Sectoral innovation coefficients

Transcription

1 Sectoral innovation coefficients (CIS*KIA) Used for the calculation of the dynamism component of a European Innovation output indicator Research and Innovation

2 EUROPEAN COMMISSION Directorate-General for Research and Innovation Directorate RTD Directorate for Research and Innovation Unit C.6 Economic Analysis and Indicators Contact: Pierre Vigier European Commission B-1049 Brussels

3 EUROPEAN COMMISSION Sectoral innovation coefficients (CIS*KIA) Used for the calculation of the dynamism component of a European Innovation output indicator 2013 Directorate-General for Research and Innovation

4 EUROPE DIRECT is a service to help you find answers to your questions about the European Union Freephone number (*): (*) Certain mobile telephone operators do not allow access to numbers or these calls may be billed LEGAL NOTICE Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of the following information. The views expressed in this publication are the sole responsibility of the author and do not necessarily reflect the views of the European Commission. More information on the European Union is available on the Internet ( Cataloguing data can be found at the end of this publication. Luxembourg: Publications Office of the European Union, 2013 ISBN doi /31888 European Union, 2013 Reproduction is authorised provided the source is acknowledged. Cover Images: earth, # , Source: Shutterstock.com; bottom globe, PaulPaladin # , Source: Fotolia.com

5 Sectoral innovation coefficients (CIS*KIA) The European Commission commissioned the OECD to elaborate a method to assign innovation coefficients to economic activities, i.e. all NACE Rev.2 3-digit business sectors covered in the Community Innovation Survey (CIS) This paper presents this method. The CIS aims at capturing a broad range of innovation activities such as product and process development as well as marketing and organisational changes. 33 CIS 2008 variables distributed in 4 groups (see Table 1) and reflecting the different aspects of innovation have been used to rank economic sectors according to their innovation intensity. These variables have been assigned equal weights so that, for instance, R&D performers and marketing innovators are given the same weight when constructing sectoral innovation intensities. This allows addressing the concern that innovation performance of some sectors especially services ones - is not associated to R&D performance only, as it has been traditionally the case in manufacturing. The calculation of CIS-based sector-specific scores has been conducted as follows: 1. Weighted country data were pooled together: firms' responses from all available countries were weighted by their statistical representativeness (provided by each National Statistical Office) before being pooled together. This approach has the main advantage of being able to account for the relative importance of the countries included in the analysis. 2. For each CIS 2008 dichotomous variable considered, sectors "performance" has been obtained as the ratio of the number of firms answering "yes" over the total number of firms answering to that very question. Conversely, for those variables asking respondents to quantify investment or amounts (e.g. innovation related expenses), sectors have been ranked on the basis of average expenditure per respondent firm. 3. For each of the 33 CIS 2008 variables considered and included in the 4 different groups created (see Table 1), business sectors have been ranked according to their relative "performance" and given a score proportional to their position in the ranking. As 182 NACE Rev.2 3-digit business sectors could be covered, based on CIS 2008 data, this entails attributing 182 points to the first sector in the ranking, 182-1=181 to the second one and so on, until getting to the very final sector in the rank, which only receives 1 point. A relatively low number of observations for certain sectors in the CIS made necessary to impute three digit level results based on data available on a more aggregated level. Fifteen 3-digit level NACE Rev.2 sectors were concerned by this issue (B051, B052, B061, B062, B071, B072, B091, B099, C191, C192, H511, H512, M 750, S951, S952), notably in Mining activities (section B of NACE Rev. 2). 1 All sectors covered in the CIS 2008 survey have been included in order to assess innovativeness across the whole spectrum of economic activities. This implies that, as sectoral coverage varies across countries, the statistics for some sectors may rely on a subset of countries only. Reference years of the CIS 2008:

