More Innovation stats - Boston Consulting Group A press release by BCG has given some interesting stats on corporate innovation (study of 500 execs, 47 countries, all major industries):
- 73% of companies will increase innovation spending (64% in 2004)
- Average increase in spending = 15%
- Consumer Products and Technology lead spending increases, Telecoms lagged.
- Asia Pacific area will see most increase in 2005
- 67% of companies ranked innovation as one of their company's top 3 strategic priorities
- However, only 49% said they were happy with the financial return so far
The 3 biggest problems they've identified so far?:
1) Moving quickly from idea generation to initial sales
2) Leveraging suppliers for new ideas
3) appropriately balancing risks, timeframes, and returns
"It's a positive sign that companies continue to invest heavily in innovation," said Jim Andrew, a Senior Vice President at BCG, a global management consulting firm. "The problem is that if the returns continue to disappoint, senior executives may begin to rethink their plans. Unless companies improve their approach to innovation, increased investment may in fact lead to increased disappointment."