Two years ago I supervised a diploma thesis "Jan Lippitsch "Project selection criteria for innovation projects" (Univ. Augsburg. We found hundreds of academic articles. The first one was The Selection of Projects for Industrial Research by C. M. Mottley and R. D. Newton. We have not found a conclusive paper that gives a really satisfying answer,

ISSUE: Innovation and competitiveness. These are completely two different issues.

INNOVATION: There are two measurement for innovation. Innovation comes in two types: (i) performance improvement, and/or (ii) cost reduction. In both cases, a reference point is required. The reference point may come from within the organization; in this case, this period's performance or cost reduction may be compared to that of prior period, i.e. prior mean. This internal reference point may give an "internal assessment" within the organization; however, it cannot verify whether an "innovation" had occurred. in order to do that the organization's performance must be gauged against its peers in the industry.

   Suppose that x1, x2, ..., xn are the output for period t1, t2, ..., tn respectively. The organization has its internal mean of x*. This mean is an internal reference point for this period's output xt. This period's output is compared to that of the industry peers: y* where y* is the mean for the industry: (y1+ y2 + ... + yn) / n. with a predetermined confidence interval (CI), say at 80/20, innovation for the organization may be verified at tobs => 0.84. The industry reference point is given as the industry mean (mu) which is given by:

(1)   muy = X* - t(S / sqrt (n))

... where muy = industry output mean; t = 1.64 for infinity degrees of freedom; S = standard deviation of subject firm's output and n = number of observations.

(2)   sigma = [(X* - muy) / Z] (sqrt (n))

... where sigma = industry estimated standard deviation; muy = industry mean output; Z = 0.84 for CI = 80 ro 1.65 for CI = 0.95; and n = number of observations. 

   The point where innovation occurs is muy + 2sigma for 0.95 confidence interval. Anything above the mean, but below mean plus 2 standard deviation is withing normal range of fluctuation. No innovation. Similarly, for cost reduction, there is an innovation in cost reduction if the reduction of cost is located to the left of mean cost - 2 standard deviation.

COMPETITIVENESS: It has been written by many that "innovation is keyed to competitiveness." It is true, but one must look at the argument more carefully. Competitiveness is a dependent variable: (Y variable) and innovation is a dependent variable (X variable). Innovation above is measured by output quantity. Competitiveness is measured by revenue. Competitiveness may be looked at in terms of increased market share, increase customer-base, etc. However, ultimately, it boils down to one thing: revenue. Not just raise revenue, but revenue that translates to increased profit. Not just profit, in order to qualify for being a competitive firm, the profit must be "sustained profit," i.e. continued year-after-year profit.

   Can a firm be competitive without being innovative? Yes. A company engaging in conventional (nothing new) marketing campaign may secured sustained profit year after year. This is a case of commodities market. Agricultural products, natural raw materials, for instance, are profitable businesses, but there are hardly any innovation in pumping crude oil into barrel and transport it to market. Precious metals are other examples. There is no need for innovation in selling gold; the gold mining process may need innovation, but not selling the commodity itself.

   Can a firm be innovative without being competitive? Yes. A good example is KODAK. Its discovery and invention of new technology were innovative. However, its faulty management misled the company into a direction contrary to market trend, i.e. digital imaging. The company falters, lost profits, and finally filed for bankruptcy. here, Kodak evidenced that innovation alone is not enough to survive in the market.

In order to have a win-win scenario both innovation and competitiveness must be pursued simultaneously. Innovation requires continuous improvement within the organization. Competitiveness requires continuous outperforming one's own track record in the market. "Industry competitiveness" that would mean outperforming peers in the industry.

Major output indicators are patents and relevant innovation; I would prfer the latter, especially when measured as share of sales due to innovative products, that is a direct measure of economci success of innovation. It is an indicator you can find in the Comunity Innovation Surveys (CIS). Regards, MV

Isn't the answer to this pretty simple? Assume that the tools are technologies (e.g. programming frameworks/languages). First if the team doesn't have the necessary skills to use the technologies to the max. then it is not a discussion about measuring the tools. 2nd obviously each tool has got certain advantages over another, so then the question is what kind of competitive advantage do you want/need to achieve (what is the purpose). This may then indicate which tool you should ideally use. 3rd a tool may be ideal to achieve a certain competitive advantage locally but is the tool also usable in other environments? Is portability sufficiently supported for a global roll out? - I hope this helps.

Hi Marie

I have an article on Innovation Capacity measure in the list of my RG publications. Feel free to download. I hope it is useful. TQ

Two years ago I supervised a diploma thesis "Jan Lippitsch "Project selection criteria for innovation projects" (Univ. Augsburg. We found hundreds of academic articles. The first one was The Selection of Projects for Industrial Research by C. M. Mottley and R. D. Newton. We have not found a conclusive paper that gives a really satisfying answer,

I recommend reading: 

Rosenkopf, L., Ungar, L. H., & Upham, S. P. (2010). Innovating knowledge communities: An analysis of group collaboration and competition in science and technology. Scientometrics, 83(2), 525-554.

you are asking for tools that make innovation competitive, however, any such 'tool' would have to be defined in relation to its purpose. Hence, may I ask you for the purpose of your question?

innovation may become competitive only after creating a demand.

Dear Marie,

Have a look at the Company Innovative Leadership model. It aims at assessing and measuring the innovation capabilities/capacity of companies.

Article Company Innovative Leadership Model

Article Measuring the Bulgarian IT Sector Innovations Capabilities T...

Now I am at the final stage of writing a book: The Business Innovation Book. Your question a subject of the book.

Follow my project!

https://www.researchgate.net/project/Business-Innovations-textbook

Some resources about innovation metrics!

The Complete Guide to Innovation Metrics – How to Measure Innovation for Business Growth

"Metrics can be important levers of innovation – for driving behavior, as well as evaluating the results of specific initiatives. Companies like 3M and Google have had innovation metrics for years – the most noteworthy that 10% of employees’ time is dedicated for experimentation with new opportunities.  Some companies like 3M have tried to mandate that 35% of the corporations’ revenues should come from products introduced within the past four years.

Defining the right metrics for your business can be tricky. There’s generally no one right answer and agreeing on what to measure can feel more like art than science..."

Innovation Metrics: Measurement to Insight

"There is an urgent the need for better innovation metrics to reflect today’s knowledge based, dynamic and globally networked economy and to ensure that the US continues to be the most fertile and attractive environment for innovation in the world. High quality, relevant and more timely innovation metrics will enhance public understanding, help policymakers benchmark the nation’s innovation performance, and thereby improve policy making and business strategies... "

http://www.innovation-point.com/innovationmetrics.htm

http://www.innovationmanagement.se/wp-content/uploads/pdf/Innovation-Metrics-NII.pdf