Innovation measurement: An extensive literature analysis

Abstract

Research background: There is no doubt that innovation is an important source of a company´s competitiveness, but it is very difficult to measure the extent to which it contributes to the growth of competitiveness. Opponents of measuring innovation argue that measuring innovation is a measurement of the immeasurable. How to measure innovations and is it possible to measure innovations, is a question constantly posed by academics, managers, and economists all over the world. To find answer to these questions, this review article analyses scientific publications on innovation measurement published between 1968 and 2021. Purpose of the article: The main purpose of this article is to increase the understanding of the metrics landscape and to identify differences in the methods used in the past and present with emphasis on identification of statistical and econometric methods used to study innovation. Methods: To achieve the purpose of the article, literature review as a method of qualitative research was used. Data for literature review were gained from the Web of Science database. Findings & Value added: The analysis finds several metrics that can be used for evaluation of company´s innovation. The results can helps managers, academics, and economists to better understand the innovation measurement..