectve of CIS s to collect frm-level data on nputs to, and outputs of, the nnovaton process across a wde range of ndustres and across Member States and regons, and to use ths data n hgh-qualty analyses. Ths wll hopefully contrbute to the future development of polces for nnovaton and the dffuson of new technologes at Communty, Member State and regonal level. CIS has three man characterstcs. Frst, there had never before been nternatonally comparable data on non-r&d resources devoted to nnovaton and the output of the nnovaton processes. Second, t s the frst tme that a harmonsed busness survey has been mplemented n all EU Member States. Thrd, the harmonsed survey wll not only gve polcy makers and analysts nformaton on the sectoral level, but also gve them a detaled pcture of nnovaton actvtes at the level of European enterprses. The Frst CIS provded a major new source of nformaton on nnovaton at enterprse level gathered from around 40,000 frms n all EU Member States, rway and Iceland. Ths consttutes a unque database on nnovaton, whch already acts as a foundaton stone for future work n the area of analyss of nnovaton from academc and polcy-makng perspectves. In 1997, the Second CIS was launched. A strct co-ordnaton of the work has been mposed n order to guarantee a hgh degree of comparablty between countres. The frst natonal Survey of Innovaton n South Afrcan Manufacturng Frms (SISAMF-1996) was a jont undertakng by the Drectorate for Scence and Technology Polcy of the Foundaton for Research Development (FRD), and the Industral Strategy Project (ISP) based at the Development Polcy Research Unt of the Unversty of Cape Town. The SISAMF-1996 was modelled on the CIS carred out n EU countres. Ths survey had to be modfed to sut the South Afrcan envronment and cater for a relatvely lmted budget. The SISAMF-1996 (lke the CIS) dealt prmarly wth nputs and outputs of the nnovaton actvtes n companes. The SISAMF-1996 questonnare dealt wth the followng ssues: General nformaton (Enterprse structure, turnover, employment and nnovaton ntent) 3

4 Enterprse objectves of nnovaton (Extenson of product range, creaton of new markets, lowerng of producton costs, etc.) Sources for nnovaton (Internal sources, market/commercal sources, educaton/research establshments, and nformaton sources.) Costs of nnovaton Recent nnovatons Impact of nnovaton actvtes (Sales, exports, new products, etc.) R&D actvty Factors hamperng nnovaton (Economc, enterprse, etc.) The SISAMF-1996 found that only a handful of South Afrcan frms see nnovaton as the key and crtcal component of the lfe of a frm (FRD, 1997). The SISAMF-1996 gave only lmted nsght nto the nnovaton and technology management processes wthn companes. The focus was manly on nputs (costs, human resources, nformaton, R&D) and outputs (new products, sales, exports) of the nnovaton process. Although the type of nformaton requred to calculate an nnovaton productvty ndex (nnovaton output nnovaton nput) was obtaned, such a calculaton was not attempted. The SISAMF-1996 therefore doesn t pronounce on the nnovaton effectveness of the South Afrcan manufacturng ndustry nor was ths benchmarked aganst overseas ndustres. Another defcency of the SISAMF-1996 was that the nnovaton management processes and methodologes employed by the ndustry were not nvestgated n depth. Very lttle nsght was therefore obtaned n ths regard, makng t dffcult to dentfy weaknesses and the needs of the ndustry. Ths s not only true for SISAMF-1996 but also for CIS 98. Both surveys underspecfy the throughput-part of the nnovaton process. They are manly focussed at nputs and/or outputs. Both surveys have a bas towards frms wth nnovatons, neglectng the fact that frms can have nnovatve actvtes but realse no product/servce or process nnovatons. Ths can be e.g. the result of falure or termnaton of an nnovaton project. The pont we make s that havng resources s not enough. It s also the way frms use and manage these resources that determnes nnovatve output. An nnovaton survey should also be extended and repeated at regular ntervals. As the SISAMF-1996 was conducted n 1996, a number of frms ndcated that major decsons concernng nvestments and producton were on hold durng 1996 when the economy was n the early stages of adjustng to the new poltcal dspensaton. It s expected that a current survey would reflect far more actvty on the nnovaton front. The Unversty of Pretora and Endhoven Unversty of Technology have taken cognsance of the ncreasng mportance of technologcal nnovaton as a bass for competton and ts determnng role n nternatonal compettveness. Both unverstes beleve that t s mportant to drect a part of ther research efforts to the study of technologcal nnovaton, because ths s an actve way to advance the knowledge and sklls n the management and polcy aspects of technologcal nnovaton. Wthout a strong and relevant academc research effort n technologcal nnovaton to support and sustan the natonal nnovaton strategy, the South Afrcan ndustry wll be found wantng n the global compettve arena. As a result of ths lne of reasonng both unverstes are currently nvolved n a jont research project that ncludes an Innovaton Survey n South Afrca n 001. It s the am of ths paper to descrbe a number of methodologcal ssues related to the South Afrcan Innovaton Survey 001 (SAIS 001) and to descrbe the varables that wll be used to measure nnovaton actvtes. Ths paper s structured as follows. In the remanng part of Secton 1 the research goals and the research queston of the survey are formulated. Next, some notes on the theoretcal framework of the research project are put forward. Secton dscusses the research desgn of SAIS 001, ncludng topcs lke populaton and samplng strategy. In Secton 3, the research nstrument,.e. the questonnare that wll be used, s descrbed. Ths secton provdes an overvew of the way nnovatve behavour of South Afrcan frms wll be measured. 1. Research goals and research queston The research project has three man goals: 1. To get a representatve, natonwde overvew of the nnovatve behavour and performance of South Afrcan frms n manufacturng and servces n the perod ;. To benchmark the nnovatve behavour of South Afrcan frms wth the nnovatve behavour of frms located n the European Communty. 3. To formulate polcy recommendatons for the key role players n the South Afrcan System of Innovaton. 4

5 In order to be able to reach these goals, the followng research queston has been formulated for ths research project: To what extent dd South Afrcan frms n manufacturng and servces conduct nnovatve actvtes n the perod ? 1.3 Theoretcal framework It s our belef that emprcal research should be grounded on a sound theoretcal framework. In ths secton we dscuss brefly the theoretcal framework that was used as the bass for the development of the research nstrument. In hs paper, Interactons n knowledge systems: foundatons, polcy mplcatons and emprcal methods, Keth Smth (1995) dscussed the dfferences between the characterstcs of technologcal knowledge n neo-classcal producton theory and modern nnovaton theory. Understandng the mplcatons of these dfferences s an mportant startng pont for the theoretcal framework used n ths research project. Neo-classcal producton theory s bult on the dea that frms face a dual producton decson. Frstly, they must decde what to produce. Ths decson s based on knowledge of possble rates of returns and possble product lnes, and frms wll (re)allocate captal among them lookng for the hghest returns. Secondly, frms must decde whch producton technque to use. Frms wthn an ndustry face a gven and known set of producton technologes and are assumed to have the competences to use all avalable producton technologes. Armed wth ths knowledge, and wth knowledge of present and future factor and product prces, frms are able to maxmse profts. Technology s seen as knowledge, and frms are able to access knowledge n a relatvely rapd and cost-free way. As a result of these assumptons, the technologcal aspects of producton are relatvely unproblematc. Technologcal process nnovaton s also unproblematc n neo-classcal producton theory, both wth respect to adaptaton to already-exstng technologes, and to exogenous-gven new technologes. The theory s based on the dea of rapd substtuton possbltes across choce sets n producton. Frms are able to change to new producton confguratons as a reacton to envronmental change, adjustng ther producton technologes to changed factor prces. In ths approach, economc effcency s based on flexblty, both at the macro level and at the frm level. Neo-classcal producton theory rests on an mpled and mplct form of technologcal knowledge wth very specfc characterstcs. Smth (1995: 75) argues that n a neo-classcal world, technologcal knowledge must have the followng features n order for the producton theory to hold: It s generc: An tem of knowledge can be appled wdely among frms and even among ndustres; It s codfed: Transmtablty mples that knowledge s wrtten or otherwse recorded n farly usable form; It s costlessly accessble: transmsson costs are neglgble, or frms are not faced wth dfferental costs barrers to obtan knowledge and brngng t nto producton; It s context ndependent: frms have equal competences n transformng knowledge nto producton capabltes. Modern nnovaton theory tends to emphasse qute dfferent aspects of technologcal knowledge, and hence provdes a dfferent vew on the ssue of technologcal knowledge. Clearly all frms operate wth some knd of technologcal knowledge base. Ths s not a untary base, and t often conssts of three areas of productonrelevant knowledge, wth dfferent levels of specfcty. Frstly, there s the general scentfc knowledge base. Ths base s hghly dfferentated nternally and of wdely varyng relevance for ndustral producton. Some felds, such as molecular bology, sold-state physcs or norganc chemstry, have close relatonshps wth mportant ndustral sectors. In other words, ths knowledge base often has close connectons wth scence. Secondly, there are knowledge bases at the level of the ndustry or product feld. Industres often share partcular scentfc and technologcal parameters, understandngs of techncal functons, performance characterstcs, use of materals and so on, of products. Thrdly, wthn these technologcal parameters, the knowledge bases of specfc frms are hghly localsed. Most frms understand one or a few technologes well and they form the bass of ther compettve poston. The hghly specfc features of these knowledge bases are not only techncal. It also concerns the way n whch techncal processes can be ntegrated wth sklls, producton routnes, use of equpment and so on. These knowledge bases may be nformal and uncodfed, takng the form of sklls emboded n ndvduals or n groups of cooperatng ndvduals or organsatons. The tact and localsed 5

