Competing in the Global Economy – The Innovation Challenge

Fig 13. Output measures of UK innovation in CIS 2, CIS 3 and changes.
40%
35%
30%
25%
20%
15%
10%
5%
0%
Indicators of technological innovation inputs
Business expenditure on R&D (BERD) and patent data are typically used to measure
countries technological performance. The data broadly shows that UK ranks fifth in the
G7 in the share of national income invested in R&D 17 and below the average for all OECD
countries (Fig 14). BERD intensity declined during the 1990s but stabilised after 1998.
Fig 14. Business Enterprise Research and
Development as a percentage of GDP
Percent
2.5
2
1.5
1
0.5
0
Source: OECD.
Novel product
innovation
Product innovation
(goods and services)
CIS 2 (Excl SIC 50,52,55) CIS 3
Source: M Frenz, 2002.
Process
innnovation
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Year
Canada France Germany Italy Japan OECD UK US
Unsuccessful
innovation
15 This effect is more than a statistical sampling effect. Enterprises that completed both the CIS2 and CIS3 questionnaire also reported a
lower incidence of innovation in CIS 3 compared to CIS2.
16 Frenz M, A Comparison of the Second and Third UK Community Innovation Survey, Unpublished paper available on dti.gov.uk\tese (2002).
17 Although R&D typically only accounts for 40% of all UK firms spending on innovation. Source: Community Innovation Survey.
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