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Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- INTERNATIONAL BENCHMARKING AS A POLICY LEARNING TOOL Lundvall B., Tomlinson M., from “The New Knowledge Economy in Europe - A Strategy for International Competitiveness and Social Cohesion” (2002) Inês Azevedo nº 6080 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- PURPOSE To help built the foundations processes of policy learning related to The Portuguese Presidency on “Economic Growth and Social Cohesion – a Europe based on Knowledge and Innovation” TO BENCHMARK DIFFERENT BENCHMARKING PRACTICES. 18/07/2015 International Benchmarking as a Learning Policy Tool 2 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- WHAT IS BENCHMARKING (BM)? Systematic comparison of on institution’s outcomes or processes with either some other institution(s) or some accepted standard. It is usually a rigorous comparison with an institution that is regarded as superior in performance. SEARCH Key Actions IMPROVEMENT Example: Xerox (1980) 18/07/2015 International Benchmarking as a Learning Policy Tool 3 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- • QUESTIONS CONCERNING THE PRIVATE SECTOR 1. In Microeconomics it is assumed that all firms have equal access to technologies and modes of organization; in Macroeconomic models it is assumed rational expectations. 2. Explicit and exact models vs Incomplete implicit and intuitive model (BM)? RISKS: • “Post-Modern Management Techniques”. • It may seem more exact than it is (numbers). • Manipulated by those in power to impose controversial changes. Technocratic top-down vs Democratic bottom-up Approaches 18/07/2015 International Benchmarking as a Learning Policy Tool 4 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- IS BM A GOOD IDEA? • QUESTIONS CONCERNING THE PRIVATE SECTOR Turbulent Competition Quick Change Complex New Technologies Volatile Markets Learning Economy 18/07/2015 International Benchmarking as a Learning Policy Tool 5 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- IS BM A GOOD IDEA? • QUESTIONS CONCERNING THE PRIVATE SECTOR 4. There is not only one single best practice (ex: sailing techniques to steam power). 5. Copying: from excellence to disdain… And the DIVERSITY? BM might be seen as intensifying the selection process that market competition gives rise to and it might result in too little diversity and heterogeneity! In the European discourse “diversity” across member states should be regarded as a potential source of innovation and growth… This contrasts with strategies aiming at convergence of institutions and policies. 18/07/2015 International Benchmarking as a Learning Policy Tool 6 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- IS BM A GOOD IDEA? • QUESTIONS CONCERNING THE PRIVATE SECTOR 6. The selection of indicators is a high “political” process and there will always be a tendency to give more weight to what is most easily quantifiable and measurable. 7. The CONTEXT! So… IS BM A GOOD IDEA? 1. To FOCUS on performance and on what factor could improve it. 2. ADAPTATION of the best practices (taking the CONTEXT into account). 18/07/2015 International Benchmarking as a Learning Policy Tool 7 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- IS BM A GOOD IDEA? • QUESTIONS CONCERNING THE PUBLIC SECTOR 1. Most of the problems are the same then in the private sector... …BUT EVEN MORE…. 2. Conflicting interests and objectives. 3. Quality of education, health, social services cannot be assessed exclusively by comparing input and output variables. Technocratic top-down vs Democratic bottom-up Approaches 18/07/2015 International Benchmarking as a Learning Policy Tool 8 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- IS BM A GOOD IDEA? • QUESTIONS CONCERNING THE PUBLIC SECTOR 4. There is nothing that excludes the idea that BM could become an integral part of a democratic process and contribute to the formation of an European identity (Castells, 2002). 5. For international BM related to innovation, knowledge and social cohesion, it is important to agree on the critical performance indicators …Knowledge based and competition vs distributional issues. 7. Indicators reflecting income and knowledge creation need to be presented as a distribution around a mean rather than just an average value. Ideally there should be indicators of social distribution, gender distribution and regional distribution of the different indicators. 18/07/2015 International Benchmarking as a Learning Policy Tool 9 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- IS BM A GOOD IDEA? • QUESTIONS CONCERNING THE PUBLIC SECTOR 8. Different performance indicators? Richest countries: environmental objectives Small Nordic Countries: equal income distribution. Big European Countries: Strong and Broad knowledge base Small European Countries: specialized National Development Plans? 9. Different “Best practices” in different countries? State intervention vs Markets? 18/07/2015 International Benchmarking as a Learning Policy Tool 10 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- BM NSI Innovation System (1980s): relationships and interactions between R&D laboratories and technological institutes and production system. National System of Innovation (NSI) (Freeman, 1987). 1. Innovation: an interactive process (from the linear model (1970s) to a chain-linked method (1986)). 2. Relationships and interactions between agents have to involve nonmarket relations (“organised markets”… elements of power, trust, loyalty). 3. National Contexts (different possibilities of organised markets) MAIN PROBLEMS OF NSI BM 1. 2. 3. 18/07/2015 Lack of coordination when the research is used to guide the creation of effective policies. Indicators are weak in some of the most important aspects of innovation systems. It is difficult to conceptualize certain elements such as “trust” and “social capital”. International Benchmarking as a Learning Policy Tool 11 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- NS FOR KNOWLEDGE CREATION AND LEARNING Marx: What really made the industrial revolution a revolution was not the use of machinery, but the stage where machinery was used to produce machinery! Systematically applying knowledge to the production of knowledge to establish the learning economy?? SOCIAL CAPITAL: most important scarce factor in the future? Globalisation undermines traditional communities based on (…) class, locality and family. If left to itself, the globalising learning economy gives rive to increasing inequality between people and regions. Integrate INDICATORS OF SOCIAL EQUALITY AND OF SOCIAL CAPITAL on BM innovation systems? 18/07/2015 International Benchmarking as a Learning Policy Tool 12 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- A MORE SYSTEMATIC PROCESS How to have a systematic and rigorous procedure while benchmarking innovation processes? BASIC IDEA: to have a continuous dialogue both between national governments and European community and between the national government and their own citizens. RISK in the present era: A growing alienation between a minority of sophisticated cosmopolitan modernists and a majority that is sceptical to globalisation and to further integration in Europe. Planning and Auditing Stage National Development Plans 18/07/2015 International Benchmarking as a Learning Policy Tool 13 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- Planning and Auditing Stage Internal Research and Assessment Selection of Data and Indicators Selection of Strategy Selection of Partners Selection of External Benchmark NSIs Collect and Analise Data Suggest Improvements and Policy 18/07/2015 International Benchmarking as a Learning Policy Tool 14 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- INTELLIGENT BM 18/07/2015 • Not focus on comparing quantitative data: Focus on the efficiency of a system, stimulating reflection and supporting learning. • Learning at different levels (European, national). • To develop less-demanding forms of comparative analyses than BM (national development plans?). • For BM IS, more reliable indicators for the quality and intensity of the relationships, economic dynamics and social issues. • For indicators of learning organisations and experience-based basic knowledge this is also important… And also a need of CONCEPTUAL WORK (p.e. “social capital”) • BM may be adequate in the present era of complexity, rapid change and uncertainty... But also think about alternatives between the 2 extreme approaches. International Benchmarking as a Learning Policy Tool 15 Master in Engineering Policy and Management of Technology - Science & Technology Innovation Policy- IS THIS BENCHMARHING? 18/07/2015 International Benchmarking as a Learning Policy Tool 16