6 The OECD and the Commission have elaborated a methodology to assign meaningful coefficients to these fifteen 3-digit level sectors, based on the coefficients assigned to the 2-digit level. 4. Variable-specific scores have then been normalised so that all variable-specific rankings are defined between ]0, 1]. To this end, the normalised score of sector x (called xnorm) has been calculated for each variable i as: xnorm i = x i / x i max where x max i is the maximum score taken by any of the sectors included in the ranking of variable i For each group j of variables, with j = [product and process innovators; innovation related expenditures; organisation and market innovations; environmental innovations], group specific sectoral scores have been calculated as the average of the scores obtained from each of the variables included in group j. 6. Overall CIS-based sectors scores have finally been calculated as the average of the sector-specific scores obtained from each of the four groups of variables considered. Overall CIS-based scores thus range between ]0, 1]. Innovation is always the tangible or intangible translation of new ideas and knowledge. Knowledge-intensive economic activities are more likely to be subject to innovations and to offer innovations with a high potential for economic and societal transformations. In order to account for the role of knowledge in the innovation potential of an economic sector, the CIS-based score of each sector has been multiplied by a knowledge intensity score of this sector, defined as the share of tertiary-educated persons employed in that sector (based on Labour Force Survey data) normalised by the highest share among all sectors. The sectorspecific knowledge intensity score thus ranges between ]0, 1]. Each NACE Rev.2 3-digit sector was therefore assigned an innovativeness coefficient comprised between ]0, 1] obtained by multiplying its CIS-based score by its knowledge-intensity score. The overall innovativeness coefficient of the sector is the same for all countries (see Annex 2, "CIS*KIA score" column). 2 The methodology leads to first ranked sectors that get normalised scores equal to one, and to last ranked sectors that get small (i.e. close to zero) but positive values, with stepwise distances (i.e. between a sector n and the sectors ranked n+1 or n-1) that depend on the variable-specific number of sectors included. 4

7 Table 1 - Ordering criteria groups and CIS 2008 variables considered CIS wave CIS Group name Harmonised variable name Product and process innovators process innovators process innovators INPDSV Innovation related expenditures related expenditures Content Type of variable INPDGD New or significantly improved goods New or significantly improved services NEWMKT New to the market NEWFRM New to the firm INPSPD New or significantly improved methods of manufacturing or producing goods or services INPSLG New or significantly improved logistics, delivery or distribution methods INPSSU New or significantly improved supporting activities for your processes INPSNM New or significantly improved processes new to the market RRDINX Intramural (in-house) R&D Discrete, го RRDEXX Acquisition of R&D (extramural R&D) Discrete, го RMACX Acquisition of machinery, equipment Discrete, го and software ROEKX Acquisition of other external Discrete, го knowledge RTOT Total of innovation expenditures Discrete, го Organisation and market innovations market innovations RTR Internal or external training for your personnel RMAR Activities for the market introduction of goods and services, including market research and launch advertising RPRE Procedures and technical preparations, not covered elsewhere ORGPUB New business practices for organising procedures ORGWKP New methods of organising work responsibilities and decision making ORGEXR New methods of organising external relations with other firms or public institutions MKTDGP Significant changes to the aesthetic design or packaging of a good or service MKTPDP New media or techniques for product promotion 5

8 CIS wave Group name Harmonised variable name MKTPDL Content New methods for product placement or sales channels Type of variable MKTPRI New methods of pricing goods or services CIS 2008 Environmental innovations ECOMAT Reduced material use innovations ECOEN Reduced energy use ECOCO Reduced CO 2 footprint ECOSUB Replaced materials with less polluting or hazardous substitutes ECOPOL Reduced soil, water, noise, or air pollution ECOREC Reduced waste, water or materials ECOENU Reduced energy use (by end user) ECOPOS Reduced air, water, soil or noise pollution (by end user) ECOREA Improved recycling of product after use (by end user) ENVI D Procedure to improve environmental impact Discrete, os.xs.1 6

9 Table 2: CIS*KIA coefficients- for Nace Rev.2 group (CIS and KIA are normalised) NACE Rev. 2 code Description KIA CIS CIS*KIA B051 Mining of hard coal B052 Mining of lignite B061 Extraction of crude petroleum B062 Extraction of natural gas B071 Mining of iron ores B072 Mining of non-ferrous metal ores B081 Quarrying of stone, sand and clay B089 Mining and quarrying n.e.c B091 Support activities for petroleum and natural gas extraction B099 Support activities for other mining and quarrying C101 Processing and preserving of meat and production of meat products C102 Processing and preserving of fish, crustaceans and molluscs C103 Processing and preserving of fruit and vegetables C104 Manufacture of vegetable and animal oils and fats C105 Manufacture of dairy products C106 Manufacture of grain mill products, starches and starch products C107 Manufacture of bakery and farinaceous products C108 Manufacture of other food products C109 Manufacture of prepared animal feeds C110 Manufacture of beverages C120 Manufacture of tobacco products C131 Preparation and spinning of textile fibres C132 Weaving of textiles C133 Finishing of textiles C139 Manufacture of other textiles C141 Manufacture of wearing apparel, except fur apparel C142 Manufacture of articles of fur C143 Manufacture of knitted and crocheted apparel C151 Tanning and dressing of leather C152 Manufacture of footwear C161 Sawmilling and planing of wood C162 Manufacture of products of wood, cork, straw and plaiting materials

