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The Non-Trivial Choice between Innovation Indicators

  • Alfred Kleinknecht
  • Kees Van Montfort
  • Erik Brouwer

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 the various indicators. This underlines the empirical relevance of various sources of bias of innovation indicators as discussed in this paper.

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Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 11 (2002)
Issue (Month): 2 ()
Pages: 109-121

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Handle: RePEc:taf:ecinnt:v:11:y:2002:i:2:p:109-121
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  1. repec:ner:tilbur:urn:nbn:nl:ui:12-5662243 is not listed on IDEAS
  2. Zvi Griliches, 1984. "R&D, Patents, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number gril84-1, 07.
  3. repec:ner:tilbur:urn:nbn:nl:ui:12-5662246 is not listed on IDEAS
  4. Solomou, Solomos, 1986. "Innovation Clusters and Kondratieff Long Waves in Economic Growth," Cambridge Journal of Economics, Oxford University Press, vol. 10(2), pages 101-12, June.
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