Introduction of an Evaluation Tool to Predict the Probability of Success of Companies: The Innovativeness, Capabilities and Potential Model (ICP)

Successful innovation requires management and in this paper a model to help manage the innovation process is presented. This model can be used to audit the management capability to innovate and to monitor how sales increase is related to innovativeness. The model was developed from a study of companies in the high technology cluster around Munich and validated using statistical procedures. The model was found to be effective at predicting the success or otherwise of the innovation strategy pursued by the company. The use of this model and how it can be used to identify areas for improvement are documented in this paper.