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organisation for economic co operation and development the measurement of scientific and technological activities proposed guidelines for collecting and interpreting technological innovation data oslo manual european commission eurostat table of ...

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               Organisation for Economic Co-operation and Development
                    THE MEASUREMENT
                       OF SCIENTIFIC
                   AND TECHNOLOGICAL
                        ACTIVITIES
                   PROPOSED GUIDELINES
                      FOR COLLECTING
                           AND
               INTERPRETING TECHNOLOGICAL
                     INNOVATION DATA
            OSLO MANUAL
                 European Commission                                      Eurostat
                      TABLE OF CONTENTS
      Chapter 1  OBJECTIVES AND SCOPE OF THE MANUAL...................................................................... 5
       1. INTRODUCTION.................................................................................................................................. 5
       2. FACTORS INFLUENCING THE SCOPE OF THE MANUAL........................................................... 5
        2.1 Understanding the innovation process and the implications for innovation policy......................... 6
        2.2 Experience on the supply side.......................................................................................................... 7
       3. SCOPE OF THE MANUAL.................................................................................................................. 7
        3.1 Sectoral coverage ............................................................................................................................. 7
        3.2 Innovation at the level of the firm.................................................................................................... 8
        3.3 Technological product and process innovation................................................................................8
        3.4 Diffusion of innovation.................................................................................................................... 9
       4. PROVIDING DATA ON THE KEY ISSUES..................................................................................... 10
        4.1 Factors influencing TPP innovation............................................................................................... 10
        4.2 TPP innovation activities and expenditures................................................................................... 10
        4.3 The TPP innovating firm and the impact of TPP innovation......................................................... 11
       5. SOME SURVEY ISSUES.................................................................................................................... 11
        5.1 Approach to data collection............................................................................................................ 11
        5.2 Survey methods.............................................................................................................................. 12
       6. THE RELATIONSHIP BETWEEN THE OSLO MANUAL AND OTHER INTERNATIONAL
       STANDARDS AND RELATED CONCEPTS........................................................................................ 12
        6.1 S&T activities:  the Frascati family of manuals.............................................................................12
        6.2 Other economic norms and classifications..................................................................................... 13
        6.3 Other related concepts and surveys................................................................................................ 14
       7. FINAL REMARK................................................................................................................................ 14
      Chapter 2  NEEDS FOR THE MEASUREMENT OF INNOVATION...................................................... 15
       1. INTRODUCTION................................................................................................................................ 15
       2. ECONOMICS OF INNOVATION......................................................................................................16
       3. TOWARDS A CONCEPTUAL FRAMEWORK................................................................................ 18
        3.1 Framework conditions.................................................................................................................... 20
        3.2 Science and engineering base......................................................................................................... 20
        3.3 Transfer factors............................................................................................................................... 21
        3.4 Innovation dynamo......................................................................................................................... 22
       4. DECIDING PRIORITIES.................................................................................................................... 25
        4.1. Six areas for investigation............................................................................................................. 25
         4.1.1 Corporate strategies................................................................................................................. 25
         4.1.2 The role of diffusion................................................................................................................ 25
         4.1.3 Sources of information for innovation and obstacles to innovation ....................................... 26
         4.1.4 Inputs to innovation................................................................................................................. 26
         4.1.5 The role of public policy in industrial innovation................................................................... 27
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         4.1.6 Innovation outputs................................................................................................................... 27
        4.2 How to measure and scope for measurement................................................................................. 28
         4.2.1 “What do we want to measure?”:  Technological product & process – TPP – innovations... 28
         4.2.2 “How should it be measured?”:  Choice of the survey approach............................................ 29
         4.2.3 “Where should it be measured ?”:  Sectoral coverage............................................................ 29
      Chapter 3  BASIC DEFINITIONS..............................................................................................................31
       INTRODUCTION.................................................................................................................................... 31
       1. TPP INNOVATION............................................................................................................................. 31
       2. MAIN COMPONENTS OF TPP INNOVATION............................................................................... 31
        2.1 Technological product innovation.................................................................................................. 31
        2.2 Technological process innovation.................................................................................................. 32
       3. DIFFUSION OF TPP INNOVATIONS:  INSTITUTIONAL NOVELTY.......................................... 34
        3.1 Minimum coverage......................................................................................................................... 34
        3.2 Coverage within the firm................................................................................................................ 35
       4. DISTINGUISHING BETWEEN TPP INNOVATION AND OTHER CHANGES IN THE FIRM OR
       INDUSTRY.............................................................................................................................................. 36
        4.1 Organisational innovation.............................................................................................................. 36
         4.1.1 Coverage.................................................................................................................................. 36
         4.1.2 Borderline cases:  organisational change in manufacturing and service processes................ 37
        4.2 Other changes in products and processes....................................................................................... 37
         4.2.1 Excluding insignificant or non-novel changes........................................................................ 37
          (a) Ceasing to use a process or to market a product..................................................................... 37
          (b) Simple capital replacement or extension................................................................................ 37
          (c) Changes resulting purely from changes in factor prices......................................................... 38
          (d) Custom production.................................................................................................................. 38
          (e) Seasonal and other cyclical changes....................................................................................... 38
          (f) Product differentiation............................................................................................................. 38
         4.2.2 TPP innovation and other creative product improvements..................................................... 39
       5. TPP INNOVATION ACTIVITIES...................................................................................................... 39
        5.1 Relation with implementation of TPP innovations........................................................................ 39
        5.2 The components and coverage of TPP innovation activities......................................................... 40
         5.2.1 Acquisition and generation of relevant knowledge new to the firm....................................... 40
          (a) Research and experimental development ............................................................................... 40
          (b) Acquisition of disembodied technology and know-how........................................................ 40
          (c) Acquisition of embodied technology...................................................................................... 40
         5.2.2 Other preparations for production........................................................................................... 41
          (a) Tooling up and industrial engineering.................................................................................... 41
          (b) Industrial design n.e.c............................................................................................................. 41
          (c) Other capital acquisition......................................................................................................... 41
          (d) Production start-up.................................................................................................................. 41
         5.2.3 Marketing for new or improved products................................................................................ 41
        5.3 Borderline cases ............................................................................................................................. 41
         5.3.1 Design...................................................................................................................................... 41
         5.3.2 Training ................................................................................................................................... 42
         5.3.3 Marketing ................................................................................................................................ 42
         5.3.4 Software................................................................................................................................... 42
       6. THE TPP INNOVATING FIRM.......................................................................................................... 42
       7. THEORY AND PRACTICE................................................................................................................ 43
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      Chapter 4  INSTITUTIONAL CLASSIFICATIONS.................................................................................. 44
       1. THE APPROACH................................................................................................................................ 44
       2. THE UNITS.......................................................................................................................................... 44
       3. CLASSIFICATION BY MAIN ECONOMIC ACTIVITY.................................................................. 45
       4. CLASSIFICATION BY SIZE.............................................................................................................. 45
       5. OTHER CLASSIFICATIONS............................................................................................................. 47
        5.1 Type of institution.......................................................................................................................... 47
        5.2 Other............................................................................................................................................... 47
      Chapter 5  MEASURING ASPECTS OF THE INNOVATION PROCESS............................................... 49
       1. OBJECTIVES OF INNOVATION...................................................................................................... 49
       2. FACTORS ASSISTING OR HAMPERING INNOVATION............................................................. 50
        2.1 Sources of information for innovation........................................................................................... 51
        2.2 Factors hampering innovation activities ........................................................................................ 52
       3. IDENTIFYING TPP INNOVATING FIRMS...................................................................................... 53
       4. THE IMPACT OF INNOVATIONS ON THE PERFORMANCE OF THE ENTERPRISE..............53
        4.1 Proportion of sales due to technologically new or improved products.......................................... 53
        4.2 Results of innovation effort............................................................................................................ 55
        4.3 Impact of TPP innovation on the use of factors of production...................................................... 55
         4.3.1 Average cost reductions due to technological process innovations........................................ 55
       5. DIFFUSION OF INNOVATION......................................................................................................... 56
        5.1 User sectors .................................................................................................................................... 56
        5.2 Surveys of use of advanced technologies in the manufacturing process....................................... 56
       6. SPECIAL QUESTIONS....................................................................................................................... 57
        6.1 Special questions on R&D ............................................................................................................. 57
        6.2 Questions on patents and the appropriability of innovations......................................................... 58
        6.3 Questions on the acquisition/diffusion of technology.................................................................... 58
      Chapter 6  MEASURING THE EXPENDITURE ON INNOVATION...................................................... 60
       1. THE METHOD OF MEASUREMENT............................................................................................... 60
       2. SUGGESTED BREAKDOWNS.......................................................................................................... 62
        2.1 Bottom-up or top-down method..................................................................................................... 62
        2.2 Breakdown by type of expenditure ................................................................................................ 62
         2.2.1 The relation between intangible investment and TPP innovation expenditure....................... 64
        2.3 Breakdown by type of innovation activity..................................................................................... 64
         2.3.1 R&D expenditure..................................................................................................................... 65
         2.3.2 Expenditure for the acquisition of disembodied technology and know-how.......................... 65
         2.3.3 Expenditure for the acquisition of embodied technology....................................................... 65
         2.3.4 Expenditure for tooling up, industrial engineering, industrial design and production start-up
         (including other expenditure for pilot plants and prototypes not already included in R&D).......... 65
         2.3.5 Expenditure for training linked to TPP innovation activities.................................................. 66
         2.3.6 Marketing for technologically new or improved products...................................................... 66
        2.4 Measurement problems.................................................................................................................. 66
         2.4.1 The borderline between R&D and non-R&D innovation expenditure.................................... 66
         2.4.2 Other difficulties...................................................................................................................... 67
        2.5 Breakdown by source of funds....................................................................................................... 68
      Chapter 7  SURVEY PROCEDURES......................................................................................................... 69
       1. POPULATIONS................................................................................................................................... 69
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