Introduction MELF Equation Macro Metrics Micro Metrics Beyond GDP How To Access Acknowledgements About Us
Innovation Metrics
Business Innovation Economics
Innovation improves the quality of everyday objects and the services they provide. But in business, which must survive and prosper, innovation must also deliver on cost. Taking both into account requires the ratio (Q/c), where Q is the quality perceived by the item’s purchaser (as calculated using the MELF) and c the unit cost of its delivery. The ratio is not an indicator of innovation, it is not a proxy for innovation; it is an exact measurement of innovation. When calculated annually for a large number of items whose data is uniquely available from the DINTEC™ resource, its aggregate, which is Sum: (Q/c) enumerates sector innovation. For durable goods this rises over five decades in a unique shape with distinctive cusps and inflections. When Innovation Funnel expense (part of R&D) is also summed it exhibits the same distinctive shape, but a few years earlier. By such direct connection it's clear that innovation does, in fact and in numbers, drive the economy. In contrast, it's very apparent that factor productivity doesn't. It's insufficiently related to innovation. When input to innovation for non-durable goods soars, factor productivity doesn't respond. It remains quiescent. Similarly for durables. Sum: (Q/c) supersedes because it captures the boosting effect of creative destruction's contribution to future GDP. Projections can be made from current R&D, enabling policy to be formulated for achieving it. To maximize 21st Century opportunity National Accounting should authenicate innovation as the fundamental mechanism of growth by tabulating its measure.
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Introduction to New Knowledge on the Direct Economic Measurement of Innovation HERE Read Q&A from an interview conducted by the Royal Economic Society HERE
Macro Metrics