Advertisement

The Journal of Technology Transfer

, Volume 39, Issue 2, pp 199–218 | Cite as

Linking innovation, productivity, and competitiveness: implications for policy and practice

  • E. Carayannis
  • E. Grigoroudis
Article

Abstract

A country’s competitiveness is a complex concept that has been widely studied from different perspectives. Given that the competitive performance depends on the formation of intellectual capital and society’s capacity to innovate, economic research has identified innovation and productivity as key engines for the increase of competitiveness. There are several alternatives approaches for measuring innovation, productivity, and competitiveness. These approaches lead to different assessments, since there is no universally accepted definition and measuring technique of the aforementioned concepts. Moreover, these definitions appear to have several overlaps and this complicates the analysis of their relations. The aim of this paper is to present a methodological framework for studying the dynamic linkage among innovation, productivity, and competitiveness and explore the implications for policy and practice. For each one of these measures, an overall score is estimated, using a regression-based model that follows the principles of multi-objective mathematical programming. For the purpose of the analysis, a database containing a set of 25 indicators for 19 countries for the period 1998–2008 has been developed. The most important results include a series of contour maps and gap analysis diagrams that illustrate the evolution of the overall innovation, productivity, and competitiveness indices and compare the performance of the examined countries. These results show that, by average, there are no significant gaps among innovation, productivity, and competitiveness, although several variations may be found for particular countries. The motivation for this research from a policy and management perspective, is to explore whether, how and why certain combinations of competitiveness, productivity and innovation levels for a given country as well as across countries reveal any particular set of intrinsic strengths or weaknesses as well as more effective entry points regarding public sector (policy) interventions. A systematic profiling and comparison of competitiveness, productivity and innovation competence levels may reveal guidelines and insights for private sector (management) choices and initiatives as well.

Keywords

Innovation Competitiveness Productivity Metrics Multi-objective mathematical programming Contour maps Gap analysis 

