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How consistent are innovation indicators? : a factor analysis of CIS data

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  • Kleinknecht, Alfred

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Montfort, Kees van
  • Brouwer, Erik

Abstract

We discuss the strengths and weaknesses of five alternative innovation indicators: R&D, patent applications, total innovation expenditure and shares in sales taken by imitative and by innovative products as they were measured in the 1992 Community Innovation Survey (CIS) in the Netherlands. We conclude that the two most commonly used indicators (R&D and patent applications) have more (and more severe) weaknesses than is often assumed. Moreover, our factor analysis suggests that there is little correlation between these indicators. This underlines the empirical relevance of various sources of bias of innovation indicators as discussed in this paper.

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Bibliographic Info

Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0028.

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Date of creation: 2000
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Handle: RePEc:dgr:vuarem:2000-28

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Related research

Keywords: R&D; innovative output; total innovation expenditure; patents; factor analysis;

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  1. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343 National Bureau of Economic Research, Inc.
  2. Kleinknecht, Alfred & Reijnen, Jeroen O. N., 1991. "More evidence on the undercounting of small firm R&D," Research Policy, Elsevier, vol. 20(6), pages 579-587, December.
  3. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
  4. Brouwer, E. & Kleinknecht, A., 1995. "Measuring the unmeasurable: a country's non-R&D expenditure on product and service innovation," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  5. Kleinknecht, Alfred, 1987. "Measuring R&D in Small Firms: How Much Are We Missing?," Journal of Industrial Economics, Wiley Blackwell, vol. 36(2), pages 253-56, December.
  6. Brouwer, E. & Kleinknecht, Alfred & Reijnen, J.O.N., 1993. "Employment growth and innovation at the firm level," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5662246, Tilburg University.
  7. Brouwer, E. & Kleinknecht, Alfred, 1993. "Technology and a firm's export intensity: The need for adequate innovation measurement," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5662243, Tilburg University.
  8. Brouwer, Erik & Kleinknecht, Alfred & Reijnen, Jeroen O N, 1993. "Employment Growth and Innovation at the Firm Level," Journal of Evolutionary Economics, Springer, vol. 3(2), pages 153-59, May.
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Cited by:
  1. Nicolas van Zeebroeck, 2011. "The puzzle of patent value indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(1), pages 33-62.
  2. Nicolas van Zeebroeck, 2007. "Patents only live twice: a patent survival analysis in Europe," Working Papers CEB 07-028.RS, ULB -- Universite Libre de Bruxelles.
  3. Weterings, Anet & Boschma, Ron, 2009. "Does spatial proximity to customers matter for innovative performance?: Evidence from the Dutch software sector," Research Policy, Elsevier, vol. 38(5), pages 746-755, June.

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  1. Socio-Economics of Innovation

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