Innovation
EU Innovation 2014: Ireland's assessment based on distorted data
By Michael Hennigan, Finfacts founder and editor
Mar 4, 2014 - 2:59 PM

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EU Member States’ innovation performance

EU Innovation 2014: Ireland is ranked among the follower countries in the latest Union Scorecard and has a ranking of 9 for performance among the EU 28 but that flatters as it mainly represents the activities of a minority of foreign firms.

In addition technology output/ exports are exaggerated by tax avoidance e.g. Google books almost half its global revenues in Ireland.

Today's report says that although Ireland experienced an increase in its innovation performance, the growth rate was below that of the EU. This means performance relative to that of the EU has declined, from 115% in 2006 to 110% in 2013.

Ireland performs well above the EU average on International scientific co-publications and License and patent revenues from abroad (again this is an tax related issue). Other strong performing indicators are Population with tertiary education, Employment in knowledge intensive-services and Knowledge-intensive services exports. Relative weaknesses are in Community designs and Non-R&D innovation expenditures.

In 2012, patent filing in Ireland were at a 30-year low and according to IDA Ireland, more than 70% of its client firms do not do research and development (R&D).

Finfacts: Irish Innovation: Craig Barrett says triple R&D spending; Public welfare?

Sweden’s innovation system is once more in first position in the EU with the overall ranking remaining relatively stable…

The Scorecard says Sweden has once more the best performing innovation system in the EU, followed by Denmark, Germany and Finland. Overall, the performance group memberships remained relatively stable compared to the previous IUS edition with Poland being the only country that changed group membership by advancing from the Modest to the Moderate innovators.

Based on the average innovation performance, the Member States fall into four different performance groups:

Denmark (DK), Finland (FI), Germany (DE) and Sweden (SE) are “Innovation Leaders” with innovation performance well above that of the EU average; Austria (AT), Belgium (BE), Cyprus (CY), Estonia (EE), France (FR), Ireland (IE), Luxembourg (LU), Netherlands (NL), Slovenia (SI) and the United Kingdom (UK) are “Innovation followers” with innovation performance above or close to that of the EU average;

The performance of Croatia (HR), Czech Republic (CZ), Greece (EL), Hungary (HU), Italy (IT), Lithuania (LT), Malta (MT), Poland (PL), Portugal (PT), Slovakia (SK) and Spain (ES) is below that of the EU average. These countries are ‘Moderate innovators’; Bulgaria (BG), Latvia (LV) and Romania (RO) are “Modest innovators” with innovation performance well below that of the EU average.

The Innovation Union Scoreboard (IUS) 2014 uses the most recent available data from Eurostat and other internationally recognised sources with data referring to 2012 for 11 indicators, 2011 for 4 indicators, 2010 for 9 indicators and 2009 for 1 indicator.

The IUS 2014 gives a comparative assessment of the innovation performance of the EU Member States and the relative strengths and weaknesses of their research and innovation systems. It monitors innovation trends across the EU Member States, including Croatia, from this edition as the 28th Member State, as well as Iceland, the Former Yugoslav Republic of Macedonia, Norway, Serbia, Switzerland and Turkey. It also includes comparisons between the EU and 10 global competitors. Average innovation performance is measured by summarizing performance over equally weighted 25 indicators in one composite indicator: the Summary Innovation Index.

This year, the IUS2014 is accompanied by the Regional Innovation Scoreboard 2014.

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