The input measures in an asset mapping are useful descriptors of the regional business environment. However, it is critical to remember that the ultimate goal of economic development is not high research rankings, new business creation, or even jobs – it is to increase the prosperity of the regional citizenry. Therefore key outcome measures should be tracked. Following the framework provided above, there are three outcome areas to be assessed.
At the end of the day, the ultimate evaluation of economic development initiatives should be whether the people impacted have a higher standard of living. While the concept of prosperity includes a number of subjective parameters (e.g., personal happiness), it can be quantified through financial metrics such as per capita income, median household income and poverty levels. Find details and sources about Prosperity as an output measure of innovation capacity.
Regional residents’ standard of living is determined by the productivity of the regional economy. Productivity is a measure of the value of goods and services produced per unit of labor and capital employed in creating the good. Put simply, it measures output per unit of input. The level of productivity sets the wages that can be sustained and the returns earned by investors, which are the two principal components of a region’s per capita income. Find details and sources about Productivity as an output measure of innovation capacity.
Productivity today sets current competitiveness, but growing a region’s standard of living requires the steady growth of productivity. A high level of productivity itself is not enough when developing countries and regions are improving their skills, and can rapidly access modern technology. Advanced regions need to continually innovate to be able to produce products and services that lower wage regions cannot yet offer, and to maintain the productivity advantage that supports their higher wages. Find details and sources about Innovation as an output measure of innovation capacity.
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