6 characterstcs of frm-level knowledge mply that although ndvdual frms may be hghly competent n specfc areas, ths competence s lmted. Ths means, frstly, that frm s nnovaton processes can be problematc when technologcal nnovatons ask for competences, whch le outsde the area of competences of the frm. Secondly, that ther ablty to carry out search processes relevant to problems can also be lmted. As a result, frms must be able to access and use knowledge from outsde the area of the frm when creatng technologes and technologcal nnovatons. The above suggests that knowledge bases n modern nnovaton theory have characterstcs, whch are very dfferent than those n neo-classcal producton theory. Such knowledge bases are (Smth, 1995: 80-81): Dfferentated and mult-layered, consstng of artculated forms of dfferent knowledge; Hghly specfc, organsed around a relatvely lmted set of functons whch frms understand well; Cumulatve, the development of these knowledge bases are costly search processes, through processes of learnng and adaptaton, n whch frms buld up experence wth specfc technologes; Internally systemc, beng part of an overall producton system whch has many components. Technologcal nnovaton nvolves a wde array of actvtes, whch must be organsed and managed by the nnovatng frm; Interactve and externally systemc: technologcal nnovaton usually nvolves, ether mplctly or explctly, structured nteracton between nsttutons, nvolvng processes of mutual learnng and knowledge and nformaton exchange. The economc network approach, especally as developed by Håkansson (1987, 1989, 199, 1993) and Håkansson & Snehota (1995), provdes us wth a model to analyse technologcal nnovaton. The approach can be consdered as a clear example of a modern nnovaton theory n whch Smth s deas can be recognsed. Håkansson s economc network model contans three man elements: actors, actvtes, and resources. Actors perform actvtes and possess or control resources. They have a certan, but lmted, knowledge of the resources they use and the actvtes they perform. Ther man goal s to ncrease ther control of the network. Actors n networks can be studed at dfferent levels, from ndvduals to groups of frms. Two man types of actvtes are dstngushed n the network model: transformaton and transacton actvtes. Both are related to resources because they change (transform) or exchange (transact) resources through the use of other resources. Transformaton actvtes are performed by one actor and are characterzed by the fact that a resource s mproved by combnng t wth other resources (lke n producton or nnovaton). Transacton actvtes lnk the transformaton actvtes of the dfferent actors. These exchanges result n the development of economc (network) relatons between actors. There are several types of resources; physcal (machnes, raw materal, components), fnancal, and human (labour, knowledge, relatons). Furthermore, resources can be classfed accordng to the degree of organzatonal control. In the case of nternal resources the frm has a herarchcal control,.e. they own the resources. External resource provders control external resources. As a consequence, resources are heterogeneous,.e., ther (economc) value depends on the other resources wth whch they are combned. In analysng technologcal nnovaton, the heterogenety of resources and resource moblzaton are the key concepts. Accordng to Håkansson (1993), the effects of heterogenety are that knowledge and learnng become mportant. How should the frm handle these heterogeneous resources? In answer to ths queston, Håkansson ctes Alchan & Demsetz (197: 793) who state that effcent producton usng heterogeneous resources s not a result of havng better resources, but knowng more accurately the relatve performance of these resources. In other words, t s not only necessary to have resources, but to know how to use them. Ths knowledge can be acqured n two ways: nternally and/or externally. Learnng to use nternal resources can be accomplshed n several dfferent ways, for example through R&D actvtes or learnng by usng or dong. The external moblsaton of resources can be labelled learnng by nteractng (Lundvall 1988: 36),.e., frms can use the knowledge and experence of other economc actors. In order to make use of external resources, frms need to exst wthn structures, whch make these learnng processes possble and effcent. Accordng to Håkansson, economc networks produce these structures characterzed by stablty and varety. Frst, scarce external resources are more easly moblzed through stable relatons wth other economc actors. Second, stable relatons n networks enable nnovatng frms to gather knowledge and to learn from other actors how to use heterogeneous resources nnovatvely and effcently. Thrd, the stablty of economc network relatons provdes a bass for varety. Ths varety offers new opportuntes for nnovaton. 6

7 The economc network approach makes t clear that frms can supplement ther nnovaton process by usng external resources as well. They can also acqure knowledge through the use of ther economc network relatons. But Håkansson s model does not provde us wth a clear pcture of nnovatve actvtes n frms. After ths revew of Håkansson s descrptve economc network model and ts usefulness for analysng nnovaton some crtcal remarks are n order. These remarks allow us to partally reformulate the network model for our emprcal purposes. Our comments are related to the lack of theoretcal maturty of the economc network approach n general and of Håkansson s network model n partcular. Two problems wll be addressed: the conceptualsaton of nnovaton n the economc network model and classfcaton of heterogeneous resources. Håkansson overemphasses an nter-organsatonal approach to organzatonal processes. As a consequence, even nnovaton processes are prmarly conceptualsed as a product of external factors and nteracton. In our vew, nnovaton n frms s prmarly nternal n nature. External (f)actors can play a role n ths process (see e.g., Von Hppel, 1988), but the nnovator ntally uses hs nternal capabltes. If the process runs nto problems, external resources are sought (Oerlemans, 1996). We therefore have to fnd a balance between an nternal and external vew of nnovaton. As Dos stated (1988: ), agents wll plausbly allocate resources to the exploraton and development of new products and new technques of producton f they know, or beleve n, the exstence of some sort of yet unexploted scentfc and techncal opportuntes; f they expect that there wll be a market for ther new products and processes; and fnally, f they expect some economc beneft. Dos stresses the knowledge, belefs, and expectatons of the nnovatng actor. As a consequence, we have to defne the technologcal nnovaton processes n Håkanssonan terms. Technologcal nnovaton s a transformaton actvty where an actor, through the (re)combnaton of heterogeneous resources, develops and ntroduces new or mproved products/servces or producton processes wth the expectaton of better economc performance. Wthn frms, nnovaton s conceptualsed as an open system (Katz & Kahn, 1966) where nputs (heterogeneous resources) are transformed (throughput) nto outputs (results of nnovatons). Ths process s related to several economc actors, whch, through ther transformaton and transacton actvtes, use resources n order to produce nnovatons. Despte Håkansson s clam that resources are heterogeneous, and nternal and external, he does not systematcally dentfy whch heterogeneous resource bases he s referrng to. If we assume that nnovaton s a knowledge-ntensve process, we must determne whch knowledge bases (Dos, 1988: 116) can be used by nnovators. As we have seen, Smth (1995) systematses the attrbutes of, what he calls, a modern vew on technologcal knowledge and nnovaton. The fact that resource bases of ndustral frms are mult-layered has two mportant consequences for Håkansson s economc network model. Frstly, t means that although ndvdual nnovatng frms are competent n specfc areas, ther competence s nonetheless lmted. In other words, nnovatng frms use ther specfc resources to nnovate but they can easly run nto problems related to ther nnovaton processes. The soluton to these problems may le outsde ther area of expertse. Therefore, they must be able to access and use external knowledge. Secondly, the mult-layered and heterogeneous nature of resource bases makes t necessary to dstngush several actors and nsttutons nsde and outsde the frm n whch resources are emboded. Internal resources are emboded n the transformaton (e.g. R&D, producton or engneerng) and transacton functons (purchase, marketng/sales) of the frm. Outsde the frm, at least four groups of actors can be dstngushed: the publc and prvate knowledge nfrastructure, the producton column and ntermedares. The publc knowledge nfrastructure conssts of organzatons such as unverstes and colleges for professonal and vocatonal tranng. Trade organzatons and consultants can be found n the prvate knowledge nfrastructure. The technologcal knowledge found here s manly related to the ndustry or product feld. The same s true for the thrd group, the producton column. Supplers, buyers, and other frms such as compettors are grouped n ths category. Intermedares such as Chambers of Commerce and regonal Innovaton Centres can be seen as nformaton brokers. They are able to gve general and specfc nformaton on nnovaton related ssues, but they are also able to brng partes nto contact wth each other. All of the above enables us to formulate a research model, whch can be used as a bass for the development of our research nstrument. Fgure 1 depcts ths model. 7

8 Fgure 1: Research model Contextual varables Internal Inputs (resources) E.g.: Sze Sector Actvtes: e.g. producton, nnovaton Economc and Innovatve outputs (outcomes) External Inputs (resources) In the last secton of ths paper we wll poston the ndcators to measure nnovaton accordng to the model depcted n fgure 1.. Research desgn.1 Populaton and samplng frame In ths secton, the populaton and the samplng frame of the SAIS 001 are dscussed. The concept populaton refers to all possble cases, whch are of nterest for a study, and specfes four elements: content, unts, extent, and tme. In the case of the SAIS 001, ths populaton can be defned as: All South Afrcan frms n manufacturng and servces wth 10 or more employees 1 that conducted economc actvtes n the perod Wth ths defnton of the populaton, t s possble to construct a so-called samplng frame. A samplng frame s a lstng of all the elements n a populaton and the actual sample s then drawn from ths lstng. Therefore, the adequacy of the samplng frame s crucal n determnng the qualty of the sample drawn from t. A prelmnary nvestgaton resulted n the choce of the Reedbase Kompass database (August 000 verson) as a samplng frame. Ths database contans 16,931 South Afrcan frms wth a known number of employees. In a next secton, some other features of ths database wll be descrbed. Classfcaton of economc actvtes In order to obtan full compatblty wth the Communty Innovaton Survey (hereafter: CIS) of the European Communty the followng economc sectors (General Industral Classfcaton of Economc Actvtes wthn the European Communtes [NACE]) should be ncluded: 1 In most researches, the 10 employee-boundary s used. The man reason for ths s the practcal experence that a relatvely hgh nonresponse rate s obtaned when surveyng frms wth less than 10 employees. 8

9 D DA DB_DC DD_DE DF_DG DH_DI DJ DK DL DM DN E G_TO_Q G51 I60_TO_I6 I64 J K7 K74 Manufacturng Manufacture of food products, beverages and tobacco Manufacture of textles and textle products; manufacture of leather and leather products Manufacture of wood and wood products, manufacture of pulp, paper and paper products; publshng and prntng Manufacture of coke, refned petroleum products and nuclear fuel, manufacture of chemcals, chemcal products and man-made fbres Manufacture of rubber and plastc products, manufacture of other non-metallc mneral products Manufacture of basc metals and fabrcated metal products Manufacture of machnery and equpment n.e.c. Manufacture of electrcal and optcal equpment Manufacture of transport equpment Manufacturng n.e.c. Electrcty, gas and water supply Servces Wholesale trade and commsson trade, except of motor and motorcycles Land transport; transport va ppelnes; water transport; ar transport Telecommuncatons Fnancal ntermedaton Computer and related actvtes Archtectural and engneerng actvtes and related techncal consultancy Sze classes In CIS publcatons, the use of sze classes s dependent on the sector,.e. manufacturng or servces. For the manufacturng sector, CIS uses the followng classfcaton: Sze Class 0_49M 50_49M 50M_MORE Descrpton Small enterprses (manufacturng sector) Medum-szed enterprses (manufacturng sector) Large enterprses (manufacturng sector) For the servce sector: Sze Class 10_49S 50_49S 50S_MORE Descrpton Small enterprses (servce sector) Medum-szed enterprses (servce sector) Large enterprses (servce sector) In CIS the lower boundares for the two sectors dffer. Snce the South Afrcan economy (as the Dutch economy) s charactersed by a large number of small enterprses n manufacturng and servces, we wll use the same lower boundary for both sectors,.e. for both sectors frms wth 10 or more employees wll be ncluded n the sample. Ths approach was followed n the Dutch versons of the CIS also.. Samplng technques and sample sze..1 Samplng technques Technques that make use of probablty theory can both greatly reduce the chances of gettng a nonrepresentatve sample and, what s more mportant, permt precse estmaton of the lkelhood that a sample dffers from the populaton by a gven amount. In these so-called probablty samples, each element has some chance of beng ncluded n the sample, and the probablty of each element s beng ncluded can be determned. Centraal Bureau voor de Statstek (1998), Kenns en Econome Onderzoek en Innovate n Nederland. CBS, Voorburg/Heerlen, December 1998, p. 5. E. Brouwer, A. Klenknecht (1994), Innovate n de Nederlandse Industre en Denstverlenng (199). Mnstere van Economsche Zaken, Beledsstudes Technologe Econome 7, Den Haag, 1994, p

