Measuring the unmeasurable: A country's non-R&D expenditure on product and service innovation

Knowledge about non-R&D innovation expenditure, such as patenting and licensing, design, trial production, tooling-up, manpower training, market research and investment in fixed assets, is extremely sparse and questions about the latter were very poorly answered in the recent Community Innovation Survey (CIS). Using information regarding the quality of replies, we reach a tentative national estimate of 1992 innovation expenditure for all manufacturing and service industries in the Netherlands, Expenditure on product-related R&D represents about one quarter of total product (and service) innovation expenditure. Roughly half of the latter consists of investment in fixed assets, the latter being more important in services than in manufacturing.