METHODOLOGICAL EXPLANATION INNOVATION ACTIVITY IN INDUSTRY AND SELECTED SERVICES
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1 METHODOLOGICAL EXPLANATION INNOVATION ACTIVITY IN INDUSTRY AND SELECTED SERVICES This methodological explanation relates to the data releases: - Innovation activity in industry and selected services, Slovenia, three years (First Release) - Innovation activity in industry and selected services, Slovenia, three years (Electronic Release) Content: 1. PURPOSE 2. LEGAL BASIS 3. UNIT DESCRIBED BY THE PUBLISHED DATA 4. SELECTION OF OBSERVATION UNIT 5. SOURCES AND METHODS OF DATA COLLECTION 6. DEFINITIONS 7. EXPLANATIONS 8. PUBLISHING 9. REVISION OF THE DATA 10. OTHER METHODOLOGICAL MATERIALS Prepared by Darja Vidmar Last updated: 26 April 2018
2 1 PURPOSE The purpose of publishing the data is to present to what extent enterprises with at least 10 persons employed are involved in innovation activities, i.e. to obtain the number of enterprises engaged in product and/or process innovation in the observed period and/or enterprises with ongoing and/or abandoned innovation activity and/or enterprises that introduced organisational and/or marketing innovation. Key statistics are: Number of enterprises that are innovation active Number of enterprises that have innovation co-operation partners Expenditure for the innovative product or process 2 LEGAL BASIS - Annual Programme of Statistical Surveys (LPSR) (only in Slovene) - National Statistics Act (OJ RS, No. 45/95 and 9/01) - Commission Regulation (EC) No. 995/2012 implementing Decision No. 1608/2003/EC of the European Parliament and of the Council as regards statistics on science and technology (CELEX: 32012R0995) Since the statistical survey is based on the Oslo Manual, the data are internationally comparable. 3 UNIT DESCRIBED BY THE PUBLISHED DATA The unit described by the published data is innovation activity of the enterprise with at least 10 persons employed registered on the territory of the Republic of Slovenia and in one of the activities of the Standard Classification of Activities SKD 2008 (i.e. NACE Rev. 2) from sections: Mining and quarrying (B: 05-09) Manufacturing (C: 10-33) Electricity, gas steam and air conditioning supply (D: 35) Water supply; sewerage, waste management and remediation activities (E: 36-39) Wholesale trade, except of motor vehicles and motorcycles (G: 46) Transportation and storage (H: 49-53) Information and communication (J: 58-63) Financial and insurance activities (K: 64-66) Architectural and engineering activities; technical testing and analysis (M: 71) Scientific research and development (M: 72) Advertising and market research (M: 73) The data describe whether the enterprise introduced a product innovation, a process innovation, an organisational innovation or a marketing innovation, the turnover made from innovative products, whether the enterprise has an innovation co-operation partner, which information sources were important, and the expenditure for innovation activities. 1/8
3 Enterprises are monitored by size (by the number of persons employed) and by activity according to the Standard Classification of Activities SKD SELECTION OF OBSERVATION UNIT Since 2012 the observation unit has been the enterprise whose registered main activity is in the following Standard Classification of Activities (NACE Rev. 2) sections: Mining and quarrying (B: 05-09), Manufacturing (C: 10-33), Electricity, gas steam and air conditioning supply (D: 35), Water supply; sewerage, waste management and remediation activities (E: 36-39), Wholesale trade, except of motor vehicles and motorcycles (G: 46), Transportation and storage (H: 49-53), Information and communication (J: 58-63), Financial and insurance activities (K: 64-66), Architectural and engineering activities; technical testing and analysis (M: 71), Scientific research and development (M: 72), Advertising and market research (M: 73). The units that we observe in the survey are selected on the basis of the threshold coverage; the criterion is the number of persons employed. The survey covers enterprises registered in the mentioned activities and employing at least 10 persons. The coverage of the observed units is a combination of a census (large and mediumsized enterprises) and a sample (small enterprises); this means that the survey covers all enterprises in the mentioned activities employing between 50 to 249 (medium-sized enterprises) and more than 249 persons (large enterprises), and a sample of enterprises employing between 10 to 49 persons (they are selected on the basis of a random sample). Biannually about 2,800 observation units are included in the survey. 5 SOURCES AND METHODS OF DATA COLLECTION Data are collected every other year for the previous three-year period. Data on the innovation activity in industry and selected services are collected with the biannual survey Innovation activity in industry and selected services (INOV). Data are collected with a web questionnaire, only exceptionally with the paper questionnaire Innovation activity in industry and selected services (INOV). Data are collected with the selffulfilling web questionnaire. The reporting units (enterprises) receive the INOV questionnaire every other year. They fulfil the questionnaire according to their available records. 6 DEFINITIONS INNOVATION Included are new goods, services and process or significantly improved goods, services and process. Innovation is implemented when it is introduced on the market (product innovation) or when it is used in the process (process innovation). Innovations include many scientific, technological, organisational, financial and economic activities. 2/8
4 An innovative enterprise is an enterprise that in the observation period introduced a new or significantly improved product or process. Innovation is based on the results of new technological development, new combinations of the existing technologies or the use of other knowledge used by the enterprise. The innovation should be new to the enterprise; it is not necessary that it is new on the market. It does not matter whether the innovation was developed by the enterprise or not. TYPES OF INNOVATIONS Technological innovations include: Product (good or service) innovation A product innovation is the market introduction of a new good or service or a significantly improved good or service with respect to its capabilities, such as improved software, user friendliness, components or sub-systems. Process innovation A process innovation is the implementation of a new or significantly improved production process, distribution method, or support activity for your goods or services Non-technological innovations include: Organisational innovation An organisational innovation is the implementation of new business practices for organising procedures, new methods of organising work responsibilities and decision making, and new methods of organising external relations with other enterprises or public institutions. Marketing innovation A marketing innovation is the implementation of significant changes to the aesthetic design or packaging of a good or a service. Marketing innovations cover also new media or techniques for product promotion and new methods for product placement or sales channels. Additionally, they also cover new methods of pricing goods or services. INNOVATION ACTIVITIES Innovation activities include the acquisition of machinery, equipment, software, and licenses; engineering and development work, training, marketing and R&D when they are specifically undertaken to develop and/or implement a product or process innovation. In the observation period innovation activities were: Successful, if the enterprise introduced a new or significantly improved product or process Abandoned, when before the introduction of a new or significantly improved product or process the innovation activity was abandoned due to problems 3/8
5 Ongoing, when the innovation activity has not yet finished and innovation has not been implemented yet Innovation activities are: In-house research and development: creative work undertaken on a systematic basis within the enterprise in order to increase the stock of knowledge and use it to devise new applications. External research and development: same activities as in-house research and development, but purchased from public or private research organisations or from other enterprises (including other enterprises within the group). Acquisition of machinery, equipment and other capital goods: acquisition of advanced machinery, equipment and computer software and buildings to produce new or significantly improved products and processes. Acquisition of other external knowledge: acquisition of existing knowledge from other enterprises or organisations (acquisition of rights to use patents and nonpatented inventions, trademarks, know-how and other types of knowledge). Training: training (including external training) linked to the development of product or process innovations and their implementation. Market introduction of innovation: activities aimed at the market introduction of new or significantly improved goods or services. Other relevant activities: other activities related to the development and implementation of product and process innovation, such as planning and testing for new products, production processes and delivery methods that are not already included in research and development. ENTERPRISES BY INNOVATION ACTIVITY Enterprises were classified into different groups depending on whether they were engaged in innovation activities or not: Innovation active enterprises are enterprises that have introduced product innovation or process innovation or those that have in the observation period not yet completed or abandoned the innovation activity and/or enterprises which introduced organisational and/or marketing innovation. Innovation active enterprises with technological innovation/activity are enterprises that during the period of observation introduced product innovation and/or process innovation and/or have abandoned or ongoing innovation activity. According to the previous definition, such enterprises were classified as innovation active enterprises. Innovation active enterprises with non-technological innovation/activity are enterprises that during the period of observation introduced organisational and/or marketing innovation. An enterprise can be only with technological innovation/activity or only with nontechnological innovation/activity (in the observation period engaged exclusively in one or the other type of innovation) or can be both technological and non-technological 4/8
6 innovation active enterprise (in the observation period engaged in both types of innovation). Product and/or process innovators are enterprises that introduced product innovation or process innovation or both in the observation period. Product and process innovators are enterprises that introduced product innovation and process innovation. Product innovators; process innovators; organisational innovators; marketing innovators are enterprises that in the observed period introduced innovation/innovations within each type of innovation. Enterprises with on-going and/or abandoned innovation activity: This category includes all enterprises that had in the observation period only on-going or abandoned innovation activity or both and have not introduced any innovation onto the market. Non-innovative enterprises are enterprises that in the observation period did not introduce any innovation and also had no innovation activity during the period. 7 EXPLANATIONS 7.1 CLASSIFICATIONS Data are published by enterprise size (regarding the number of persons employed) and by activities according to the European statistical classification of economic activities NACE Rev. 2. The Standard Classification of Activities SKD is the national version of the European statistical classification of economic activities NACE. Rev. 2, DATA PROCESSING WEIGHTING With weighting adjustment we want to achieve representatives of the sample, so that the weighted data give us as good population estimates as possible. The process of weighting depends on the sampling design and the unit nonresponse rate. The final weight is the product of the sampling weight and the nonresponse weight. STATISTICAL DATA EDITING Data were statistically edited with the combination of systematic corrections and imputation procedures. The following imputation methods were used: 5/8
7 Logical imputation Hot-deck imputation For more, see the general methodological explanations Statistical data editing. 7.3 PRECISION In statistical surveys different kinds of errors can occur (e.g. sampling error, nonresponse error, measurement error) influencing the accuracy of the statistical results. Errors deriving from the random mechanisms determine the precision of the statistical estimates. The Statistical Office of the Republic of Slovenia draws attention to less precise estimates by flagging them with a special sign or by not publishing them at all. If the table contains estimated population totals of (continuous) variables, estimated averages of continuous variables or estimated ratios of population totals of (continuous) variables, publishing limitations are determined by the relative standard errors or the coefficients of variation (CV). In such cases it holds: If the coefficient of variation (CV) of the estimate is - 10% or below (CV <= 10%) the estimate is of acceptable precision and is published without limitations; - in the interval from 10% and up to 30% (10% < CV <= 30%) the estimate is less precise and is flagged for caution with letter M; - over 30% (CV > 30%), the estimate is too imprecise to be published and therefore suppressed for use by letter N. For more, see the general methodological explanations Precision of statistical estimates. 7.4 OTHER EXPLANATIONS In the survey we observe the statistical activity which is for statistical purposes defined as the main activity in the Statistical Business Register (SBR). In some cases the statistical activity is different from the registered activity defined in the Business Register of Slovenia, kept by AJPES. The statistical activity is determined for the major units which have different main activity based on existing statistical data than is registered main activity. The user of survey estimates (data) should take into account that estimates published without limitations are sufficiently precise, while those that are flagged with the letter M are less precise and should be used with caution. Letter»z«is used if the data are suppressed to protect the reporting unit. The data that are suppressed for confidentiality reasons are not published but replaced with letter z. Totals are not always accurate due to rounding. 6/8
8 8 PUBLISHING Data are published: Biannually (every even year): - SI-STAT Data Portal: Economy Research and Development, Science and Technology Innovation Activity in Manufacturing and Selected Services General information about the enterprise (innovation active and non-innovation active enterprises), Enterprises that introduced technological innovation Data are published in the form of absolute values by size of the enterprise, number of employees and 2-level the Standard Classification of Activities SKD First Release (Development and Technology Research and Development):»Innovation activity in industry and selected services, Slovenia, three-year period«. - Electronic Release (Development and Technology Research and Development):»Innovation activity in industry and selected services, Slovenia, three-year period«. - Statøbook. - Eurostat. - Organisation for Economic Co-operation and Development (OECD). 9 REVISION OF THE DATA 9.1 PUBLISHING OF PRELIMINARY AND FINAL DATA Data revision is planned. Due to the needs of users for timely information, data are published that meet the criteria of the quality of official statistical data but do not meet the quality that can be met with complete coverage. Data are revised when recent, completed and more quality data respectively can significantly contribute to the quality of data-based decision-making and when due to publication deadlines determined by the European legislation less accurate data are published on the basis of incomplete coverage. We publish preliminary and final data. Final data are published 5 months after preliminary data. 9.2 BREAKS IN TIME SERIES A modified definition of innovation active enterprises introduced by a revised international methodological guide (Oslo Manual 2005) was first introduced in the survey on innovations in 2008 and for the reference period Methodological explanation on revision of statistical data is available on 7/8
9 10 OTHER METHODOLOGICAL MATERIALS - Questionnaire (only in Slovene): - Innovation activity in industry and selected services (INOV), theme: Research and Development, sub-theme: Development and Technology tyreports 8/8
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