DSI Researcher Develops an IIQ Test to Measure Innovation
A researcher from the Data Science Institute (DSI) has developed an analytical approach to measure a business’s so-called Innovation Intelligence Quotient (IIQ), which is trademarked by James Scapa, founder of Altair, a software engineering company
Modelled after the human Intelligence Quotient (IQ) test, the IIQ rates a business’s ability to innovate by measuring its performance, such as revenue and earnings, R&D expenditure, patents, new products, as well as other ratings on social, governance and environmental criteria.
“The study has led to a preliminary formula that assigns weights to several key underlying performance measures to synthesize an IIQ score,”said David Yao, co-chair of the Financial and Business Analytics Center at DSI who led a Columbia research team that carried out the study.
During a 12-month period (June 1, 2016 through May 31, 2017), the team used advanced data techniques such as machine learning, statistical analysis, stochastic modeling and optimization, and studied several large data bases (Compustat, patents, 10K filings, KLD, Glassdoor) to create the IIQ.
“The real value of this project lies in the quantitative methodology it contributes to constructing the IIQ score, along with the thought process, the experimentation, and the data sets identified and made usable,” said Yao, who is also Piyasombatkul Family Professor of Industrial Engineering and Operations Research at Columbia Engineering.
The research was funded by Altair, and theColumbia research team is comprised of Professors Hardeep Johar (Columbia Engineering) and Don Lehmann (Columbia Business School), and several graduate students including Elioth Sanabria, Malek Ben Sliman and Liao Wang.
--By Robert Florida