Explaining the European Service Innovation Scoreboard Methodology, including its Scorecards and Indicators Published on: 17/06/2014
The European Service Innovation Scoreboard consists of three scorecards each serving a different purpose. The scorecards highlight:
- The importance of the transformative power of service innovation in a region;
- Structural indicators that can be used as tools in regional policy making; and
- Indicators measuring the economic performance of a region that capture the overall results of policies, innovation and business activities.
1. ESIS Scorecards for service innovation and its transformative power
The first set of indicators measures the importance of service innovation in a region. The indicators are presented in a similar way to the Innovation Union Scoreboard with indicators grouped into five dimensions. The first dimension measures framework conditions, which are defined as those factors external to a firm that drive and shape the innovation activity of firms and influence their innovation performance and subsequent market success. These factors are outside the reach or influence of a single firm, or even a group of firms, and are usually issues to be addressed by policies. They represent the interface at which the innovation activities of firms are subsequently revealed in macro measurements of the structural change within a region or a sector.
Service innovation is conceived of as comprising three closely connected elements: inputs into the innovation; the actual innovation throughput; and outputs to the market. Inputs are the deliberate development of service innovation. The service innovation is developed for a purpose and the innovation process is intentional. Hence, it did not ‘just happen’ as in a case that might be characterised as evolution rather than innovation. Throughputs are the new development themselves and output is the value created. This can be value to the company or the customer. If no value is created, then it will not be considered to be a service innovation. Outcomes capture structural change, which is the impact of the transformative power of service innovation.
Table 1: ESIS indicators measuring service innovation
2. ESIS Scorecard for systemic functions and structural indicators
The second set consists of structural indicators that can be used as a tool in regional policy making. This set takes a broader approach and focuses on more general dimensions that are relevant to measuring entrepreneurial, high-tech and business activities in a region. As these more general dimensions also include service innovation activities, there is a small overlap between the first and second sets of indicators but this enables individual, and also complete sets of, indicators to be exploited that relate to the specific focus or interest of the user.
Table 2: ESIS structural indicators
3. ESIS Scorecard for the general socio-economic situation
The third set of indicators provides a summary of the economic performance of a region capturing the overall results of its policies, innovation and business activities. This scorecard includes indicators measuring the level of per capita income, disposable income, long-term unemployment, the degree of urbanisation and the quality of regional government.
ESIS scorecards are available for a total of 271 EU27, NUTS level 2 regions. For each region, ESIS includes radar or spider graphs showing the performances across the different dimensions compared with the average performance of the EU and also data tables showing the absolute and relative performances related to each of the indicators for the region, its country and the EU.