Ongoing economic uncertainty and increasingly fierce global competition are forcing companies to place greater emphasis on R&D excellence.
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.
A shift towards more collaborative and open models, especially collaboration networks, has started.
But more than 50% of responding companies continue to rely on R&D employees, while only 10% frequently cooperate with technology partners.
R&D spend is going East
China was ranked by 70% of all respondents as the country where the highest growth in R&D investment might occur in the upcoming years.
North America and Europe remain stable with similar priorities for the companies to invest in these two regions.
% of respondents ranking R&D growth potential
Based on our findings, we have developed an agenda for companies to achieve innovation for peak performance across innovation strategy, global R&D footprint and R&D efficiency.
To find out more about the innovation agenda for your business