If you want to come back to Schumpeter, you also need to read "Business cycles" (1939) where Schumpeter has an in-depth and comprehensive analysis of innovation. Strangely, it is not read neither cited since 30 years. You can even check that the term "innovation" is used twice in each page !

The sub-title is "A Theoretical, Historical and Statistical Analysis of the Capitalist Process" but should be "Theory of innovation".

Innovation is not a single act and an innovation act may not have instantaneous results. Therefore, innovation can be regarded as a continuous exercise with sequence of innovative acts. 

On the other hand, creation of business is an one time effort. Once a business is created, it exists (until it couldn't go on any longer).

Faris:

While I have no equation to share with you, perhaps the relationships shown in my response below will prove useful to you in backing into that equation ... at least that is my hope.

• Innovation is the process whereby ideas get birthed (ideation), and transformed into new (creation) products, services, or processes (inventions) that increase individual, organizational, or societal effectiveness or efficiency (improvements).
• People establish business entities to create a new (by inventing) market or marketplace or to successfully compete (through improvements) in an existing market or marketplace.
• Therefore, the results of innovation precede business entry and success.

I hope that helps you somewhat.

Mr Alshubiri,

Interesting question in so far as the issue of quantitative innovations is concerned.

Like Mr Klagge, I too do not have any equations to offer. To be perfectly honest, I doubt if anyone on Researchgate or anywhere else might have equations for you – I do not think they exist. I shall come to that in a moment. First I will address the difference between innovation and creation of business. No innovation is required to create a business. If you can sing, you advertise your singing capability and attract customers who want to have a singer present at a party, for instance. If you can clean houses or offices, you can set up a business. Here in The Netherlands a Moroccan woman started a business cleaning offices. The process of acquiring customers may well require an innovative approach. Harnessing the Internet to help in customer acquisition may well have been an innovative approach, and certainly for a woman who has perhaps not seen the inside of a lecture hall. For an Internet web-site developer, the use of an website for customer may not be an innovation, but when it is used to provide a cleaning service, even he may be persuaded, albeit reluctantly to acknowledge that the WWW has been innovatively used to offer a mundane service such as cleaning. The point I am trying to make is that the notion of innovation may well vary between beholders, buyers, academics and the general public.

That brings me to the important issue of measuring innovation. How would that Moroccan woman measure her innovation? How would I as, say,  a business person measure the innovation of office cleaning service? Are there measurement units for innovation? If so, we should be able to compare the innovation of office-cleaning service with say, taking photographs with a camera, or with a mobile phone? As a hands-on innovator who worked on IT like AI/ES and previously on electrical appliances, I am totally and absolutely unable to measure, to compare my own innovations. I would be interested to hear from others who have done such measurements, wherever in the world.

Now, let me try to address your question with a number of questions in relation to measuring innovations:

1) What kind of innovation is it?

2) Can it be compared with another innovation?

3) How would the comparison be done?

4) Would it be an objective measure and if so in what way?

5) Would it be subjective, and if so in what way ?

6) How long did it take to move from idea to prototype, and then to manufacturing?

7) Who could be buyers of the innovation?

8) What kind of advantage or benefit does the innovation offer?

9) How different is this innovation compared to another?

10) Is this a disruptive innovation?

11) What is revolutionary about this innovation?

I can spin more questions. Therein lies the difficulty. There is no single measure of innovation, at least I do not know of it and am not ashamed to admit it. But, if you are looking for a measure, it will probably be a proxy measure of some kind. You might want to brush up on your knowledge of multiple regression or multivariate regression to come up with some measure. And then, you still have to convince others that yours is a valid measure. You have your work cut out for you. I hope my response helps. I would be pleased to be kept posted about the progress you will be making in your attempts to find the silver bullet answer to the question you have posed. Good luck.

Dear Stanley Kam Sing Wong ,Jay Klagge and Phil Barbonis 

Greetings,

Thank you so much for your answers . In fact  very huge and important information's and interesting for me , many thanks my friends .

Best Regards

Innovation is basically the foundation for creating profitable business. You can refer D.H. Holt's book "Entrepreneurship". A complete chapter is devoted to innovation and creativity

To be brief

Innovation is adding value for the existing product /service and giving out of the box  solution / dimension for the issue.

Where as creation is something which needs to be started right from the scratch without any basic ideas about how to proceed further.

Hi Faris,

The above answers give excellent insights into what innovation is. A few years ago some colleagues and I were doing a survey on the performance of service firms. As part of this survey we sought to measure aspects of innovation, including on the frequency, type and purpose of innovations. As you asked for measures, perhaps these are of some help. We also looked at the methods firms use to protect their innovations from imitation by rivals. Here is an extract from the Questionnaire (attached file). 

Best of luck with your research.

Hi Faris,

“innovatus” in Latin, is "innovation"  is meaned as "recreation".Innovation studies which  shed light on the Schumpeter (1939) innovation coined the definition of innovation with one separating the "invention".As to Schumpeter, İnnnovation is inventing the new assets in tecnologhy  and medicine. But in tourism to my option; innovation is a presenting in a different style of touristic products. 

