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Understanding R&D performance: A note on a new OECD indicator

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Abstract

This paper deals with various technical issues relating to the use of R&D statistics. But these technical issues are of considerable importance in understanding R&D performance, and therefore in identifying policy problems and policy objectives. The basic problem follows from the use of 'R&D intensity' - meaning the R&D/Value Added or R&D/Sales ratio - as an overall indicator for the manufacturing sector of the economy, or for the economy as a whole. This particular measure has become extremely popular as an overall performance indicator, and is frequently used by policymakers, especially for international comparisons. However the indicator has a serious weakness, which is that it reflects not just R&D performance, but also the industrial structure in which R&D is carried out. So the indictor cannot be used - as it frequently is - simply as a measure of relative R&D strength.

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  • Tore Sandven, "undated". "Understanding R&D performance: A note on a new OECD indicator," STEP Report series 199416, The STEP Group, Studies in technology, innovation and economic policy.
    • Handle: RePEc:stp:stepre:1994r16
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    File URL: http://www.step.no/reports/Y1994/1694.pdf
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