Gross Margin

Innovation Measures #10 – Innovation ROI

Innovation Measures #10 – Innovation ROI

The final measure in this series is ultimately the one that really matters: Innovation Return on Investment. While most of us are seeking growth from innovation, we must also compete for investment capital and be good stewards of the firm’s resources as we pursue that growth. The innovation ROI metric attempts to demonstrate that we are delivering returns on capital in the form of incremental margin. The simplest form of the metric is incremental gross margin from innovation divided by total investment in research and development.