Indicators for Measuring the Global Performance and Value of Innovations*

Abstract

A set of indicators to measure several aspects of the global performance and value of technological innovation at the technical, economic and strategic levels are proposed. Whereas the definition and measurement of technical and economic aspects of global performance at company sphere seem to be relatively easy, the definition and measurement of ‘‘value’’ are more difficult, because value today cannot simply be related to the economic results of processes and products at the company level, but it must be also referred to the macro economic and social spheres. Nonetheless, this proposal is intended

to cover the main aspects of ‘‘internal’’ performance and ‘‘external’’ impacts, together with providing an analysis of the reliability and origins of the data that are needed in order to elaborate the indicators, with particular emphasis being placed on those indicators for the measurement of the socio-economic and strategic value/advantage of new technologies. Within the company sphere, the proposed indicators can measure the materials, energy, environmental, operational, volume, inputs effectiveness/efficiency of a process, and the quality and environmental performance of a product, both at the technical and economic level. Within the socio-economic sphere, they can measure the effects produced by a partially or radically new technology on total and intellectual employment, and on the environment. Within the strategic sphere, they can measure domestic and international importance, the degree of indispensability, and the knowledge advancement. These indicators have been applied to some real cases; the single figures (0-100) can be summed up to give a final index (0-3000) which can be used to compare two different situations involving the same producer (before and after a technological modification), or involving different producers operating either in the same economic field or in different fields. Data at company sphere can be easily elaborated from the specific information system, while those at macro-sphere are more difficult to be found and an effort needs to be made by statistical Agencies in order to arrive at analytical and reliable figures. Moreover, at the company sphere, data can be drawn 6 to 12 months after the innovation has been implemented, while at the macro-sphere it is advisable to wait for 1 to 2 y.