Measuring Innovation in the Age of Intangibles

This knowledge synthesis report was produced for the Council of Canadian Academies (CCA) as a part of their 2025 assessment on the State of Science, Technology, and Innovation in Canada. CCA commissioned 8 papers from experts across Canada to synthesize evidence and provide new insights on key issues. 

Shift Insights was tasked with synthesizing the current state of knowledge on measuring innovation in an age of intagible assets. The following is an overview of the key points form the paper:

• Measuring innovation performance and potential in an increasingly intangibles-focused economy is difficult but necessary in order to provide a foundation for better policies, programs and strategies.

• Indicators and approaches to innovation measurement are better when they are accurate (i.e.,capture the phenomenon being measured); reliable (i.e., produce the same results for the same phenomenon when measured across time and space); globally comparable; and meaningful.

• Innovation measurement should:

  • draw on a mix of input, output and outcome measures – especially business spending on research and development, patents (including ownership and use), and multifactor productivity;

  • nclude technology-adoption and use indicators given technology’s process-oriented role in contributing to innovation and productivity;

  • incorporate intangible investment indices to capture insight on inputs to intangibles- driven innovation;

  • use aggregate scorecards only as a starting point given their peculiar methodologies; and

  • use innovation surveys with caution given their accuracy and comparability challenges.

• Innovation measurement would benefit from the development of better data on patent ownership and use and intangible asset development; a systemic examination and improvement of innovation surveys; and clearer definitions and data related to inclusive and social innovation.