pespectives for engineering and technology in portugal” lisbon, 22 november 1999 giorgio sirilli

Pespectives for Engineering and Technology in Portugal”

Lisbon, 22 November 1999

Giorgio Sirilli

Institute for Studies on Scientific Research and Documentation National Research Council of Italy

Definition of research and development (Frascati Manual)

• R&D is defined as creative work undertaken on a systematic basis in order to increase the

stock of knowledge including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications.


Technological innovation(Oslo Manual)

• Technological innovations comprise new products and processes and significant technological changes of products, services and processes.

• An innovation has been implemented if it has been introduced on the market (product and service innovation) or used within a production process (process innovation).


Technological innovation(Oslo Manual)

• Innovations involve a series of scientific, technological, organisational, financial and commercial activities.

• The product or process should be new (or rignificantly improved) to the firm (it does not necessarily have to be new to the relevant market)


Period 1960's-1970's 1980's-early1990's

1990's - nextmillennium

Model Linear model Chain-linkedmodel

Systemsapproaches

Conception Simple Complex Extremelycomplex

Number ofindicators

Few(R&D, patents,TBP)

Many(R&D, patents,bibliometrics,innovation, hightech products,humanresources)

Too many(combinationsof existing andpossibly newindicators,quantitative/qualitative)

Development of indicators


The exponential growth of S&T indicators at the international level

Decades 50s and 60s 70s 80s 90s

Main indicators used Re&D Re&D Re&D Re&DPatents Patents PatentsTechnological balance Technological balance Technological balanceof payments of payments of payments

High-tech products High-tech productsand sectors and sectorsBibliometrics BibliometricsHuman resources Human resources

Innovation surveys Innovation surveysInnovations mentioned intechnical literatureSurveys of productiontechnologiesGovernment support toindustrial technologyIntangible investmentIndicators of informationand communication technologiesInput-Output matrixes *Productivity *Venture capital *Mergers and acquisitions *

* Indicators mutuated from economic analysis.

R&D25%Design

7%

Know-how3%

Software15%

Marketing2%

Investment46%

Training2%

Innovation expenditure of Italian service firms


Some remarks

• The very title of the exercise “Engineering and Technology”: what about SCIENCE?

• The “bloody” economists

• Manufacturing and services

• How many R&D performing firms?

• Large role on the public sector in R&D– the distribution of talents– bootlegging


Some remarks

• Accountability: a new concept

• Foresight

• The Dutch experience

• Government failures and market failures– some lessons from Italy

• The final report– how to incorporate the international debate– hot to “sell” it


Main indicators from innovation surveys

• Number of innovating firms– by sector– by firm size

• Cost of innovation

• Percentage of sales due to new products


Cost of innovation (percentage) - Italy (1990-92)

Computers Chemicals Textiles Clothing

R&D 65 43 12 16

Design engineering 22 9 18 38

Production investment 12 44 68 27

Marketing 1 4 2 19

Total 100 100 100 100


Service firms which have carried out innovation activities in Italy 1993-1995 (percentage)

• R&D• Design• Know-how• Software• Training• Marketing• Investment

• 13.8• 18.5• 12.7• 52.2• 28.9• 12.2• 53.8


Innovation activities of service firms (percentages)

• R&D 13.8• Design 18.5• Know-how 12.7• Software 52.2• Training 28.9• Marketing 12.2• Investment 53.8• Total -

• 23.7• 8.1• 3.5• 14.1• 2.6• 1.9• 46.0• 100.0

Firms which have carried out the activity

Innovationexpenditure


Innovation expenditure (percentages)

• R&D 23.7• Design 8.1• Know-how 3.5• Software 14.1• Training 2.6• Tooling-up, patents -• Marketing 1.9• Investment 46.0• Total 100.0

• 35.8• 7.4• -• -• -• 8.1• 1.5• 47.2• 100.0

Service firms (1993-95)

Manufacturingfirms (1990-92)


Lessons from the CIS survey (1994-1996) Percentage of innovating firms

• Germany 83

• Austria 81

• Ireland 79

• Finland 69

• Spain 53

• Italy 50 Poland 34

• Turkey 33

• 82• 64• 62• 46• -• 31• -• -

Manufacturing firms Service firms


Concluding remarks

• Innovation can be measured

• We have learnt a lot from innovation surveys and other indicators

• Still many challenges ahead of us


Lessons learned

• Technological innovation is quite a diffused phenomenon

• There are wide differences across sectors and size of firm

• Firms rely on a wide range of innovation sources: investment, R&D and software are the major components of firms' innovation expenditure


Lessons learned

• Major obstacles for introducing technological innovation are of an economic nature - i.e. cost and risk too high

• Technological information is drawn mainly from outside suppliers of equipment, materials and components as well as from in-house technical departments

• Internal sources of information are much more important than public research institutions


Some challenges

• Software

• Services

• Organisation

• Information and communication technologies

• Biotechnologies

• Employment

• Environmental sustainability


Some challenges

• Further development of theories in the knowledge-based economy

• Innovation surveys allow to take into account complexity

• Linkage with other industrial data

• Risk of too much information

• The advantage of international comparability (“Big science”)


pespectives for engineering and technology in portugal” lisbon, 22 november 1999 giorgio sirilli

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