Sound measurement and monitoring of innovation helps policy makers understand economic and social changes, assess the multifaceted contribution of STI to social and economic goals, and monitor and evaluate the effectiveness and efficiency of their policies.

Common targets of measurement and analysis of STI performance include measures of talent and human capital; investments in research and development (R&D) and other STI activity; outputs attributable to those investments, such as scientific publications, inventions, and innovations; knowledge circulation, collaboration and networks; and framework conditions for STI.

Key performance indicators such as these are useful management tools for countries and organisations. They need to be complemented by practices and methods that provide insights on the drivers and impacts of science and innovation.

Understanding how STI systems and policies work needs to account for the role of “knowledge” as its key but evasive “commodity”. As knowledge leaves few tangible and reliable traces, it is particularly difficult to measure STI performance in a comprehensive manner and to demonstrate how policies influence it and their impacts.

Concerted action between producers and users of data and statistics on STI is necessary to address the challenge of measuring what matters, as opposed to what is readily observable. To achieve this, decision makers must sustain investment and the adoption of good governance for STI evidence, which needs to be embedded into decision making.

The production of data and statistics on STI is undergoing major transformations. Awareness of STI issues is being transformed by new actors and new data sources and tools for analysis. New data often come from sources originally developed for purposes other than producing indicators and may present challenges for interpretation and quality assurance. National statistical organisations and related bodies will continue to play a key data collection and stewardship role, albeit informed by new practices and methods.

An appropriate mix of monitoring instruments should be used to address evidence needs, which go beyond indicators. Managing this transformation requires a high degree of policy engagement with data producers and data stewards, as well as raising the level of empirical literacy in STI policy circles in view of evidence standards required across all policy domains. 

In response to strong policy demand for empirical evidence on STI performance, particularly on how different countries and regions compare internationally, the OECD develops methodological guidance and coordinates the collection and dissemination of statistical information on STI performance. This work has been coordinated since the early 1960s by the OECD Working of National Experts on Science and Technology Indicators (NESTI). 

Today, several OECD bodies also work on different aspects of STI monitoring across different policy domains (e.g. industry, health, energy). The OECD also works with several international and regional organisations to promote coordinated work on monitoring STI.