Knowledge-intensive services Emphasis on fi nances and assets 411 Development of building projects 641 Monetary intermediation 642 Activities of holding companies
643 Trusts, funds and similar fi nancial entities
649 Other fi nancial service activities, except insurance and pension funding
651 Insurance
652 Reinsurance
653 Pension funding
661 Activities auxiliary to fi nancial services, except insurance and pension funding 663 Fund management activities
681 Buying and selling of own real estate 683 Real estate activities on a fee or contract basis
774 Leasing of intellectual property and similar products, except copyrighted works
Emphasis on communication 611 Wired telecommunications activities 612 Wireless telecommunications activities 613 Satellite telecommunications activities 619 Other telecommunications activities
620 Computer programming, consultancy and related activities 631 Data processing, hosting and related activities, web portals 639 Other information service activities
Emphasis on technical consulting and research
711 Architectural and engineering activities and related technical consultancy 712 Technical testing and analysis
721 Research and experimental development on natural sciences and engineering 749 Other professional, scientifi c and technical activities n.e.c.
EFI REPORT 2011 154
Emphasis on non-technical consulting and research
691 Legal activities
692 Accounting, bookkeeping and auditing activities; tax consultancy 701 Activities of head offi ces
702 Management consultancy activities
722 Research and experimental development on social sciences and humanities
731 Advertising
732 Market research and public opinion polling 821 Offi ce administrative and support activities
Emphasis on media and culture
581 Publishing of books and periodicals; other publishing activities 582 Software publishing
591 Motion picture, video and television programme activities 592 Sound recording and music publishing activities
601 Radio broadcasting
602 Television programming and broadcasting activities 741 Specialised design activities
743 Translation and interpretation activities 823 Organisation of conventions and trade shows 900 Creative, arts and entertainment activities
910 Libraries, archives, museums and other cultural activities
Emphasis on health 750 Veterinary activities
861 Hospital activities
862 Medical and dental practice activities 869 Other human health activities
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Bologna reform respectively Bologna process:
These are based on the Sorbonne Declaration of 1998, which entered into the EU’s Bologna Declara-tion 1999. The aim of the reform/process is to harmonise higher educaDeclara-tion and relevant qualifi caDeclara-tions by 2010. The central aspects include: achievement of comparable qualifi cations (two-stage system with bachelor’s degree and master’s degree), unifi ed standards for evaluation (credits in keeping with the ECTS system), enhanced mobility via elimination of barriers to mobility, and European co-opera-tion in the area of quality assurance.
Business Angels:
Business Angels are well-to-do private persons who provide capital and entrepreneurial know-how to innovative start-up entrepreneurs or to young, innovative companies. They invest part of their private assets directly in a company, without the aid of an intermediary, and receive shares of the company in return.
Buyout funds:
Capital investment companies who use capital, normally provided by institutional investors, to ac-quire stakes in established companies. The funding so provided to companies strengthens their equity-capital bases, enabling them to expand and to carry out innovative, often highly risky projects. As a rule, such investments are limited to a period of several years, after which the relevant company shares are sold.
Community Innovation Survey:
The Community Innovation Survey (CIS) is the European Union’s most important statistical instru-ment for surveying innovation activities in Europe. The CIS analyses the economic impacts of innova-tion (on competiinnova-tion, employment, economic growth, models for trade, etc.) on the basis of a survey of a representative sample of companies. Further information is provided in the study by Rammer, C.
and Pesau, A. (2011) that was prepared under commission to the EFI.
Curriculum:
Teaching plan or specifi cation of teaching goals. While a teaching plan normally only lists subject matter to be taught, curricula tend to be oriented to teaching goals and defi ne teaching / learning pro-cesses and course of studies. In particular, a curriculum defi nes a framework for learning.
Cutting-edge technology:
Cutting-edge technology goods refers to R&D-intensive goods whose production, on an annual aver-age, entails spending more than seven percent of relevant revenue on research and development.
Education natives and education foreigners:
New students who are foreign nationals who have earned their higher education entrance qualifi cation in Germany are referred to as education natives (Bildungsinländer); persons with higher education entrance qualifi cations earned abroad who come to Germany for studies are known as education for-eigners (Bildungsausländer).
