social situation observatory – social inclusion and income distribution ikinet limitations of...
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![Page 1: Social Situation Observatory – Social inclusion and income distribution IKINET Limitations of regional innovation indicators Warsaw, 24 May 2006](https://reader031.vdocuments.mx/reader031/viewer/2022032522/56649d6c5503460f94a4b5e8/html5/thumbnails/1.jpg)
Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
IKINETLimitations of regional innovation
indicators
Warsaw, 24 May 2006
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Growing importance attached to development of indicators to monitor need for policy action and effectiveness of policy measures already implemented
As regards innovation, EU policy consists of two strands: innovation policy per se to strengthen EU as a
knowledge-based economy cohesion policy to achieve more balanced pattern
of regional development
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
EU innovation policy - increased emphasis on policy action at regional level to take account of regional strengths, weaknesses and ambitions …
… but also on cooperation, exchange of experience and establishment of trans-regional networks
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
EU cohesion policy progressively re-oriented towards Lisbon objectives and especially towards promotion of innovation
Recognition that capacity to innovate varies widely across EU regions, especially after enlargement, reflecting wide differences in access to knowledge and ability to exploit it
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
If weaker regions are to develop, two necessary sets of conditions:
1. they need a suitable endowment of basic infrastructure (transport, telecommunications, energy, environmental facilities)
and a labour force with appropriate skills and training
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
2. There is a need for: access to new technology efficient dissemination of new knowledge and its
effective use creation of networks and clusters to encourage
cooperation and realise economies strengthening of R&D capacity establishment of effective links with global
centres of technological excellence
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Indicators at present focus on national rather than regional circumstances (European Innovation Scoreboard)
But differences between regions within countries as important as between Member States
Output as well as inputs indicators are included, but latter easier to measure, eg:
R&D expenditure by sector
R&D personnel by sector
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Output indicators used have a number of defects:patents registered at EPO under-record patent activity in new Member States especially
Number of patent applications per million inhabitants, 2000-2002
Top 25 regions 450
Bottom 25 regions 2.4
Slaskie 2.9
Mazowieckie 8.7
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
And are biased in favour of manufacturing relative to service enterprises
Enterprises in manufacturing and services applying for at least one patent in 2000
0
2
4
6
8
10
12
14
16
18
20
PL CZ DE ES FR IT HU NL FI SE UK
% of total
Manufacturing Services
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
There are also a number of context indicators:
1. Education attainment levels of work force
2. Participation in lifelong learning
3. Employment in high/medium tech manufacturing and high tech services
4. Innovating enterprises
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Problems in both defining the relevant indicators to use and in their timeliness:
latest data on R&D expenditure by region are for 2002 for a number of countries – Poland, the Czech Republic, Hungary and Spain
but for 2001 for some - Germany, France and the Netherlands
for 2000 for Italy an for 1999 for UK and Greece
latest CIS is for 2000 and not split by region
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Apart from being dated and incomplete, these indicators do not capture main aspects – in case of developing regions, capacity to absorb and diffuse innovations
It is widely argued that regions need to undertake some R&D to be able to absorb new ideas and integrate them into the production process
But question is how much?
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
There are big differences between EU regions in terms of R&D expenditure relative to GDP
R&D expenditure relative to GDP, latest year
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
EU25 average
EU25 - Highest 25regions
EU25 - Lowest 25regions
Slaskie
Mazowieckie
% of GDP
Business Other
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Are these big differences between regions justifiable?
Is expenditure in many lagging regions too low to enable them to absorb new knowledge?
How much higher does it need to be?
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Some of the context indicators are clearly relevant as regards absorption capacity
- education levels in particular, especially number with tertiary qualifications
These also vary widely across regions
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
0
5
10
15
20
25
30
35
40S
lask
ie
Ham
burg
Mad
rid
Ile d
eF
ranc
e
Cam
pani
a
Ste
ierm
ark
Wal
es
0
5
10
15
20
25
30
35
40
EU25
top 25 / bottom 25 regions
% of population 25-64
Population aged 25-64 with tertiary education, 2004
Source: LFS
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Number of workers with upper secondary education
also important and also differs between regions …
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
0
20
40
60
80
100
Sla
skie
Ham
burg
Madrid
Ile d
eF
rance
Cam
pania
Ste
ierm
ark
Wale
s
0
20
40
60
80
100
EU25
top 25 / bottom 25 regions
% of population aged 22
Population aged 22 with upper secondary qualifications, 2004
Source: LFS
but difficulty in interpreting the differences
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Importance of employment high and medium-tech
manufacturing relevant as well
But again need to interpret the differences carefully
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Employment in high and medium-tech manufacturing
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Slaskie Hamburg Madrid Ile deFrance
Campania Steiermark Wales
% % total employed% working-age population
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
IKINET concerned with the transmission process
with the means by which new technology or knowledge is transmitted between enterprises and regions
Objective – to develop new and more suitable indicators
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
A number of potential transmission mechanisms explored through case studies and questionnaires:
supplier-customer relations
supplier-supplier relations
university/research centres-enterprise relations
worker movements between enterprises and regions
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Concern not only to collect data but to gain a better understanding of knowledge generation
and its transmission across enterprises and regions
Identification of aspects which could be monitored – eg links between enterprises and research centres
And also identification of existing data which could be used to monitor developments
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Two principal examples: LFS, or administrative records, to measure
movements of qualified workers between jobs …
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Workers changing job in medium-tech manufacturing in EU, average 2003-05
% of total employed in sector in previous year
EU 5.8 3.8 2.0 0.3Poland 3.2 2.6 0.6 0.0
Slaskie 4.5 4.5 0.0 0.0Hamburg 6.2 5.4 0.8 0.6Ile de France 6.0 2.7 3.3 0.8Madrid 12.8 2.6 10.1 2.2Campania 3.8 1.6 2.2 0.0Steiermark 9.3 8.2 1.1 0.0Wales 11.7 8.0 3.7 0.0
Change of job Change of
sectorSame sector
Change of region
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Secondly, data from Dublin Foundation to measure
influx of foreign-owned enterprises into medium-tech manufacturing and creation of jobs …
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Number % of total
Total cases 185 100of which:Manufacturing 128 69
Engineering 69 54
High-tech 12 9
Medium-high tech 57 45
Cases of job creation through FDI in Poland: sectoral division, 2005
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Nationality of enterprises undertaking FDI in engineering industries in Poland, 2005
0
5
10
15
20
25
30
35
DE US ES SE JP FR KOR NL-KOR
CH CN HK IT UK
% of total
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Regional division of FDI in engineering industries in Poland, 2005
0 10 20 30 40 50 60
Dolnoslaskie
Slaskie
Mazowieckie
Lodzskie
Zachodniopomorskie
Lubuskie
Pomorskie
Podkarpackie
Lubelskie
Warminsko-Mazurskie
Malpolskie
Wielkopolskie
Swietokrzyskie
Podlaskie
Opolskie
Kujawsko-Pomorskie
% employment, 2004% jobs created
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Social Situation Observatory – Social inclusion and income distributionSocial Situation Observatory – Social inclusion and income distribution
Jobs created through FDI relative to regional employment in engineering, 2005
0 5 10 15 20 25 30 35
Dolnoslaskie
Slaskie
Mazowieckie
Lodzskie
Zachodniopomorskie
Lubelskie
Pomorskie
Podkarpackie
Lubuskie
Warminsko-Mazurskie
Malpolskie
Wielkopolskie
Swietokrzyskie
Podlaskie
Opolskie
Kujawsko-Pomorskie
% of employed in engineering in 2004