The Norwegian Innovation Index: Pioneering Customer-Centric Innovation Measurement

By Ed.

6 September 2024 08:52

The Norwegian Innovation Index: Pioneering Customer-Centric Innovation Measurement

Developed by NHH Norwegian School of Economics, the Norwegian Innovation Index (NII) offers unparalleled insight into customer perceptions of innovation within Norwegian companies.

NII-logo

This groundbreaking index employs a rigorous methodology, incorporating data from Statistics Norway (SSB) and comprehensive questionnaires, to gauge companies' capacity to meet and exceed customer expectations. The NII serves as an invaluable resource for customers, policymakers, and business leaders seeking to understand and enhance innovation in Norway.

The Norwegian Innovation Index is the brainchild of professors Tor W. Andreassen (NHH), Seidali Kurtmollaiev (Kristiania and NHH), and Line Lervik-Olsen (BI and NHH), developed under the auspices of the Center for Service Innovation (CSI) and Digital Innovations for Sustainable Growth (DIG) at NHH.

This annual assessment captures the perceived innovation capabilities of Norwegian companies through the lens of approximately 23,000 customer voices.

The NII methodology has gained international recognition, with nine countries adopting its framework under the Innovation Index Coalition (IIC) banner. By focusing on customer perceptions, the index provides crucial insights into the factors that drive the adoption and success of new products and innovations.

Significance for Stakeholders

The NII's importance extends across various stakeholder groups:

1. Customers: The index empowers consumers by amplifying their voice in the innovation process, allowing them to articulate their perceptions of companies' innovation prowess and market appeal.

2. Policymakers: NII offers valuable insights into the adaptability and innovation drive of Norwegian businesses, informing policy decisions aimed at fostering innovation at the national level.

3. Business Leaders: As a benchmark tool, NII enables executives to assess their innovation performance relative to competitors, guiding resource allocation to enhance innovation capabilities, customer loyalty, and market position.

Methodology and Model

The NII model is grounded in extensive literature review and in-depth customer interviews. It employs structural equation modeling (SEM) using LISREL 9.30 software for large-scale analysis, with SmartPLS 3.2.6 utilized for smaller samples or specific segments.

The comprehensive questionnaire encompasses multiple dimensions of perceived innovation, featuring three endogenous variables and four exogenous variables, each explored through a series of targeted questions.

Research Design

The NII's research design ensures representative and reliable data collection:

1. Data Sources: Leveraging Statistics Norway (SSB) data to identify key industries and companies based on household consumption patterns.

2. Industry Selection: Focusing on sectors that collectively represent at least 70% of total household consumption.

3. Company Selection: Within each industry, companies are chosen to represent 70-80% of the market share, divided into research and supplementary samples.

4. Respondent Pool: A nationally representative sample of Norwegians aged 15 and above, recruited through Norstat's web panel of approximately 40,000 individuals.

5. Sample Size: A minimum of 300 respondents per company in the research sample and 100 per company in the supplementary sample, ensuring robust data collection.

Conclusion

The Norwegian Innovation Index stands as a powerful instrument for measuring and comprehending innovation from the customer's perspective. By providing nuanced insights into consumer perceptions of innovation, NII offers invaluable data for companies seeking to enhance their market position, policymakers shaping innovation strategies, and customers aiming to identify innovation leaders.

The index's meticulous research design ensures its data accurately represents the Norwegian population across economically significant industries, establishing NII as a trusted source of innovation insights.

We encourage Norwegian enterprises to adopt the NII methodology and invite relevant analytical environments and consulting firms to assist businesses in implementing this valuable tool.

For further information, please contact Professor Tor W. Andreassen