# Innovation Performance

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<summary>Definition</summary>

Innovation Performance evaluates the share of revenue generated by innovative activities compared to total revenue. This metric reflects the societal and economic contributions of new products, services, inventions, and patents. Higher performance indicates a thriving ecosystem where innovation drives substantial economic output and enhances a region’s competitiveness.

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<summary>Navigation</summary>

Innovation Performance is shown as a heatmap across the city:

* Blue areas reflect high performance, where innovative firms drive a larger share of local economic activity.
* Red areas suggest lower innovation revenue or weaker translation of research into market value.
* Clicking on an area reveals total and percentage innovation revenue.
* Sidebar visualizations show comparisons across neighborhood

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<summary>Methodology</summary>

This metric captures the ratio of revenue attributed to innovation-related activities versus total revenue.

For each spatial unit:

* Identify all businesses and classify innovation-driven ones
* Aggregate revenue from innovation-classified businesses
* Compare this total to the sum of all business revenue in the same area

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<summary>Calculation</summary>

$$\alpha\_{\text{per}}(g) = \frac{ \sum\_{i=1}^{n} (\rho\_i \cdot \kappa\_i) \cdot 100 }{ \sum\_{i=1}^{n} \beta\_i }$$

Where:

* $$\alpha\_{per}(g)$$= Innovation Performance
* $$i\in\[1,n]$$ = domain of values describing each geo-located business
* $$\beta\_{i}$$ = Number of employees working in the business location (i)
* $$\rho\_{i}$$ = Annual revenue for each business location (i)
* $$\kappa\_i$$ = Boolean value describing whether the business is knowledge intensive
* $$g\in\[1,m]$$ = domain of values describing each building group
* $$\delta\_g$$ = Number of residents within a building group (g)

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<summary>Interpretation</summary>

* High Innovation Performance indicates a robust capacity to commercialize innovation.
* Moderate scores may point to innovation potential that is not yet fully monetized.
* Low scores can indicate structural issues in scaling or funding R\&D.

This metric can support policy decisions related to entrepreneurship, investment, and innovation commercialization.

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