Organisation for Economic Co-operation and Development

THE MEASUREMENTOF SCIENTIFIC

AND TECHNOLOGICALACTIVITIES

PROPOSED GUIDELINESFOR COLLECTING

ANDINTERPRETING TECHNOLOGICAL

INNOVATION DATA

OSLO MANUAL

European Commission Eurostat

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TABLE OF CONTENTS

Chapter 1 OBJECTIVES AND SCOPE OF THE MANUAL ...................................................................... 5

1. INTRODUCTION .................................................................................................................................. 52. FACTORS INFLUENCING THE SCOPE OF THE MANUAL........................................................... 5

2.1 Understanding the innovation process and the implications for innovation policy......................... 62.2 Experience on the supply side .......................................................................................................... 7

3. SCOPE OF THE MANUAL .................................................................................................................. 73.1 Sectoral coverage ............................................................................................................................. 73.2 Innovation at the level of the firm.................................................................................................... 83.3 Technological product and process innovation................................................................................ 83.4 Diffusion of innovation .................................................................................................................... 9

4. PROVIDING DATA ON THE KEY ISSUES ..................................................................................... 104.1 Factors influencing TPP innovation ............................................................................................... 104.2 TPP innovation activities and expenditures ................................................................................... 104.3 The TPP innovating firm and the impact of TPP innovation......................................................... 11

5. SOME SURVEY ISSUES.................................................................................................................... 115.1 Approach to data collection............................................................................................................ 115.2 Survey methods .............................................................................................................................. 12

6. THE RELATIONSHIP BETWEEN THE OSLO MANUAL AND OTHER INTERNATIONALSTANDARDS AND RELATED CONCEPTS ........................................................................................ 12

6.1 S&T activities: the Frascati family of manuals............................................................................. 126.2 Other economic norms and classifications..................................................................................... 136.3 Other related concepts and surveys ................................................................................................ 14

7. FINAL REMARK ................................................................................................................................ 14

Chapter 2 NEEDS FOR THE MEASUREMENT OF INNOVATION ...................................................... 15

1. INTRODUCTION ................................................................................................................................ 152. ECONOMICS OF INNOVATION ...................................................................................................... 163. TOWARDS A CONCEPTUAL FRAMEWORK ................................................................................ 18

3.1 Framework conditions.................................................................................................................... 203.2 Science and engineering base......................................................................................................... 203.3 Transfer factors............................................................................................................................... 213.4 Innovation dynamo......................................................................................................................... 22

4. DECIDING PRIORITIES .................................................................................................................... 254.1. Six areas for investigation ............................................................................................................. 25

4.1.1 Corporate strategies ................................................................................................................. 254.1.2 The role of diffusion................................................................................................................ 254.1.3 Sources of information for innovation and obstacles to innovation ....................................... 264.1.4 Inputs to innovation................................................................................................................. 264.1.5 The role of public policy in industrial innovation................................................................... 27

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4.1.6 Innovation outputs ................................................................................................................... 274.2 How to measure and scope for measurement................................................................................. 28

4.2.1 What do we want to measure?: Technological product & process TPP innovations ... 284.2.2 How should it be measured?: Choice of the survey approach............................................ 294.2.3 Where should it be measured ?: Sectoral coverage ............................................................ 29

Chapter 3 BASIC DEFINITIONS .............................................................................................................. 31

INTRODUCTION.................................................................................................................................... 311. TPP INNOVATION............................................................................................................................. 312. MAIN COMPONENTS OF TPP INNOVATION ............................................................................... 31

2.1 Technological product innovation.................................................................................................. 312.2 Technological process innovation.................................................................................................. 32

3. DIFFUSION OF TPP INNOVATIONS: INSTITUTIONAL NOVELTY.......................................... 343.1 Minimum coverage......................................................................................................................... 343.2 Coverage within the firm................................................................................................................ 35

4. DISTINGUISHING BETWEEN TPP INNOVATION AND OTHER CHANGES IN THE FIRM ORINDUSTRY.............................................................................................................................................. 36

4.1 Organisational innovation .............................................................................................................. 364.1.1 Coverage.................................................................................................................................. 364.1.2 Borderline cases: organisational change in manufacturing and service processes ................ 37

4.2 Other changes in products and processes....................................................................................... 374.2.1 Excluding insignificant or non-novel changes ........................................................................ 37

(a) Ceasing to use a process or to market a product..................................................................... 37(b) Simple capital replacement or extension................................................................................ 37(c) Changes resulting purely from changes in factor prices......................................................... 38(d) Custom production.................................................................................................................. 38(e) Seasonal and other cyclical changes....................................................................................... 38(f) Product differentiation............................................................................................................. 38

4.2.2 TPP innovation and other creative product improvements ..................................................... 395. TPP INNOVATION ACTIVITIES ...................................................................................................... 39

5.1 Relation with implementation of TPP innovations ........................................................................ 395.2 The components and coverage of TPP innovation activities ......................................................... 40

5.2.1 Acquisition and generation of relevant knowledge new to the firm ....................................... 40(a) Research and experimental development ............................................................................... 40(b) Acquisition of disembodied technology and know-how ........................................................ 40(c) Acquisition of embodied technology............................