On hidden innovation, possibilities of measuring it, and pro-innovation policy
In 2006 NESTA presented the fi rst of fi ve reports on hidden innovation. The aim of those reports was to explain the UK paradox — namely, the fact that according to traditional indicators, Great Britain is much less innovative than other developed countries and concurrently is one of the largest economies in the world. NESTA experts, looking for the causes of this state of affairs, stated that the strength of the British economy depended to a large extent on industries where innovations are not included in traditional measures of innovation. Then they took up the possibility of creating a new innovation index, which would take into account the hidden innovation, and presented the policies supporting the development of innovations. In this paper we will try to summarize and evaluate to what extent NESTA experts succeeded in accomplishing the aforementioned tasks.