10 Furthermore, probablty samples enables one to calculate samplng error, whch s the extent to whch the values of the sample dffer from those of the populaton from whch t was drawn. There are a many types of probablty samples lke smple random samplng, systematc samplng and area samplng. For the purposes of the SAIS 001 stratfed samplng s an adequate samplng technque. Wth smple random and systematc samplng methods, the target populaton s treated as a untary whole when samplng from t. Stratfed samplng changes ths by dvdng the populaton or the samplng frame nto smaller subgroups, called strata, pror to drawng the sample, and then separate random samples are drawn from each of the strata. One of the major reasons for usng a stratfed sample s that stratfyng has the effect of reducng samplng error for a gven sample to a lower level than that of a smple random sample of the same sze. Ths s so because the more homogeneous a populaton on the varables beng studed, the smaller the sample sze needed to represent t accurately. Stratfyng makes each sub-sample more homogeneous by elmnatng the varaton on the varable that s used for stratfyng. In fact, when stratfcaton s used for reducng samplng error, proportonate stratfed samplng s normally used, n whch the sze of the sample taken from each stratum s proportonate to the stratum s presence n the populaton. For the SAIS 001, frms were drawn from the samplng frame (Kompass) n the followng way usng sze classes as strata 3 : Frms n manufacturng and servces wth 50 employees and more are all ncluded n the sample; Frms n manufacturng and servces wth employees and 0 49 were randomly sampled accordng to the proporton n the sample frame... Sample sze A key ssue n selectng a sample s that t represents the populaton from whch t was drawn. It s often assumed that a larger sample s more representatve than a smaller sample, and thus one should go for the largest sample possble. Actually, decdng on an approprate samplng sze s more complcated than ths. Fve factors nfluence the sample sze; (1) the research hypotheses; () the level of precson; (3) the homogenety of the populaton; (4) the samplng fracton; (5) the samplng technque used. Research Hypotheses One concern n establshng desred samplng sze s that there are a suffcent number of cases to examne research hypotheses properly. If one has, for example, 3 varables wth 3 values each then a smple cross tabulaton would requre 7 cells. For proper testng, each cell should be flled wth a mnmum of cases (e.g. 10). Generally the lterature consders 100 cases n a sample the bare mnmum. 4 Level of Precson The second factor nfluencng sample sze s the level of precson, or n other words the level of samplng error 5 one s wllng to accept n a research. Suppose the average R&D effort of frms n a country s 6.5%. A sample of 00 frms s drawn and the average R&D effort s calculated as 6.%. As one can see the sample statstc s close to the populaton statstc, but there s an error of 0.3% ponts (the samplng error). In realty, the sample statstc s known but the populaton statstc s unknown. So, the queston s how the dfference between the sample and the populaton value can be assessed. The answer to ths queston s that ths assessment can be done n terms of the lkelhood that a sample value dffers by a certan value from the populaton value. Establshng a confdence nterval,.e. a range n whch t s farly certan that the populaton value les, does ths. Moreover, precson s drectly related to sample sze. Larger samples are more precse than smaller ones. Probablty theory enables to calculate the sample sze that would be requred to acheve a gven level of precson. The table shown below llustrates ths. 3 Ths way of samplng s n concordance wth the approach used n the Dutch CIS D.R. Monette, T.J. Sullvan, C.R. DeJong (1990), Appled Socal Research. Tool for the Human Scences. Harcourt Brace Jovanovch College Publshers, Orlando, p Samplng error s the dfference between a sample value of a varable and the populaton value of the same varable. 10

11 Table 1: Smple Random Sample Sze for Dfferent Degrees of Precson 6 for a Populaton of 16,931. Tolerated Error Confdence Level (Confdence Interval) 95% 99% 1% % 3% 4% 5% 6% 7% 9,604,401 1, ,587 4,147 1,843 1, It can be derved from the table that for example wth a sample of 9,604 cases, there s a 95% probablty that the samplng error s 1 percent or less. In other words, there s a 95% chance that the sample value s wthn 1% of (above or below) the populaton value. In most researches error levels used le between to 6 percent wth 95% confdence lmts. Populaton Homogenety The thrd factor mpactng on sample sze s the varablty of the populaton to be sampled. As a rule of thumb a large sample s more essental for a heterogeneous populaton than for a homogeneous one. Unfortunately, most of the tme researchers know lttle about the homogenety of the target populaton. Probablty theory solves ths problem by assumng maxmum varablty n the populaton (.e. 50% varablty). Of course, such estmates are conservatve and wll result n sample szes larger than strctly needed for a gven level of precson. Samplng Fracton A fourth factor nfluencng sample sze s the samplng fracton, whch can be defned as the number of elements n the sample relatve to the number of elements n the populaton (n/n). However, wth large populatons such as the one used for SAIS 001, the samplng fracton ssue can be gnored because the samplng fracton wll consttute only a small fracton of the populaton by defnton. For large samples, the research hypotheses, samplng error, and populaton homogenety are most of the tmes suffcent to determne sample sze. Samplng Technque The fnal factor nfluencng sample sze s the samplng technque employed. Some samplng technques, lke smple random samplng and area samplng, tend to ncrease samplng error. One of the man characterstcs of the samplng technque that wll be used n the SAIS 001, stratfed samplng, s that t tends to reduce samplng error and decreases the requred sample sze. Estmatng sample sze for stratfed samples s relatvely complex because the effects of stratfyng on samplng error vares from one sample to another dependng on the number of stratfcaton varables, homogenety of samples and the lke. Accurate estmates, however, can be calculated. Scheaffer, Mendenhall and Ott (1979) provde the necessary nformaton to calculate sample sze when usng a stratfed samplng technque Determnng sample sze for SAIS 001 Defnng strata Snce we am at hgh comparablty wth the European CIS, we took bascally the same sample desgn approach as n CIS. By mplcaton, ths means that three strata were defned (stratum 1: frms wth 11 to 0 employees; stratum : 1-50 employees; stratum 3: more than 50 employees), takng the number of employees as the stratfcaton varable (see below). There are two reasons for usng ths varable: 1. A theoretcal one: It s well known that nnovatve efforts dffer consderably between sze classes (Brouwer and Klenknecht, 1994, 1996);. A practcal one: the number of employees s the only quanttatve varable n the South Afrcan Reed database. Because one needs populaton nformaton lke standard devaton and varance to compute strata sze, t s nevtable to use ths varable; Ideally, one wants to stratfy on sector also. An attempt was made to do ths wth the Reedbase, but two problems were encountered. The frst problem had to do wth the dfferences n classfcaton schemes of economc actvtes used n Reedbase Kompass and CIS 98 (.e. the NACE Rev. 1). After a detaled study of both classfcatons schemes, t was possble to make the classfcatons exchangeable. 6 Source: C.H. Backstrom, G.D. Hursh (1981), Survey Research. Macmllan Press, p R.L. Scheaffer, W. Mendenhall, L. Ott (1979), Elementary Survey Samplng. Duxbury Presss, Massachusetts, USA, pp

12 The second problem s a result of the way frms actvtes are classfed n the Reedbase Kompass. As a frst step, stratfed samplng frames were drawn from Reedbase Kompass. Nne strata were constructed, each stratum contanng one of the three sze classes and one of the three actvty groups (producer, dstrbutor and servce). Next, the strata were compared. It was found that the strata had unacceptable levels of overlap,.e. a number of frms were ncluded n or even n 3 strata, whch means that frms are entered n the Reedbase under more than one economc actvty. The percentages of overlap ranges from % to almost 8%. The consequence of ths overlap s that frms have dfferng probabltes on beng selected n a sample and samplng frames are not ndependent, whch s a necessary condton for stratfed samplng. Consequently, t was decded only to stratfy on sze. Selectng Sample Sze In ths secton, a method of choosng the sample sze to obtan a fxed amount of nformaton for estmatng a populaton parameter s examned. It s specfed that the estmate of the populaton average (y st ) should le wthn B unts of the populaton mean, wth probablty approxmately equal to Ths means that: ( 1) V ( y st ) = B or () V ( y st ) = B 4 where y st denotes the estmator of the populaton mean, V(y st ) denotes the estmated varance of y st, and B denotes the error of estmaton. Although V(y st ) s defned, n cannot be found unless a relatonshp s postulated among n 1, n,..n L and n. In any case, the number of observatons n allocated to the th stratum s a fracton of total sample sze n. Ths can be denoted as w. Hence one can wrte ( 3) n = nw = 1,..., L Usng ths relatonshp, one can set V(y st ) equal to B /4 and solve for n. As a result the approxmate sample sze requred to estmate populaton mean or total wth a bound B on the error of estmaton s: (4) n L = 1 = L N D + N σ w = 1 N σ where w s the fracton of observatons allocated to stratum, σ the populaton varance for stratum, and N s the number of samplng unts n the populaton. Moreover, when estmatng µ (populaton mean): (5) D = B 4 Allocaton of the sample The objectve of a sample survey desgn s to provde estmators wth small varances at the lowest possble costs. After a sample sze (n) s chosen, there are many ways to dvde n nto the ndvdual stratum sample szes n 1, n,, n L. Hence the objectve s to use an allocaton that gves a specfed amount of nformaton at mnmum cost. The best allocaton scheme s nfluenced by three factors: 1. The total numbers of elements n each stratum;. The varablty of observatons wthn each stratum; 3. The cost of obtanng an observaton from each stratum. 1

