In this report we provide an assessment of the statistical methodology behind the Innovation Radar. In particular we analyse to what extent the Innovation potential index and the Innovator capacity index are analytically and statistically sound and transparent. The aim of this report is to evaluate to what extent variables that have been included in these composite indicators make sense from a statistical point of view. Overall, the Innovation potential index is found to be statistically sound with particularly room for improvement of the market potential dimension. The Innovator capacity index is conceptually sound but can be improved statistically.