KEI consists of seven research Work Packages (WPs) plus the final project report. The seven research WPs are divided into two main groups. The first group, consisting of WP1, WP2, and WP4, focuses on the theory of the KBE, policy needs, and the identification of useful indicators. The output of the first group is an essential input for the second group, consisting of WP3, WP5, WP6, and WP7. These WPs will statistically analyse indicators in order to identify robust composite indicators that can meet policy requirements. The following paragraphs will give an overview to the contents of the WPs. Finalised deliverables are available here.
WP1: Defining the Knowledge-Based Economy
WP1 spans both indicators and policy. The first phase will develop a theoretical framework for the project, building on previous research, in order to idenify the main characteristics and drivers of a KBE for all economic sectors: high technology manufacturing, low and medium technology manufacturing, private services, and public services. The second phase will identify forward-looking policies that can promote a knowledge economy, meet other European goals, and adjust for new social and technological developments. The final phase will combine indicator and policy analysis through a series of short (less than five years) and mid-term (five to ten year) scenarios to evaluate the impacts of alternative policies on indicator outcomes.
WP2: Indicators for the KBE
WP2 will identify and evaluate potential indicators for measuring the drivers, characteristics, and key outputs of a knowledge economy and for meeting policy and user needs. The indicators will be assigned to logical categories within two major classifications of input and output indicators. The categories will be used in WP3 and WP5 to develop composite indicators. WP2 will collect data and supplementary information for each indicator and identify missing indicators for important phenomena.
WP3: Statistical Analysis of KBE Indicators
The objective of this work package is to analyse key aspects of the quality of data for use with KBE indicators of interest. Since many sources of data for indicators are based on survey samples, special emphasis will be laid on the accuracy and statistical reliability of indicator values. The main purpose of the data quality analysis is to identify areas of indicator weakness and guide the selection of indicators. Further emphasis will be paid on the analysis of erroneous data and their influence on the reliability of the indicators for the KBE. Furthermore, it is intended to investigate indicator performance in respect to their analytical and statistical properties. The work on this work package will be split into two parts: Phase I will summarise the current methodology in this area whereas phase II will elaborate the methodology and tools needed for new developments in this area. Special emphasis will be laid on the influence of non-response to the reliability of indicator values and the accuracy of regional sub-indicators.
WP4: The Way Forward: Innovative Use of KBE Indicators
WP4 focuses on the innovative use of indicators, either through finding solutions to missing indicators or identifying indicators that can meet future needs. When no indicators are available, WP4 will identify proxy indicators, alternatives such as new ways of analysing existing survey data, or develop new survey questions. WP4 will identify long-term indicators that measure fundamental inputs into a knowledge economy, such as some education indicators, and identify possible developments (either technological or social) within a knowledge economy that will require new or improved indicators in the short-term future. This may require changes to some indicators or the identification of alternative indicators that can cover future data needs.
WP5: Composite Indicators for the KBE
After a summary of the state-of-the-art in developing composite indicators, this WP deals with the construction and testing of new composite indicators, suggesting improvement for the existing ones. Additional methodologies of aggregation will be applied following recent critiques of the existing aggregation procedures. Various approaches to extend user involvement will be tested and presentational issues and visualisation tools will be recommended based on feedback from users.
WP6: Role of Multinationals for Information on R&D
National indicators on R&D efforts are somewhat distorted by world-wide R&D activities by multinational companies. The aim of the work package is to develop and test new indicators on the role of multinational companies in national indicators on R&D efforts in order to estimate the effects on national figures. The results may assist in evaluating how far the 3.0 percent target of R&D expenditure on GDP is reached. The intention is to form an expert group with 4 or 5 interested countries with access to enterprise level official R&D data. Depending on the countries, a representative set of multinationals will be chosen. Publicly available information on the R&D in these companies will first be analysed as well as what is available from national R&D statistical publications. Then a paper with possible approaches will be produced for discussion in a small workshop with the chosen countries. The aim of the workshop is to agree on a common approach for data extraction. On the basis of the results the final report will suggest some methodologies for further dissemination and use.
WP7: Simulation Study
A set of simulations will test the accuracy and reliability of the indicators in a practical environment under different realistic assumptions and data quality standards. This WP will address the robustness of the composite indicators to various policy scenarios, data quality and weighting/scaling approaches. The robustness assessment will be done on various inferences, such as leaders and laggards, middle-of-the-road performers, and on “status” versus progress performances.
WP8: Final Report
The final report will be split into two different reports. The first report will draw together policy-relevant results from all seven research WPs. The report will present and interpret the set of composite indicators developed in WP5, discuss their use in policy applications, and make recommendations for policy. The report will be written for a general audience and will be fully illustrated with charts and graphs of the results for all countries. The report will also include an annex with complete details on the data, including sources, and dates. The second report will focus on technical and methodological issues and provide a detailed overview of the project methodology and results from the project.
