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Building the System of Innovation Capability Indicators: Case of Latvia

Journal Name:

  • Eurasian Journal of Business and Economics

Publication Year:

  • 2013

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Abstract (2. Language): 
“Innovation” nowadays still is defined and interpreted in different ways. Some say that if you cannot define something you cannot measure it, and if you cannot measure it, you cannot manage it. Measuring innovation requires certain standards, definitions and methodology. Interpreting the measures requires an understanding of the “system of innovation” as a whole. Innovation is an important component for economic growth and productivity. However, taking into account constantly changing nature of innovation over time, it is extremely difficult to measure innovation. As a result, various indicators that supplement each other have come into common usage; that means one is not a predictor of the other. This paper aims to discuss and classify innovation capability measures. It is concluded that there is no general best way of measuring the innovation capability. Innovation is a complex process. Individual indicators provide useful insights into the specific components; together, they provide an understanding of the innovation process by which knowledge assets are converted into commercial applications and the linkages between the innovation process actors. In fact, the most interesting results may be obtained using a variety of different approaches at the same time.
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