innovation measurement at firm level? is there a formula?
DESCRIPTION
This presentation was the result of a search we made to find if metrics exist to measure innovation without controversy.We found that most innovation surveys in India do not give a clear picture of innovation and focus at either the inputs or the facilitating factors of innovation rather than determining the innovation as an output.TRANSCRIPT
Innovation measurement and management for the companies focused on India.
Yash SaxenaGunasekar ArunachalamHitendra JogadiaIndranil GhoshKavita Kapadane
Measuring the innovation Output at the firm level:
Conclusions from literature survey:
1. Innovation surveys are a common practice in EU, and US is increasingly working fordeveloping metrics in this field.
2. Patent as a measure of innovation is considered incomplete and outdated.3. OECD has developed extensive literature on innovation measurement in form of
Oslo Manual.4. It explains what innovation metrics should look like and achieve. However it
stops short of giving a methodology.5. The innovation in a limited sense refers to:
Product
Process
Marketing
Organizationa
l
1. Product Innovation: Patents, trademarks, new products, bibliometrics etc
2. Process innovation: Changes taking place in supply chain (Other than the marketing perspective of it )etc.
3. Marketing innovation: New methods of marketing, campaigns, ways of reaching customer, Changes in administration of 4 marketing Ps.
4. Organizational innovation: Changes in the way businesses are organized.
The elusive Innovation formula. Have we found it?
FirmR & D Expenditure
Organisational incentives/cultureGovt. policy environment
Demand
Industry clusters
Strategic Partnerships
Innovation output ( Product, process, marketing, organisational)
F(x)= innovation
FirmR & D Expenditure
Organisational incentives/cultureGovt. policy environment
Demand
Industry clusters
Strategic Partnerships
Innovation output ( Product, process, marketing, organisational)
F(x)= innovation
Surveys in India have focused here
Build a comprehensive set
of metrics
Assess existing metrics
1.Assess existing metrics
2. Resist temptation to track all parameters
8- 10 Metrics
Include some customer driven
metric
Collect data
Analysis
Snapshot>
Purpose of this paper Building a set of metrics to track and promote innovation at firm level
Design/Methodology/Approach Design a metric and use it for data collection.
Findings To compare the innovation output relative to competitors.
Research limitations/implications No innovation metric present for quantifying all aspects of innovation.
Original Value Innovation output quantification has not been done in India.