Bringing some order to the 'black art' of innovation measurement

Measurement of innovation is critical to management but unfortunately it is an extremely tall order, which results in it being referred to as a 'black art'. It is particularly troublesome for firms, which operate in highly complex and turbulent environments. Extant literature is characterized by a diversity of approaches, prescriptions, and practices that are more often than not confusing and contradictory. We require good theory both to suggest which metrics are needed and to interpret the resulting data. In this paper we return to the literature in order to build a conceptual framework to guide the measurement of innovation. In addition we perform an initial validation of the framework against an online repository of content on innovation measurement and in so doing we arrive at a taxonomy of innovation metrics. While useful in its own right, the taxonomy also highlights both the strengths and weaknesses in the current approach to innovation measurement. Finally we use the framework to draw out four key questions that should be addressed by management before choosing appropriate metrics. We foresee management using both the taxonomy and the guiding questions to evaluate their own measurement activities.