Towards a Better Measurement of the Soft Side of Innovation. First Results of an Experiment Aimed at Measuring Non-technological Innovation Using an Adapted Innovation Survey in the Netherlands

In contrast to the role of human and physical capital inputs and ‘hard’ technological innovation, such as research and development expenditure, there is as of yet no clear, widely accepted conceptual framework through which non-technological innovations can be comprehensively analyzed, let alone to determine its impact on output, employment and productivity growth (van Ark et al., 2003). As often observed a ‘technological view’ on innovation is predominant (Gallouj, 2002). This is amazing as non-technological innovation (or for that matter, service and organizational innovation or what was coined the ‘soft side’ of innovation — see den Hertog et al., 1997) can be said to be part of (or at least not explicitly excluded) in the widely used Schumpeterian definition of innovation: ‘New combinations of inputs and the creation of new ideas leading to innovations in products (and services) and processes’ (Schumpeter, 1934; see Drejer, 2004, for a Schumpeterian perspective on service-specific innovation concepts). It is also a missed opportunity as non-technological innovation offers a huge potential for raising competitiveness and economic growth.