The Challenge of Innovation Measurement in Small and Medium Enterprises (SMEs)

Abstract

The measurement of innovation is critical for SME success, driving economic growth, competitiveness, and social progress. Accurately measuring innovation reveals insights into an SME's adaptability, product creation, and competitive edge. However, innovation's complexity challenges effective measurement frameworks. This publication explores diverse approaches to innovation measurement, highlighting methodologies' strengths and limitations for SME assessment. It defines innovation's impact on efficiency, satisfaction, competitive advantage, and resilience, exploring inputs, activities, outputs, and environmental factors. Challenges like valuing intangibles and global disparities are addressed, suggesting future research for enhanced frameworks and sector-specific indicators in innovation management. These advancements aim to improve the accuracy and relevance of innovation measurement, supporting SMEs in continuous improvement and strategic decision-making.