GLOSSARY
EFI REPORT 2011 156
Entry rate into tertiary education:
Number of new students in their fi rst semester of higher education studies (students in their fi rst pro-gramme of studies), as a percentage of the total number of persons of the relevant age. This entry rate fi gure is useful in highlighting changes in participation in higher education.
Equity capital:
Liable capital of a company. Equity capital is provided by the company’s owners, for fi nancing pur-poses, or consists of earnings left in the company. Equity capital can also be obtained externally, as venture capital.
Equity ratio:
Ratio of a company’s equity capital to all of its capital. The ratio is used in assessing the fi nancial sta-bility and independence of companies.
Europe 2020:
The core aim of the Europe 2020 initiative is to enhance co-ordination of national economies and the European economy. As a follow-on programme to the Lisbon Strategy, it applies an even more holistic approach with regard to R&D funding, lifelong learning and promotion of environmentally friendly technologies.
Excellence initiative:
A Federal-Länder agreement for promotion of science and research at German higher education insti-tutions, with a view to enhancing international competitiveness. The initiative is being implemented via the German Research Foundation (DFG) and the Science Council (Wissenschaftsrat).
Export quota:
The value of an economy’s entire exports, in market prices, expressed as a percentage of the relevant country’s gross domestic product. The export and import quotas for a given country are important indicators of the degree to which the country is integrated within the global economy and the interna-tional competition between economic centres.
Federal Framework Act on Higher Education:
A nation-wide law applying to universities, colleges of education, colleges of art and music, uni-versities of applied sciences and to other educational institutions that, pursuant to Länder laws, are state higher education institutions. It functions as a model for Länder-specifi c higher education acts (cf. state university acts). The fi rst version of the act was adopted in January 1999, and the most recent amendment was adopted in April 2007. As part of the Bologna process, a number of provisions of the act have since been suspended, with a view to giving higher education institutions greater autonomy and responsibility.
Federalism Reform II:
The centrepiece of the Federalism Reform II is a reform of the constitutional provisions for limiting public-sector borrowing by the Federation and the Länder. The purpose of the reform is to constrain public-sector indebtedness more effectively than has been possible in the past.
Frascati Manual:
The OECD’s Frascati Manual specifi es methods for collecting and analysing data on research and de-velopment. In 1963, OECD experts met for the fi rst time with members of the NESTI group (National Experts on Science and Technology Indicators), in Frascati (Italy), in order to defi ne key concepts such as “research and development”. The results of those discussions formed the fi rst Frascati Manual.
157
Since then, the Frascati Manual has been revised several times. The most recent edition dates from 2002 (OECD 2002).
Global Entrepreneurship Monitor (GEM):
The GEM is an empirical research project that is now being carried out in a total of 54 countries. It is co-ordinated by the Global Entrepreneurship Research Association (GERA). The aim of the GEM is to analyse start-up activity, internationally and intertemporally, on the basis of surveys of the public and of experts. In addition, it serves as a vehicle for deriving proposals for optimising policies for promoting and funding start-ups.
Governance:
Governance refers to the control and regulation achieved via relevant structures (structure and process organisation) of a political and societal unit, such as a state, an administration, a municipality, or a private or public organisation. The term is often used to refer to control or regulation of any sort of organisation (such as a company or a plant).
Graduation rate:
In a given examination year, percentage of persons, with respect to the local relevant population, of a given age group who complete a fi rst programme of studies at a higher education institution. This indicator provides information about higher education institutions’ real output of graduates. The rel-evant data are broken down by gender, nationality and German Länder.
Hedge fund:
A special type of investment fund with a great diversity of investment focuses and strategies, especial-ly highespecial-ly speculative investment strategies. The possible investment focuses for such a fund include stocks, bonds or derivatives. Hedge funds also engage in short-selling, and they use loans in order to leverage their investments. As a rule, when hedge funds acquire shares in companies, they acquire minority shares.
High-Tech Strategy:
A Federal Government policy initiative for integration of innovation funding throughout all federal ministries. It was launched in August 2006, and extended in 2010 (cf. Chapter A 5). The strategy fo-cuses especially on holistic control of complex technology systems, and on market-relevance. A key characteristic of the strategy is that it concentrates on selected fi elds of innovation. Its key empha-ses include designing and structuring R&I policy interministerially, orienting research and innovation more strongly to markets and optimising relevant framework conditions. The Federal Government’s High-Tech Strategy is being managed by the Federal Ministry of Education and Research (BMBF).