Creativity and innovation is close  two sides of the same coin. So, Creativity in the process of putting forward new ideas. İnnovation is; the transforming of defining the real innovation of creative ideas, implementation and creative thoughts.

Best regards...

meant

Definitons are so widely and it is very  important to define "innovation" for every department,; tourism, technology, science, product innovation, service innovation, etc..

So, I  should know the first author of these concepts. 

Dear Faris

I have conducted a research on the impact of TQM on innovation perfomance. But in my case I have taken innovation in two aspects product innovation and process innovation. Whatever innovation for product or process either to be transformational innovation or incremental innovation and each one is measured by specific parameter based on definition and operationalization of this definitions. So as per Bak comment the indices for measuring innovation depend on the cocept of the term. I do hope this will make sense .

Innovation is a recombination of existing knowledge in something that is new for someone (companies or customers). A new business is an innovation only if it realizes a product or a process that advance the state of the art.

About the index you can see the Global Innovation Index. However a measure of innovation is changing. In Open innovation may be considered breadth and depth of the sources. In closed innovation patents and R&D expenditure.

I believe that Creation is how someone develops a product or service that is different.  Successful Innovation is how it the product or service is both different and better. To build success (i.e. share of customers' wallets), you need to build a customer's share of Mind and share of Heart.  They have to know about the product, and care about the product. Being Different shares the Mind.  Being Better shares the Heart. 

You may find some définitions in the enclosed paper. To be short, 

1-Innovation is a new social paradigm wjth a sustainable and increase efficiency.

2-Innovator chooses the technical standard + the business model  and makes significant sales (he creates new kind of value)

3-Entrepreneur creates old kind of value in a new place or with a new color : there is no new kind of value.

Dear my friends ,

Thank you very much for your formations , it is very interesting for me and useful ,

Best Regards

You might be intereseted in the attached paper.

Dear Juha Kettunen 

Thank you very much for your attached ,

Best regards

Dear Faris,

I would like to contribute something to the quantitative measurement of innovation in Europe, pls. see the "Innovation Union Scoreboard 2015" attached. I study the adoption & adaption of Open Innovation and found this a good benchmark source, to measure innovation, not only in the business context (see Enabler). Best wishes for your resaerch, Rafaela

Dear Rafaela Kunz ·

Thank you very much for your contribution . In fact it is very useful and interesting for me ,

Best Regards

Dear Faris

It is necessary to come back to Schumpeter (1911) --"Theory of development economy" to appreciate the origins of the discussion of innovation and entrepreneurship. In this book Schumpeter suggests that radical innovations, ie the new products and processes and changes in organizational forms and marketing; that is the new combinations were radical and explained by the emergence of entrepreneurs . During the development fase, the entrepreneurs entry lead to the emergence of quasi-rents and to high differences in productivity and rate of profit. The excess supply leads to a fall in prices and the exit of "incumbents" that do not adopt the productive practices of entrepreneurs. In Capitalism, Socialism and Democracy (1942) Schumpeter stresses on the process of creative destruction without using the metaphor of the entrepreneur. In this book the creative destruction process is lead by the big firms --"concerns"- that lead to the emergence of innovations, but mainly incremental ones. I am attaching a chapter of a book and its introduction that we have published two years ago (topics of neo-Schumpeterian evolutionary economics...) that raises and extends that discussion.

Best regards

Dear Gabriel Yoguel 

Greetings,

Thank you very much for your comments . In fact it is very useful for me ,

Best Regards

If you want to come back to Schumpeter, you also need to read "Business cycles" (1939) where Schumpeter has an in-depth and comprehensive analysis of innovation. Strangely, it is not read neither cited since 30 years. You can even check that the term "innovation" is used twice in each page !

The sub-title is "A Theoretical, Historical and Statistical Analysis of the Capitalist Process" but should be "Theory of innovation".

Dear Patrice Noailles-Siméon 

Greetings,

Thank you very much my friend for your contribution . In fact it is very useful for me,

Best  Regards,

The creation of business involves the introduction of new ideas, goods, services,  technology and so on, which is - invention. Innovation on the other hand is the successful exploitation or the commercialization of these new value creation. However, read Schumpeter's (1939) theory of Business Cycles for detailed knowledge on the concept of innovation and invention

Dear Ihuoma Ikemba-Efughi

Greetings,

Thank you very much for your comment. It is useful for me 

Best Regards

Dear Dr, Faris,

 Creation of a business may involve original inventions or recreation of already existing products  with slight variations. These are called the different models or variants of the product. 

Innovation , on the other hand, involves a totally new way of conducting a business. This may include innovation in process, service, delivery , location , communication or any other aspect of the business,

I do suggest you read Joseph Schumpeter's theory of Business Cycles for further understanding. All the best.

Dear Dr. Shouvik Sanyal 

Greetings,

Thank you very much for your contribution . In fact it is useful and interesting for me .

Best Regards

Dear Aleš Kralj

Greetings,

Thank sir very much for your informations.

Best Regards

Dear Faris,

Look at my attempt for measuring innovativeness in terms of business. Even more, it is a way to measure business potential for innovation performance and capability of a company.

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

Faris,

This presentation may provide some answers to your question

Presentation Quantifying the Productivity Gains from Investing in Innovat...