In search of a useful measure of technological innovation (to make economists happy without) discontenting technologists)

This article presents an exploration of the methodology and measurement of technological innovation. It is based upon already available surveys and especially upon the SPRU data bank of innovations in Britain. The methodology proposed could be applied to the joint CNR-ISTAT survey being carried out on innovation diffusion in the Italian manufacturing industry. It is suggested that the empirical investigations already available or in progress should be exploited in order to develop a satisfactory theory of technological innovation. The article is also a contribution to the OECD move debate in order to reach an international standardization of methodologies and classifications of innovative activity. The author introduces a distinction between the objects and the subjects of technological change, and on this basis he makes a comparison between the two approaches, which emphasize alternatively “evolutionary” or “revolutionary” characteristics of technological change. It is argued that many of the present-day controversies arise from misunderstandings between those working in this field on the concepts and measurement methods employed. As a consequence, the debate has been continuing on different and noncomparable topics. It is argued that a standardization and a more accurate methodological precision on measuring technological innovation could have the salutory effect of removing the suspicion of heresy, which has so far kept the economics of technological change out of thoroughbred economic theory.