Components of Science-Based Innovation Measurements and Their Links to Public Policies

Popular models assume that innovation occurs in alinear, straight-line progression through stages. However,these models donot reflect the complexity of the relationships between science, technology,and innovation in the real world.An improved relationship between scienceand society is needed. Public funds for research and their socio-economicimpact must be correlated through measures of effectiveness.The purposeof this study is to identify measures to indicate effectiveness in science andoutline their connection to public policies for funding. To measure effectiveness, two indicators of direct impact are proposed: (1)R&D intensities (i.e., R&D spending as a percent of production) and (2)market competitiveness or increase in the market share of high-tech products. Acomparative case study of Japanese and American share figures is provided, toassess the R&D performance by U.S. and Japanese manufacturing during1973-1993.During this periodthe U.S. R&Dinvestmentincreased by 80%, whereas the Japanese investmentincreasedover 450%, an increase due primarily to governmental policymaking a transition from technology to science, pushing for researchassociation and cooperative R&D.The analysis is based on data fromNational Science Board Science Indicators, 93 & 96. Indicators for indirect impact are also important because most innovationsdo not follow the classic linear model.Indirect impacts can be assessedfor example, through evaluating patent activity, R&D expenses, and fundingpatterns. The Japanese model is recommended for its results, researcheffectiveness, and impact measures, through science and technology (S&T)restructuring and an increased focus on publicly-funded research.(CBS)