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 the D 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. This is currently implausible.
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Study 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