Return on Innovation Investment

Return on Innovation Investment measures the returns generated from investments in innovation.

 

Return on Innovation Investment = [(Net Profit from new products and services) - (innovation costs for these products and services)] / (innovation costs for these products and services)

 

This indicator is included in the book: Key Performance Indicators - the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.

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