Innovation Regional Indicators Project METROPOLIS; Thematic Group No. 5 Innovation Indicators of...

Innovation Regional IndicatorsProject METROPOLIS; Thematic Group No. 5

Innovation Indicators of Prague´s RegionMűller Karel, Charles University, Prague, Czech

Republic

Structure of communication:

Scheme of innovation indicators: national situation - its regulatory and statistical context

Innovation actors and capacities of Prague´s region – assessment by available indicators

National institutional framework for support of innovation - constraints and challenges for a growth of innovation efforts in region of Prague

1. Scheme of innovation indicators: national situation - its regulatory and statistical context

Statistical surveying of R&D started at the end of the 50s (of last century) having been mobilised by the requirements of centralised regulation of S&T; in conceptual terms a model of „science-push“ was considered.

Political liberalisation in the 60s (of last century) supported reflection of regulatory and statistical practices of advanced countries; one intended to join OECD and apply Frascati manual in R&D surveying.

The regulatory efforts to facilitate transfer of R&D output to production led in the 70s and 80s (of last century) to statistical surveying of innovation; at the beginning the concept of innovation was adapted to „science-push“ model and later a more extended and interactive concept of innovation was adopted; for the years 1990 and 1991 there are available innovation data which are comparable to standard methodology (of Oslo manual).

In the course of economic and political reforms, reorganisation of statistical authorities, and for ideological reasons (one preferred market-pull approach and limited role of state in promotion of innovation), the surveying of innovation was stopped; in meantime CR joined OECD and adopted standard methodologies of statistical surveying, including R&D and related activities (one is intending to join CIS as well).

2. Innovation actors and capacities of Prague´s region – assessment by available indicators

General data about innovation capacities of Prague: R&D personnel and researchers (FTE) by qualification, science disciplines, R&D sectors, GERD by R&D sectors

Structural analysis of academic resources: HE and Government R&D sectors and their human and funding resources

Structural analysis of manufacturing resources: BES R&D sector by ISIC branches, R&D personnel, researchers, GERD Licences in manufacturing (purchased and sold) Licences for patents and trade marks

[1] This situation is caused by fact, that the practices of statistical surveying have had to be – step by step – adapted to progress of economic transition and finally to the standards of OECD and Eurostat. At moment, transformation of statistical practices seems to be accomplished, and Czech Statistical Office has also promised to join CIS.

[2] See closer Technology and Economy, The Key Relationship, OECD, TEP, Paris, 1992.; Műller, K., 2002, Industriální zdroje, ekonomický růst a sociální změna (Industrial Resources, Economic Growth and Social Change). Sociologické nakladatelství, Edice studie, Praha (in Czech).

[3] By the term structural analysis it is understood that not only specific resources of academic and industrial R&D are taken into analytical consideration but also their specific output and general (economic) impact including the interactions between them.

The analysis which is presented in this chapter is based on available data offered by the Czech Statistical Office. As indicated above this agency has accumulated experience with surveying innovation. Currently, there are surveyed only R&D and some related activities.[1] Statistical analysis of innovation can be, therefore, approached only indirectly. In the following analysis I have applied the approach which is recommended by OECD experience: beside general data on R&D – an important resource of innovation – the structural analysis of academic and manufacturing resources will be accomplished[2]. For this approach a comparatively rich set of data has been available and applied. The following analysis will be done in three steps: first the general and relevant data about region of Prague will be presented, next structural analysis[3] of academic resources will follow and afterwards structural analysis of manufacturing resources will accomplish this chapter.

2.1 General data about innovation resources of Prague´s region

Table 1

R & D personnel in region of Prague(FTE, p.p.p. = average re-calculated number, 1995 – 2001)

1995 1997 2000 2001

FTE p.p.p. FTE p.p.p. FTE p.p.p. FTE p.p.p.

