Measuring R&D: Challenges Faced by Developing Countries

1. Measuring R&D: Challenges Faced by Developing Countries South East Asian Regional Workshop on Science, Technology and Innovation Statistics Hanoi, Viet Nam5-8 December 2011 Martin Schaaper

2. Outline • The problem • The process • Contents of the Technical Guide • Thinking ahead

3. R&D statistics in developing countries (1) • Recognition, meeting targets, evidence-based S&T policy, but: • lack of interest at the level of policy makers (low policy-relevance?) • S&T is still not properly represented in economic/social public policies. lack of resources devoted to statistics in S&T • lack of technical knowledge for the production of cross-nationally comparable R&D statistics • weak statistical institutions • difficulties in applying Frascati Manual (FM) concepts and methods

4. R&D statistics in developing countries (2) • Particular characteristics of R&D activities to be taken into account: • R&D performers function within the specific context of a national, cultural, political, financial and economic system • different structures in terms of government, innovation system, higher education system, statistical system • particular ‘culture of information’ • Users of R&D stat: Gov, analysts. + international donor agencies • S&T indicators • adapted to particular policy needs • provide answers to actual policy questions • However, international comparability is foremost

5. The process (1) • Experience acquired through the UIS work, in particular through direct contact with S&T statisticians in numerous workshops and other meetings around the developing world. • Advisory Meeting to the UIS S&T Statistics Programme held in Montreal, Canada, December 2007. • Papers commissioned by UIS to Jacques Gaillard (IRD, Paris), Michael Kahn et al (HSRC, South Africa), and Gustavo Arber et al (RICYT, Argentina). • Proposal for an annex to the Frascati Manual on measuring R&D in developing countries was presented at the OECD 2008 and 2009 NESTI meeting. • Expert Meeting on Measuring R&D in Developing Countries in Windhoek, Namibia, 14 to 16 September 2009 • Consultant has drafted the following two documents

6. The process (2) • Technical Guide on Measuring R&D: Challenges for Developing Countries released in Oct 2010 • Proposed Annex to the Frascati Manual submitted to OECD 2010 NESTI meeting Objectives are to provide: • guidance to developing countries on how to adapt the FM standards • recommendations for specific situations that fall outside FM framework • suggestions on how to strengthen S&T statistical system in developing countries • Stay within boundaries of FM • Some of the measurement challenges may be considered for a future revision of the FM

7. Products NEW Annex almost accepted http://www.uis.unesco.org/template/pdf/S&T/TechPaper5_EN.pdf

8. Contents of the Technical Guide • Introduction • The nature of R&D activity in developing countries • R&D expenditure • Internal and international mobility of the R&D workforce • Specific fields of R&D activity • Foreign and internationally controlled entities • Strengthening R&D statistical systems • Thinking ahead

9. Chapter 2: The nature of R&D activity in developing countries • The growing importance of R&D • More ‘R’ than ‘D’ in developing countries. • Strong presence of the government and higher education sectors in the performance of R&D. Lower emphasis on R&D in business sector. • Occasional R&D / Informal R&D • Special types of R&D

10. Chapter 2: The nature of R&D activity in developing countries cont… • Heterogeneity and concentration • Developing countries are a heterogeneous group: • Group A: countries with consolidated R&D systems and developed S&T statistics systems  no major difficulties in applying Frascati Manual concepts. • Group B: countries with consolidated R&D systems and less developed S&T statistics systems  need specific guidance on how to establish and consolidate sound R&D statistics systems. • Group C: countries with incipient R&D systems  need specific guidelines on how to start creating a regular R&D statistical collection. • High degree of concentration (in group of countries, in particular institutions, in major projects, etc)  lead to volatility and inconsistencies in statistics.

11. Chapter 3. R&D expenditure • Use of secondary data from national budget • New sources of funds emerging (NGOs, Foreign entities, BE) • Discrepancy between voted and allocated budget • Budgetary commitments are not followed up • Mixing of budgetary records and annual reports from performing units • Definition of S&T / R&D budgets • Identifying R&D components in the national budget • State-owned enterprises, university-owned companies and national scientific academies • Public vs. Private universities • Fiscal year vs. calendar year • Information systems in government and higher education inadequate for statistics

12. Chapter 4: Internal and international mobility of the R&D workforce Underestimation of researchers • Unpaid research • Informal research • Research outside of the normal work setting with external funding • Multiple part time positions not taken into account or undercounted • Master’s research

13. Counting researchers Overestimation of researchers • Counting the contract instead of the real effort • Multiple full-time research positions Special cases • FTE calculation >1 and FTE>HC • R&D in times of crisis • Visiting researchers • Brain circulation

