Innovation Index

NESTA is developing the Innovation Index, a major project that will improve the way the UK measures investment in innovation and its effects.

The aim is to make a significant improvement on existing metrics, both by making clear the contribution of innovation to productivity and growth, and by capturing 'hidden innovation'.

NESTA was asked by David Willetts, Minister of State for Universities and Science, to work with BIS in the preparation of the Annual Innovation Report 2010.

A key component of the report is NESTA’s Innovation Index project. The Index measures the investment in intangible assets and demonstrates the importance of these investments in driving economic growth.

• Annual Innovation Report 2010
  A comprehensive review of the key components needed for innovation in the UK.
  Download the report

• Driving Economic Growth
  The report is based on a modification of the pilot Index published in 2009, providing greater accuracy in the measurement of the investments in intangibles and the contribution t productivity growth.
  Download the report

• Measuring Wider Framework Conditions for Successful Innovation
  The report considers the relative strengths and weaknesses of current data, highlighting where gaps in the measurement of the conditions exist.
  Download the report

A parallel work stream to measure innovation in the public sector has been developed. This is an area where metrics are not as well developed, but where innovation is nonetheless essential. Read the detailed report of the pilot survey: 'Innovation in Public Sector Organisations'.

Pilot Index

In March 2008, the Government published the White Paper 'Innovation Nation'. In the Paper, the Government asked NESTA to develop a new Innovation Index, which would more accurately measure innovation in the UK's increasingly important services sectors, creative industries and in the delivery of public services.

The pilot Index was launched in November 2009; the Index will be ready in its final form in the autumn of 2010.

The Pilot Index has three components:

• A measure of the amount of investment in innovation in the UK and its effect on economic growth and productivity.
  Download the report



• A tool to understand innovation at firm level that captures 'Hidden Innovation' and reflects the different ways that innovation occurs in different  sectors.
  Download the report



• A set of metrics that can be tracked to assess how favourable a climate the UK is for innovation.
  Download the report

For further details please visit the Innovation Index website.