Standardisation of Indicators of Technological Innovation in Latin American and Caribbean Countries BOGOTA MANUAL RICYT / OAS / CYTED COLCIENCIAS/OCYT March 2001 Standardisation of Indicators of Technological Innovation in Latin American and Caribbean Countries BOGOTA MANUAL Iberoamerican Network of Science and Technology Indicators (RICYT) Organisation of American States (OAS) / CYTED PROGRAM COLCIENCIAS/OCYT This Manual was prepared by Hernán Jaramillo* Gustavo Lugones** and Mónica Salazar***. March 2001 * /. Universidad del Rosario, Facultad de Economía, Colombia. ** /. Universidad de Quilmes, Instituto de Estudios Sociales de la Ciencia y la Tecnología, Argentina. *** /. Independent consultant, RICYT researcher, Colombia TABLE OF CONTENTS PRESENTATION....................................................................................................................1 INTRODUCTION ...................................................................................................................3 FIRST PART...........................................................................................................................7 CONCEPTUAL CONCERNS .................................................................................................7 1. THE REGIONAL MANUAL’S AIMS..............................................................................8 1.1 WHY MEASURE INNOVATIVE PROCESSES? ............................................................8 1.2 THE IMPORTANCE OF STANDARDIZING INDICATOR CONSTRUCTION IN LATIN AMERICA AND THE CARIBBEAN................................................................................... 11 1.3 THE NEED FOR A REGION-SPECIFIC MANUAL ..................................................... 11 2 CONCEPTUAL FRAMEWORK: SOME CONCEPTUAL AND METHODOLOGICAL ELEMENTS FOR ADAPTING THE OSLO MANUAL* ......................................................15 2.1 APPROACH ................................................................................................................ 16 2.1.1 The Oslo Manual’s approach.................................................................................. 16 2.1.2 Analyzing Technical Change: Contributions to and reflections on the Regional Manual’s approach.......................................................................................................................... 19 2.2 DEFINITIONS............................................................................................................. 26 2.2.1 The Oslo Manual definitions................................................................................... 26 2.2.2 Contributions to and reflections on the definitions to be adopted by the Latin American Manual. Technical change in developing countries and innovative activities......................... 28 2.2.2.1 Local capabilities and absorption ............................................................................ 28 2.3 MEASUREMENT CONCERNS ................................................................................... 32 2.3.1 Measurement reference framework:........................................................................ 32 2.3.2 Innovation indicators ................................................................................................ 33 2.3.3 Contributions to and reflections on the creation of a Latin American Manual: conditions and impact. ...................................................................................................................... 36 3 WHAT SHOULD LATIN AMERICAN INDICATORS BE MEASURING? ..................40 3.1 The Concept of Technological Capabilities..................................................................... 40 3.2 Innovation as a social and interactive process ................................................................. 41 3.3 External Sources and Endogenous Technological Effort .................................................. 43 3.4 Organizational Innovations ............................................................................................ 44 3.5 Training ....................................................................................................................... 44 3.6 Quality management, environmental management and innovation capabilities .................. 45 4 CONCLUSIONS.............................................................................................................46 4.1 The Coordination of Innovation and Business Strategies ................................................. 46 4.2 Advantages and disadvantages of the Oslo Manual.......................................................... 46 SECOND PART: ...................................................................................................................48 OPERATIONAL CONCERNS..............................................................................................48 5 HOW TO MEASURE: CONSTRUCTING THE INDICATORS ...................................49 5.1 Procedures ................................................................................................................... 49 5.2 Samples ....................................................................................................................... 51 5.3 Indicators ..................................................................................................................... 53 5.4 Classification according to specificities by kind of firm................................................... 53 5.5 Period comprised by the survey and frequency of surveys ............................................... 56 5.6 Validation and information debugging criteria ................................................................ 56 6 A SET OF INDICATORS...............................................................................................57 6.1 FIRM IDENTIFICATION ............................................................................................ 57 6.2 ECONOMIC PERFORMANCE .................................................................................... 57 6.3 INNOVATION ACTIVITIES ....................................................................................... 58 6.3.1 R&D .................................................................................................................... 58 6.3.2 Innovation effort.................................................................................................... 58 6.4 INNOVATION RESULTS............................................................................................ 59 6.5 INNOVATION GOALS ............................................................................................... 60 6.6 SOURCES OF INNOVATION INFORMATION ........................................................... 60 6.7 INNOVATION FUNDING........................................................................................... 60 6.8 RELATIONSHIP WITH THE NATIONAL SYSTEM OF INNOVATION ...................... 60 6.9 FACTORS AFFECTING INNOVATION...................................................................... 61 6.10 ASSESSMENT OF PUBLIC POLICIES ON INNOVATION, SCIENCE AND TECHNOLOGY AND COMPETITIVENESS....................................................................... 61 7 STANDARD COMMON FORM ....................................................................................62 APPENDIX – SUGGESTED BASIC FORM .........................................................................74 BIBLIOGRAPHY..................................................................................................................81 PRESENTATION It is a great satisfaction to be able to present the Manual for the Standardization of Technological Innovation Indicators in Latin America or, as we call it, the Bogota Manual. This Manual can be considered a milestone in the conceptual formulation of technological development and innovation processes in Latin America. This is no overstatement given certain characteristics of the institutional context which enabled the initiative to be developed and the particular characteristics of the resulting text. Likewise, the working style that made the Bogota Manual possible deserves to be emphasized. In connection with these contextual elements, it should be stressed that this Regional Manual reveals the degree of maturity attained by the collective work of the groups and institutions forming Iberoamerican Network of Science and Technology Indicators (RICYT) in addressing the most complex problems involved in measuring science, technology, and innovation in Latin America. The Manual also shows that the theoretical and methodological debate on these issues is founded today on a high degree of awareness of the innovative processes taking place in the region. Only after the experience gained in three Regional Workshops on Innovation Indicators and numerous national surveys on innovation has it been possible to produce this Manual. The need for a Manual that establishes criteria for standardizing technological innovation indicators reflects the growing importance Latin American countries ascribe to measuring innovative processes in accordance with the major international trends. It reveals that our countries have begun to pay attention to the strategic role played by technological innovation as it affects their economic and social development. The fact that the Bogota Manual draws its inspiration from the Oslo Manual of the Organization for Economic Co-Operation and Development (OECD) demonstrates a concern that the indicators to be