27 innovation metrics you must measure

For the last couple of years, I've been working with Dan Toma on cracking the code of measuring innovation in a meaningful way. Now, Dan and Esther have collected that knowledge—and more—in an innovation accounting system that consists of several layers:

Each layer has its own set of measures, listed below.

Measuring ecosystem

1. Revenue
2. Portfolio distribution
3. Investment distribution
4. New product vitality index
5. Portfolio fade
6. Efficiency of innovation investment
7. Cost of innovation
8. New-to-existing profitability index
9. Innovation profitability ratio
10. Average funnel conversion rate
11. Average time to sustain

Measuring innovation funnel

12. Number of ideas in stage
13. Number of ideas stopped per stage
14. Number of ideas progressed per stage
15. Average cost indicators
16. Average time spent per stage
17. Average estimated value-to-cost ratio

Measuring innovation teams

18. Learning velocity
19. Maturity specific indicators
20. Confidence of key success factors
21. Holistic confidence in venture
22. Cost of the venture
23. Time spent in stage
24. Value-to-cost ratio
25. Risk-adjusted value-to-cost ratio

Measuring culture and capabilities

26. Culture traits measures
27. HR capability traits measures

Start your own journey

Get the Innovation Accounting book to learn more about each measure, including practical tools and advice on how to create your own innovation accounting system:

Innovation Accounting - the new book by the authors of The Corporate Startup

Written as an add-on to The Corporate Startup, the Innovation Accounting book provides a practical guide for measuring your company’s innovation ecosystem

Innovation Accounting BookTristan Kromer

Alternatively, book a call with me to discuss implementing innovation accounting system in your organisation by clicking the button below: