Assessing firm capabilities for innovation

The capability to innovate has been described as key to firms remaining competitive. Scholars and managers have tried to understand how firms renew themselves in response to changes in the environment or the strategic need to be innovative. Drawing on the literature on organisational capabilities and experience gained from working with and assessing firms' capabilities for innovation, this paper presents a firm relevant framework for capabilities for innovation in large firms and the subsequent tool for assessing these capabilities. It contributes to the growing stream of literature on the capabilities for innovation by explaining and operationalising some key dimensions of the capabilities for innovation and by providing a tool that is actionable, i.e., easily translated into action.