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Innovation Measurement Problems: An Illustrative Case of the Baltic Countries

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Book cover Innovation Systems in Small Catching-Up Economies

Part of the book series: Innovation, Technology, and Knowledge Management ((ITKM,volume 15))

Abstract

The chapter bridges two approaches for the assessment of national innovation performance based on the European Innovation Scoreboard (EIS) composite indicators and on the analysis of factors that may be behind these indicators. The main focus of the study is on analyzing innovation performance of the Baltic States – the small countries that have similar post-socialist path dependence. Our aim is to explore what factors have been most influential in developing the different innovation performance of the countries and whether the innovation measurement indicators also capture these differences. Our analysis shows that remarkable measuring problems are the inability to sufficiently capture the quality of human capital, the small economy effect, that is, high dependence on single enterprises of a sector, and data availability issues. Some self-reporting indicators may also bias the measurement results. Still, Estonian innovation performance seems to be ahead of the other two Baltic countries; the main impulses have been successful attraction of foreign investments and the Estonian tax policy, and also possible positive spillover effects from the Nordic neighborhood, particularly from Finland and Sweden.

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Acknowledgments

The authors of the chapter are grateful to the Estonian Ministry of Education and Science (grant No. SF0180037s08) and the Estonian Science Foundation (research grant No. 7756) for their financial support. We are also thankful for valuable feedback and comments we got from our colleagues during the seminars and discussions that took place within the period in which we prepared this book. Our particular thanks belong to Jaan Masso and Priit Vahter for their stimulating suggestions that remarkably helped us in smoothing the last version of this chapter. Views expressed in the chapter are solely those of the authors and, as such, should not be attributed to other parties.

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Correspondence to Tiiu Paas .

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Paas, T., Poltimäe, H. (2012). Innovation Measurement Problems: An Illustrative Case of the Baltic Countries. In: Carayannis, E., Varblane, U., Roolaht, T. (eds) Innovation Systems in Small Catching-Up Economies. Innovation, Technology, and Knowledge Management, vol 15. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-1548-0_6

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