ON SOFT INNOVATION: CHANGES IN PRODUCT FORM AND THE DEFINITION AND MEASUREMENT OF INNOVATION

摘要

This paper considers a class of activities labelled soft innovation that relate to changes in products that are aesthetic in nature or impact on their intellectual appeal. Having been little studied in the economics of innovation, this paper initially clarifies a number of definitional and measurement issues, such as the distinction between horizontal and vertical innovation, illustrates soft innovation in both the creative and other industries, considers its production and addresses related intellectual property protection issues. Using measurements based on counts of intellectual property registrations and new product launches (with an emphasis being placed upon the distinction between innovations with and without market impact) the extent of such innovation is clarified in terms of both national intensity and international spread. Related policy issues are also discussed. Recommendations are made for improvements in the definition of innovation, its measurement and policy advice.