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This work asserts that for long term success innovation cannot merely be an option, it must be incorporated as an integral part of the financial operation of a company. Areas covered in the text include: financial accounting and its treatment of innovation; the basic techniques of valuation; the management accounting approach to innovation projects; innovation in the UK national policy context; and applying innovation techniques to new and mature companies. This text has been designed for students but should be of use to those, inside or outside companies, who are concerned with improving their long term health and the efficiency of the innovation process.