JEL Classification

M13 M31 031 032 

References

  1. Audretsch, D., Audretsch, B., & Link, A. (2012). Entrepreneurship and innovation: Public policy frameworks. The Journal of Technology Transfer, 37(1), 1–17.CrossRefGoogle Scholar
  2. Audretsch, D., Bozeman, B., Combs, K. L., Feldman, M., Link, A. N., et al. (2002). The economics of science and technology. The Journal of Technology Transfer, 27(2), 155–203.CrossRefGoogle Scholar
  3. Carayannis, E. G. (2000). The strategic management of technological learning: Learning to learn-how-to-learn in high tech firms and its impact on the strategic management of knowledge, innovation and creativity within and across firms. Boca Raton, FL: IEEE/CRC Press.Google Scholar
  4. Carayannis, E. G., & Gonzalez, E. (2003). Creativity and innovation = competitiveness? When, how, and why? In L. V. Shavinina (Ed.), The international handbook on innovation (pp. 587–606). Amsterdam: Pergamon.CrossRefGoogle Scholar
  5. Carayannis, E. G., & Provance, M. (2008). Measuring firm innovativeness: Towards a composite innovation index built on firm innovative posture, propensity and performance attributes. International Journal of Innovation and Regional Development, 1(1), 90–107.CrossRefGoogle Scholar
  6. Carayannis, E. G., & Sagi, J. (2001). “New’” vs. “old” economy: Insights on competitiveness in the global IT industry. Technovation, 21(8), 501–514.CrossRefGoogle Scholar
  7. Carayannis, E. G., & Sagi, J. (2002). Exploiting opportunities of the new economy: Developing nations in support of the ICT industry. Technovation, 22(8), 517–524.CrossRefGoogle Scholar
  8. Chakrabarti, A. K. (1990). Innovation and productivity: An analysis of the chemical, textiles and machine tool industries in the US. Research Policy, 19(3), 257–269.CrossRefGoogle Scholar
  9. Drucker, P. (1985). Innovation and entrepreneurship: Practice and principles. New York: Harper and Row.Google Scholar
  10. Dutka, A. (1995). AMA handbook of customer satisfaction: A guide to research, planning, and implementation. Illinois: NTC Publishing Group.Google Scholar
  11. Fagerberg, J., & Srholec, M. (2008). National innovation systems, capabilities and economic development. Research Policy, 37(9), 1417–1435.CrossRefGoogle Scholar
  12. Grigoroudis, E., & Siskos, Y. (2002). Preference disaggregation for measuring and analysing customer satisfaction: The MUSA method. European Journal of Operational Research, 143(1), 148–170.CrossRefGoogle Scholar
  13. Grigoroudis, E., & Siskos, Y. (2010). Customer satisfaction evaluation: Methods for measuring and implementing service quality. New York: Springer.CrossRefGoogle Scholar
  14. Grupp, H., & Maital, S. (2001). Managing new product development: A microeconomic toolbox. Cheltenham and Northhampton: Edward Elgar Publishing.Google Scholar
  15. Grupp, H., & Schubert, T. (2010). Review and new evidence on composite innovation indicators for evaluating national performance. Research Policy, 39(1), 845–860.CrossRefGoogle Scholar
  16. Hair, J., Anderson, R., Tatham, R., & Black, W. (1995). Multivariate data analysis. Englewood Cliffs: Prentice-Hall International.Google Scholar
  17. Haskel, J. (2007). Measuring innovation and productivity in a knowledge-based service economy. Economic & Labour Market Review, 1(7), 27–31.CrossRefGoogle Scholar
  18. Hill, N. (1996). Handbook of customer satisfaction measurement. Hampshire: Gower Publishing.Google Scholar
  19. Hollanders, H. (2009). Measuring innovation: The European Innovation Scoreboard. In E. Villalba (Ed.), Measuring creativity (pp. 27–40). Luxembourg: European Commission Joint Research Centre.Google Scholar
  20. Hollanders, H., & van Cruysen, A. (2008). Rethinking the European Innovation Scoreboard: A new methodology for 2008–10. Brussels: INNO Metrics Thematic Paper, European Commission.Google Scholar
  21. IMD. (2010). World competitiveness yearbook 2010. Lausanne: Institute for Management Development.Google Scholar
  22. Jacquet-Lagrèze, E., & Siskos, J. (1982). Assessing a set of additive utility functions for multicriteria decision-making: The UTA method. European Journal of Operational Research, 10(2), 151–164.CrossRefGoogle Scholar
  23. Keeney, R. L. (1992). Value-focused thinking: A path to creative decision making. London: Harvard University Press.Google Scholar
  24. Keeney, R. L., & Raiffa, H. (1976). Decisions with multiple objectives: Preferences and value trade-offs. New York: Wiley.Google Scholar
  25. Kirkwood, C. W. (1997). Strategic decision making: Multi-objective decision analysis with spreadsheets. Belmont: Duxbury Press.Google Scholar
  26. Krammer, S. M. S. (2009). Drivers of national innovation in transition: Evidence from panel of eastern European countries. Research Policy, 38(5), 845–860.CrossRefGoogle Scholar
  27. Krugman, P. (1994). Competitiveness: A dangerous obsession. Foreign Affairs, 73(2), 28–44.CrossRefGoogle Scholar
  28. Krugman, P. (1998). Strategic sectors and international competition in structural change, industrial location and competitiveness. Cheltenham: Elgar.Google Scholar
  29. Link, A., & Rees, J. (1990). Firm size, university based research, and the returns to R&D. Small Business Economics, 2(1), 25–31.CrossRefGoogle Scholar
  30. Link, A., & Welsh, D. (2011). From laboratory to market: On the propensity of young inventors to form a new business. Small Business Economics, Online First™, 2 June.Google Scholar
  31. Naumann, E., & Giel, K. (1995). Customer satisfaction measurement and management: Using the voice of the customer. Cincinnati: Thomson Executive Press.Google Scholar
  32. OECD. (2001). Measuring productivity: Measurement of aggregate and industry-level productivity growth. Paris: OECD Publications.Google Scholar
  33. Özçelik, E., & Taymaz, E. (2004). Does innovativeness matter for international competitiveness in developing countries? The case of Turkish manufacturing industries. Research Policy, 33(3), 409–424.CrossRefGoogle Scholar
  34. Porter, M. (1990). The competitive advantage of nations. New York: Simon and Schuster.Google Scholar
  35. Pro Inno Europe. (2010). European Innovation Scoreboard (EIS) 2009: Comparative analysis of innovation performance. Brussels: European Commission: Enterprise & Industry.Google Scholar
  36. Pro Inno Europe. (2011). Innovation Union Scoreboard 2011. Brussels: European Commission: Enterprise & Industry.Google Scholar
  37. Siskos, J. (1985). Analyses de régression et programmation linéaire. Révue de Statistique Appliquée, 23(2), 41–55.Google Scholar
  38. Siskos, Y., Grigoroudis, E., Zopounidis, C., & Saurais, O. (1998). Measuring customer satisfaction using a collective preference disaggregation model. Journal of Global Optimization, 12(2), 175–195.CrossRefGoogle Scholar
  39. Stanovnik, P., & Kovačič, A. (2000). Measuring competitiveness of national economies with emphasis on Slovenia. Working paper No. 6, Institute for Economic Research, Ljubljana.Google Scholar
  40. Tabachnick, B. G., & Fidell, L. S. (1996). Multivariate analysis. New York: HarperCollins College Publishers.Google Scholar
  41. Tijssen, R. J. W. (2003). Scoreboards of research excellence. Research in Evaluation, 12(2), 91–103.CrossRefGoogle Scholar
  42. Van Ark, B. (1995). Manufacturing prices, productivity and labor costs in five economies. Monthly Labor Review, 118, 56–72.Google Scholar
  43. Vavra, T. G. (1997). Improving your measurement of customer satisfaction: A guide to creating, conducting, analyzing, and reporting customer satisfaction measurement programs. Milwaukee: ASQC Quality Press.Google Scholar
  44. WEF. (2012). The global competitiveness report 2012–2013. Geneva: World Economic Forum.Google Scholar
  45. Woodruff, R. B., & Gardial, S. F. (1996). Know your customer: New approaches to understanding customer value and satisfaction. Oxford: Blackwell Publishers.Google Scholar

Copyright information

© Springer Science+Business Media New York 2012

Authors and Affiliations

  1. 1.GWUWashingtonUSA

Personalised recommendations