The purpose of this paper is to propose a composite innovation indicator derived from an econometric prediction of the likelihood of innovating and of the amount of innovation performed by a particular firm, given information on its characteristics and on the environment in which it operates. The indicator is constructed from various pieces of information contained in the Community Innovation Surveys. It combines qualitative and quantitative data. It allows the comparison of innovativeness across industries or classes of firms in a particular country. To the extent that the national innovation surveys are sufficiently homogeneous, it also allows comparisons across countries. This paper applies the proposed indicator to the CIS 1 data for Denmark and Ireland.