Evaluating Level of Enterprise Innovativeness Through Innovation RatiosProceeding: 5th International Conference on Innovation Management, Entrepreneurship and Sustainability (IMES)
Publication Date: 2017-05-22
Authors : Hana Janáková Róbert Tomčík;
Page : 338-348
Keywords : Innovation outputs; Innovation performance; Ratio analysis;
An extension of theoretical and methodological approaches focused on assessment of the financial and innovation performance of enterprises was the main reason for preparing this paper. The aim consists of ratios proposal, allowing a general innovative-output analysis, mainly in connection with financial questions of a company. Subsequently, their use in preparing the equations describing innovative performance of enterprises according to detailed specification (sector assignment, company size, legal form, etc.) is assumed.Design/methodology/approach: Based on current findings and information obtained from financial analysis, innovation management and published statistics on innovation, research and development, a set of indicators, which are able to quantify the innovative performance, was created. Analysis (subsequently followed by synthesis) further divided into ratio analysis, vertical analysis and decomposition of indicators were used in drawing up the innovative-oriented ratios. Saaty's criteria weighting method has been recommended in the process of compiling equations used to quantify the level of innovativeness among enterprises.Findings: According to the theoretical and practical knowledge contained primarily in professional literature and by the use of selected methods, a set of categorized ratios, describing the financial characteristics of the company in connection with implemented innovations, was drew up. These characteristics include, for example, profitability of innovation outputs in a certain period of time, the impact of ongoing or finished innovations on liquidity, cost ratios on innovations and so on.Research/practical implications: Simple evaluation process of both innovative and financial performance for a certain period is considered as the main outcome for practice. Future research may be focused on incorporation of the identified indicators (ratios) into comprehensive models, enabling to describe the innovative performance of a particular group of companies (due to selected conditions or restrictions) more sophisticated and with higher-explanatory power.Originality/value: The aim of the paper constitutes initial phase of the prepared research that will be focused on evaluating the innovative performance and activity of industrial companies according to selected sector. However, it is assumed much higher applicability of the proposed ratios.
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