R & D personnel 8 966 16 594 9 925 18 388 10 918 20 426 12 107 21 553

Out of which women 4 151 7 841 4 595 8 295

Out of which researchers 4 836 8 305 5 510 9 615 6 608 11 657 7 522 12 419

Out of which women 1 943 3 349 2 229 3 678

Source: Czech Statistical Office; the data for women are not available for the years 1995 and 1997.

Table 2

R & D personnel in region of Prague by R & D sectors(p.p.p. = average re-calculated number, %, 1997 – 2001)

1997 2000 2001

sector/indicator p.p.p. % p.p.p. % p.p.p. % CR,%1

Business enterprise sector 3 908 21.25 5 259 25.7 5 194 24.1 46.1

Government sector 10 457 56.9 9 172 44.9 9 582 44.5 29.8

Higher education sector 3 983 21.7 5 523 27.0 6 439 29.8 23.2

Private non-profit sector 40 0.2 492 2.4 338 1.6 0.9

Total 18388 100 20426 100 21553 100 100

Source: Czech Statistical Office

Graph 1

Sector / indicator BES Govern HE PNP TotalPrague, % 24,1 44,5 29,8 1,6 100

CR,%1 46,1 29,8 23,2 0,9 100

Prague, %

1,6%

29,8%

24,1%

44,5%

BES Government HE PNP

CR,%1

0,9%

23,2%

46,1%

29,8%


R&D personnel by R&D sectors in region of Prague and in Czech Republic( p.p.p., %, 2001)

Graph 2

PhD HE (tertiary) secondary Other celkemR&D personnel %, Prague 29,00 35,80 27,90 7,30 100,00

PhD HE (tertiary) secondary Other celkemR&D personnel %, CR 22,20 38,90 31,50 7,40 100,00

R&D personnel %, Prague

35,8%

29,0%

27,9%

7,3%

PhD HE (tertiary) secondary Other

R&D personnel %, CR

7,4%

31,5%

22,2%

38,9%

PhD HE (tertiary) secondary Other

R & D personnel in region of Prague by level of education(p.p.p., 2000)

Graph 3

Natural sciences Technical sciences

Medical sciences Agricultural siences

Social sciences

HumanitiesResearcher,Prague % 27 38,6 13,3 5 7 9,1

Researchers, CR% 32 44,8 6,6 6,7 2,2 7,7

Researcher,Prague %

7

9,1

38,6

27

13,3

5



Social sciences Humanities

Researchers, CR%

2,2%

7,7%

44,8%

32,0%6,6%

6,7%



Social sciences Humanities

Researchers in region of Prague and in Czech Republic by scientific discipline( 2000, p.p.p., %)

Table 3

Gross expenditures for R & D (GERD) in region of Prague(in thousands of CZK, EURO; 1995 - 2001)

1995 1997 2000 2001 2001 (EURO)1

GERD 3968 806 7056 184 11040 945 11418 476 360 215

Source: Czech Statistical Office; recalculated by rate: 1 EURO = 31.7 CZK

Table 4

Gross expenditures for R & D (GERD) in region of Prague(by sector of performance; in thousands of CZK, EURO; 1997 - 2001)

1997 2000 2001

Sector/indicator CZK (thousands) tis.

Kč

% CZK (thousand

s)

CZK (thousand

s)3734 6745111 237

EURO1

(thousands)

CZK% CR,%

Business enterprise sector 1978 906 28.0 3821 250 3734 674 117 813 32.7 60.2

Government sector 4026 571 57.1 5250 493 5111 603 161 249 44.8 23.7

Higher education sector 784 327 11.1 1908 704 2465 603 77 779 21.6 15.6

Private non-profit sector 266 380 3.8 60 498 106 962 3 374 0.9 0.5

Total 7056 184 100 11040 945 11418 476 360 215 100 100Source: Czech Statistical Office; recalculated by rate: 1 EURO = 31.7 CZK

Graph 4

Growth rate of R&D resources in region of Prague(thousands, CZK, 1995 - 2001)

