Cluster-based performance measurement system for emerging technology-based ventures

Performance assessment of technology-based ventures requires consideration of the nature of their businesses and the dynamics of their emerging industries. This paper explores the development of a cluster-based and quantitative measurement system for science and technology parks to evaluate the performance of technology-based ventures. The proposed method incorporates technique for order preference by similarity to ideal solution (TOPSIS) and weight allocation. It ranks the technology-based ventures in different technological clusters, based on a range of indicators pertinent to productivity, research and development (R&D) effort, R&D personnel percentage, time to market and financial performance. This method has been implemented through a trial study conducted within the Hong Kong Science and Technology Parks Corporation. The results indicate that R&D spending has a strong impact on a company's performance ranking. The performance of technology-based ventures should be measured with respect to their R&D investments and their pertinent efforts to commercialise products.