PROPOSING AN AGGREGATED MEASUREMENT OF INNOVATION: THE COMPOSITE INNOVATION INDEX (CII)

In order to make innovation as tangible as possible, it is necessary to structure creativity. Therefore, innovation processes should be constantly monitored and quantified, like any other aspect of an organization’s performance. A 2010 survey reveals that only 22% of top managers have implemented innovation-performance measurement indicators in their organizations. This indicates that most of the global innovation phenomenon is still waiting to be measured, evaluated and streamlined, by virtue of fundamental benefits such as: efficient allocation of resources, focus of innovative efforts and maximizing value in the company. The Composite Innovation Index is a tool proposed for the market or industry-wide measurement of innovation and is based on 6 main determinants of innovation, named “dimensions” of innovation. Data for the computation of the index is surveyed by the questionnaire or interview methods. After having designed a questionnaire addressed to management employees of the banking industry in Romania, the Composite Innovation Index obtained thereby reveals a somewhat below-average level of proactivity of the banks in Romania in the phenomenon of innovation.