Benchmarking innovation allows companies and countries to adjust their learning process by using the experience of others. A number of European countries are using benchmarking innovation to help change their policies for development. To explain how this works one must understand the two words in the phrase benchmarking innovation. Benchmarking is the process of comparing cost, time, productivity, and quality in a business. Innovation is the creation of new ideas or products to solve the needs of the consumer.
So, benchmarking innovation is going to be the recording of new ideas to see where the company could save costs and increase their quality and productivity. Often benchmarking innovation requires a top level management team that works in the strategic process to evaluate upcoming projects before they begin.