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# 27 innovation metrics you must measure
- URL: https://www.pesec.no/27-innovation-metrics-you-must-measure/
- Published: 2021-10-28T07:00:00.000Z
- Updated: 2021-10-28T10:13:07.000Z
- Description: Systemic challenges require systemic measures.
- Author: Bruno Pešec
- Tags: Innovation, Strategy, Leadership, Metrics, #Innovation Accounting, #Innovation Management

For the last couple of years, I've been working with Dan Toma on cracking the code of measuring innovation in a meaningful way. Now, Dan and Esther have collected that knowledge—and more—in an innovation accounting system that [consists of several layers](https://www.pesec.no/4-critical-layers-of-the-innovation-accounting-system/):

| Layer                            | What is measured                   |
| -------------------------------- | ---------------------------------- |
| Strategic innovation accounting  | Measuring innovation ecosystem     |
| Managerial innovation accounting | Measuring innovation funnel        |
| Tacical innovation accounting    | Measuring innovation teams         |
| Culture and leadership           | Measuring culture and capabilities |

Each layer has its own set of measures, listed below.

### Measuring ecosystem

1. Revenue
2. Portfolio distribution
3. Investment distribution
4. New product vitality index
5. Portfolio fade
6. Efficiency of innovation investment
7. Cost of innovation
8. New-to-existing profitability index
9. Innovation profitability ratio
10. Average funnel conversion rate
11. Average time to sustain

### Measuring innovation funnel

1. Number of ideas in stage
2. Number of ideas stopped per stage
3. Number of ideas progressed per stage
4. Average cost indicators
5. Average time spent per stage
6. Average estimated value-to-cost ratio

### Measuring innovation teams

1. Learning velocity
2. Maturity specific indicators
3. Confidence of key success factors
4. Holistic confidence in venture
5. Cost of the venture
6. Time spent in stage
7. Value-to-cost ratio
8. Risk-adjusted value-to-cost ratio

### Measuring culture and capabilities

1. Culture traits measures
2. HR capability traits measures

### Start your own journey

Get the [Innovation Accounting book](https://link.pbsc.no/iabook?ref=pesec.no) to learn more about each measure, including practical tools and advice on how to create your own innovation accounting system:

[Innovation Accounting - the new book by the authors of The Corporate StartupWritten as an add-on to The Corporate Startup, the Innovation Accounting book provides a practical guide for measuring your company’s innovation ecosystem![](https://innovationaccountingbook.com/files/2021/09/cropped-Icon-270x270.png)Innovation Accounting BookTristan Kromer![](https://innovationaccountingbook.com/files/2020/11/stacked-cover-Innovation-Accounting.png)](https://link.pbsc.no/iabook?ref=pesec.no)

Alternatively, book a call with me to discuss implementing innovation accounting system in your organisation by clicking the button below:

Schedule your call