Measurement of innovation in South Africa: An analysis of survey metrics and recommendations

Sibusiso T Manzini

doi:10.17159/sajs.2015/20140163

Abstract

The National System of Innovation (NSI) is an important construct in South Africa’s policy discourse as illustrated in key national planning initiatives, such as the National Development Plan. The country’s capacity to innovate is linked to the prospects for industrial development leading to social and economic growth. Proper measurement of innovation activity is therefore crucial for policymaking. In this study, a constructive analytical critique of the innovation surveys that are conducted in South Africa is presented, the case for broadening current perspectives of innovation in the national policy discourse is reinforced, the significance of a broad perspective of innovation is demonstrated and new metrics for use in the measurement of the performance of the NSI are proposed. Current NSI survey instruments lack definition of non-technological innovation. They emphasise inputs rather than outputs, lack regional and sectoral analyses, give limited attention to innovation diffusion and are susceptible to respondent interpretation. Furthermore, there are gaps regarding the wider conditions of innovation and system linkages and learning. In order to obtain a comprehensive assessment of innovation in South Africa, there is a need to sharpen the metrics for measuring non-technological innovation and to define, account for and accurately measure the ‘hidden’ innovations that drive the realisation of value in management, the arts, public service and society in general. The new proposed indicators, which are mostly focused on innovation outputs, can be used as a basis for plugging the gaps identified in the existing surveys.

Highlights

Various empirical studies conducted across the world in the past half-century suggest a high correlation between innovation, on one hand, and industrial competitiveness and economic growth, on the other.[1,2] Through economic growth and its direct social impacts, innovation can be linked to improved quality of life as measured, for instance, by the Human Development Index.[3]
Innovation has become an important part of public policy in many countries, including South Africa.[3]
The research and development (R&D) and innovation surveys that are currently conducted in South Africa provide necessary and important information about the growth and development of elements of the National System of Innovation (NSI)

Summary

Introduction

Various empirical studies conducted across the world in the past half-century suggest a high correlation between innovation, on one hand, and industrial competitiveness and economic growth, on the other.[1,2] Through economic growth and its direct social impacts, innovation can be linked to improved quality of life as measured, for instance, by the Human Development Index.[3]. A process of generating, acquiring and applying knowledge for economically and socially beneficial purposes and takes place through efficient unfolding of various learning processes, rather than being determined by the mastery of science and technological knowledge.[4] In this broad sense, innovation can be regarded as the deployment of new value to society through the exercise of human ingenuity in any sphere of activity. It is commonly accepted that innovation processes germinate and develop within what is referred to as innovation systems.[5] These include private and public organisations and other actors that connect in various ways to bring together the technical, commercial and financial competencies and inputs required for innovation It is on these systems that government innovation policies focus.[6] Comprehensive country reviews on science, technology and innovation demonstrate that innovation is an important policy construct in South Africa.[7,8]. Proposing, based on the above analysis, a broader framework and appropriate metrics for conducting innovation surveys

Consolidating inputs from the expert panel

Conclusion