Proprietary Publications

T118 - "9 KPIs That Capture Innovation Performance"

Innovation Performance 10-9-8 Webinar Series,
Needham, Massachusetts, USA
August 23, 2018 -- [47 Pages]
ISBN 978-1-937115-30-2


This presentation was made in conjunction with the Innovation Performance 10-9-8 Webinar Series on August 23, 2018 in Needham, Massachusetts.


The 9 KPIs that are the focus of this paper measure "overall performance," above and across the details of individual investments and cost centers. These 9 KPIs are all strong candidates for innovation leader and manager dashboards. These 9 KPIs positively facilitate, and then come close to capturing, the business and financial performance of investments in R&D and product development.

With these 9 KPIs, you'll have a pretty good handle on your corporate innovation performance. For those metrics that you recognize from the list below, we will likely expand your knowledge of the metric and its benefits and drawbacks. For those metrics you do not recognize, we hope to introduce you to some useful performance indicators you may not yet be aware of.

The 9 KPIs

  • VI
  • ROIn
  • ADROIn
  • R&DP
  • R&DE
  • A1YS
  • ROC
  • RQ
  • DHT

The 9 KPIs Quiz

Which 2 KPIs were New-To-The-World in 2015?

Which 2 KPIs were New-To-The-World in 2012?

Which 2 KPIs are the fastest KPIs to penetrate industry in the past five decades?

Which KPI is New-To-The-World and uses R&D Spending % to predict innovation performance?

Which KPI ties your research and advanced development expenditures to your revenues and profits?

Which KPI was recently made public for all to use by a large international high-tech company?

Which KPI is currently the de-facto standard for assessing absolute levels of innovation?

Which KPI has the highest correlation with corporation value and shareholder return?

This is an exciting time for KPIs. We'll give a brief mention of the tussle between the accounting profession, the SEC, and corporate annual reporting that is building about your favorite KPIs.

Table of Contents for Technical Paper 118

Section Titles:
Innovation Strategy Impacts The Choice Of KPIs  3
The 9 KPIs   7
   01-Vitality Index   9
   02-Return On Innovation 15
   03-Advanced Development Return On Innovation 17
   04-R&D Productivity 19
   05-R&D Efficiency 21
   06-Average 1st-Year Sales 23
   07-Research Quotient 25
   08-Darpa Hard Test 29
   09-Return On Capital 33
Top 28 Metrics Used By Industry 38
Metrics Penetration Trends Across Industries 42-44
Author Biography 45-47

Bibliographic references are provided for the numerous cases and examples we cite to enable all participants to further their investigation on the subjects of specific interest.

Further Insight Into "9 KPIs That Capture Innovation Performance"

The number of metrics used across industries to measure R&D and product development number more than one thousand. There are metrics for projects, products, processes, technologies, functional and technical disciplines, degrees of innovation, and a dozen other R&D and product development innovation subjects. Then, industries and companies have their own adaptations of these seemingly common metrics.

This paper focuses on the sub-set of metrics, unique unto themselves, that only apply above and across all the activities within the organization. Their purpose is both to facilitate and to capture corporate performance across all activities and organizations. Many executives refer to this group as the "KPIs." There can be corporate-level KPIs that emanate from, or are held at, lower levels in the organization. But, most KPIs originate at the top.

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GGI Technical Paper T118