High-value technology:
High-value technology refers to R&D-intensive goods whose production, on an annual average, re-quires more than 2.5 percent, but not more than 7 percent, of relevant revenue to be spent on R&D.
Hybrid drive:
A hybrid drive is a drive system that combines different drive principles, or different energy sources, within a single application.
Import quota:
The value of an economy’s entire imports, in market prices, expressed as a percentage of the relevant country’s gross domestic product. As a country’s import quota grows, its dependence on goods from abroad also grows.
EFI REPORT 2011 158
Innovation expenditures:
Innovation expenditures refer to expenditures for ongoing, completed and discontinued projects with-in a swith-ingle year. They consist of ongowith-ing expenditures (personnel and equipment costs, etc.) and ex-penditures for investments. Innovation exex-penditures include innovation-related exex-penditures for ma-chinery, plants, software and external know-how (such as patents, licenses); for engineering, design, product design, services concepts, employee training and further training; for market introduction and other preparations for production and sales of innovations. They also include all internal and external expenditures for research and development (R&D).
Innovation intensity:
Innovation expenditures in relation to revenue.
Innovation system:
A network of institutions, in the public and private sector, whose activities and interactions initiate, modify and disseminate new technologies. The speed of technological change in various countries, and companies’ business effectiveness in global competition, depend not only on the scope and in-tensity of R&D and other technical activities; they also depend on the manner in which available re-sources are managed and organised, both by companies themselves and at the national level (Freeman 1987).
Innovation Union:
The Innovation Union is a lead initiative of the Europe 2020 strategy. Its measures focus especially on stimulating the private enterprise sector, via strategies such as facilitating access to fi nancing, support-ing research initiatives and increassupport-ing the pertinent role of public procurement.
Innovator rate:
Number of companies with product or process innovations, as a percentage of all companies in a rel-evant country. A newer, expanded defi nition of the term also takes account of companies with innova-tions in the areas of organisation and marketing.
Lead market:
When different technological designs are developed that are basically oriented to the same function, the design that is the fi rst to be accepted by a market is the one that wins out internationally. That mar-ket is a lead marmar-ket, and it forces alternative designs into lag marmar-kets. A number of different factors infl uence this process: the legal framework, cultural differences, the market power that good alterna-tives may have, company know-how available in specifi c regions, sales channels, the availability of qualifi ed personnel, etc.. It is thus diffi cult to predict which markets will emerge as lead markets in a particular case.
Lead Market Initiative:
The Eur opean Lead Market Initiative (LMI), which has been in progress since 2007, under the guidance of the European Commission, the Member States and industry representatives, comprises a number of political measures (regulation, public procurement, standardisation and other measures) aimed at actively supporting the creation of markets. To date, the LMI has been aimed at markets for eHealth, protective clothing, sustainability-oriented construction, recycling, organic products and re-newable energies.
159
Lisbon Agenda:
The Lisbon Agenda, which dates from the year 2000, is the programmatic strategy for the European Research Area (ERA). It is aimed at the goal of making the EU the world’s most competitive, most dynamic knowledge-based economic area by 2010.
Lithium-ion battery:
Lithium-ion batteries (Li-Ion) are batteries with especially high energy densities. Considered to be thermally stable, they provide largely constant voltages throughout their discharging periods and show virtually no memory effect. The batteries store energy by positioning lithium ions (Li+) in a layer lat-tice in the cathode (consisting of graphite, for example). Other important components of such batteries include an anode (for example, made of lithium-metal oxides), electrolytes (water-free) and a separa-tor (made of polymers or ceramics). Intensive efforts are being made to improve all of the components involved.
Ljubljana Process:
Since 2008, efforts to shape the European Research Area (ERA) have been taking place within the Ljubljana Process. The process is connected with the Vision 2020 Initiative, the Lisbon Treaty and Art. 181 Treaty on the Functioning of the European Union. Activities within the process are focussed on enhancing co-ordination between the EU and the Member States and supporting the creation of a European Research Area.
Knowledge-intensive services:
The primary feature of knowledge-intensive services is they are carried out by workforces with above-average percentages of persons with higher education qualifi cations.
Manufacturing sector:
The largest part of the industrial sector, comprising all industrial branches with the exception of en-ergy and construction. Key areas include the food industry, mechanical engineering, automotive and automotive supply, production of metal products and the chemical industry. At present, some 95 per-cent of all persons employed in industry are employed in the manufacturing sector.