13 Scheaffer, Mendenhall & Ott (1979: 69) state that the approxmate allocaton that mnmzes cost for a fxed value of the varance of the populaton mean V(y st ) or mnmzes V(y st ) for a fxed cost s: (6) n L N σ = k = 1 k k k L N C D + = 1 L = 1 N σ N σ C where N denotes the sze of the th stratum, σ denotes the populaton varance for the th stratum, and C denotes the cost of obtanng a sngle observaton from the th stratum. In some stratfed samplng problems, the cost of obtanng an observaton s the same for all strata. It s assumed here, that ths s the case n SAIS 001. Formula (6) can stll be used by lettng C L = 1. When C 1 = C =. = C L and w 1, w,.., w L are obtaned by formula 6, the method of selectng the proporton of the sample sze n to be assgned to each stratum s called Neyman allocaton, whch wll be appled here. Calculatng sample and strata sze w all necessary tools are avalable to calculate sample and strata sze for SAIS 001. As a frst step, sample frames were drawn from Reedbase Kompass, selectng producers, dstrbutors, and servce frms n the economc actvty categores descrbed above and stratfed accordng to the formulated sze classes. Table descrbes some features of the strata Table : Stratum sze, mean, standard devaton and varance Stratum N Mean Stand. Dev Varance 11-0 employees 1-50 employees More than As n CIS 98, all frms wth more than 50 employees wll be selected and approached wth a questonnare. Consequently, t s not necessary to determne sample sze for ths stratum. The formulas (4) and (6) wll be used to calculate sample szes. It s assumed that costs are the same n the two remanng strata. Therefore, to fnd the allocaton fractons, w 1 and w, the costs are replaced by 1 n formula (6). Then: = 1 N σ = N σ + N σ N σ 3 3 = (166) (3.19) + (4611) (7.1) = 39, and from formula (6) n = N1σ = n = 39, N σ 1 1 n n = ( ) Smlarly, 3.830,3 n = n = 39, n ( ) Thus w 1 = and w = w one can use formula (4) to fnd n. A bound of 0. employees on the error of estmaton means that 13

14 D B 0. = = = 0.01 and N D 4 4 = ( 6777 )*0.01 = Also = 1 N σ w = ( 166 )( 3.19 ) ( 4611 )( 7.1 ) + = 1,579,56, And = 1 N σ = ( 166) (3.19 ) + (4611) (7.1 ) = 55, From formula (4), n = N = 1 D + N w σ = 1 N σ = ( 1,579,56,474) ( 459,77.9) + ( 55, ) =,08 Hence, n ( )( 08) = 384 and = ( )( 08) = 0 n = In order to get these numbers of observaton after surveyng, one has to take non-response nto consderaton. Estmatng the non-response percentage s always an educated guess because researchers do not know n advance whch factors mpact on response rate at a specfc moment n tme and space. Lookng at past experences, non-response ratos dffer wdely. For example, n the Dutch CIS 9 the overall response rate was approxmately 53%, whereas n CIS 98 a much hgher overall percentage was obtaned (73%). In the most recent South Afrcan nnovaton survey, however, response rates were much worse (ca. 10%). For SAIS 001, t s expected that response rate wll vary between 50% (for the smaller frms) and 70% (for the larger frms). There are two man reasons for these expectatons: The SAIS 001 questonnare s based on the CIS 98 questonnare, whch s a well desgned, wdely used, and thus well-tested questonnare. Moreover, ths questonnare has proven ts usablty n practce; At frst, frms wll be approached wth a postal questonnare. If they do not respond wthn a tme frame of 3 weeks, the non-respondng frms wll be approach by telephone. Followng ths procedure, t s expected that response rates can be ncreased consderably. Wth these consderatons n mnd, sample szes for SAIS 001 can be determned. In Table 3, the sample sze s presented: Table 3: Sample sze SAIS 001 Stratum N n Exp. Res. rate Sample sze n 1 n n 3,166 4,661 3, ,84 3,665 50% 70% n.a. 768,606 3,665 Total 10,49 5,873 7,039 14

15 3. The research nstrument for the SAIS Introducton As was stated n secton 1, the purpose of the SAIS 001 s twofold. Frst, t s the am to get a representatve, natonwde pcture of the nnovatve behavour and performance of South Afrcan frms n manufacturng and servces. Second, we want to compare the South Afrcan stuaton on nnovaton to the European one. It s therefore necessary to use a research nstrument, n ths case a questonnare that meets these purposes. It was decded to use the Communty Innovaton Survey 1998 (hereafter: CIS 98) as the bass for the SAIS For a number of reasons, CIS 98 was not fully applcable to the South Afrcan stuaton. Frst of all, CIS 98 had a number of questons, whch were not usable n South Afrca. A clear example of ths s the queston on the locaton of R&D partners, whch uses geographcal dmensons for the European scale. Of course, because of the sze of South Afrca such a queston had to be adapted to South Afrcan geographcal dmensons. Second, CIS 98 s somewhat based towards nnovatve frms. Early n the CIS 98 questonnare, non-nnovators are referred to the last page of the questonnare. As a result, a lot of nformaton on these non-nnovators s not gathered. Because we are also nterested n nformaton on South Afrcan non-nnovators, a number of questons n CIS 98 are moved to other postons n the questonnare. Thrd, we added a number of new questons. As a consequence of the ssues rased above, ths secton dscusses the way the SAIS 001 questonnare was constructed. In secton 3., the CIS 98 questons that dd not change n SAIS 001 are presented. Next n secton 3.3, we dscuss the questons that were adapted to the South Afrcan Stuaton. Secton 3.4 goes nto the repostoned questons, whereas the newly constructed questons are presented n secton 3.5. CIS 98 used separate questonnares for the manufacturng and servce sector. It turned out that ths was not possble for SAIS 001, because n the Reedbase some frms are lsted as manufacturer and at the same tme as a servce provder. Sendng questonnares ntended for manufacturng frms to for example servce provders wll probably ncrease non-response. To avod ths we decded to use one questonnare for all frms. The SAIS 001 questonnare can be found n Appendx I. 3. Unchanged questons n SAIS 001 In ths secton, an overvew s presented of the questons n CIS 98, whch could be used wthout adaptatons n SAIS 001. You can fnd ths overvew n Table 4. In order to obtan maxmum comparablty, most questons n CIS 98 are also used n SAIS 001. However, as wll be explaned n secton 3.4, some of these unchanged questons are moved to another poston n the questonnare. The unchanged questons do not need further clarfcaton, as they speak for themselves. The unchanged questons are: Q0: tems on fnancal consoldaton, afflaton, and locaton of head offce; Qa: Innovated products/servces; Qb: Innovated processes; Q6: Product and/or servce nnovaton sales; Q8a: Innovaton and the use of external nformaton sources; Q10: Objectves of nnovaton. 8 Drs. J. Pronk of the Dutch Central Bureau of Statstcs kndly provded copes of the CIS 1998 questonnare. 15

16 Table 4: Composton of the SAIS 001 questonnare # Q Topc Nature of change # Q CIS 98 0 General Informaton Part 1: U Part : U, M Part 1: Q 0 Part : Q 11/14 1a Busness Actvtes: Marketng, dstrbuton, sale N n.a. 1b Busness Actvtes: Producton N n.a. 1c Busness Actvtes: Transferrng or sellng technology N n.a. a Manufacturng: Innovated products Servces: Innovaton U U Q 1a Q 1a b Manufacturng: Innovated processes Servces: Innovaton and technology U U Q 1b Q 1b c Innovatve actvtes U Q 1c 3a Own research and/or development (R&D) A, M Q 8a /Q 8b 3b Innovaton expendtures 000 U, M Q 8a 4a Innovaton and bottlenecks N n.a. 4b Factors hamperng nnovaton U, M Q 9 4c technologcal nnovatve actvtes U, M Q 1 5 Innovaton n a broader sense U, M Q 10/Q 13 6 Innovaton and sales U Q 1 7 Innovaton and market poston A Q 3 8a Innovaton and the use of external nformaton sources U Q 4 8b Innovaton and the use of nternal nformaton sources A, N Q 4 9 Innovaton n partnershp: partners n South Afrca A Q 5 10 Objectves of nnovaton U Q 7 11 Innovaton n partnershp: foregn partners A Q 5 1 Innovaton funds A Q 6 13a Characterstcs of servce/product nnovaton N n.a. 13b Characterstc of process nnovatons N n.a. 14a Technology strategy N n.a. 14b Tranng n Technology and Innovaton Management N n.a. 14c Person for Technology Management N n.a. 14d Technology and Innovaton Management Tools N n.a. 15a Internal consequences of servce/product nnovaton N n.a. 15b Internal consequence of process nnovaton N n.a. 16 Level of specalsaton N n.a. 17 Level of educaton N n.a. 19 Organsatonal structure N n.a. # Q = Number of Queston n SAIS 001 Nature or change: U = Unchanged; M = Moved, A = Adapted, N = New # Q CIS 98: Number of queston n CIS 98; n.a. = not applcable 3.3 Adapted questons n SAIS 001 The structure of the South Afrcan economy and the characterstcs of the country dffer sgnfcantly from the European stuaton. In terms of GDP 9, for example, the South Afrcan economy s charactersed by a relatvely large prmary sector (agrculture, mnng), although the contrbuton of ths sector to total GDP s clearly declnng n recent years. Between 1990 and 1995, the contrbuton decreased from 13.8% to 10.8%. For SAIS 001, especally manufacturng and parts of the tertary sector are of mportance. In 1995, manufacturng s GDP was almost 8% of total value added (1990 = 30.9%). Ths decrease s caused by a number of factors, ncludng sklled labour shortages, complex compettveness problems and a hgh dependency on foregn technology 10. By contrast, the contrbuton of the servces sector to total value added rose from 55.5% 9 Source: J.W. Prnsloo (000), Revson of South Afrca s natonal account. Fgures at basc prces. 10 Busness Montor Internatonal (1995), South Afrca Annual Report on Government, Economy, the Busness Envronment and Industry, wth Forecasts through end-1997, London. 16

