Evaluation of Technological Indicators: From Theory to Practice

Abstract

Innovation and its indicators are multidimensional: ranging from technological, financial to market related aspects. Commonly used technological indicators such as R & D intensity, Capital expenditure, Patents and industry awards are

inappropriate in capturing the innovative outputs occurring at firm level in a developing country. Studies have shown that most of the technological changes that accrue at firm level in a newly industrializing country are incremental in nature. These changes may be material changes, process changes, or product changes. The aim of the study is to identify: (i) the status of technological measurement in Indian firms and (ii) to develop an integrated framework that could employ published and primary data. Based on an empirical assessment of thirty R&D intensive Indian organizations, the study proposes technological indicators that capture three forms of contributions: improvement in the capabilities and quality of existing products (including modifications to facilitate wider applications), development of products yielding future improvements in products or process, and advances in knowledge likely to yield future improvements.