i2Metrix Measuring Corporate Innovation Capacity

Tran Tri Dungtran@dhvp-research.com

Hanoi, November 26th 2014

Entrepreneurship & Innovation:The Best-fit Predictor

Orientation

Resource Prospect Total

FailureRent-seeking 8 29 37

Innovation 0 10 10

FraudRent-seeking 181 19 200

Innovation 5 4 9

194 62 256

Business Approach: Rent-seeking vs. Innovation-makingCorporate Orientation: Tapping out resources vs. Seeking prospective markets M&A Acquiring Pursuit: Assets & brands vs. Innovation Capacity & willingness

* Vuong, Q.H., Napier, N.K. & Samson, D.E. (2013). Innovation as determining factor of post-M&A performance: The case of Vietnam. International Journal of Business and Management, 8 (18).* Vuong, Q.H., Napier, N.K., Tran, T.D. & Nguyen, T.H.K. (2013). A Categorical Data Analysis on Financial Failures in Vietnam, 2007-2013. International Journal of Business and Management, 8(18)

Inclusive Innovation Metrics (i2Metrix)Strategic Management

of InnovationAcademic Institutions Business Associations

Market Testing: Feb. – May 2014

Advisory Services: Since June 2014

Boise State Uni., USAStamford Int. Uni., Thailand

BSA & DHVP(Vietnam)

Premium-Quality Enterprise Association

Leading Businesses Club(Vietnam)

• 11 provinces and cities• 12 industries• 40 corporations:

– Revenue: $2 billion/year– Growth: 15%/year– 35.000 jobs– 60% premium-quality Vietnamese

producers, manufacturers– Various types and sizes

• Measure and analyse corporate innovation capacity:

– Balance: Inputs; Outputs; Supports

– Comparison by industry and size– Signals of room for innovation

capacity improvement

6.5

7

7.5

8

8.5Output

Differentiation

Trend-setting

Innovator

F-Resources

Supports

Multi-Filtering

Mindsponge

Implementation

C-Readiness

i2M Pharma i2MFood 40 Firms

i2Metrix 2014

6.0

6.5

7.0

7.5

8.0

8.5

9.0 Output

Differentiation

Trend-setting

Innovator

F-Resources

Supports

Multi-Filtering

Mindsponge

Implementation

C-Readiness

i2M Large Size i2M Small Size

• Innovation:Market positionDifferenceTrend

• Large firms (Assets > VND100 Bln, ~ $5 Mln):

Information managementStrategic management of innovation

• Small firms (Assets < VND100 Bln, ~ $5 Mln):

Information management Capability of “digesting” support resources:

Beware of resource curse!

APPLICATIONs of i2Metrix• Analyse and acknowledge innovation efforts

17 innovative firms received certificates of award by Minister of Science and Technology

• Insightful inputs for designing of policies and programs on facilitating innovation process • Method and instrument of monitoring and evaluating innovation process and improvement

Tigers@Mekong 2015-2016:Vietnam, Laos, Cambodia, Thailand, and Myanmar

• Improve competitive capacity: Corporate innovation capacity building Strategic management of innovation

• Signals of resource allocation: R&D Innovation-based entrepreneurial endeavors