This paper aims to propose a new holistic measure of innovation that encompasses the various narrow definition of innovation along three steps of the innovation process, namely new ideas and capability-based framework. The framework consists of three sequential steps such as news ideas generation, conversion and exploitation. Compared to the previous studies, this framework will be the pioneer that provides the following contribution such as the integration of new ideas and relevant a firm's

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... ability, a wider range of internal and external new ideas sources and types of innovation as the output of innovation activities. The developed framework will be tested to measure innovation activities of the Indonesian firms from a wide range of size and types of industry background