17 n 1990 to 61.5% n Ths ncrease stemmed manly from hgher output levels by the transport and communcaton sectors, busness servces and the general government. These fndngs stress on the one hand the fact that t s mportant to nclude the servces sector n the survey, whle on the other hand one can expect that the research capabltes of South Afrcan frms are relatvely low n comparson to ther development capabltes, snce South Afrcan frms n general are more used to applyng and mprovng producton technology, rather than developng ther own product and process technology. By mplcaton, ths means that some CIS 98 questons have to be adapted, stressng more the development sde of nnovaton, than the research sde. Another reason for adaptng some questons n CIS 98 has to do wth the dfferent geographcal scale of South Afrca compared to a number of European countres. The followng questons have been adapted: Queston 3a. Own research and/or development (R&D) Frst of all, ths queston has been moved to a poston n the questonnare so that nnovators as well as non-nnovators have to answer the queston. Moreover, the ntramural R&D tem n CIS 98 Q8a has been combned wth the CIS 98 queston on ntramural research (Q8b). The tem on the locaton of R&D n CIS 1998 (n one or more than one provnce) has been dropped snce ths tem s already surveyed n SAIS queston 9. As a result SAIS Q3a ncludes: (1) an estmate of the R&D effort n persons and n man-years; () an estmate of the related nnovaton costs 000; (3) the accuracy of the estmate of R&D nnovaton costs 000; (4) the structural character of R&D n the frm. Queston 7. Innovaton and market poston In CIS 98, the tem on nnovaton and market poston had an asymmetrcal scale and a bas towards mprovement of market poston due to nnovaton. In SAIS 001, a 5-pont symmetrcal scale s used rangng from (1) worsened substantally to (5) mproved substantally. Queston 8b. Innovaton and the use of nternal nformaton sources The use of nternal nformaton sources for the nnovaton process was n CIS 98 lmted to 1 tem n Q4 askng on nnovaton deas from your own frm. Snce many frms n South Afrca do not have a stand-alone R&D functon but stll nnovate, t s mportant to fnd whch other frm functons possbly nfluence the nnovaton processes. Moreover, recent research (Oerlemans, Meeus & Boekema, 1998) showed that contrbutons from nternal functons to the nnovaton process other than the R&D functon were nfluental 11. As a result, we constructed a queston on the use and mportance of nternal functons as a source of nformaton n the nnovaton process. We dstngushed 6 nternal functons: purchase, marketng/sales, research, development, engneerng, and producton. Queston 9. Innovaton n partnershp: partners n South Afrca In CIS 98 there was one queston on nnovaton n partnershp. The answerng categores of ths queston were sutable for the European geographcal stuaton and not for the South Afrcan stuaton. Moreover, for foregn partners CIS 98 dd not specfy country or regon n whch a foregn partner s located, t only asks for the geographcal dstance between a respondng frm and ts foregn partner. For SAIS 001, t was decded to construct two questons dealng wth nnovaton partners. One queston on partners located n South Afrca and one queston on foregn partners (see the dscusson on queston 11). Wth regard to the queston on nnovaton partners located n South Afrca, the same tems (= partners) were used as n CIS 98, that s: own group, buyers, supplers, compettors, consultants, research nsttutes, unverstes, and other partners. Three answerng categores were used: (1) Own town/cty; () Own provnce, and (3) Other provnces. Queston 11. Innovaton n partnershp: foregn partner Queston 11 s bascally the same queston as queston 9, but now the answerng categores are referrng to partners located n countres and regons outsde South Afrca. These categores are: SADC, other Afrcan countres, Europe, rth Amerca, South Amerca, and Asa/Australa. A footnote has been added explanng the composton of the Southern Afrcan Development Communty G. de Wet (1999), Emergng from the Technology Colony: A Vew from the South,. Department of Engneerng and Technology Management, Unversty of Pretora, South Afrca. Workng Paper ITB001/1. World Economc Forum (000), The Global Compettveness Report 000, Geneva, Swtzerland. 11 Oerlemans, L.A.G., M.T.H. Meeus, F.W.M. Boekema (1998), Do Networks Matter for Innovaton? The usefulness of the economc network approach for analysng nnovaton. In: Journal of Economc and Socal Geography. 17

18 Queston 1. Innovaton funds In CIS 98 t was asked whether or not frms receved a subsdy to develop nnovatons. Moreover, frms could ndcate the orgn of these subsdes. In SAIS 001, the queston was somewhat extended ncludng not only subsdes but also other nnovaton funds. Of course, subsdes and funds were ncluded whch are applcable to South Afrcan frms, such as THRIP (Technology and Human Resources for Industry Programme), Innovaton Fund, Support Programme for Industral Innovaton, the Sector Partnershp Fund, the Compettve Fund, and Development Captal. 3.4 Re-postoned questons n SAIS 001 In comparson wth CIS 98 some questons were postoned n another locaton n the SAIS 001 questonnare. Most questons n CIS 98 are amed at frms wth product, servce or process nnovatons, neglectng the possblty that frms show nnovatve actvty wthout producng an nnovaton e.g. because the nnovaton project faled or was termnated for some other reason. Because we are also nterested, especally for polcy reasons, n ths group of frms, we moved a number of questons to a poston n the questonnare whch makes t possble to measure nnovatve actvty of frms that have not realsed nnovatve output. It concerns the followng questons: Q0: tems on number of employees n 1998 and 000; total sales n 1998 and 000; export rato n 1998 and 000; establshment of the frm between 1998 and 000; whether or not the frm bought or sold a frm between 1998 and 000; the nfluence of buyng and sellng frms on total sales; Q3b: Innovaton expendtures; Q4b: Factors hamperng nnovaton; Q4c: technologcal nnovatons (man reasons for not nnovatng); Q5: Innovaton n a broader sense (non-technologcal nnovatons); 3.5 New questons n SAIS 001 In comparson to CIS 98, a number of new questons have been added to SAIS 001 especally derved from actvty-based theory. There are several reasons to nclude these new questons. Frst, CIS 98 has a bas towards nputs and outputs of the nnovaton process, neglectng the so-called throughput of the nnovaton process. Most nnovaton research assumes that resources (nputs) lke R&D are a suffcent means to produce nnovatve outputs. It s our vew, as was explaned n secton 1, that havng resources s not enough to realse nnovatve outcomes. It s also the way these resources are utlsed and managed n nnovaton processes n organsatons whch determnes whether effcent and effectve outcomes are realsed. Both utlsaton and management are organsatonal actvtes and are as such typcal throughput concepts. Second, and closely related to the frst ssue dscussed above, nnovaton lterature suggests (B-A. Lundvall, 199) a lnk between the complexty of nnovatve actvtes and the need for and the acquston of external knowledge. We defne the complexty of nnovatve actvtes n terms of the nnovator frm s nature of nnovatve actvtes and the nternal consequences of nnovatons. More drastc nnovatve actvtes and more drastc nternal consequences of these actvtes ndcate hgher levels of complexty. The relatonshp between complexty of nnovatve actvtes and the external acquston of knowledge and nformaton, as suggested by Lundvall, runs as follows. More complex nnovatve actvtes draw more heavly on a frm s nternal resources. As a result, there s a hgher probablty that these nternal resources are not suffcent to produce the nnovatons. Moreover, complex nnovatons erase exstng communcaton codes between users and producers. New codes have to be developed on a tral and error bass, whch requres ntensve nteractons between users and producers (Lundvall 199: 58). In sum, nternal resource defcts and/or changng communcaton codes ndcate complex nnovatve actvtes and ask for nteracton wth external partners. On the bass of ths lne of reasonng we decded to nclude a number of questons measurng features of (the complexty of) nnovatve actvtes. Thrd, the growng strategc mportance of technology-based competton coupled wth rapd technologcal changes make the ablty to manage the process of technologcal nnovaton an essental skll that companes need to compete. Ths actvty encompasses fve major categores: managng the acquston, development and deployment of technology; managng technologcally complex processes; usng technology for compettve advantage; managng the nteractons between technology and the organsaton; and addressng the mpact of technology on technology tself, as well as on dfferent aspects of socety. Snce there s a growng awareness that technology and nnovaton must be managed n a formal and strategc way, we developed a number of questons measurng the extent n whch companes conduct actvtes and use tools related to the management of technology and nnovaton. 18

19 Complexty can be measured at several levels. We ncluded measures of complexty for two levels n the questonnare: the organsatonal complexty and complexty of nnovatve actvtes. The followng measures have been developed and ncluded n SAIS 001 to measure complexty (of nnovatve actvtes): Measurng organsatonal complexty: Founded on lterature (Dewar & Hage, 1978; Dewar, Whetten & Boje: 1980) on organsatonal complexty, we developed the followng ndcators measurng dmensons of organsatonal complexty. Queston 16. Level of specalsaton Frms are asked to ndcate whch percentage of all employees s consdered as hghly traned specalsts. Queston 17. Level of educaton Frms are asked to ndcate whch percentage of all employees s educated on tertary level. Queston 18. Organsatonal structure Frms are asked to ndcate how many levels there are under the top management level. Measurng the complexty of nnovatve actvtes: Takng Lundvall s deas on the complexty of nnovatve actvtes as a pont of departure, we developed the tems lsted below to operatonalse the complexty of nnovatve actvtes. Queston 13a. Characterstcs of product/servce nnovaton Frms are asked to characterse ther nnovatve actvtes amed at the realsaton of product or servce nnovatons. Three possble answers are provded: (1) step by step changes of products/servces; () drastc changes of products/servers; (3) no products/servces nnovated. The frst possblty ndcates ncremental nnovatve actvtes, whle the second possblty denotes radcal actvtes. The queston s an operatonalsaton of the complexty of nnovatve actvtes. Queston 13b. Characterstcs of process nnovaton Frms are asked to characterse ther nnovatve actvtes amed at the realsaton of process nnovatons. Three possble answers are provded: (1) step by step changes of processes; () drastc changes of processes; (3) no processes nnovated. The frst possblty ndcates ncremental nnovatve actvtes, whle the second possblty denotes radcal actvtes. The queston s an operatonalsaton of the complexty of nnovatve actvtes. Queston 15a. Internal consequences of product/servce nnovatons Frms are asked to ndcate on a scale from 1 to 5 to what extent product/servce nnovatons caused changes of other products, servces and processes wthn the frm. Possbltes to answer range from 1 (no changes) to 5 (drastc changes). Ths tem measures the complexty of nnovatve actvtes. Queston 15b. Internal consequences of process nnovatons Frms are asked to ndcate on a scale from 1 to 5 to what extent process nnovatons caused changes of other products, servces and processes wthn the frm. Possbltes to answer range from 1 (no changes) to 5 (drastc changes). Ths tem measures another aspect of the complexty of nnovatve actvtes. Measurng the management of technology and nnovaton: As was stated n Secton 1, nnovatve actvtes have to be managed, just as other organsatonal actvtes. To measure several aspects of the management of technology and nnovaton n frms, the followng tems were developed: Queston 14a. Technology strategy Wth ths queston t can be determned whether or not a frm has a formal technology strategy. Queston 14b. Tranng n Technology and Innovaton Management Frms are asked to ndcate whether or not recent knowledge on technology and nnovaton management s acqured through attendng courses on ths topc. 19

