This document discusses the importance of measuring household sector innovation. Some key points: - Household sector innovation, or innovation by individual consumers, accounts for millions of innovations and substantial time and money spent. However, only a small percentage diffuse beyond the innovating household. - Surveys can measure household sector innovation by asking consumers about novel products or modifications they have developed for personal use. Firm surveys can also track adoption of household sector innovations. - Further developing social surveys of household innovators and revising firm innovation surveys to explicitly measure adoption of household innovations would help better capture this important type of grassroots innovation.