Tuesday, March 4, 2008

How to Measure Innovation

At Creativity and Innovation, a recent post mentions the new report the US government released on how to measure the impact of innovation on the economy. The report can be found here.

When measuring innovation’s impact on the economy, the government uses the Total Productivity Factor. However, this is not an exact science, but the numbers are based on the assumed result of innovation. There report concludes that there is no exact way to determine the direct results of innovation, yet they conclude that they are going to be measuring two new things in the future to help measure innovation in the economy: measure high tech goods and services, and also work on new data collection efforts. What do you think is the proper way to measure the effect of innovation on our economy?

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