7-2 Short Paper: Metrics for Innovation 1
7-2 Short Paper: Metrics for Innovation
Samnang Sam
Southern New Hampshire University
MBA-580-Q3764 Innov/Strat High-Perform Orgs
Professor: Dr. Richard Horne
March 19, 2023
7-2 Short Paper: Metrics for Innovation 2
Metrics for Innovation
Number of Active Products
This metric can provide some insights into the level of Innovation but needs to
differentiate between incremental and discontinuous Innovation. Market demand, production
capabilities, and other external factors can also influence the number of active products. Another
factor is a company’s business strategy. A strategy could be to release as many products as
possible but may only return a small revenue margin ( 2021). This metric Are too many products,
could better indicate Innovation, as too many factors can influence these numbers.
R&D Headcount
R&D headcount may not directly indicate Innovation as it can also be influenced by labor
efficiency or organizational structure. In a statement by Forbes, there are examples of companies
that have spent large amounts on R&D but failed to bring successful products to market. In
contrast, others have been successful despite spending relatively little on R&D (Viki, 2016).