10 NACE Rev. 2 code Description KIA CIS CIS*KIA C171 Manufacture of pulp, paper and paperboard C172 Manufacture of articles of paper and paperboard C181 Printing and service activities related to printing C182 Reproduction of recorded media C191 Manufacture of coke oven products C192 Manufacture of refined petroleum products C201 Manufacture of basic chemicals, fertilisers and nitrogen compounds, plastics and synthetic rubber in primary forms C202 Manufacture of pesticides and other agrochemical products C203 Manufacture of paints, varnishes and similar coatings, printing ink and mastics C204 Manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations C205 Manufacture of other chemical products C206 Manufacture of man-made fibres C211 Manufacture of basic pharmaceutical products C212 Manufacture of pharmaceutical preparations C221 Manufacture of rubber products C222 Manufacture of plastic products C231 Manufacture of glass and glass products C232 Manufacture of refractory products C233 C234 C235 C236 C237 C239 C241 C242 C243 Manufacture of clay building materials Manufacture of other porcelain and ceramic products Manufacture of cement, lime and plaster Manufacture of articles of concrete, cement and plaster Cutting, shaping and finishing of stone Manufacture of abrasive products and non-metallic mineral products n.e.c. Manufacture of basic iron and steel and of ferro-alloys Manufacture of tubes, pipes, hollow profiles and related fittings, of steel Manufacture of other products of first processing of steel

11 NACE Rev. 2 code Description KIA CIS NACE Rev. 2 code C244 Manufacture of basic precious and other non-ferrous metals C245 Casting of metals C251 C252 C253 C254 C255 Manufacture of structural metal products Manufacture of tanks, reservoirs and containers of metal Manufacture of steam generators, except central heating hot water boilers Manufacture of weapons and ammunition Forging, pressing, stamping and roll-forming of metal C256 Treatment and coating of metals C257 C259 C261 C262 C263 C264 C265 C266 C267 C268 C271 C272 C273 C274 C275 C279 C281 Manufacture of cutlery, tools and general hardware Manufacture of other fabricated metal products Manufacture of electronic components and boards Manufacture of computers and peripheral equipment Manufacture of communication equipment Manufacture of consumer electronics Manufacture of instruments and appliances for measuring, testing and navigation Manufacture of irradiation, electromedical and electrotherapeutic equipment Manufacture of optical instruments and photographic equipment Manufacture of magnetic and optical media Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus Manufacture of batteries and accumulators Manufacture of wiring and wiring devices Manufacture of electric lighting equipment Manufacture of domestic appliances Manufacture of other electrical equipment Manufacture of general-purpose machinery

12 NACE Rev. 2 code Description KIA CIS CIS*KIA C282 Manufacture of other generalpurpose machinery C283 Manufacture of agricultural and forestry machinery C284 Manufacture of metal forming machinery and machine tools C289 Manufacture of other specialpurpose machinery C291 Manufacture of motor vehicles C292 Manufacture of bodies (coachwork) for motor vehicles C293 Manufacture of parts and accessories for motor vehicles C301 Building of ships and boats C302 Manufacture of railway locomotives and rolling stock C303 Manufacture of air and spacecraft and related machinery C304 Manufacture of military fighting vehicles C309 Manufacture of transport equipment n.e.c. C310 Manufacture of furniture C321 Manufacture of jewellery, bijouterie and related articles C322 Manufacture of musical instruments C323 Manufacture of sports goods C324 Manufacture of games and toys C325 Manufacture of medical and dental instruments and supplies C329 Manufacturing n.e.c C331 Repair of fabricated metal products, machinery and equipment C332 Installation of industrial machinery and equipment D351 Electric power generation, transmission and distribution D352 Manufacture of gas D353 Steam and air conditioning supply E360 Water collection, treatment and supply E370 Sewerage E381 Waste collection E382 Waste treatment and disposal E383 Materials recovery E390 Remediation activities and other waste management services F411 Development of building projects

13 NACE Rev. 2 code Description KIA CIS CIS*KIA F412 Construction of residential and non-residential buildings F421 Construction of roads and railways F422 Construction of utility projects F429 Construction of other civil engineering projects F431 Demolition and site preparation F432 Electrical, plumbing and other construction installation activities F433 Building completion and finishing F439 Other specialised construction activities G451 Sale of motor vehicles G452 G453 G454 G461 G462 Maintenance and repair of motor vehicles Sale of motor vehicle parts and accessories Sale, maintenance and repair of motorcycles and related parts and accessories Wholesale on a fee or contract basis Wholesale of agricultural raw materials and live animals G463 Wholesale of food, beverages and tobacco G464 Wholesale of household goods G465 Wholesale of information and communication equipment G466 Wholesale of other machinery, equipment and supplies G467 Other specialised wholesale G469 Non-specialised wholesale trade G471 Retail sale in non-specialised stores G472 Retail sale of food, beverages and tobacco in specialised stores G473 Retail sale of automotive fuel in specialised stores G474 Retail sale of information and communication equipment in specialised stores G475 Retail sale of other household equipment in specialised stores G476 Retail sale of cultural and recreation goods in specialised stores G477 Retail sale of other goods in specialised stores G478 Retail sale via stalls and markets G479 Retail trade not in stores, stalls or markets

14 NACE Rev. 2 code Description KIA CIS CIS*KIA H491 Passenger rail transport, interurban H492 Freight rail transport H493 Other passenger land transport H494 Freight transport by road and removal services H495 Transport via pipeline H501 Sea and coastal passenger water transport H502 Sea and coastal freight water transport H503 Inland passenger water transport H504 Inland freight water transport H511 Passenger air transport H512 Freight air transport and space transport H521 Warehousing and storage H522 Support activities for transportation H531 Postal activities under universal service obligation H532 Other postal and courier activities I551 Hotels and similar accommodation I552 Holiday and other short-stay accommodation I553 Camping grounds, recreational vehicle parks and trailer parks I559 Other accommodation I561 Restaurants and mobile food service activities I562 Event catering and other food service activities I563 Beverage serving activities J581 Publishing of books, periodicals and other publishing activities J582 Software publishing J591 Motion picture, video and television programme activities J592 Sound recording and music publishing activities J601 Radio broadcasting J602 J611 J612 J613 J619 Television programming and broadcasting activities Wired telecommunications activities Wireless telecommunications activities Satellite telecommunications activities Other telecommunications activities

15 NACE Rev. 2 code Description KIA CIS CIS*KIA J620 Computer programming, consultancy and related activities J631 Data processing, hosting and related activities J639 Other information service activities L681 Buying and selling of own real estate L682 Rental and operating of own or leased real estate L683 Real estate activities on a fee or contract basis M691 Legal activities M692 Accounting, bookkeeping and auditing activities M701 Activities of head offices M702 Management consultancy activities M711 Architectural and engineering activities and related technical consultancy M712 Technical testing and analysis M721 R&D on natural sciences and engineering M722 R&D on social sciences and humanities M731 Advertising M732 Market research and public opinion polling M741 Specialised design activities M742 Photographic activities M743 Translation and interpretation activities M749 Other professional, scientific and technical activities n.e.c. M750 Veterinary activities N771 N772 Rental and leasing of motor vehicles Rental and leasing of personal and household goods N773 Rental and leasing of other machinery, equipment and tangible goods N774 Leasing of intellectual property and similar products, except copyrighted works N781 Activities of employment placement agencies N782 Temporary employment agency activities N783 Other human resources provision N791 N799 Travel agency and tour operator activities Other reservation service and related activities

16 NACE Rev. 2 code Description KIA CIS CIS*KIA N801 Private security activities N802 Security systems service activities N803 Investigation activities N811 Combined facilities support activities N812 Cleaning activities N813 Landscape service activities N821 Office administrative and support activities N822 Activities of call centres N823 N829 S951 S952 Organisation of conventions and trade shows Business support service activities n.e.c. Repair of computers and communication equipment Repair of personal and household goods

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18 European Commission Sectoral innovation coefficients (CIS*KIA) Used for the calculation of the dynamism component of a European Innovation Luxembourg: Publications Office of the European Union pp. 17,6 x 25 cm ISBN doi /31888

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20 KI EN-N The European Commission commissioned the OECD to elaborate a method to assign innovation coefficients to economic activities. This paper presents the method and shows the innovation coefficients, which have been prepared for about 200 sectors of the business economy (on a 3-digit level of the NACE nomenclature for business activities). The publication provides in tables the innovation coefficients and the underlying scores for the two components: CIS and KIA. The CIS score is based on pooled data on firms responses (33 variables) in the Community Innovation Survey The KIA score reflects the share of tertiary educated employment in each economic sector. Studies and reports doi: /31888