Innovation Union Scoreboard (IUS) Index assesses 27 European countries on how do they perform in innovation sphere and its subdivisions. By monitoring innovation progress across the EU27 member countries, as well as Iceland, Croatia, Norway, Serbia, Switzerland, Turkey and the Former Yugoslav Republic of Macedonia IUS attempts to build strong base to policy discussions and decisions at EU and national level. Measurement framework of IUS embraces in total 25 indicators serving as proxies for 8 innovation dimensions grouped into 3 pillars. Enablers pillar captures the main factors of innovation performance which are external to the company and cover three innovation dimensions: Human resources, Open, excellent and attractive research systems as well as Finance and support. Firm activities pillar captures the firm-level innovation efforts, grouped into the following innovation dimensions: Firm investments, Linkages & entrepreneurship and Intellectual assets. Outputs pillar covers the results of firms’ innovation efforts in two innovation dimensions: Innovators and Economic effects.
The overall ranking within the EU remained relatively stable, with Switzerland at the top, followed by Sweden, Denmark, Finland and Germany. Over the period 2001-2015, long-term innovation performance has had a clear upward trend for the EU as a whole, with highest positive growth for Latvia, Malta and Bulgaria and the most negative growth for Romania.
EU innovation performance has been increasing at an average annual rate of 0.6% between 2001 and 2015, but growth has not been equally strong across all dimensions and subdimensions. The largest growth is observed in Human resources (2.6%) and Research systems (1.7%). Growth in Intellectual assets and Innovators has been modest (1% and 0.5%, respectively). innovation performance in Finance and support demonstrates negative growth rate (-1.6%), caused by sharp decline in Venture capital investments (-5.7%). Moreover, negative growth occurs in Firm investments (-0.2%) and Linkages (-0.4%).
The Innovation Union Scoreboard places Member States into the four country groups: Innovation leaders, Innovation followers, Moderate innovators and Modest innovators. The Innovation Leaders have balanced innovation systems with strengths in all dimensions, chased by the Innovations followers, the Moderate Innovators and the Modest Innovators. Performance differences, however, can be insignificant between the different performance groups, in particular for Human resources, Research systems, Innovators, and Economic effects between the Innovation Leaders and Innovations followers, for Firm investments between the Innovations followers and Moderate Innovators, and for Human resources and Intellectual assets between the Moderate and Modest innovators.
IUS is one of the tools aimed at measuring of knowledge resources (or intellectual capital), which gain importance in the today's economy, across different countries. The other popular indices include Global Competitiveness Index, Knowledge Economy Index, Global Innovation Index.
The Europe 2020 strategy, adopted by the European Council on 17 June 2010, is the EU's agenda for growth and jobs for the current decade. It emphasises smart, sustainable and inclusive growth as a way to overcome the structural weaknesses in Europe's economy, improve its competitiveness and productivity and underpin a sustainable social market economy.
Since 2008, gross domestic expenditure on R&D as a percentage of GDP has recorded a slight increase. In 2014, the value stood at 2.03% of GDP, compared with 1.85% in 2008. The increase between 2008 and 2009 during the economic crisis reflects a wider EU effort to stimulate economic growth by boosting public expenditure on R&D. In 2014, the EU was 0.97 percentage points below its target for 2020, which envisages increasing combined public and private R&D expenditure to reach 3% of GDP. Main page: Progress towards Europe 2020 headline targets
Research and Development is an activity aimed on the acquisition of new knowledgeandits practical application in the process of creation of newproductsortechnologies. R&D includes wide set of activities starting from advancing of theoretical hypothesis to development of new products. Since nowadays in businessthe major partof added valueis shifting from theproduction phaseto the development phase, the role ofR&D is growing. Besides, the competititon at the market is rapidly increasing, R&D activity can become the competitive advantage for high-tech business. The R&D resultsaffectkey decisionsin high-tech business. On the other hand, Research...