What is the profitability index?

The profitability index (PI) is an economic indicator that shows the relationship between the capital value of an investment and the costs incurred. A value greater than 1 indicates that an investment is economically viable. The PI helps to objectively compare different projects - especially when resources are limited.

What are ‘laggards’ in the innovation process?

Laggards are the last group in the diffusion model of innovations. They adopt new products or technologies very late - often due to scepticism, a lack of benefits or limited access to information. They typically make up around 16 % of the total population. Laggards are difficult for companies to reach, but are important for full market penetration.

What does ‘shared value’ mean, and how does the concept link economic success with social benefit?

Shared value describes a corporate concept in which economic success and social benefit are created simultaneously. Companies develop strategies, products or business models that address social or environmental challenges while also strengthening their own competitiveness. This creates added value for everyone involved - the company, society and the environment.