20 Queston 14c. Person for Technology Management Frms are asked to ndcate whether or not a specfc person n the frm s responsble for the management of technology. Moreover, f ths s the case the management level of ths person s determned. Queston 14d. Technology and nnovaton management tools Frms are asked to ndcate whether or not they use a number of technology and nnovaton management tools to manage ther nnovaton processes. The tems are grouped n three categores: (1) nstruments and tools amed at montorng and forecastng technologcal development; () nstruments and tools amed at the analyss of the busness envronment; and (3) nstruments and tools amed at the montorng and management of technology and nnovaton at the organsatonal and project level. Measurng economc actvty: As was explaned n a prevous secton, we decded to nclude questons wth whch t can be determned whch economc actvtes a frm performs. Ths decson was made because t turned out to be mpossble to assgn an unque economc actvty to a frm n the Reedbase. The followng questons were added: Contact nformaton A respondent s asked to state hs name and the telephone number of hs/her company. Most mportant products/actvtes/servces of your frm Frms are asked to descrbe ther three most mportant products, actvtes and/or servces. Man actvtes It s the am of ths queston to dentfy the man actvtes of a frm. Possbltes to answer are: (1) Producton of (a) consumer goods; (b) raw materals; (c) product parts or components; (d) producton equpment; () Wholesale of (a) consumer goods; (b) raw materals; (c) product parts or components; (d) producton equpment; (3) Transport (servces; (4) Communcaton (servces) (5) Fnancal servces, and (6) Busness servces. Type of frm Frms are asked to ndcate what they consder as ther man lne of busness (manufacturng, servce provder, wholesale) n terms of the hghest percentage of sales. Questons 1a, 1b and 1c. Busness Actvtes South Afrca has been descrbed as a technologcal colony (De Wet, 000). Technologcal colones are countres whose ndustres are dependent on foregn technology because ther Natonal Systems of Innovaton are defcent or poorly developed. The levels of economc actvty n such colones are concentrated at the producton, supply, dstrbuton, marketng and sales end of product/servce lfe cycles. A relatvely small level of actvty n the research end of the lfe cycle may be present but an nsgnfcant flow of technology from the local R&D communty to the local ndustral sector takes place. We have therefore decded to nclude addtonal questons wth whch South Afrca s poston as a technology colony can be measured. Many of the questons already n the questonnare addresses ths ssue to some extent, but questons 1a, 1b and 1c were added to obtan a more complete profle of the busness actvtes that companes were engaged n. 4. Concluson In ths last secton, the theoretcal model developed n Secton 1 s combned wth the tems ncluded n the questonnare. In ths way, the operatonalsatons of the dfferent concepts n the model are llustrated. 0

21 Fgure : Operatonalsatons of the research model Contextual Varables Internal resources Q3a, Q3b, Q8b, Q10 B, C, D, Q0 Q16, Q17, Q18 Actvtes: Q4a-c, Q5, Q13a-b, Q14a-d, Q15a-b Outcomes: Q0, Qa-b, Q6, Q7 External resources: Q8a, Q9, Q11, Q1 1

22 References: ALCHIAN, A.A.. H. DEMSETZ (197), Producton, Informaton Costs, and Economc Organzaton. In: The Amercan Economc Revew, 6 (5), pp BACKSTROM, C.H., G.D. HURSH (1981), Survey Research. Macmllan Press BROUWER, E., A. KLEINKNECHT (1994), Innovate n de Nederlandse Industre en Denstverlenng (199). Mnstere van Economsche Zaken, Beledsstudes Technologe Econome 7, Den Haag. BROUWER, E., A. KLEINKNECHT (1996), Determnants of nnovaton: A mcroeconometrc analyss of three alternatve nnovaton output ndcators. In: Klenknecht, A. (ed.) Determnants of nnovaton. The message from new ndcators. London: Macmllan Press Ltd. BUSINESS MONITOR INTERNATIONAL (1995), South Afrca Annual Report on Government, Economy, the Busness Envronment and Industry, wth Forecasts through end-1997, London. CENTRAAL BUREAU VOOR DE STATISTIEK (1998), Kenns en Econome Onderzoek en Innovate n Nederland. CBS, Voorburg/Heerlen, december DEWAR, R., J. HAGE (1978), Sze, Technology, Complexty and Structural Dfferentaton: Toward a Theoretcal Synthess. In: Admnstratve Scence Quarterly, March DEWAR, R., D. WHETTEN, D. BOJE (1980), An Examnaton of the Relablty and Valdty of the Aken and Hage Scales of Centralzaton, Formalzaton, and Task Routneness. In: Admnstratve Scence Quarterly, Vol. 5, Iss.1. DE WET, G., (1999), Emergng from the Technology Colony: A Vew from the South, Department of Engneerng and Technology Management, Unversty of Pretora, South Afrca. Workng Paper ITB001/1. DOSI, G. (1988), Sources, Procedures, and Mcro-economc Effects of Innovaton. In: Journal of Economc Lterature, Vol. XXVI, pp FOUNDATION FOR RESEARCH DEVELOPMENT. (1997) Innovaton Patterns n South Afrcan Manufacturng Frms. Report on the survey of nnovatve actvty n South Afrcan manufacturng frms. Industral Strategy Project. HÅKANSSON, H. (1987) (Ed.), Industral Technologcal Development: A Network Approach. London: Croom Helm. HÅKANSSON, H. (1989), Corporate Technologcal Behavour: Co-operaton and Networks. London: Routledge. HÅKANSSON, H. (199), Evoluton Processes n Industral Networks. In: B. AXELSSON, G. EASTON (Eds.), Industral Networks: A New Vew of Realty. London: Routledge. HÅKANSSON, H. (1993), Networks as a Mechansm to develop Resources. In: P. BEIJE, J. GROENEWEGEN, O. NUYS, eds., Networkng n Dutch Industres, pp Leuven/Apeldoorn: Garant/Sswo. HÅKANSSON, H., I. SNEHOTA (1995) (Eds.), Developng Relatonshps n Busness Networks. London: Routlegde. HIPPEL, E. VON (1988), The Sources of Innovaton. New York, Oxford Unversty Press. KATZ, D., R. KAHN (1966), The Socal Psychology of Organzatons. New York: John Wley. LUNDVALL, B-Å. (1988), Innovaton as an Interactve Process: From User-producer Interacton to the Natonal System of Innovaton. In: G. DOSI, CH. FREEMAN, R. NELSON, G. SILVERBERG, L. SOETE (Eds.), Techncal Change and Economc Theory. London/New York: Pnter Publshers. LUNDVALL, B-Å (199), User-producer Relatonshps, Natonal Systems of Innovaton and Internatonalsaton. In: B-Å. LUNDVALL, ed., Natonal Systems of Innovaton: Towards a theory of nnovaton and nteractve learnng, pp London: Pnter Publshers. MONETTE, D.R., T.J. SULLIVAN, C.R. DEJONG (1990), Appled Socal Research. Tool for the Human Scences. Harcourt Brace Jovanovch College Publshers, Orlando. OERLEMANS, L. (1996), The Embedded Frm: Innovaton n Industral Networks (n Dutch). Tlburg, Tlburg Unversty Press. OERLEMANS, L., M. MEEUS, F. BOEKEMA (1998), Do Networks Matter for Innovaton? The Usefulness of the Economc Network Approach n Analysng Innovaton. In: Journal of Economc and Socal Geography (TESG), vol. 89/3, pp PRINSLOO, J.W. (000), Revson of South Afrca s natonal account. SCHEAFFER, R.L., W. MENDENHALL, L. OTT (1979), Elementary Survey Samplng. Duxbury Presss, Massachusetts, USA. SMITH, K. (1995), Interactons n Knowledge Systems: Foundatons, Polcy Implcatons and Emprcal Methods. In: STI Revew, no. 16, OECD, pp WORLD ECONOMIC FORUM (000), The Global Compettveness Report 000, Geneva, Swtzerland.

23 APPENDIX I SOUTH AFRICAN INNOVATION SURVEY 001 FOR MANUFACTURING AND SERVICES A jont research project of: Unversty of Pretora Department of Engneerng and Technology Management South Afrca Endhoven Unversty of Technology Endhoven Centre for Innovaton Studes The Netherlands 3

24 A. Contact nformaton Please answer where approprate Name of contact person for your frm:. Telephone:.. B. Most mportant products/actvtes/servces of your frm Please answer where approprate Please gve the three most mportant products/actvtes/servces of your frm C. Man actvtes Please, tck where approprate More than one answer possble What are the man actvtes of your frm? Producton of consumer goods Producton of raw materals Producton of product parts and components Producton of producton equpment (machnes, tools, software) Wholesale busness n consumer goods Wholesale busness n raw materals Wholesale busness n product parts and components Wholesale busness n producton equpment Transport (servces) Communcaton (servces) Fnancal servces Busness servces (e.g. desgn, consultancy, engneerng, IT servce ) Other. D. Type of frm Please, tck only one answer Your frm s: When answerng ths queston, use the actvty n whch the hghest percentage of sales s realsed as the crteron A manufacturng frm Please, read page 3 A servce provder Please, read page 4 A wholesale busness Please, read page 4 4

25 DEFINITIONS FOR SOUTH AFRICAN INNOVATION SURVEY MANUFACTURING Innovatons of products, servces and producton processes are the result of the development or the use of completely new or recently developed technologes, lke nformaton technologes, techncal scences or other technology related dscplnes. These products, servces and processes can be labelled as technologcally new or strongly mproved. Ths qualfcaton should be gven from the pont of vew of your frm. Please also nclude technologcally new or sgnfcantly mproved products ntroduced by your frm, even though already ntroduced by one of your compettors. New or mproved s also applcable f your frm started to use already exstng producton technologes, although other frms already use these producton technologes. Please, do NOT ncluded research and development actvtes n the feld of human resources, organsaton and/or marketng. Nether nclude routne varatons or face lftng of an already exstng product, lke for example the ntroducton of a new brand name. Innovaton From the pont of vew of your frm, the techncal features of products, servces or processes should be mproved sgnfcantly or completely new n comparson wth older, comparable products or processes of your frm For processes, these nnovatons result for example n lower process costs and/or hgher output performance For products or servces, there should be a wder range of use for the clent and/or the relevant techncal product specfcatons should show sgnfcant mprovements compared wth the specfcatons of earler versons. It should be stressed, that nnovaton s not only related to dong research. In most busnesses development of products, servces and/or processes, especally done by engneers, s the most mportant nnovatve actvty. So please nclude your development actvtes when answerng the questons. Moreover: The use of strongly mproved methods (e.g. usng the nternet) to dstrbute already exstng products s also consdered as nnovaton. Some examples: 1. Prototypng of a specfc part of a product s consdered as an nnovatve actvty, even f only one user/customer s nvolved.. The applcaton of the latest fashon trends n clothng s not consdered as an nnovatve actvty, but the use of a strongly mproved fabrc n an already exstng desgn s. nnovaton: 1. Routne replacement of producton equpment by comparable machnes.. Qualty certfcates, lke ISO. Ths s no nnovaton, but f products or processes were technologcally new or mproved wth the am of certfcaton, ths would qualfy as an nnovaton. Instructons for fllng n ths questonnare: Most questons are farly easy to answer wth just a yes or a no: To answer ths type of questons, just tck as s shown below: In some questons, t s asked to fll n a fgure: To answer ths type of questons, just fll n as s shown below:..% PLEASE GO TO PAGE 5 5

