It has been long understood that the generation, exploitation and diffusion of knowledge
are fundamental to economic growth, development and the well being of nations. Central
to this is the need for better measures of innovation. Over time the nature and landscape
of innovation have changed, and so has the need for indicators to capture those changes
and provide policy makers with appropriate tools of analysis. A considerable body of work
was undertaken during the 1980s and 1990s to develop models and analytical
frameworks for the study of innovation. Experimentation with early surveys and their
results, along with the need for a coherent set of concepts and tools led to the first edition
of the Oslo Manual in 1992, which focused on technological product and process (TPP)
innovation in manufacturing. This became the reference for various large scale surveys
examining the nature and impacts of innovation in the business sector, such as the
European Community Innovation Survey (CIS), currently in its fourth round. Results from
such surveys have driven further refinements in the Oslo Manual framework in terms of
concepts, definitions and methodology leading to a second edition published in 1997 which,
among other things, expanded coverage to service sectors.