1995 1997 2000 2001GERD 3 968 806 7 056 184 11 040 945 11 418 476R&D personnel 8 966 9 925 10 918 12 107

0

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

1995 1997 2000 2001

Am

ou

nt

(CZ

K)

GERD

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

1995 1997 2000 2001

Nu

mb

erR&D personnel

Graph 5

GERD in region of Prague and Czech republic by R&D sectors (sector of performance, %, 2001)

Sector / indicator

BES Government

HE PNP Total

Prague, %

32,7 44,8 21,6 0,9 100

CR, % 60,2 23,7 15,6 0,5 100

Prague, %

44,8%

32,7%

21,6%0,9%


CR, %

23,7%60,2%

15,6%0,5%


Table 5

Comparative share of Prague´s region in total R & D resources of the CR(FTE, CZK in thousnads, 2001, %)

Region/ indicator

R & D personnel Out of which women Researchers GERD

total % total % Total % Total %

CR 26 107 100 8 699 100 14 987 100 28 336 993 100

Out of which Prague

12 107 46.4 4 595 52.8 7 522 50.2 11 418 476 40.3

Source: Czech Statistical Office; Ukazatelé výzkumu a vývoje za rok 2001 (Indicators of R and D), ČSÚ, Praha, kód: 9601 - 02

Assessment:

There is high concentration of R & D resources in region of Prague, and goes on to be growing also during the transformation period in the 90s (of last century); in the 70s (of last century) the share of Prague´s region in R & D personnel amounted to 31 % of their total amount in Czechoslovakia and in the year 2001 it rose to 40%.

In the years 1995-2001 number of R & D personnel in the region of Prague has been growing by 29.8% (or by 35.0% in terms of FTE) and number of researchers by 49.5% (in terms of FTE by 55.5%); share of women in both categories is about one third (see Table 1).

In the region of Prague the distribution of R & D personnel by qualification is - in comparison with average for the CR - more advantageous in the category of scientists (with PhD degree) and lagging behind in the category of researchers (HE graduates).

In the region of Prague the distribution of R & D resources by R & D sectors is strongly influenced by concentration of academic science in the capital of the CR; consequently, the position of government R & D sector is highly exceeding the average figure for the CR while the position of business enterprise R & D sector is below this figure; the positions of the other two R & D sectors (HE and PNP) is slightly exceeding the their relative share in the distribution for the CR.

2.2 Structural analysis of academic science

Table 6

Comparative share of Prague´s region in academic R & D resources(FTE, CZK in thousnads, 2001, %)

Indicator R & D personnel Researchers GERD

R & D Sector Government HE Government HE

Total % Total % Total % Total %

CR 7 773 100 6 046 100 6 714 393 100 4 437 036 100

Out of which Prague

5 360 69.0 3 605 59.6 5 111 237 76.1 2 465 603 55.5


Assessment:

The concentration of resources of academic science in the region of Prague is considerably higher than that one of general R & D capacities; about two thirds of academic science resources are localised in the region of Prague.

Not only in statistical terms but also in institutional dimension the academic science has been split into two sectors: Government R & D sector covering the R & D organisations of Academy of Sciences of the CR, and HE R & D sector covering research capacities of universities and the other HE organisations; research organisation of Academy of Sciences are predominantly concentrated in region of Prague.

Strong position of academic science in the region of Prague can be also reflected by the pattern of the other indicators: by level of qualification (as mentioned above) and by disciplinary distribution of researchers; region of Prague has been noted – in comparison with average indicators for the CR - by higher share of researchers in medical sciences and humanities, and lesser share in natural sciences and engineering branches (technical sciences).

The distribution of researchers by discipline of science in region of Prague is also affected by institutional split of academic science: while disciplinary profile of research organisations of Academy of Sciences is noted by branches of natural, medical and social sciences the HE research has – among others – strong position in engineering and technical sciences.

