Innovation Statistics as a Tool for Measuring Transformation of Modern Economy (Case Study: China)

Abstract

Today, innovative performance of a country is one of the state’s most important tasks, which requires adequate statistics on innovations. The author analyzes the current state of innovation statistics as a tool for managerial decision-making (on the example of China).The paper considers conceptual approaches to the study and measurement of innovation as well as the main characteristics of the statistical indicator sets. The shortcomings of some traditional innovation indicators and methodologies behind international innovation rankings, which are often unable to fully measure the effectiveness of innovation country-level activity and assess the degree of innovativeness of its economy, were analyzed. The paper defines the most notable statistical innovation indicators of the Chinese economy. It is emphasized that when analyzing the innovation potential and progress in the economy, Western analysts use sets of indicators that assess the efficiency of economic institutions, the dynamics of structural change, and the degree of structural modernization of all its sectors on the basis of innovation. The author focuses on the peculiarities of the critical target indicator system of the leading innovation «Made in China 2025» program, which is one of the initiatives of the nationwide five-year plan for the socio-economic development of China.The author concludes that China's success in building an innovation economy is largely due to the choice of an effective system of indicators for strategic planning of innovation development, as well as reliance on domestic demand for innovation with a focus on ensuring the growth of the welfare of the country's citizens and reducing social inequality. It explains the need to develop a system of nationally adapted indicators of innovative development building on international statistical standards.