TRANSITION REPORT 2014 Innovation in Transition

Annex 1.1

Table A.1.1.1
Overview of the characteristics of firms participating in the BEEPS V and MENA ES surveys
Country Number of
Median number of
permanent full-time employees
foreign-owned (%)
exporter (%)
Albania 360 8.0 10.0 6.7 10.8
Armenia 360 20.0 13.0 7.8 10.7
Azerbaijan 387 16.0 11.0 0.0 1.8
Belarus 360 16.0 13.0 9.0 21.2
Bosnia and Herz. 360 15.0 15.0 5.6 24.0
Bulgaria 292 12.0 16.0 6.5 19.9
Croatia 360 15.0 18.0 8.9 28.4
Estonia 272 11.0 17.0 11.2 29.7
FYR Macedonia 360 10.0 15.0 6.1 21.2
Georgia 360 12.0 7.5 4.7 6.1
Hungary 308 12.5 16.0 5.9 16.6
Jordan 568 20.0 13.0 9.0 35.9
Kazakhstan 600 19.0 11.0 3.2 2.9
Kosovo 198 15.0 12.0 0.0 17.3
Kyrgyz Rep. 270 22.5 14.0 13.0 10.0
Latvia 336 10.0 14.0 10.3 28.0
Lithuania 270 14.0 15.0 6.0 29.0
Moldova 360 15.0 13.0 4.5 11.5
Mongolia 358 17.0 12.0 4.7 3.9
Montenegro 150 10.0 15.0 4.0 11.7
Poland 541 16.0 19.0 6.4 21.8
Romania 539 14.0 17.0 12.1 21.0
Russia 4,205 17.0 8.0 2.0 6.1
Serbia 360 16.0 16.0 8.1 31.9
Slovak Rep. 276 17.0 17.0 12.8 27.6
Slovenia 270 14.5 20.0 13.8 53.5
Tajikistan 359 16.0 9.0 3.9 5.7
Turkey 1,360 25.0 16.0 2.1 38.2
Ukraine 1,000 18.0 13.0 2.7 11.9
Uzbekistan 388 24.0 11.0 8.3 6.4
Israel 483 20.0 20.0 4.8 23.0
Czech Rep. 253 17.0 18.0 13.9 40.9

Source: BEEPS V and MENA ES.

Table A.1.1.2

BEEPS V/MENA ES questions about innovation
  Product innovation Process innovation

Oslo Manual definition

A product innovation is the introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses. This includes significant improvements in technical specifications, components and materials, incorporated software, user-friendliness or other functional characteristics. (p. 48)

A process innovation is the implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software. Production methods involve the techniques, equipment and software used to produce goods or services. Delivery methods concern the logistics of the firm and encompass equipment, software and techniques to source inputs, allocate supplies within the firm, or deliver final products. (p. 49)

MENA ES question

During the last three years, has this establishment introduced new or significantly improved products or services? Please exclude the simple resale of new goods purchased from others and changes of a solely aesthetic nature.

During the last three years, has this establishment introduced any new or significantly improved methods for the production or supply of products or services?

MENA ES examples

New products are any products with significantly new characteristics or uses:

New or increased functions and applications, including user-friendliness

New or significantly improved technical specifications or capabilities

New or significantly improved components or materials

(Do not include minor changes, regular seasonal changes, routine upgrades and purely aesthetic or design changes that do not affect functionality. Do not include the resale of a good purchased from other enterprises.)

Changes in production techniques or processes of production:

Introduction of new technology for production

Introduction of automation of processes previously man-made

Introduction of new process of finishing, packaging, or quality control

Introduction of new or significantly improved production equipment not previously used

Introduction of new software for production

Changes in how inputs are delivered to the establishment, for example outsourcing transport that previously was done in-house

Changes in how products are delivered to clients, for example outsourcing

Introduction of scanning to register goods using bar codes

Introduction of new software to manage inventories

New or improved software or routines for purchasing, accounting or maintenance systems

  Organisational innovation Marketing innovation

Oslo Manual definition

An organisational innovation is the implementation of a new organisational method in the firm’s business practices, workplace organisation or external relations. Organisational innovations can be intended to increase a firm’s performance by reducing administrative costs or transaction costs, improving workplace satisfaction (and thus labour productivity), gaining access to non-tradeable assets (such as non-codified external knowledge) or reducing costs of supplies. (p. 51)

Marketing innovations are aimed at better addressing customer needs, opening up new markets, or newly positioning a firm’s product on the market, with the objective of increasing the firm’s sales. (p. 49)

MENA ES question

During the last three years, has this establishment introduced any new or significantly improved organisational or management practices or structures?

During the last three years, has this establishment introduced any new or significantly improved marketing methods?

MENA ES examples

Change in number of management levels

Changes in communication systems

Changes in production targeting and monitoring systems

Changes to or introduction of incentives for performance, such as changes in salary or bonus determination to reward performance

Changes in promotion practices

Changes in hiring and firing practices

Changes to how decisions and results are communicated across the establishment, such as new reporting systems

Restructuring of departments or units

Changes in external relations systems

New design, branding or packaging, including use of trademarks or brand symbols

New channels to promote or sell products or services, such as direct selling, internet sales or exclusive retailing

New pricing systems to attract or retain customers, such as discounts, deferred payment or loyalty reward cards

Source: Eurostat and OECD (2005), BEEPS V and MENA ES.
Note: The wording above is taken directly from the Oslo Manual and the BEEPS V and MENA ES surveys.