Measures of the Contribution made by ICT to Innovation Output.An Update of the ICT Innovation Output Indicator

Abstract

This report presents an update of the ICT Innovation Output Indicator based on the latest available data, and provides a measure of the performance of the European Union (EU) and its Member States in ICT innovation. The ICT Innovation Output Indicator is the contribution of Information and Communication Technologies (ICT) to the Innovation Output Indicator elaborated by the European Commission in 2013. The contribution of ICT has been computed for each underlying component of the Innovation Output Indicator for all EU Member States. Depending on the component analysed and data availability, the ICT contribution to innovation can refer either to innovation in the ICT sector as defined by the classification of economic activities, or to ICT use as a general purpose technology in the rest of the economy. The up-to-date ICT contributions for the EU aggregate are: 1. 28% in technological innovation as measured by patents; 2. 19% in absorption of skills as measured by employment in knowledge intensive activities; 3. 27% in competitiveness of knowledge goods as measured by exports of medium-high tech goods; 4. 20% in competitiveness of knowledge services as measured by exports of knowledge intensive services; 5. 23% in innovative firms’ dynamics as measured by employment of innovative fast-growing firms. All data refer to 2013 with the exception of data on patents which refer to 2011. The methodology to compute the ICT Innovation Output Indicator follows the one presented in How much does ICT contribute to innovation output? An analysis of the ICT component in the innovation output indicator (Pesole, 2015 ). The reader is referred to this report for more detail on the methodology. The 2013 EU aggregate ICT contributions are very similar to those in 2012 reported by Pesole (2015). The technological innovation component (i.e. ICT PCT patent) increased by two percentage points in 2011 (from 26% to 28%). Similarly, competitiveness of knowledge goods increased from 25% to 27% in 2013. The other contributions remain unchanged. The ICT Innovation Output Indicator delivers a measure of output-oriented ICT innovation that captures both the technological and non-technological aspects of innovation in ICT and ranks Member States' performance. The three top performing countries remain the same as in Pesole 2015: Finland, Ireland and Sweden.