26 DEFINITIONS FOR SOUTH AFRICAN INNOVATION SURVEY WHOLESALES AND SERVICES In ths survey, an nnovaton s defned as a new or substantally mproved servce, product or process for your frm. Therefore, ths defnton ncludes new or mproved servces, products or processes already ntroduced by a compettor. Keep n mnd that the lmtaton to a new or substantally mproved servce, product and/or process means that ts fundamental characterstc s new or sgnfcantly mproved n relaton to the essental characterstcs of comparable, earler servces, products or processes. For example, a servce/product nnovaton could mply a much wder range of uses whle a process nnovaton could result n sgnfcantly lower costs and/or ncreased output performances. Furthermore we defne: Techncal nnovaton Ths s lmted to servce, product or process nnovatons realsed thanks to the use of for your frm new or substantally mproved applcatons of technologes, such as:! Informaton technology (IT), automaton, electronc data processng and communcaton;! n standard applcaton of mathematcs, the use of advanced software tools, data mnng;! Remanng technologcally orentated dscplnes as well as new or substantally mproved knowledge related to logstcs, envronment and energy. Warnng: Examples of servce nnovaton Frst a warnng: The followng lst of examples does not cover all possble nnovatons n the servce sector. Its purpose s to provde some examples of nnovaton by usng one or more of the abovementoned technologcally orentated knowledge areas. Electronc payment systems, 4 hour bankng clent systems, chp cards, nstant acceptance short-term nsurance by electronc means, advanced systems for extensve data processng, feasblty expert systems for loans (etc), as well as advanced processng tools for regsterng nsurance polces. Software for optmal stock strateges (zero stock systems), Product data nterchange (PDI), electronc orderng systems and/or networks, routng systems, computer-aded logstcs, value-aded logstcs, ntegrated networks for nformaton retreval by trade organsaton branches, advanced electronc devces for checkng product qualfcatons, mult-meda systems software, software development not based on exstng applcatons or tools, software engneerng, tools to lnk or optmse applcatons n dfferent software languages, software tools to translate the results of nformaton analyses nto formalsed software codes (component based technologes), etc. Innovaton s not Do not nclude non-technologcally drven nnovaton, such as fundamental changes n your frm s organsatonal structure and nnovatve actvtes such as marketng and personnel polces. These types of nnovaton are only quered n questons a and 5. Instructons for fllng n ths questonnare: Most questons are farly easy to answer wth just a yes or a no: In some questons, t s asked to fll n a fgure: To answer ths type of questons, just tck as s shown below: To answer ths type of questons, just fll n as s shown below:..% PLEASE GO TO PAGE 5 6

27 0. General nformaton Please, tck where approprate Are your frm s fnancal results annually consoldated wth those of subsdares and/or your holdng company? Is your frm ndrectly afflated to other frms? (e.g. n a franchse agreement, etc.) Is your frm s head offce located n South Afrca?, head offce s located n (name country):.. Please, tck or answer where approprate Number of employees of your frm n 1998 and 000? Total sales of your frm n 1998 and 000? Exports as a % of total sales of your frm n 1998 and 000? R % R % Was your frm establshed n the perod ? Between 1996 and 1998, dd your frm buy another frm? Between 1996 and 1998, dd your frm sell another frm? Dd total sales change wth more than 10% as a result of buyng and sellng frms n the perod ?.. 1a. Busness actvtes: Marketng, dstrbuton and sale Please, tck where approprate More than one answer possble Is your frm nvolved n the marketng, dstrbuton and sale of products or servces?, of our own products/servces, product/servces suppled by local suppler, mported 1b. Busness actvtes: Producton Please, tck where approprate More than one answer possble Is your frm nvolved n the producton of products and/or the supply of servces? Go to queston 1c If yes, ndcate the source of the producton technology (techncal know-how and technques) In-house (propretary ntellectual property) Local sources (local companes or organsatons) Foregn sources (e.g. producton lcenses, etc) 1c. Busness actvtes: Transferrng or sellng technology Please, tck where approprate More than one answer possble Does your frm transfer or sell technology to other frms (producton lcenses, patents, specfcatons, etc) If yes, ndcate the type of technology suppled: Go to queston a Marketng, dstrbuton or sales technology Producton or processng technology Product technology Techncal know-how and technques (research output) 7

28 a. Innovated products/servces Please, tck where approprate More than one answer possble Between , has your frm ntroduced products and/or servces onto the market technologcally mproved or new to your frm? Improved: an exstng product/servce whch has clearly mproved techncal specfcatons or an ncreased usablty, compared to prevous versons., products/servces developed manly by a thrd party, products/servces developed together wth a thrd party, products/servces developed manly by my own frm New: a product/servce ncomparable wth prevous products or servces of your frm and n whch new technology s emboded. b. Innovated processes Please, tck where approprate More than one answer possble Between , dd your frm brng producton processes nto use, whch were technologcally mproved or new to your frm? Improved: exstng producton processes, but wth clearly hgher performance, less costs or mproves producton relablty New: a process ncomparable wth prevous processes of your frm and n whch new technology s emboded., processes developed manly by a thrd party, processes developed together wth a thrd party, processes developed manly by my own frm c. Innovatve actvtes Please, tck where approprate At the end of 000, dd your frm have unfnshed nnovaton projects * Between , dd your frm have any techncal nnovaton projects that were abandoned before completon? * Projects amed at realsng technologcally new or strongly mproved products, servces and/or processes 3a. Own research and/or development (R&D) Please, tck or answer where approprate All n-house actvtes amed at the development of technologcally new or mproved products, servces or processes, ncludng correspondng research and software development can be labelled as Research & Development (R&D) Please, gve an estmate of the R&D effort n your frm n 000 n persons and man-years n South Afrca. Please, gve the nnovaton costs of your frm n 000, ncl. personnel costs and related nvestment expendtures (no deprecaton). Ths amount s: Number of persons: Expressed n man-years (1):.. R..,000.- an exact fgure a rough estmaton Our frm s: Engaged more or less contnuously n R&D Engaged occasonally n R&D t conductng any research and/or development (1) For example: 3 researchers or engneers work every week 0 hours on R&D s 3*0/40 = 1.5 man-years 8

29 3b. Innovaton expendtures 000 Please, tck or answer where approprate Your frm s engaged n realsng nnovatons by mplementng new or sgnfcantly mproved IT-applcatons or other techncally-based knowledge. Please tck one ore more of the followng nnovaton actvtes f appled by your frm n 000. Subsequently, gve an estmate of related expendtures. Please, tck yes or no for each nnovaton actvty: If : Please, gve the nnovaton costs of your frm n 000, ncl. personnel costs and related nvestment expendtures (no deprecaton). Please tck yes whenever nnovaton expendtures occurred, even f good fnancal data are not avalable. If good data are not avalable a rough estmate of expendtures s acceptable. Machnery/ Equpment Outsourced Research Industral Desgn and/or Innovaton Implementaton Lcenses/ Advses Marketng Tranng Purchase of advanced equpment or computer hardware specfcally purchased for nnovatve purposes All creatve, systematc research performed to develop technologcal nnovatons, ncludng correspondng research and software development performed by thrd partes by order of your frm. Include costs of specalsts that were temporarly employed by your frm to work on an nnovaton. All actvtes amed at the techncal preparaton of producton processes n order to brng an nnovaton nto producton (and not already taken nto account n the prevous two tems) Acquston of patents, purchase of nonpatented nventons and/or other expertse not mentoned before, e.g. n the feld of software or nformaton technology Costs of marketng actvtes (also done by others) as far as drectly related to the market ntroducton of nnovated products/servces (ncludng market research) Costs of tranng of personnel (also done by others) as far as drectly related to the market ntroducton of nnovated products, servces, or processes R..,000.- R..,000.- R..,000.- R..,000.- R..,000.- R.., a. Innovaton and bottlenecks Please, tck where approprate In the last three years, dd your frm experence bottlenecks as a result of whch: Our frm dd not nnovate at all. Please, go to Queston 4c Our frm nnovated, but: Innovaton projects were not started? Innovaton projects were stopped prematurely? Innovaton projects were serously delayed? If you have tcked 3 tmes, please go to Queston 4b else go to Queston 5 9

30 4b. Factors hamperng nnovaton Please, tck where approprate If you tcked at least one tme n queston 4a, please ndcate the A bottleneck and as a result nnovaton projects were: consequences for your nnovaton projects of the bottlenecks mentoned below Bottleneck t Started Abandoned Serously Delayed Economc rsks Short of staff Knowledge gap Costs too hgh Cost-beneft analyses presented too many doubts Lack of qualfed personnel Lack of nformaton or famlarty wth technologes Estmated costs too hgh or exceedng ntal budget Short of fnance Tme to market Partnershp Demand rsks Regulatons Rgdtes Other bottlenecks Lack of approprate external fnance sources Could not meet requred market ntroducton tme Co-operaton wth partners not proceedng smoothly Too many uncertantes on (future) product markets Restrctve publc or other government regulatons Internal organsatonal rgdtes hampered nnovaton. After you have answered Queston 4b, please go to Queston 5 4c. technologcal nnovatve actvtes Please, tck where approprate Accordng to your answer on Queston4a., your frm was not engaged n nnovatve actvtes between The man reasons for ths are: Economc rsks Costs too hgh Short of staff tme Cost-beneft analyses presented too many uncertantes Estmated nnovaton costs are too hgh for our frm Lack of qualfed personnel tme wthn the frm for nnovatve actvtes Tme to market Short of fnance Demand rsks Other: Could not meet requred market ntroducton Lack of approprate external fnancal resources Too many uncertantes on (future) product markets.. 5. Innovaton n a broader sense Please, tck where approprate So far, all questons have dealt wth techncal product, process, or servce nnovaton. Ths queston refers to all of your frm s nnovatve actvtes, rrespectve of the methods used. Between 1998 and 000, whch of the followng actvtes your frm has undertaken? Busness strategy Marketng/desgn Reorgansaton Management ne of the above Reflect on, change of (long term) strategc goals of your frm Development of new marketng concepts and/or aesthetc change of product desgn Implementaton of radcal change of the organsaton of your frm Implement new management tools, for example knowledge management ne of the above actvtes were developed by the frm If you have ndcated that your frm had no nnovatve actvtes at all Go to page 11 In all other cases Go to Queston 6 30

