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Benchmarking regional innovative performance: composite measures and direct innovation counts

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  • Teemu Makkonen

    (University of Helsinki)

  • Robert P. Have

    (VTT Technical Research Centre of Finland
    Aalto University)

Abstract

There is a considerable amount of discussion, but still no consensus, about which indicator should be used to measure innovation. To participate in this debate, a unique innovation database, SFINNO, is introduced. Innovation counts from the database are used as the baseline, to which individual proxy indicators (patent- and research and development statistics) of innovation and innovation indexes, constructed here with principal component analysis, are compared. The local administrative units of Finland serve as the regional units benchmarked. The study results show that innovation is a complex phenomenon which cannot be entirely explained through the use of proxy statistics, as the linkages between innovation input- and output-indicators are fuzzy. We also show that the strength of these linkages varies by field of technology. Furthermore, different innovation measures produce highly divergent rankings when they are used as benchmarking tools of regional innovative performance. Although the produced innovation indexes perform slightly better, their superiority is marginal. Therefore, caution should be taken before drawing too drastic policy conclusions depending on a single measure of regional innovative performance.

Suggested Citation

  • Teemu Makkonen & Robert P. Have, 2013. "Benchmarking regional innovative performance: composite measures and direct innovation counts," Scientometrics, Springer;Akadémiai Kiadó, vol. 94(1), pages 247-262, January.
    • Handle: RePEc:spr:scient:v:94:y:2013:i:1:d:10.1007_s11192-012-0753-2
    DOI: 10.1007/s11192-012-0753-2
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    7. Josef Taalbi, 2022. "Innovation with and without patents," Papers 2210.04102, arXiv.org.
    8. Hauser, Christoph & Siller, Matthias & Schatzer, Thomas & Walde, Janette & Tappeiner, Gottfried, 2018. "Measuring regional innovation: A critical inspection of the ability of single indicators to shape technological change," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 43-55.
    9. Edquist , Charles & Zabala-Iturriagagoitia , Jon Mikel, 2015. "The Innovation Union Scoreboard is flawed: The Case of Sweden – not the innovation leader of the EU – updated version," Papers in Innovation Studies 2015/27, Lund University, CIRCLE - Centre for Innovation Research.
    10. Tatsiana Dziavochka & Elyas Abdulahi Mohamued, 2020. "The Nexus of Chinese OFDI Innovation and Entrepreneurship in Europe: A True Fixed Effect Stochastic Analysis," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(4), pages 399-414, April.
    11. Teemu Makkonen & Timo Mitze, 2019. "Deconstructing the Education-Innovation-Development Nexus in the EU-28 Using Panel Causality and Poolability Tests," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 516-549, June.
    12. Astrid Kander & Josef Taalbi & Juha Oksanen & Karolin Sjöö & Nina Rilla, 2019. "Innovation trends and industrial renewal in Finland and Sweden 1970–2013," Scandinavian Economic History Review, Taylor & Francis Journals, vol. 67(1), pages 47-70, January.
    13. Julia Cohen & Carina Marques & Joana Lameira & Maria José Sousa & Manuel Au-Yong-Oliveira, 2020. "The Interrelationship between Corporate Social Responsibility and Strategic Innovation In Aveiro-based Startups," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 11(3), pages 65-86, December.
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    16. Dziallas, Marisa & Blind, Knut, 2019. "Innovation indicators throughout the innovation process: An extensive literature analysis," Technovation, Elsevier, vol. 80, pages 3-29.
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    More about this item

    Keywords

    Innovation; Composite indicators; Patents; R&D; Regional innovative performance;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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