Requirements for Measurement Tools

Wise leadership is a critical aspect of effective governance. Plato expressed the importance of character-driven leadership in his writings on ―philosopher-kings‖

(Plato, 380 BC). Later writers including Aristotle expanded this concept by examining the designs of government from a legal and policy-driven standpoint. The progressive evolution of government systems have increasingly focused on policy as the

foundation for national leadership, and it is the lasting legacy of inspired policy that secures the success of nations throughout the difficult struggles experienced in each passing generation. The effective development of policy tools that target innovation require careful analysis of the innovation process from a national holistic perspective.

This analysis requires methods of measurement to produce quantifiable data points on innovative progress.

Traditional measurement tools on the political level have focused on amount of national investment in R&D as a percentage of GNP. While a majority of national policy decisions concerning innovation continue to use this measurement, the

Innovation Imperative and to some degree the Oselo Manual address the need to expand global innovation measurement tools to support national policy decisions. In recent years, a number of national ranking systems have been developed that assess the level to which a nation has effectively implemented innovation measures. The Global Innovation Index and the International Innovation Index both examine national factors that impact innovation, including economic stability, banking methods,

national stimulation through policy and investment, infrastructure, technological development, institutional knowledge and capital wealth. These assessment tools are

shaping the parameters by which innovation is perceived, and forward-thinking countries will increasingly refer to these concepts in the development of future legislation and policy.

On the political level, policy results in regulations, legislation and codes of justice, national concepts that have been evolving for thousands of years. The earliest known written codes of government can be found in ancient Babylon where

excavations have unearthed a set of laws known as the Ur-Nammu of Ur, dating to 2050 BC. Many other examples exist of early government policy, including Lipit-Ishtar of Isin, the Hittite code, the Assyrian code, the code of Hammurabi of Babylonia and the Mosaic Law. Other early forms of government policy are also thought to exist in present-day Iraq where evidence of Sumerian policy possibly dates as far back as 2300 BC. Early policy concerns included citizen rights, humanitarian protections and tax relief efforts for the poor.

The significant cost of innovation underscores the importance of measuring tools to evaluate its impact. The organizational level and the political level represent the two areas of measurement in innovation. On the organizational level,

measurements relate to individuals, group-level assessments and private industry.

Information is gathered through surveys, workshops and benchmarking. Lacking a true industry standard, the majority of corporate measurements evaluate a

combination of both qualitative and quantitative dimensions. Organizations often use internally-developed scorecards, ranking innovation process efficiency, business measures related to finance, employee performance and end user or customer benefit.

Varying between industries, measured values may include research and development (R&D) costs, revenues from new products, revenues from older products,

time-to-market, and number of patents. On the political level, measurements relate to the global competitive advantage gained through innovation.

While both the organizational and political levels are interrelated in the way they are measured, the impact of innovation in a national context is measured primarily on the political level. The Frascati Manual was one of the first recognized measurement guidelines focused on innovation. Many nations have developed measurement tools based on these guidelines but to date, these measures have been largely insular, addressing policy concerns with respect to innovation from within the confines of national borders. For the most part, national governments develop

frameworks to evaluate organizational capabilities within their respective nations, resulting in a wide variety of evaluation methods that fail to account for international influences. With the increase in globalization, some governments are beginning to address these concerns from a more global perspective. European nations are addressing these global concerns through the European Foundation for Quality Management. Another organization that has begun to address innovation

measurements from an international perspective is the Organization for Economic Co-operation and Development (OECD). The OECD, an international organization of 30 countries originally created after WWII, is dedicated to the principles of democracy and free-market economy (OECD, 2009). In 1995, the OECD published the Oselo Manual, suggesting standard guidelines for evaluating technological product and process innovation. The current edition of the Oselo Manual (2005) considers a broader range of indicators including marketing and organizational innovation. These methods are largely focused on Europe and North America, but some suggest that globalization has drastically changed the dynamics of innovation requiring a truly global perspective of the policy impact on innovation, using measuring tools that have

yet to be developed. The Innovation Imperative (Marklund, Vonortas and Wessner, 2009) discusses the need for globalized measurement of innovation focusing on national innovation strategies in the global economy.

Policy as a national tool is particularly important in shaping the direction of a country. In general terms, policy is the course of action taken by a government with respect to a specific issue (Blakemore, 1998). The Australian Policy Handbook defines policy as a system of courses of action, regulatory measures, laws, and funding priorities concerning a given topic promulgated by a governmental entity or its representatives (Althaus et al. 2007). The concept of policy is in essence the

agreement to abide by a set of rules, a concept found throughout every society, but the manifestation of this concept in practice is different throughout the world. However, the application of this concept has taken many different forms, including communism, democracy, dictatorship, fascism, monarchy, and socialism, and many others. The differing political systems impact their citizens in a variety of ways and to varying degrees.

As a democratic nation, the United States espouses governance by the people.

As a result, all citizens are potential stakeholders in the shaping of policy. The

concept of policy in the U.S. includes the study and the execution of political theories and practices. In application, policy refers to the political field of creating and

discussing legislative decisions. In one study, policy refers to the academic field represented in schools of public policy (Blakemore, 1998).

In modern government, national policies are often formed within the purview of a constitution. The Constitution of the United States encompasses the guiding principles by which the United States conducts its affairs. All policies are examined against the Constitution to ensure new regulations follow the accepted principles of

the nation. It is an accepted principle in the United States that the government is responsible for creating the conditions for its people to prosper. In order for a nation to uphold this responsibility effectively, however, a solid structure of governance must be in place. The social, economic and political variables in modern societies are increasingly great, and nations are in need of effective governance to achieve success in global competition. The foundations of the United States were shaped through the wisdom and insight of inspired policy shapers. The foresight of great men from centuries ago is still evident in the lasting relevance of their writings. As each generation passes, new struggles emerge, from civil rights to economic security and environmental protection. Each successive shift in societal evolution challenges the accepted principles of national governance, but it falls upon the nation‘s leaders to adapt to these changes by developing lasting policy directives to guide their nation through each difficult struggle.

A significant shift in political importance can be seen in the area of national competition on the international stage. Globalization has increased the competitive capabilities of all nations, particularly among developing powers. As a result, the international pressure to remain competitive has increased. This competition spans industrial development as well as technological progress. Boundaries to policy measures are always changing, and this change is accelerated through globalization, leading to increased challenges in addressing competition in the context of

international agreements. These growing challenges underscore the importance of establishing standardized comprehensive innovation measurement tools.