METHODOLOGICAL DEBATE ON THE ‘REGIONAL INNOVATION SCOREBOARD’.
METHODOLOGICAL DEBATE ON THE ‘REGIONAL INNOVATION SCOREBOARD’.
FIGURE 15
FIGURE 16
R&D substitutability and collaboration in innovation outputs.
The degree of openness of SMEs as a “bottleneck” for innovation
Regional Innovation Scoreboard (RIS) Index Source: Drafted in-house based on European Union (2021b)
Companies’ propensity to innovate for different levels of openness and R&D expenditure Source: Drafted in-house based on European Union (2021b)
HIGH R&D/LOW OPENNESS LOW R&D/HIGH OPENNESS
HIGH R&D EXPENDITURE MEDIUM R&D EXPENDITURE LOW R&D EXPENDITURE
HIGH DEGREE OF OPENNESS MEDIUM DEGREE OF OPENNESS LOW DEGREE OF OPENNESS
0
0,1
0,2
0,3
0,4
0,5
0,6
0,7
0,8
0,9
1
SMEs’ degree of openness
Business R&D expenditure
Technological innovation
1
1
Non-technological innovation
Sales of innovations
0,5
0,5
Patent applications
Industrial Design Applications
Trade mark applications
0
0
0
0,5
1
0
0,5
1
=1,...,, are the individual effects of each region of the panel data model. Finally, � , � , � , and � , for =1,...,, are the parameters to be estimated by the econometric model. The model considered allows us to study the expected value of the percentage of SMEs that carry out process or product innovation, (��) ,for each level of R&D expenditure and SME collab- oration, holding all else constant. In Figure 16, these results are used to show how the inter- action of these two inputs affects innovation. The graph on the left shows that the effect of ( 2 )
where �� is the process or product innovation indicator of the SMEs of the i-th region in peri- od t; and are the indicators of business R&D expenditure and SME collaboration, respec- tively; , for =1,...,, are a set of control variables such as public R&D innovation, expenditure in innovation other than R&D, population with tertiary education, and employment in tech- nology- and knowledge-intensive sectors; � , for 𝐸𝐸 𝑖𝑖𝑖𝑖𝑖𝑖 !" = 𝛼𝛼 ! + 𝛽𝛽 ! 𝑟𝑟 !" + 𝛽𝛽 ! 𝑐𝑐 !" + 𝛽𝛽 ! 𝑟𝑟 !" 𝑐𝑐 !" + 𝛾𝛾 ! 𝑥𝑥 ! , !" ! ! ! ! (2)
As can be seen in Figure 15, the innovation activity output indicators (see section 5) do not show the stability of the RIS synthetic index. In fact, although business R&D expenditure has a greater effect on the production of intellectual property (patent applications, trademarks and industrial designs), the low level of openness of SMEs to external knowledge seems to hinder R&D expenditure performance in terms of innovation results. As can be seen in the graph on the right of Figure 16, the group of regions with low R&D expenditure and a high degree of openness obtains significantly better
results in this area. We will take this descriptive analysis one step further, using econometric techniques. (FIGURE 15) Using panel data from the last seven RIS pub- lications (2009, 2011, 2013, 2015, 2017, 2019 and 2021), we estimate the interaction effect of business R&D expenditure and SME col- laboration on the propensity to innovate. The proposed model is as follows:
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