Measurement of the efficiency of innovation systems
When measuring the impact of innovation on performance (Hauschildt and Salomo 2007) proposed the use of economic measures. Prominent researchers like Valenta have often discussed these economic measures when evaluating innovation and their studies have been a success. Valenta (2001) argued in his latest publication that the enhancement of undertaking’s economic efficiency is not just the consequence of revolutionary development steps, but also of non-manufacturing developments in management and maintenance practices, and is strongly affected by the external environments. When carrying out innovations, we try to figure out what economic benefits or improvements are produced from the developments introduced in the cycle and the comparison of the benefits to their expense. At any step of the invention cycle, there would be concerns as to how it will be acceptable to start operating on the idea, to meet goals, and if the product will succeed in the market (Tidd; Bessant & Pavith 2009).
At the same time, the measurement of the efficiency of innovation systems has a range of very different characteristics. Authors also propose evaluating investment performance with an analogous indicator to those used to evaluate investment effectiveness like net present value, economic added value, profits, and payback periods. And the latter proposes assessing investor performance. A project management methodology may also be employed: which will forecast potential cash flows and produce cash reserves, measure the return rate on the invested money, quantify financial metrics and equate the values with pre-determined parameters. (Erner & Press 2010) (Huang, Soutar, & Brown 2004; Menschench 2002; Patterson 2009). However, the use of these economic indicators is hampered by the problem of determining the cots that were incurred and especially the quantification earnings in the future (Kislingerova 2008).