Applied Spatial Analysis and Policy

, Volume 6, Issue 1, pp 69–84 | Cite as

Constructing a Local Innovation Index: Methodological Challenges Versus Statistical Data Availability

  • Zoltán BajmócyEmail author


The measurement of territorial innovation performance has gained an increased importance in the era of differentiated innovation policy. However, practical measurement attempts hardly go beyond the regional level, in spite of the arguments on the local nature of the innovation process. In present paper we attempt to construct a local innovation index that is based on the systems of innovation theory and by which a large number of localities can be compared. We use a data set on the 174 Hungarian LAU-1 micro-regions to demonstrate the usefulness of such an index. We reflect the “systemic nature” of the innovation systems by applying the “penalty for bottleneck” method. We conclude that local innovation indexes might be useful sources of information for policy-makers, but one has to be fully aware of the limitations of such indexes and use them only for purposes they really serve.


Systems of innovation Local innovation index Penalty for bottleneck Hungary 



The research was supported by the Baross Gábor Programme of the Hungarian National Office for Research and Technology (BAROSS-DA07-DA-ELEM-07-2008-0001). I am grateful for their useful comments to several members of the Institute of Economics and Economic Development at the University of Szeged, the Department of Regional Studies and Public Policy at Széchenyi István University (Győr) and the Department of Regional Science at Eötvös Lóránd University (Budapest). I am especially grateful to Imre Lengyel, József Nemes Nagy, Izabella Szakálné Kanó, Zsuzsanna Fáskerti and Donald Peckham.


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Copyright information

© Springer Science+Business Media B.V. 2012

Authors and Affiliations

  1. 1.Faculty of Economics and Business AdministrationUniversity of SzegedSzegedHungary

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