2.3 Structural analysis of manufacturing and resources of industrial R & D in region of Prague

Implications of the above mentioned analysis of R & D resources in the region of Prague:

region of Prague is noted by comparatively weaker position of industrial R & D capacities if compared with position of academic science as well as the distribution of total (human and financial) R & D resources in the Czech Republic (see Tables 2 and 4).

Challenge of the following analysis:

what are the factors influencing size, dynamics and distribution of industrial R & D capacities in region of Prague. The challenge will be faced by help of analysis of available statistical indicators and data; again, the comparison with total data for the Czech Republic will be utilised.

Table 7

Indicators of business R & D sector in region of Prague (personnel in p.p.p.; GERD in thousands CZK; share in total R&D, %)

1997 2000 2001

sector/indicator p.p.p. % p.p.p. % p.p.p. % CR,%1

Personnel 3 908 21.25 5 259 25.7 5 194 24.1 46.1

GERD 1978 906 28.0 3821 250 3734 674 117 813 32.7 60.2


Table 8Qualification structure of personnel in business R & D sector in region of Prague

( p.p.p.,%, 2000, 2001)

2000 2001 2001, %

PhD 528 572 11.0

Higher Education (tertiary)

2 254 2 283 43.9

Secondary (technical) education 150 155 3.0

Secondary (general) education 1 669 1 716 33.0

Other 638 468 9.1

Total 5 239 5 194 100

Source: Czech Statistical Office

Table 9

Distribution of employment by branches in region of Prague(p.p.p., 1-3. quarters of 2002)

Branch Number of reporting units

Number of employees Ibid., %

Agriculture 18 5 109 0.8

Building industry 339 35 392 4.7

Manufacturing 662 95 984 12.6

Trade, vehicle&goods repair 980 89 687 11.8

Restaurants & hotels 248 22 438 2.9

Transportation, storage, mail, telecommunication 205 180 431 23.5

Banks & insurance 538 59 641 7.7

Immovables, industrial services (incl. R&D) 1 143 81 866 10.6

Public administration, defence, social insurance 169 73 789 9.7

Education 799 41 829 5.5

Health care 176 33 855 4.5

Other services 1059 43 833 5.7

Total 6 353 769 082 100

Source: Czech Statistical Office; 1. organisations with headquarters in region; excluding organisations with less than 20 employees

Table 10

Employment and R&D personnel of BES by branches in region of Prague (ISIC, p.p.p., 2001,1-3 quarters of 2002)

Branch Number of reporting units

Employment, p.p.p. (all secors)

Ibid., % R&D personnel p.p.p. (BES)

Ibid., %

Agriculture 18 5 109 0.8 . .

Building 339 35 392 4.7 146 2.8

Manufacturing 662 95 984 12.6 1 821 35.1

Services 5 317 632 597 81.9 3 217 62.1

Of which (selected branches)

trade and repairs 980 89 687 11.8 236 4.5

Transportation, storage, mail, telecommunication

205 180 431 23.5 166 3.2

Immovables, services for industry (incl. data processing, R&D)

1 143 81 866 10.6 2 348 45.2

Public administration, defence, social services

169 73 789 9.7 467 9.0

Education 799 41 829 5.5

Health care 176 33 855 4.5

Other services 1059 43 833 5.7

Total 6 353 769 082 1002 5 194 1002

Source: Czech Statistical Office; 1. organisations with headquarters in region; excluding organisations with less than 20 employees; 2. share of selected branches of services is counted from total employment and number of R&D personnel.

