Periodic Reporting for period 1 - INNOVA MEASURE IV (Econometric analyses and indicators on Research, Excellence and Impact of Research and Innovation)
Reporting period: 2019-05-01 to 2020-10-31
The aim of the “INNOVA MEASURE IV” project is to carry out research at the Directorate-General Joint Research Centre (JRC) of the European Commission to support the work of the Directorate-General for Research & Innovation (RTD) of the European Commission by providing better evidence for policy-making.
Building on the outcomes and capacities developed within the framework of the INNOVA MEASURE I-III projects since 2013, the INNOVA MEASURE IV project focuses on three interrelated research streams:
(1) metrics (including indicators, composite indicators and dashboards) to measure research & innovation (R&I) performance
(2) business dynamism and performance of innovative firms, with a focus on companies in the field of artificial intelligence and robotics
(3) foreign innovative firms’ investments, in particular the way they connect distant EU regions and the effects they have on local innovation.
These themes are structured in 3 Work Packages, supplemented by a fourth one for the dissemination of results.
The overall objective to develop evidence base for R&I policies in the European Union is in line with Societal Challenge 6 and with the current policy agenda of the European Commission.
Overall, the project provided robust indicators for policy and improved the understanding of determinants and consequences of ongoing economic transformations such as the “digital transformation”, the “fourth industrial revolution”, and the “globalization process”, which are all issues of key relevance for both the policy and scientific communities, as well as for societies at large.
Building on the outcomes and capacities developed within the framework of the INNOVA MEASURE I-III projects since 2013, the INNOVA MEASURE IV project focuses on three interrelated research streams:
(1) metrics (including indicators, composite indicators and dashboards) to measure research & innovation (R&I) performance
(2) business dynamism and performance of innovative firms, with a focus on companies in the field of artificial intelligence and robotics
(3) foreign innovative firms’ investments, in particular the way they connect distant EU regions and the effects they have on local innovation.
These themes are structured in 3 Work Packages, supplemented by a fourth one for the dissemination of results.
The overall objective to develop evidence base for R&I policies in the European Union is in line with Societal Challenge 6 and with the current policy agenda of the European Commission.
Overall, the project provided robust indicators for policy and improved the understanding of determinants and consequences of ongoing economic transformations such as the “digital transformation”, the “fourth industrial revolution”, and the “globalization process”, which are all issues of key relevance for both the policy and scientific communities, as well as for societies at large.
The project lasted 18 months and all work packages have been accomplished in parallel. We therefore review the work performed during the project chronologically rather than by work package, with the exception of WP4 on the dissemination of results, which we review separately.
The first part of the project (months 1-6) has been used to assemble different data sources and build indicators and datasets needed for the analysis. Moreover, based on emerging needs of DG RTD, the team provided analytical evidence on radical innovation focusing on the relatively small share of exporters that introduced a ‘world first’ product innovation, which we named ‘global innovation champions’ (GICs) [WP2].
The central part of the project (months 7-12) mainly focused on data analysis. The team produced the first deliverables: the 2019 version of the Innovation Output Indicator [WP1], a study mapping the development of AI and robotics innovation (measured by identifying patents related to AI and robotics) across countries and industries [WP2], and a feasibility study to assess the potential of mergers and acquisitions (M&A) to measure business dynamics [WP2]. Moreover, on the basis of emerging needs, the team provided support to RTD in the development of the Transitions Performance Index (TPI), a composite indicator that ranks more than 60 countries in terms of their progress along the economic, social, environmental and governance dimensions of sustainability [WP1].
The final part of the project (months 13-18) largely focused on drafting the reports. We produced the 2020 version of the Adjusted Research Excellence Index [WP1], two studies on the performance (measured in terms of labour and total factor productivity) of innovative companies in AI and robotics [WP2], one study on the contribution of foreign innovative M&A to the ongoing process of European integration [WP3], a study on the impact of different forms of innovative investments on local innovation [WP3], and country factsheets concisely communicating the performance of each Member State (MS) in foreign innovative investments [WP3]. Moreover, in accordance with the emerging needs of DG RTD, the team provided support in the development of the 3P (People, Planet, Prosperity) Dashboards, which aims at creating a set of indicators introducing the R&I perspective into each P and if possible into groups or individual Sustainable Development Goals (SDGs) [WP1]. Moreover, in line with the current policy agenda of the European Commission, the project team provided a first assessment of synergies and tradeoffs between the green and digital transformations [WP2].
