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The Innovation Union Scoreboard is Flawed: The case of Sweden – not being the innovation leader of the EU

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  • Edquist , Charles

    (CIRCLE, Lund University)

  • Zabala-Iturriagagoitia , Jon Mikel

    (Deusto Business School, Deusto University)

Abstract

According to the Innovation Union Scoreboard, published by the European Commission every year, Sweden has been, and still is, an innovation leader within the EU and one of the most innovative countries in Europe. In the Innovation Union Scoreboard 2014 (European Union, 2014: 5), Sweden has the top position (ranked number 1) of all EU28 Member States in what is called “EU Member States’ Innovation Performance”. In the ranking there are 10 countries between Sweden and the EU average. This analysis is based on the ranking provided by one single composite indicator (SII or Summary Innovation Index), based on 25 separate indicators. In this paper we argue that the SII provided by the Innovation Union Scoreboard is highly misleading. The data (the 25 separate indicators) that constitute this composite innovation indicator need to be analyzed much more in depth in order to reach a correct measure of the performance of an innovation system. We argue that input and output indicators need to be considered separately and measured individually and as two groups of indicators. Thereafter we compare the input and output indicators with one another (as is normally done in productivity and efficiency measurements). The outcome of this is a relevant and better measure of innovation performance. In this paper, the performance of the Swedish national innovation system is analyzed by using exactly the same data as is used by the Innovation Union Scoreboard 2014. We analyze the relative position of Sweden regarding both input and output indicators, concluding that Sweden’s position as an innovation leader within the EU must be reconsidered. A theoretical background and reasons for selecting the indicators used is given and a new position regarding Sweden’s innovation performance compared to the other countries is calculated. Our findings show, that Sweden remains in a high position for the innovation input indicators, ranked number 1. However, with regard to innovation output, Sweden is ranked number 10. In other words, about a third of all European Union 28 Member States have a higher innovation output than Sweden. To estimate the efficiency or productivity of the Swedish innovation system, inputs and outputs must be related to each other. When doing so, we reach the conclusion that Sweden is ranked number 24 of EU28 Member States. This finding is then discussed and we also discuss which countries would be relevant for Sweden to compare (benchmark) its innovation system with. The conclusion is that Sweden, based on our calculations, can certainly not be seen as an innovation leader in Europe. This means that the Innovation Union Scoreboard is flawed and may therefore mislead researchers, policy-makers, politicians as well as the general public – since it is widely reported in the media.

Suggested Citation

  • Edquist , Charles & Zabala-Iturriagagoitia , Jon Mikel, 2015. "The Innovation Union Scoreboard is Flawed: The case of Sweden – not being the innovation leader of the EU," Papers in Innovation Studies 2015/16, Lund University, CIRCLE - Centre for Innovation Research.
    • Handle: RePEc:hhs:lucirc:2015_016
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    References listed on IDEAS

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    Cited by:

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    3. Attila Havas, 2015. "Various approaches to measuring business innovation: their relevance for capturing social innovation," CERS-IE WORKING PAPERS 1554, Institute of Economics, Centre for Economic and Regional Studies.
    4. Klaus Friesenbichler & Agnes Kügler, 2017. "Statistical Benchmarking as a Development Tool. An Introduction for Practitioners," WIFO Studies, WIFO, number 59303, January.
    5. Janger, Jürgen & Schubert, Torben & Andries, Petra & Rammer, Christian & Hoskens, Machteld, 2017. "The EU 2020 innovation indicator: A step forward in measuring innovation outputs and outcomes?," Research Policy, Elsevier, vol. 46(1), pages 30-42.
    6. 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.
    7. Attila Havas, 2016. "Social and Business Innovations: Are Common Measurement Approaches Possible?," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 10(2), pages 58-80.
    8. Szopik-Depczyńska, Katarzyna & Kędzierska-Szczepaniak, Angelika & Szczepaniak, Krzysztof & Cheba, Katarzyna & Gajda, Waldemar & Ioppolo, Giuseppe, 2018. "Innovation in sustainable development: an investigation of the EU context using 2030 agenda indicators," Land Use Policy, Elsevier, vol. 79(C), pages 251-262.
    9. George Martinidis, 2017. "The Importance of Man Within the System: Defining and Measuring the Human Factor in Innovation, a Review," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(2), pages 638-652, June.
    10. 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.
    11. Srholec Martin & Szkuta Katarzyna, 2016. "RIO Country Report 2015: Czech Republic," JRC Research Reports JRC101175, Joint Research Centre.
    12. G. Martinidis & N. Komninos & E. Carayannis, 2022. "Taking into Account the Human Factor in Regional Innovation Systems and Policies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 849-879, June.
    13. Ana Garcia-Bernabeu & José Manuel Cabello & Francisco Ruiz, 2020. "A Multi-Criteria Reference Point Based Approach for Assessing Regional Innovation Performance in Spain," Mathematics, MDPI, vol. 8(5), pages 1-21, May.
    14. Jürgen Janger & Agnes Kügler, 2018. "Innovationseffizienz. Österreich im internationalen Vergleich," WIFO Studies, WIFO, number 61111, January.
    15. Bostjan Udovic & Maja Bucar & Hristo Hristov, 2016. "RIO Country Report 2015: Slovenia," JRC Research Reports JRC101219, Joint Research Centre.
    16. Sehoon Kim, 2022. "A Global Entrepreneurship Efficiency Benchmarking and Comparison Study based on National Systems of Entrepreneurship and Early-Stage Business: A Data Envelopment Analysis Approach," SAGE Open, , vol. 12(3), pages 21582440221, September.
    17. Agnes Kügler & Jürgen Janger, 2015. "Innovationseffizienz in den EU-Ländern. Eine Data Envelopment Analysis (DEA)," WIFO Studies, WIFO, number 58202, January.
    18. Dionisio, Eduardo Avancci & Inácio Júnior, Edmundo & Fischer, Bruno Brandão, 2021. "Country-level efficiency and the index of dynamic entrepreneurship: Contributions from an efficiency approach," Technological Forecasting and Social Change, Elsevier, vol. 162(C).

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    More about this item

    Keywords

    Innovation system; innovation policy; innovation performance; Sweden; indicators; input; output;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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