Graph 6

Employment and R&D personnel in basic branches of BES in region of Prague (ISIC, p.p.p., 2001,1-3 quarters of 2002)

Branch

Agriculture

Building Manufacturing

Services Total

Employment, p.p.p., %0,8 4,7 12,6 81,9 100R&D personnel p.p.p., %0 2,8 35,1 62,1 100

Employment, p.p.p., %

81,9%

12,6%

0,8%

4,7%

Agriculture Building Manufacturing Services

R&D personnel p.p.p., %

62,1%

35,1%

0,0%

2,8%

Agriculture Building Manufacturing Services

Graph 7

GERD in BES by branches(%, 2001)

Economic activities by branches 2001, %Manufacturing 11Building industry 1,7Services 87,3Total 100

2001, %

87,3%

11,0%

1,7%

Manufacturing Building industry Services

Table 11

Employment and R&D personnel in manufacturing in region of Prague (ISIC, p.p.p., BES, 2001,1-3 quarters of 2002)

Branch Employment 1-3q. 2002

Ibid., % R & D personnel, 2001

Ibid., %

Food, beverages, tabacco 16 956 17.7 18 1.0

Textiles 1 593 1.7 . .

Wearing 1 994 2.1

leather 579 0.6

Wood and wood products 2 425 2.5 17 0.9

Paper and paper products 1 621 1.7

Printing 9 200 9.6

Chemicals 10 484 10.9 490 27.0

Rubber and plastics 3 575 3.7

Non-ferrous metals 4 586 4.8 11 0.6

Ferrous metals 1 480 1.5 . .

Metal construction products 6 062 6.3 29 1.5

Non-electrical machinery 6 143 6.4 202 11.1

Electrical machinery 11 548 12.0 652 35.8

Communication equipment 3 372 3.5

Scientifc, medical instruments 1 887 2.0

Motor vehicles 2 775 2.9 389 21.4

Other transport equipment 4 160 4.3

Other manufacturing 3 403 5.0 13 0.7

Processing of secondary raw materials 776 0.8

Total manufacturing 95 984 100 1821 100

Source: Czech Statistical Office; 1. organisations with headquarters in region; excluding organisations with less than 20 employees

Table 12

Licences in manufacturing by selected branches in region of Prague(ISIC, number, 2000)

Purchase of licences Sale of licences

Total Of which bought in 2000 Total Of which sold in 2000

Total 84 15 38 5

Of which

Wood, paper, printing (22 – 22) 14 3 1 .

Chemical, rubber, plastics (23 – 25)

48 10 4 2

Electrical and optical instruments (30 – 33)

9 4 32 2

Source: CSO

Assessment:

In the last decade the region of Prague has been witnessing a radical shift in distribution of production capacities and employment by basic sectors: (i) about 10 % of labour forces moved from secondary sector to the tertiary one and strengthened position of services in the total industrial activities (their share in the total employment has reached the level of 82%), and (ii) decline of secondary sector has been accompanied by radical changes in manufacturing structure (collapse or production decline of traditional chemical, machinery and electromechanical branches).

The available data about industrial activities are giving a picture about current distribution of manufacturing and services in region of Prague; food industry, chemicals, electro machinery are dominant in manufacturing structure; R&D, data processing and consulting are dominantly represented in the sphere of services.

Distribution of industrial R&D (R&D capacities in business enterprise sector) has analogues pattern with the distribution of manufacturing capacities: R&D capacities have been concentrated in branches of chemicals, food industry and eletrotechnical industry (these branches are also active in balance of technological payments); there are still R&D efforts in the traditional branch of machinery production the role of which has been declining. All branches of services are also supported (besides public R&D) by R&D activities located in business enterprise sector.

