Some things are easily inherited to be measured than that of others. One can count time in seconds, distance in meters, and intelligence by IQ, but there is no standard unit to measure innovation. One can measure, for example, the objective of improved revenue, but objectives, which are strategic like growth and learning, are difficult to measure and therefore innovation is one such area that is hard to be measured.
One can call innovation as the main strategic objective of an organization’s internal growth process, which is being used for growth and excellence and for improvement in operational areas. One of the main factors, which drive the economy, is innovation. Innovation leads to the launching of new products and services, which are lower in price but high in quality.
To measure innovation, one has to understand the growth factor. There are many factors which enhance innovative activities through the application of skills, commercialization, knowledge, and of course technologies. Over the years, many practitioners and scholars have studied extensively about innovation and tried to measure it. There are several parameters on which the innovation is measured like inventions, urbanization, patents, energy production, GDP, and of course a social development index.
Innovation means creation of something that is novel. In order for innovation to happen, there need to be crucial inputs and these inputs can be of tangible as well as intangible nature. Tangible input has a physical presence whereas the intangible asset usually refers to the knowledge base. One cannot measure innovation without a full and proper knowledge of tools, materials, technologies, markets, and of course the need of the hour.
The process of innovation; however, is critical and thus it is hard to reduce it to some measurable elements. Often there are risks associated with the innovation process. The inputs that are being done sometimes do not give the desired output, which is unpredictable and thus is of no economic value. The input is easy to be characterised but not the output. Hence, the keyword to measure innovation is knowledge.
It is the application of knowledge that defines innovation, which in turn leads to economic benefit. To have a competitive advantage, one of the main prerequisites is innovation. The main framework to measure innovation involves the availability of data to understand the activities of a particular firm. The main objective of measuring innovation is directly proportional to the goals which are preset. The measuring of innovation is all about understating the strength of competence, strategic application and the performance.
The main objective of innovation measurement is, to generate profitable growth opportunities for an organization’s success and excellence. In order to measure the innovation at a regular interval, companies have to regularly schedule sessions where no operational discussions will be carried out; instead there will be emphasis on strategies to enhance the methods to improve the innovative ways to ensure a more robust economic output. Hence, in order to measure innovation it is important to first categorize the strengths and weaknesses of an organization.
What are your thoughts on this subject? Do you agree or disagree with my thoughts?