Title: Measuring firm innovativeness: towards a composite innovation index built on firm innovative posture, propensity and performance attributes

Authors: Elias G. Carayannis, Mike Provance

Addresses: Department of Information Systems and Technology Management, School of Business, European Union Research Centre (EURC), Global and Entrepreneurial Finance Research Institute (GEFRI), George Washington University, Washington, DC 20052, USA. ' Robins School of Business, University of Richmond, 1 Gateway Road, Richmond, VA 23173, USA; School of Business, George Washington University, Washington, DC 20052, USA

Abstract: The ability to innovate is generally accepted as a critical success factor to growth and future performance of firms. Yet, this acceptance obscures a comprehensive perspective on how firms can influence their innovation capacity and resulting performance. This paper proposes a |3P|construct of innovation measurement that simultaneously considers the Posture, Propensity and Performance related to a firm|s innovation capabilities. We propose and provide empirical support showing that robust measurement of the performance implications of innovation requires the consideration of input, throughput and output factors simultaneously. Single or more limited indicators do not offer the degree of fine-tuning to a firm|s innovation system that managers require. Thus, we propose the development, and future research into contingent variations, of a Composite Innovation Index (CII). We further demonstrate its use in comparing innovators and allowing managers to design a firm|s innovation system.

Keywords: technology innovation; entrepreneurship; composite innovation index; position-posture-performance; 3P; innovation metrics model; innovation measurement; innovation capacity; innovation system design.

DOI: 10.1504/IJIRD.2008.016861

International Journal of Innovation and Regional Development, 2008 Vol.1 No.1, pp.90 - 107

Published online: 26 Jan 2008 *

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