Indicators system of innovation capacity of software vendors and its application

The globalization leads to intense competition between domestic and international forces for software vendors in China. Consequently, the innovation capacity of an Independent Software Vendor (ISV) becomes increasingly significant. However, to our knowledge, there are few in-depth studies offering practical methods and criteria to quantitatively assess the independent innovation capacity of software vendors in China. Thus, a comprehensive indicators system is proposed in this study to evaluate the independent innovation capacity of software vendors. According to Analytic Hierarchy Process (AHP) approach, a model is established as the mathematical form of this system. To exemplify the practicality of the indicators system, the independent innovation capacity of a well-known Chinese software vendor is evaluated based on financial data collected from one famous Chinese ISV In addition to these analyses, some practical advices are proposed on the innovation of the entire software vendor in China.