31 6. Product and/or servce nnovaton and sales Please, fll n the correct percentages and/or Tck where approprate For 000, gve an ndcaton of the dstrbuton of sales of products and/or servces of your frm that: Dstrbuton of Total Sales 000 Dd not change Were technologcally mproved Were technologcally new In 000, dd your frm sell products/servces that were not only technologcally new or mproved to your frm, but also technologcally new or mproved to the market? (.e. your compettors dd not ntroduce such product/servces already). %. %. % 100% Share of these products/servces n total sales 000 was approxmately:. % Is the greater part of sales marked above wth obtaned wth products/servces ntroduced to the market after 1 July 000? 7. Product and process nnovaton and your frm s market poston Compared to the market leader n your frm s lne of busness, how have the nnovatons reported n questons a- c affected your frm s relatve market poston? Between 1998 and 000, our market poston has: t applcable Please, tck where approprate Worsened substantally compared to the market leader Worsened to a small extent compared to the market leader change compared to the market leader Improved to a small extent compared to the market leader Improved substantally compared to the market leader Dffcult to assess 8a. Innovaton and the use of external nformaton sources Please, tck where approprate Source used and was Between 1998 and 000, whch external nformaton Source Of lttle Important Very sources have been used for your frm s technologcal t used Importance Important nnovatons (1) Group New personnel Buyers Supplers Compettors Consultants Research labs Unverstes Innovaton Centres Sector nsttutes Patents Electronc nfo Professon. lterature Exhbtons From mother or daughter company From recently contracted personnel Innovatve deas from buyers Innovatve deas from supplers Such as analyses of products/servces of compettors Ideas from prvate research nsttutes/consultances Ideas from publc research nsttutes Includng afflated nsttutes Regonal centres for nnovaton Ideas from trade organsatons Consult patents for nnovatve deas Consult databases for nnovatve deas Consult lterature for deas Includng professonal conferences (1) Projects amed at achevng technologcally new or strongly mproved products, servces or processes 31

32 8b. Innovaton and the use of nternal nformaton sources Please, tck where approprate Source used and was Between 1998 and 000, whch nternal nformaton sources Source have been used for your frm s technologcal nnovatons (1) t used Important Purchase functon Marketng and/or sales functon Research functon Development functon Engneerng functon Producton functon Of lttle Importance Very Important 9. Innovaton n partnershp: Partners n South Afrca Please, tck where approprate Innovaton n partnershp s workng actvely and together wth other partners on the development of technologcally new or strongly mproved product, servces, and processes. Most of the tmes, but not always, costs and revenues are shared n these partnershp. Please, do not nclude outsourcng. Between , dd your frm partcpate n such partnershps wth organsatons located n South Afrca? Please, go to Queston 10. If Please, tck your partners and ndcate on the rght also where ths partner s located. Partner and located n South Afrca n: te If there s more than one partner per row, please tck the locaton for your most mportant South Afrcan partner. Same Town/Cty Same Provnce Other Provnces Partner: Own group Buyers Supplers Compettors Consultants Research nsttutes Unverstes Other partners Wthn own enterprse group Buyers/users of your products/servces Supplers of your frm Frms actve n your markets Prvate research nsttutes/consultances Publc non-proft research nsttutes Includng afflated nsttutes Namely: Objectves of nnovaton Please, tck where approprate Between , what was the mportance of the t Farly Very objectves mentoned below for the technologcal nnovaton projects of your frm? Important Important Important Important Products/ market Labour Flexblty Materals Improvng product or servce qualty, extend product or servce range, open up new markets Reduce deployment or costs of labour Improve nternal busness process flexblty Reduce materal consumptons Envronment Regulatons Reduce envronmental damage Fulfllng regulatons and standards (1) Projects amed at achevng technologcally new or strongly mproved products, servces or processes 3

33 11. Innovaton n partnershp: foregn partner Please, tck where approprate Innovaton n partnershp s workng actvely and together wth other partners on the development of technologcally new or strongly mproved product, servces, and processes. In ths queston, we focus on nnovaton partners your frm mght have located n countres outsde South Afrca Between , dd your frm partcpate n such partnershps wth organsatons located n foregn countres? Please, go to Queston 1. If te Partner: Own group Buyers Supplers Compettors Consultants Research nsttutes Unverstes Other partners Please, tck your partners and ndcate n whch country ths partner s located. If there s more than one partner per row, please tck the country for your most mportant foregn partner. Wthn own enterprse group Buyers/users of your products/servces Supplers of your frm Frms actve n your markets Prvate research nsttutes/consultances Publc non-proft research nsttutes Includng afflated nsttutes Namely:.. SADC (1) Other Afrcan Countres Partner located n: Europe rth Amerca South Amerca Asa/ Australa 1. Innovaton funds Please, tck where approprate Has your frm receved a subsdy or other nnovaton funds n 000 to develop technologcally new or Please, go to Queston 13a mproved products, servces, or processes? If : Whch of the followng funds dd your frm use for nnovaton n 000? Please, tck where approprate More than one answer possble Technology and Human Resources for Industry Programme (THRIP) Innovaton Fund (DTI) Support Programme for Industral Innovaton (DTI) Sector Partnershp Fund (DTI) Compettve Fund (DTI) Venture Captal (ndvduals, VC organsatons) Development Captal (Banks, IDC) Research Cooperaton (Scentfc Councls) Other, please name :. 13a. Characterstcs of product/servce nnovaton Please, tck where approprate Product or servce nnovatons refer to the development and ntroducton of new and/or mproved products or servces. Please, characterse these nnovatons of your frm. Our product/servce nnovatons are manly: Step by step changes of products/servces Drastc changes of products/servces Between , we dd not have product/servce nnovatons 13b. Characterstcs of process nnovaton Please, tck where approprate Process nnovatons refer to the development and ntroducton of new and/or mproved processes. Please, Step by step changes of processes characterse the process nnovatons of your frm. Drastc changes of processes Our process nnovatons are manly: Between , we dd not have process nnovatons (1) SADC = Southern Afrcan Development Communty, ncludng Angola, Botswana, Democratc Republc of Congo, Lesotho, Malaw, Maurtus, Mozambque, Namba, Seychelles, Swazland, Tanzana, Zamba, and Zmbabwe. Exclude partnerns located n South Afrca. 33

34 14a. Technology strategy Please, tck where approprate Does your frm have a formal technology strategy? 14b. Tranng n Technology and Innovaton Management Please, tck where approprate Between 1998 and 000, dd any of your employees attend (a) tranng course(s) n Technology and/or Innovaton Management? 14c. Person for Technology Management Please, tck where approprate Is there a specfc person n your frm who s responsble for the management of technology?, please go to Queston 14d If, ndcate the management level of ths person: Senor management level Mddle management level Junor management level 14d. Technology and nnovaton management tools Please, tck where approprate More than one answer possble Between , whch of the technology and nnovaton management nstruments/tools mentoned below dd your frm use to manage the nnovaton processes? Technology montorng and scannng Technology forecastng and foresghtng Compettve technologcal ntellgence Compettor analyss Industry analyss Market analyss Technology and nnovaton audts of own organsaton Core competence assessment of own organsaton Intellectual property audt of own organsaton Project portfolo management Cross functonal teams n nnovaton projects 15a. Internal consequences of product/servce nnovatons Please, tck where approprate Please ndcate on a scale from 1 to 5, to what extent product/servce nnovatons of your frm caused changes of other products, servces or processes of your frm. no changes drastc changes 5 15b. Internal consequences of process nnovatons Please, tck where approprate Please ndcate on a scale from 1 to 5, to what extent process nnovatons of your frm caused changes of other products, no changes drastc changes servces or processes of your frm Level of specalsaton Whch percentage of your frm s employees can be Percentage of specalsts:.. consdered as hghly traned specalsts? 17. Level of educaton Please, gve the correct percentage Whch percentage of your frm s employees s educated on Percentage of hgher educated tertary level? employees: Organsatonal structure Please, gve the correct number How many levels are there under the top management (chef executve) level? Number of levels: THANK YOU VERY MUCH FOR COMPLETING THIS QUESTIONNAIRE PLEASE GOTO PAGE 11 34

35 For returnng the completed questonnare, please use the enclosed stamped addressed envelope. A postage stamp s not requred. In case you do not have ths stamped addressed envelope anymore, return the completed questonnare free of charge to: Unverstet van Pretora Unversty of Pretora Department of Engneerng and Technology Management Lynwood Road, Hatfeld 000 Pretora Fllng out ths questonnare took you a lot of effort. As a token of our apprecaton, we want to do somethng n return. If requested, we can compare the economc and nnovatve performance of your frm wth the other frms that partcpated n ths research. Wth ths nformaton, you can get an mpresson of the relatve economc performance of your frm. Please ndcate whether you want to use ths possblty: #, we want to use ths possblty. Our frm wll be compared to other frms n the survey. Items ncluded are sales, employment, export and nnovatve performance. #, we do not want to use ths possblty Maybe you feel the need to comment on ths research n general or on ths questonnare n partcular (maybe some questons were not clear to you or some questons were too dffcult). In the box below, we saved some space for your comments. Please, feel free to comment!! AGAIN, THANK YOU VERY MUCH FOR COMPLETING THIS QUESTIONNAIRE 35

36 W O R K I N G P A P E R S Ecs workng papers (Aprl 001): 98.1: Per Botolf Maurseth & Bart Verspagen: Knowledge spllovers n Europe and ts consequences for systems of nnovaton 98.: Jan Fagerberg & Bart Verspagen: Productvty, R&D spllovers and trade 98.3: Leon A.G. Oerlemans, Marus T.H. Meeus & Frans W.M. Boekema: Learnng, nnovaton and proxmty 99.1: Marus T.H. Meeus, Leon A.G. Oerlemans & Jules J.J. van Djck: Regonal systems of nnovaton from wthn 99.: Marcel P. Tmmer: Clmbng the technology ladder too fast?: An nternatonal comparson of productvty n South and East- Asan manufacturng, : Leon A.G. Oerlemans, Marus T.H. Meeus, Frans W.M. Boekema: Innovaton and space: theoretcal perspectves 99.4: A. Mukherjee & N. Balasubramanan: Technology transfer n a horzontally dfferentated product-market 99.5: Marus T.H. Meeus, Leon A.G. Oerlemans & J. Hage: Sectoral patterns of nteractve learnng 99.6: Bart Verspagen: The role of large multnatonals n the dutch technology nfrastructure 99.7: Leon A.G. Oerlemans & Marus T.H. Meeus: R&D cooperaton n a transacton cost perspectve 99.8: Gerald Slverberg & Bart Verspagen: Long memory n tme seres of economc growth and convergence 99.9: B. Bongenaar & A. Szrma: