Introductory Lecture Innovation Studies and Development

An introduction to Innovation Studies and Technological ChangeAnthony BartzokasUNU - MERIT4 September 2006Basic fact 1: Technology and WelfareBasic fact 2: R&D and Economic GrowthBasic fact 3: Concentration of R&D activities (global 1000 leading R&D investors)An overview: research on technology and innovation• History of ideas: technology and theorizing [progress, power, ethics, man vs. nature]• Technology per se was seen as given-like tastes• Schumpeter- innovation dynamics key to capitalism-• Adoption – migrant from sociology• Induce innovation-innovation as economic activity• Human capital-the dynamics of learning and accumulation of knowledge• Knowledge as a public good• Innovation as an economic activity• Technology and catching up• Innovation and dual structures• Social innovationThe Policy relevance of these research programmes • The development of scientific communities• Emphasis on basic research in the US• OECD and Innovation Policy processes• Technological Development in Developing Countries• Globalisation and diverging growth trajectoriesBreaking down innovationUsual y thought of as composing three or four activities, al of which are required to achieve productivity growth: – Invention – the conception of a new idea; prototypes – Development - reducing the new idea to practice – Commercialization – bringing it to the marketplace – Diffusion – the result of adoption by consumers Diffusion can be very slow The importance of some innovations initial y greatly underestimated A broad definition of InnovationInnovation is the creation and use of new products and processes, including:• use of new equipment or materials• use of new markets or sources of supply• new organizational forms• creation of completely new products• product modifications and restyling• sel ing in new markets or new segments N. Rosenberg ‘Transportation in boxes is one of the major innovations for the global economy’Sources of Data•OECD•Technology spil overs data (variety of •NSFmethodologies)•Eurostat•Measurement of technological assets in •European Report on S&T indicatorsregional clusters •CIS and similar surveys•Agriculture R&D (IFPR)•UNESCO report•Research and technology col aboration data•World Bank Innovation Database•Technology Diffusion (GPT) data•Firm level R&D data [IPTS, 700 larger firms]•Technology transfer payments data•Several patents data bases•Business Environment Data (World Bank)•Scientific publications•Technological infrastructure data (various sources, especial y for ICT)•Country level Technology and Innovation statistics•Scientific publications data•MNC R&D data (UNCTAD and national •ECLAC data base for the world economysurveys)•Several sources of information on the •Corporate assets: several publications quality of educationdrawing on annual reports•Case studies and ad hoc reports with •Innovation and technological capabilities survey findings on a wide range of topicsindexes (RAND, Porter, ArCo, UNIDO)•Knowledge flows studiesA footnote: take the time to visit some of these sources on-lineAn exampleSTAN Indicators Database 2005Indicator:R&D INTENSITY using PRODUCTIONkkANBERD iRDIP= i x 100kPROD iFormula:Where: ANBERD and PROD are the business enterprise Research and Development and production at current prices, respectively. For zones, data have been converted to common unit using the Purchasing Power Paritiesfor total GDP.Description:For each country (or country group), this indicator expresses the R&D expenditures by sector relative to the production.