Communication and dissemination activities [WP4] were performed throughout the implementation of the project and consisted in organizing and participating in policy and scientific workshops. The team supported DG RTD in the preparation of two policy workshops, one the development of the TPI and the 3P respectively. The team also organized two online workshops to present and discuss results of the analysis with policy makers and academics. The first workshop aimed at receiving feedback on ongoing research, the second and final one to discuss results and policy implications. The team also participated in various conferences and workshops to present and discuss the research performed in the project: in particular, the Academy of International Business 2019 Annual Meeting; the 2019 Economics, Governance and Management of AI, Robots and Digital Transformations conference; the 2019 Regional Studies Association conference; the Concordi 2019 Conference: Industrial Innovation for Transformation; the 2020 workshop The internationalization of innovation: new data and evidence; and the 5th Geography of Innovation Conference (GEOINNO2020, Norway).
The first part of the project (months 1-6) has been used to assemble different data sources and build indicators and datasets needed for the analysis. Moreover, based on emerging needs of DG RTD, the team provided analytical evidence on radical innovation focusing on the relatively small share of exporters that introduced a ‘world first’ product innovation, which we named ‘global innovation champions’ (GICs) [WP2].
The central part of the project (months 7-12) mainly focused on data analysis. The team produced the first deliverables: the 2019 version of the Innovation Output Indicator [WP1], a study mapping the development of AI and robotics innovation (measured by identifying patents related to AI and robotics) across countries and industries [WP2], and a feasibility study to assess the potential of mergers and acquisitions (M&A) to measure business dynamics [WP2]. Moreover, on the basis of emerging needs, the team provided support to RTD in the development of the Transitions Performance Index (TPI), a composite indicator that ranks more than 60 countries in terms of their progress along the economic, social, environmental and governance dimensions of sustainability [WP1].
The final part of the project (months 13-18) largely focused on drafting the reports. We produced the 2020 version of the Adjusted Research Excellence Index [WP1], two studies on the performance (measured in terms of labour and total factor productivity) of innovative companies in AI and robotics [WP2], one study on the contribution of foreign innovative M&A to the ongoing process of European integration [WP3], a study on the impact of different forms of innovative investments on local innovation [WP3], and country factsheets concisely communicating the performance of each Member State (MS) in foreign innovative investments [WP3]. Moreover, in accordance with the emerging needs of DG RTD, the team provided support in the development of the 3P (People, Planet, Prosperity) Dashboards, which aims at creating a set of indicators introducing the R&I perspective into each P and if possible into groups or individual Sustainable Development Goals (SDGs) [WP1]. Moreover, in line with the current policy agenda of the European Commission, the project team provided a first assessment of synergies and tradeoffs between the green and digital transformations [WP2].
Communication and dissemination activities [WP4] were performed throughout the implementation of the project and consisted in organizing and participating in policy and scientific workshops. The team supported DG RTD in the preparation of two policy workshops, one the development of the TPI and the 3P respectively. The team also organized two online workshops to present and discuss results of the analysis with policy makers and academics. The first workshop aimed at receiving feedback on ongoing research, the second and final one to discuss results and policy implications. The team also participated in various conferences and workshops to present and discuss the research performed in the project: in particular, the Academy of International Business 2019 Annual Meeting; the 2019 Economics, Governance and Management of AI, Robots and Digital Transformations conference; the 2019 Regional Studies Association conference; the Concordi 2019 Conference: Industrial Innovation for Transformation; the 2020 workshop The internationalization of innovation: new data and evidence; and the 5th Geography of Innovation Conference (GEOINNO2020, Norway).
Research carried out in the project fed into important report of the European Commission, the Science, Research and Innovation Performance of the EU 2020 report of DG RTD and the Commission Staff Working Document accompanying the Communication A new ERA for Research and Innovation. Moreover, a few studies have been accepted in reputed volumes and peer-reviewed academic journals (such as the Handbook of Labor, Human Resources and Population Economics and the Eurasian Business Review). The full policy and academic impact of policy support and research work carried out during the project is likely to take place throughout and beyond next year. The potential of the research carried in the project can feed the ongoing policy discourse and academic debate on the consequences of the 4th digital revolution on issues of economic competitiveness and environmental sustainability, as well as the process of European integration in periods of high and increasing regional inequality.