Measuring innovation results

Expand your measures for innovation to include Intellectual Capital, the most fundamental asset for creating business wealth.

How do you measure your “return on innovation investment?” Is it by financials, market share, and other tangible business measures? While these measures are important, they are less than half the story.

In the modern global economy, the most fundamental assets upon which businesses create wealth are the information, knowledge and wisdom residing in the people, technologies and systems of the company. These intangible assets are the “raw material” for future innovation and business health, but they do not show up directly on financial spreadsheets.

The collective name for these intangible assets is “intellectual capital.” In financial terms, a collective measure of intellectual capital is the difference between a company’s book value and its market value.

Measures of intellectual capital fall into five categories: “growth capital,” “process capital,” “human capital,” “organization capital,” and “stakeholder capital.” Planning for and measuring your increase in intangible assets is just as important as measuring tangible assets.

We can guide you to measure and consciously enhance your intellectual capital – and thus expand your return on innovation investment – through our Consulting.

Contact us to start measuring your innovation using Intellectual Capital!