Innovation Quality - A New Firm-level Innovation Indicator

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I wrote this article, seeing the situations where firms, especially the small and medium scales, often need more clarification and correct perceptions regarding innovation. In practice, firms frequently relate innovation solely to the radical one, which can risk losing resources without proper management capability, and do not realize that innovation can occur incrementally. It makes firms reluctant to continuously innovate since they need more resources and capability to perform a radical innovation. Conversely, some firms sometimes focus only on incremental innovation, although they can perform the radical one. Showing the definition and concepts may not work to build a clear mindset. Therefore, a quantitative measure regarding innovation success level, termed innovation quality, can provide a clear picture concerning how the two types of innovation - radical and incremental - can be equally performed and become a substitution or complement one another.

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