Innovation Accounting

Innovation accounting is a way for startups and companies to measure and track the progress of their new ideas and projects. Since traditional financial metrics may not suit early-stage innovations, it focuses on specific metrics like customer engagement, learning milestones, and the development of core assumptions. This approach helps teams identify whether their innovations are moving in the right direction, allowing for informed decisions about whether to pivot, persevere, or abandon ideas. Essentially, it provides a structured framework to evaluate innovation efforts in a meaningful, data-driven way during uncertain and experimental phases.