Whether you are new on the journey of corporate innovation or a seasoned innovation executive, eventually your efforts need to show return of innovation investment (ROII).
There are a handful of metrics you could consider in your calculation for ROII. On the input side, R&D and Capital Expenditure measure the company’s spending on internal innovation, while corporate venture capital (CVC) investment can indicate a company’s spendings on external startup activities.
The relationships between output financial performance and these input innovation-related spendings are not straightforward. However, the underlying complex relationships may be used by machine learning techniques to predict future financial performance.
Runway’s latest Research Report “Using Innovation Metrics to Predict Corporate Revenue Growth” shows how this prediction can be done with nearly 80% accuracy and 8% median error, based on data from 241 publicly-traded technology companies over the ten-year period of 2011-2020. The prediction not only covers large sized companies, but also shows how medium and small sized firms’ revenue can be predicted from innovation spending.
The described methods can help you and other business leaders assess a company’s present innovation state and predict near-future revenue growth based on the present innovation spending effort.
Read on to learn about how to get your insights on your ROII with the following report
How To Get Your 2021 Innovation Report
Measure Your ROII
Understand how your investment in your future growth depends on your focus on innovation. In this research you’ll learn:
1. How your revenue will be affected
2. The resources you will need to assess your innovation metrics
3. What innovation means to your bottom line and company as a whole
Runway Innovation Hub is here to bring you the latest research in innovation and future business states. To get the latest research for 2021, just let us know where to send it below.
About Runway Innovation Hub
Runway is a Silicon Valley-based innovation company accelerating the success of global innovators and entrepreneurs. We provide result-focused innovation consulting services for corporations and coworking, mentorship and acceleration programs for startups.
Since 2013, we have has accelerated the innovation efforts of 40+ companies like Fujitsu, Lenovo, Emirates, Epson, and IBM through customized innovation strategy services.
Learn more about how we can help your organization here.