Return On Innovation Investment

Filed Under »
Dictionary Says

Definition of 'Return On Innovation Investment'

A performance measure used to evaluate the effectiveness of a company's investment in new products or services. The return on innovation investment is calculated by comparing the profits of new product or service sales to the research, development and other direct expenditures 
generated in creating these new products or services.

Also referred to as "R2I" or "ROI2."
Investopedia Says

Investopedia explains 'Return On Innovation Investment'

The focus of this metric is not only to determine how well a company is turning its investments in new products or services into additional profit for the company, but also how efficient it is in its R&D spending. The better a company is able to forecast the demand for its new offerings, as well as how efficient it is in allocating resources, the better its return on innovation investment should be.
Search results for

'Return On Innovation Investment'

  • A Checklist For Successful Medical Technology Investment

    http://www.investopedia.com/articles/stocks/08/medical-tech-investment.asp
    ... a potential medical technology investment, it's generally ... reading, see Which Is Better:
    Dominance Or Innovation? ... above-average margins and return on invested ...

  • UFP Technologies: Growth By Innovation

    http://stocks.investopedia.com/stock-analysis/2011/UFP-Technologies-Growth-By-Innovation-UFPT-WST-GRM-GPK-PKG0613.aspx
    ... Innovation Innovate or die! ... those assets generated $11.6 million in revenue and
    operating profits of $1.6 million, which is a 42.7% return on investment. ...

  • An Introduction To Structured Products

    http://www.investopedia.com/articles/optioninvestor/07/structured_products.asp
    ... upon a time, the retail investment world was a ... TUTORIAL: Index Investing One innovation
    that has gained ... to facilitate highly customized risk-return objectives. ...

  • Top 4 Signs Of Over-Diversification

    http://www.investopedia.com/articles/financial-theory/11/signs-of-over-diversification.asp
    ... has shown that the effects of return smoothing can ... Investors.) The Bottom Line Financial
    innovation has created many “new” investment products with ...

  • Key Reasons To Invest In Real Estate

    http://www.investopedia.com/articles/mortgages-real-estate/11/key-reasons-invest-real-estate.asp
    ... That said, advances in financial innovation have presented a ... in 20 Investments: Real
    Estate Investment Trusts (REITs ... can enhance the risk and return profile of ...

  • Mutual Funds Vs. ETFs: A Comparison - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0112/Mutual-Funds-Vs.-ETFs-A-Comparison.aspx
    ... ICI reports in its 2011 Investment Company Fact ... Considerations ETFs continue their
    innovation, offering active ... of synthetic ETFs, for which return comes from a ...

  • R&D Spending And Profitability: What's The Link?

    http://www.investopedia.com/articles/fundamental-analysis/10/research-development-rorc.asp
    ... 2010 | Filed Under » Stocks. Great companies invest in innovation. ... Known as return
    on research capital, or RORC ... assumes a one-year average investment cycle for ...

  • Sharpen Your Portfolio With Intelligent ETFs

    http://www.investopedia.com/articles/mutualfund/08/intelligent-etfs.asp
    ... intelligent index outperforms the average return of its ... ETFs has encouraged more
    innovation among different ... blends of passive and active investment styles, and ...

  • Investing In Medical Equipment Companies

    http://www.investopedia.com/articles/stocks/09/investing-medical-equipment-companies.asp
    ... in turn give investors a superior return on their ... must adapt to the rapid innovation
    in medical ... Trends And The Implications For Investment.) Health insurance ...

  • A Different Magic Formula

    http://stocks.investopedia.com/stock-analysis/2010/A-Different-Magic-Formula-CPB-RAH-CAG-SLE-MKC-K-SJM-GIS-PEP-GMCR0223.aspx
    ... The higher the return the better. ... it just two stars because of its lack of innovation
    and I ... Making Sense Of It All Investment analysis is a lot like analyzing ...

Related Articles

Partner Links