After doing a bit of research I have found that there is a phenomenon known as the “Swedish Paradox”.
"The first formulation of the Swedish paradox is that there was surprisingly low production of high-tech products in Sweden in relation to her high R&D expenditures (Edquist and McKelvey, 1998).1 The second formulation of the paradox states that high-tech exports are low given the high R&D investments (Braunerhjelm, 1998). The third formulation of the paradox is more general and states that Sweden is inefficient in transforming its high R&D expenditures into productivity and growth (Andersson et al., 2002) or more generally that economic performance is poor (Klofsten, 2002).” 
The athlete analogy from the previous post regarding measuring success via inputs which is what typically happens. Alternately there is a focus on results but not on return for investment. What I mean by that is if you throw lots of money at a problem then there is a good probability that some level of success will be achieved, but at what cost. I have yet to see from any level of government statistics that tie inputs (primarily spending) to outputs (results). Greg Boutin of Growth Times wrote a very exhaustive series of posts on how Ontario is spurring innovation.
The next section of the innovation series will be entitled measuring what matters. I have looked at those dimensions of innovation that were touched on in the first part of the Innovation Series. Those dimensions are; Prosperity, Innovation and Commercialization as all three are dependent on each other. I will reference at least one or two expert sources for each dimension.
Next post in the series: Section 2 – Measuring What Matters.
 The Swedish Paradox Astrid Kander, CIRCLE, Lund University, Olof Ejermo, CIRCLE, Lund University 2006-02-27
- Ian Graham