Oslo Manual:
The OECD’s Oslo Manual contains specifi cations relative to statistical surveys of innovation activi-ties. The Oslo Manual moves beyond the R&D concept used by the Frascati Manual, and it differenti-ates between different forms of innovation. The Oslo Manual serves as the basis of the Community In-novation Surveys, which have been carried out four times to date in Europe. The most recent revision of the manual dates from 2005 (OECD 2005).
Outside capital:
Outside capital is capital that is provided to companies by external capital providers, for limited pe-riods of time. Providers of such capital expect to be repaid their funds with interest. With a view to ensuring that relevant loans can be repaid, banks condition provision of outside capital on adequate, reliable planning of future business results and/or provision of fi nancial guarantees.
EFI REPORT 2011 160
Patent Cooperation Treaty:
In 1970, the Patent Cooperation Treaty (PCT) was concluded under the aegis of the World Intellectual Property Organization (WIPO), which had been founded in 1969. It is designed to simplify procedures for applying for international patents. Inventors from PCT countries submit advance applications to the WIPO. Within a year after submitting such an application, an inventor can submit a patent applica-tion in the various signatory countries of relevance. The relevant priority period for such applicaapplica-tions is the time of the original submission to the WIPO.
Peer-to-peer networks:
Peer-to-peer networks are networks of computers that co-operate on a basis of equality. Each com-puter in such a network can both use and provide the relevant services and functions for the network.
Percentage of persons with higher education entrance qualifi cations:
In a given year, the number of persons with higher education entrance qualifi cations, as a percentage of all persons at least 18 years old who have not yet turned 21. The size of that age-group population is determined as the average of the most recent three age cohorts.
Power electronics:
Power electronics is concerned with using electronic components to reform electrical energy. Power electronics is used to reform electrical energy with respect to voltage form, voltage / current amplitude and frequency. In hybrid vehicles, part of the drive power is generated by an electric motor (in electric vehicles, an electric motor generates all of the power). Power electronics convert electrical energy to the voltage and frequency that the electric motor requires.
Private equity:
Private equity refers to equity that is provided on an off-market basis to companies. In the customary procedure, companies receive the capital from investors who, in return, receive the prospect of sharing in the company’s future business success.
Public-private partnership (PPP):
Form of co-operation, between public administrations and private companies, in which the public sec-tor co-operates with companies in order to carry out tasks with which it is charged. PPP arrangements include arrangements in which the two parties co-operate in actually carrying out the relevant tasks, and arrangements in which the relevant private company carries out the tasks completely by itself. In PPP arrangements, companies profi t from the contacts and experience of the involved public admin-istrations, in the pertinent areas, and, of course, they profi t from pertinent orders and investments. For public administrations, PPP arrangements make it possible to carry out projects, with the fi nancial support of the participating companies, that might not otherwise be possible for them.
RCA Index:
Ratio of exports to imports, for a given group of goods, in relation to the export-import ratio for the pertinent economy as a whole. For purposes of mathematical presentation, the ratio is formulated logarithmically and then multiplied by a factor of 100.
R&D intensity:
Expenditures for research and development (R&D), as a percentage of a company’s or a sector’s rev-enue or of a country’s gross domestic product.
Research and development (R&D):
The OECD’s Frascati Manual defi nes research and development as systematic, creative work aimed at expanding knowledge – also with the aim of developing new applications.
161
Science Citation Index:
Database of scientifi c publications in internationally renowned journals, offering access to biblio-graphic information, summaries and cited references from a total of 3,700 leading scientifi c and tech-nical journals, representing over 100 different disciplines. The Science Citation Index Expanded cov-ers a total of over 5,800 journals. It can be accessed online (Internet) via SciSearch®.
Start-ups:
Newly founded companies.
Start-up rate:
Number of start-ups as a percentage of the total number of companies concerned. The start-up quota is thus a useful indicator of the extent to which an entire group of companies is being rejuvenated.
State university act (Landeshochschulgesetz):
Act enacted by a Land (state) for regulating all matters that pertain to its own higher education institu-tions. In exercising their sovereign rights in matters of education and cultural affairs, all Länder issue
Act enacted by a Land (state) for regulating all matters that pertain to its own higher education institu-tions. In exercising their sovereign rights in matters of education and cultural affairs, all Länder issue