- Executives in Mexico (80 percent), India (56 percent) and Brazil (50 percent) were most likely to advocate both open and closed market policies as a means to better innovation.
Looking Beyond Product InnovationWhile incremental and product innovation have historically been the main drivers of growth for companies, business model innovation is gaining momentum as a route to success. Innovating a new model may offer businesses a less risky and resource-intense path to better understand and reach customers over traditional methods such as new product development.
- Fifty-two percent believe that the development of new business models will contribute the most to their company’s performance going forward, representing a six point increase when compared to how it has traditionally contributed to their innovation portfolio.
- While globally executives report contraction in private investment, Germany and U.K. have seen growth.
- Eighty-seven percent are confident that their firm could be more successful at innovating through partnership and collaboration and 68 percent of respondents report already having developed or improved a product in partnership with others. Germany, China, Brazil and Sweden are most experienced at partnership.
- Top reasons for collaborating with other companies include access to new technologies (79 percent) and markets (79 percent); while on average, 64 percent pointed to lack of confidentiality or IP protection as a deterrent, followed by trust (47 percent) and fear of talent poaching (45 percent).
- Business’ perceptions of their respective country’s policy environment have grown more negative in the majority of countries surveyed, particularly in Sweden, Israel, Turkey, Saudi Arabia and Canada. India, however, shows dramatic improvement (9 points).
- When asked about the main priorities their governments should focus on to support innovation, education (50 percent), fighting bureaucracy (48 percent) and protecting trade secrets (41 percent) were identified as the most pressing – in particular by Mexico and Brazil.
- Better alignment of the education system with business needs is a top priority for businesses, with 81 percent identifying it as among their top four concerns; however, South Korea was a noticeable exception, with only 47 percent ranking this as a top business priority.
- Fifty-five percent of respondents – a 6 point drop from the previous year - indicated that universities and schools provide a strong education model for tomorrow’s innovative leaders.
- Forty-one percent believe restrictions on access to foreign talent are increasing, having a negative impact on business’ ability to innovate.
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