14. Counting researchers Recommendations • Peer interviews of researchers • Include a module on barriers • Use secondary sources • Publication databases, both national and international • STMIS and other databases of researchers • Databases and registers of clinical trials • Databases and registers of the main foreign donors involved in funding R&D in the countries • University accreditation databases

15. Chapter 5: Specific fields of R&D activity • Traditional knowledge • Clinical trials • Industrial activities • Research in social sciences and humanities • Software development and system engineering

16. Traditional knowledge (TK) Traditional knowledge: A cumulative body of knowledge, know-how, practices and representations maintained and developed by peoples with extended histories of interaction with the natural environment. These sophisticated sets of understandings, interpretations and meanings are part and parcel of a cultural complex that encompasses language, naming and classification systems, resource use practices, ritual, spirituality and worldview.

17. Traditional knowledge cont.. Dichotomy between traditional and scientific knowledge systems • substantive grounds – because of differences in the subject matter and characteristics of traditional and scientific knowledge • methodological and epistemological grounds – because the two forms of knowledge employ different methods to investigate reality • contextual grounds – because traditional knowledge is more deeply rooted in its environment

18. Traditional knowledge cont.. Links between traditional and scientific knowledge systems • Scientific approach to TK (in ethno-botany, ethno-pedology, ethno-forestry, ethno-veterinary medicine, ethno-ecology, etc). • The application of scientific methods to TK, converting it into a source of scientific information. (in biodiversity science or nature conservation; traditional health and pharmacopeia). • Interaction between scientists and communities in participatory technology development

19. Traditional knowledge cont.. Measurement issues and recommendations • Establish the boundaries for TK (what qualify as R&D) • Included: activities establishing an interface between traditional knowledge and R&D • Excluded: storage and communication of TK in traditional ways • Some fields of activities in TK are trans-disciplinary (e.g. ethno-botany), making them extremely difficult to map into the current classification’s structure.

20. Clinical trials Clinical trials • (Can) involve a significant amount of R&D • Need to be conducted on a wide population • Growth area for developing countries

21. Clinical trials cont.. Measurement of clinical trials • Registers of clinical trials available, e.g. WHO but also national • Funding often from abroad • Performance various possibilities • a local branch of the foreign main sponsor • universities and university hospitals • individual researchers • local medical clinics • locally registered PNPs • international PNPs

22. Clinical trials cont.. Measurement issues and recommendations • Occupation category of local staff • Medical doctors and other professionals with at least ISCED 5A degrees should be considered as researchers • Nurses and other staff with qualifications below ISCED 5A should be accounted for as technicians • FTE calculation is important (often part-time) • Attribution of sector of performance must be done with care to avoid double counting

23. Industrial activities • Reverse engineering: understanding the structure and functioning of an object (in order to make a new device or program creates a similar object in a different way), copying it, or improving it. • Recommendation: If reverse engineering is carried out in the framework of an R&D project to develop a new (and different) product, it should be considered as R&D.

24. Research in the social sciences and humanities (SSH) • Research in SSH often under-reported, especially in business sector • More in Higher education and Government sectors • Reasons for more focus on SSH: • Growing importance of service sector and transition to KE • Technology transfer and community development depends on understanding human agency • Development research, research on sustainable development and climate change mitigation • Recommendations: • Should measure R&D in SSH across all sectors. • Development research and other social change projects: R&D only in development and testing phase. • Research on religion: part of humanities and should be in R&D surveys

25. Chapter 6: Foreign and internationally controlled entities • Foreign antennas • Foreign company’s R&D labs • International organizations operating in the country • Foreign universities based and conducting R&D in campuses set up in the country

26. The foreign institutions sector Recommendation • Create a “foreign institutions” (FI) sector as a separate sector of performance • Funding flowing from this sector to other sectors should be considered from “Abroad” as stated in the main body of the Frascati Manual What is included? • Foreign antennas • International organizations • Foreign company’s R&D labs  (remains in the business sector) • Foreign universities  (remains in the HE sector)

27. The foreign institutions sector The principal sector sub-classification • Business enterprises • Government • Higher Education • Private non-profit • International organizations

28. Chapter 7: Strategies for setting up S&T statistics systems in developing countries • Will be discussed in another presentation.

29. Chapter 8: Thinking ahead: Other products – beyond R&D • Redefine the concepts of scientific and technological education and training at broadly the third level (STET), Scientific and technological services (STS) and S&T activities (STA) • Better integrate education statistics with R&D statistics • Hands on guidance • Metadata • Model questionnaire

30. Thank you! http://www.uis.unesco.org m.schaaper@unesco.org