Vitality Index

Innovation Measures #7 – Innovation Vitality Index

Innovation Measures #7 – Innovation Vitality Index

Our continued exploration of innovation metrics brings us to a classic that has been widely adopted by leading organizations to measure the effectiveness and productivity of their investments in innovation. The innovation vitality index is most often calculated as the percentage of gross revenue generated from products that have been launched in the past three years. In its pure form it measures the turnover of the firm’s product portfolio to ensure that it is continually being refreshed.