Etiennot, H. , Corrales, J., 2007. Measuring innovation: A framework for action . In Davila,T. Epstein, J. & Shelton, R. (eds.) . The creative enterprise-Managing innovative organizations and people: Vol.3. Ch.10: 209-229. Westport, CT: .
The importance of innovation for both society and organizations’ survival is widely accepted. In addtion, scientific management developed by Taylor in 1911 highlighted the relevance of measurement systems. Knowledge of both concepts evolved and improved during the 1900s, but benefits of joining them and creating a performance measurement system for innovation were first neglected, later questioned, and accepted only in the last decade. This chapter aims at providing the criteria and steps needed to set up a measurement system that helps to enhance innovation. The chapter is structured as follows: first, it discusses the evolution of performance measures for innovation. Second, it introduces strategy as leading the innovation measurement system, and the business model as the framework required to key metrics. Third, the chapter emphasizes the importance of cascading down this business model to the different organizational levels. Finally, it uses the Balanced Scorecard concept to design the measurement system because it covers both previous dimensions: the business model and its drill down.