Explore the connection between R&D and revenue generation and understand why a conservative approach to innovation could be holding your business back.
In our study, 'Innovation for peak performance', we set out to establish the key components of a successful innovation strategy in energy-intensive industries. We surveyed 61 participants from 14 countries, across the mechanical engineering, high-tech, consumer goods and automotive industries.
From our analysis, we judged high-tech, automotive and mechanical engineering to be ‘powerful innovators’, in that they invest over 5% of their revenue in R&D and generate over 20% of revenues from new products. Consumer goods companies invest less and have smaller revenues from new products as a result.
We found that the conservative approach to innovation, focusing on existing customers and products, is still in vogue – there is limited appetite for the diversification that would create new growth opportunities.