3. National institutional framework for support of innovation - constraints and challenges for a growth of innovation efforts in region of Prague

The available data, and the above presented assessments, outline only one aspect of analysed innovative situation in region of Prague -, namely the distribution and structures of respective resources. They can only partly, or indirectly, give evidence about the effects of these resources.[1] Such evidence could be summed up as follows:

Concentration of academic science and its capacities in region of Prague is a favourable structural condition for a mobilisation and a growth of innovation oriented efforts within this region; capacities of academic science are concentrated in two institutions: research organisations of Academy of Science and HE sector.Resources of academic science have been noted by extensive features – in HE sector being given education demands and in research organisations by traditional efforts of Academy to cover all scientific disciplines (even if research efforts in research organisations have been specialised); extensive features of academic science in region have been associated with political reasons, have unfavourable impact in situations of constrained funding (organisations become underinvested, since one cannot solve the financial strains by closure of organisations) but have played positive role in formation of communicative professional networks and their exploratory (innovative) incentives. Regardless an extensive nature of academic science in the region there is certain specialisation (and complementarity) in research resources of HE and Academy organisations: HE research sector is more oriented to engineering and technical sciences while Academy organisations are active in branches of natural sciences (particularly in selected branches of biology and chemistry)

[1] In terms of structural analysis the data about effects of both segments are expected to be taken into account: scientometric and bibliometric data in case of academic science, and data on technological and economic effects in case of manufacturing structural analysis. In former case it has not been possible to gain data for region of Prague, in latter case our analysis has been more complete.

Of course, concentration of resources in a specific institution, or in functionally related institutions (in our case academic and industrial science) need not result in positive effects. On contrary, it can bring about a power resisting a change of institution or co-operative interface among institutions. In this case

Structural analysis of manufacturing has identified radical changes in the pattern of industrial resources: both in the manufacturing and the industrial R&D, as well as some concentration effects in both fields: first of all in sector of services and in some selected branches of manufacturing (electromechanical and chemical production)

an assumption of structural dependencies can be claimed

A clarification of the above mentioned institutional implications of structural effects has to be accomplished by the analysis of

innovation related actors and innovation systems / infrastructures / environments

The analysis of national innovation system for the Czech Republic has been accomplished within the project „Innovation policy issues in six candidate countries: the challenges“ which was funded by DG Enterprise. The specific features of Czech situation and theoretical interpretations has been dealt with in more details in another article.[1] As far as the general regulatory framework for region of Prague is identical with that one the CR the outcome of these studies can be related – in terms of certain approximation – to the situation in region of Prague (within the framework of BRIS the project is running to specify the context of innovation infrastructure in region of Prague). With reference to above mentioned studies of innovation in the CR the following statements about the nature of innovation infrastructure in region of Prague can be claimed:

[1] Műller, K., 2002, Innovation Policy in the Czech Republic: From Laissez Faire to State Activism. JIRD, No, 5, pp. 403 – 426.

Institutional framework of innovation infrastructure is still in a transitory situation being influenced by both structural dependencies and mobilisation efforts;Structural dependencies have been related to specific distribution of industrial resources as well as practices of respective actors; Distribution of industrial resources has been specific in high concentration of R&D resources in academic science and governmental sector and weak position of research in HE faculties and industrial firms (in-house industrial R&D);Regulatory practices have been noted by top-down efforts (prevailing R&D programming and funding by central authorities) rather than by bottom-up and horizontal (lateral) efforts of respective actors;Innovation related actors (bottom-up efforts) were inadequately mobilised by the economic reform in the period of 1993 – 1996 which stimulated individual efforts by radical de-etatisation of centralistic regulatory framework but underestimated a formation of a new one; consequently, ill-distribution of innovation resources has not been changed; Features of „science push“ approach – supported by the distribution of innovation related resources and the practices (as described in two preceding points) – are constraining a transition from R&D policy to innovation policy as required by a regulatory framework of EU; Besides above mentioned structural problems current innovation infrastructure of the CR has been challenged by the following issues:

Weak reflexive capacities of key innovation related institutions (academic and industrial science, BES and political public) and their insufficient impact on a social cohesion of innovation infrastructure;Insufficient role of intermediary capacities / organisations which would facilitate inter-institutional linkages and adaptations within innovation infrastructure;Low interface between top-down (regulatory) and bottom-up (mobilisation) efforts;Insufficient role of SMEs vis a vis the position of larger firms in formation and utilisation of innovation oriented activities

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