How do you measure innovation?

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VP of IT in Healthcare and Biotech, 10,001+ employees
1)The number of new product or applications launched 
2)revenue generated by the new product or application 
3)number of ideas submitted by employees 
ISSO and Director of the IRU in Healthcare and Biotech, 10,001+ employees
I think you measure innovation by what problems the solution is solving. Innovation doesn’t always have to be something technically new. Inventing or finding a solution to a problem is also considered innovation most of the time. 
VP, Technology Manager in Education, 10,001+ employees
We have created an innovation group in the last two years, and I have wondered a great deal about how we can measure success. For me it is about not only the number of new ideas generated, but also the amount of impact they create. The impact metric can vary by area of the business we are talking about, but applying it to some existing KPI can give us a relative number. I think it's important to consider which ideas are new innovations and which are just mimicking or responding to the marketplace in general.
CTO in Software, 11 - 50 employees
1. The quality of recently launched products or services.
2. Income generated by new products or services.
3. The actual and anticipated breakeven points.
Group Chief Information Officer in Construction, 5,001 - 10,000 employees
At the end of the day our objective of Technical department is to facilitate our customer needs.
By fulfilling our objective in untraditional way, Thinning out of the box, trying things nobody else have tried before and it dose work !
CIO / CDO in Construction, 10,001+ employees
I am not a big fan of establishing any kind of formal innovation group, team etc. Why? Innovation can't be institutionalized, mandated, prescribed etc. in companies, industries or people who're not innovative to start with.

There needs to be however a way, a process to collect great ideas and innovative seeds from across the entire population in a company. Independent of an employee's rank, level, title, role etc. That does however anticipate a respective company culture (most of them fail there!), for the employees in a company to truly understand and identify themselves with the company's "purpose", vision, strategy (how many strategies out there are "readable", trigger purpose or meaning?) what their customers really need or want or what else there might be to tie more customers, create a new value proposition, optimize existing value propositions or eliminate unwanted/unpopular ones.
Bottom line to me: innovation shall be measured by how well, how creatively customer needs, business opportunities are being anticipated or responded to = revenue increase, revenue generation by means which go above and beyond of what's there today!
CIO in Education, 501 - 1,000 employees
I measure innovation by seeing a need and developing or devising something to fill that need.  It's cliche but necessity is a spark of innovation.  That said, great ideas are only as good as the ones that can put those ideas into actionable goals and steps to produce outcomes.  
CIO in Services (non-Government), 2 - 10 employees
Customer satisfaction can be used as a proxy for innovation.

If you are using "innovation" (it's not a verb) as a way to solve customer problems, it will be reflected back.
CIO in Healthcare and Biotech, 1,001 - 5,000 employees
You can measure the outcomes, process and culture. Outcomes can be measured in the same way as any other initiatives - revenue uplift, risk reduction, cost efficiency, customer / employee experience, market share etc etc as long as these things are aligned with your strategic objectives. A good innovation process should have a defined pipeline of something like ideation, scoping, selection, pilot and scaling - the pipeline should be managed and discipline around the best ideas progressing through. Measuring innovation culture is tricker - how much is it in the company DNA - how many ideas are submitted per person, how many people are training in innovation toolsets and skills and how quickly are innovations realised? How do you benchmark yourself against the sector and wider market are also good questions to ask. 
Senior Vice President, Product Design and Data Analytics in Finance (non-banking), 1,001 - 5,000 employees
We have KPIs for each stage of innovation.
1. Ideation: # of ideas, panel scores, # path-breakers
2. Incubation: Time, success with POC and business buy-in
3. Prioritisation and build: roadmap performance, time, effectiveness of buy/ build, idea drop off rate
4. Delivery: Benefits realised, user feedback, ROI, productisation, idea backlog

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