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. And when Innovation Funnel expense (part of R&D) is also summed it reflects the same distinctive shape, but a few years earlier. Such direct connection has been unsuccessfully sought for decades. Now a nation can project what must be spent in a given year to make specific growth likely in a subsequent year. Policy can then be directed to achieve it. For 21st Century opportunity, Direct Innovation Measurement should indeed be included alongside GDP in National Accounting.
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Macro Metrics