New GE Global Innovation Barometer 2018 Full Report · 2018. 3. 8. · GE Global Innovation...

Edelman Intelligence / © 2017

GE Global Innovation Barometer 2018 Full Report

1

ONE: Introduction to the GE Global Innovation Barometer (GIB) 2018

TWO:Methodology

THREE:Key findings

FOUR:Deep dive on the findings

Contents

2

Introduction to the GE GIB 2018

3

KEY MEDIA HEADLINES

2010 – pilot A society that allows innovation to flourish, understands that innovation,

research and education are linked to one another

20129 in 10 executives are shy about moving ahead with innovation in a

sinking economy

2013“Innovation vertigo:” anxious over global economic instability, executives

are unsure how to move forward with disruptive ideas, products and

services

2014Most business leaders want to embrace innovation that disrupts markets

— even if that deals a blow to their established business models

2016A belief in the transformative power of innovation persists; however

there is enormous pressure put on businesses to disrupt themselves

and the marketplace in today’s increasingly competitive business

environment

The evolution of the GE GIB

FURTHER THEMES IN THE RESEARCH

The impact of the financial crisis,

the global innovation environment,

future expectations and optimism

2012

Innovation at a company level,

country policy, business

collaboration and big data2013

The pace of innovation provides an

uncertain future. The state of innovation,

partnership, models, policy and people 2014

The innovation optimists. Innovation

at a company and country level,

human capital and start ups 2016

What is innovation, what industries

drive innovation and what drives

innovation generally

2010

4

Methodology

5

This year’s method and scope

20 countries: Brazil (150), Canada (100), China (150), France (100), Germany (100), India (150), Indonesia (80), Japan (100), Malaysia (80), Mexico (100), Nigeria (80), Poland (80), Saudi Arabia (80), South Africa (100), South Korea (100), Sweden (80), Turkey (80), UAE (80), UK (150), USA (150).

Innovation Business Executives

2,090 Business Executives

All respondents’ line of work involves

taking part in their company’s innovation

process/policies.

They are responsible for making decisions

related to innovation, product

development or research and

development (R&D) activities in their

company.

6

Edelman Intelligence / general electric

From Chaos to Confidence:Emerging Players,

Emerging Technologies, Emerging Challenges

7

Key Findings

2018 Key FindingsFrom Chaos to Confidence: Emerging Players, Emerging Technologies, Emerging Challenges

Emerging Confidence: While the United States (-8)

and Germany (-7) see a drop in championship status from 2014, Japan (+8) and China (+4) take more share. Asia (34+ since 2014) and emerging markets are gaining confidence, viewing themselves as more innovative than they did in 2014.

New Actors Driving Innovation: Globally, business

executives see multinationals leading innovation (+4 since 2014) while small and medium enterprises (-11 since 2014) and entrepreneurs (-2 since 2014) have lost some of their innovation drive. In the Middle East and Asia especially, the private sector is becoming a more important driver of innovation while there is a decrease in governments driving innovation.

Working in a Protectionist World: Global executives

want the best of both worlds: on one hand they want the benefits of protectionist policies on domestic businesses and jobs, and on the other hand, they want the benefits of globalization and open markets. A small majority of global executives (55%) believe protectionist policies benefit businesses within their country and 73% believe it is good for the workforce. However, 68% globally believe their government cannot keep up with the pace of change and 22% (of those that prefer protectionism) see multinationals as the drivers of innovation.

1

2

3

The Potential of Additive: Global executives are excited

about the potential of 3D printing, saying it will have a positive impact (63%), increase creativity (91%) and get goods to market faster (89%). At the same time, 53% believe 3D printing has yet to reach its full potential, requiring more education and reassurance.

Maximizing the Return on Innovation: Globally, 40% of

innovations are having a positive impact on the bottom line. What’s the secret to success for these “innovation achievers”? They’re taking a more measured approach. Businesses are waiting to perfect and test their innovation before launch rather than getting to market quickly—a 10-point jump since 2016 (now 65%). Innovation achievers also are more willing to wait for long-term ROI for breakthrough innovation (84%) and have a clear structure and process in place to measure that return (50% vs. 43%).

Hype vs Reality of Impact: Hype around certain

technologies does not always equate to transformative impact. In fact, global executives believe that many under-hyped technologies will have a transformative impact, including energy grids (74% say it will bring transformative change to their country), virtual healthcare (68%) and smart cities (71%).

4

5

6

Future of Work: The workforce is considered the most crucial

element to innovation success in most markets, yet skills gaps continue to be a top concern among businesses. Nearly 3 in 4 (74%) global executives believe a lack of skills is an issue facing their industry—a challenge that has increased over time (64% say a lack of talent/inadequate skills is a key challenge today, up from 56% in 2014).

7

2018 Key FindingsFrom Chaos to Confidence: Emerging Players, Emerging Technologies, Emerging Challenges

More Challenging Environment: The challenges confronting

innovative businesses are tough – and getting tougher – both externally and internally. There is a 13-point increase (now 67%) since 2014 in lack of sufficient funding, a 6-point increase (now 65%) in the inability to scale innovations to a wider market, an 8-point increase (now 64%) in lack of adequate talent/ skillsets, and a 14-point increase (now 64%) in the inability of businesses to take risks. Emerging markets such as Poland, South Africa, Malaysia and Saudi Arabia are experiencing the greatest increase in challenges.

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Edelman Intelligence / © 2017 10

Deep dive on the findings

Section One: Emerging Players• New Actors Driving Innovation• Emerging Confidence• Working in a Protectionist World

Section Two: Emerging Technologies• The Potential of Additive• Maximizing the Return on Innovation (ROI)• Hype vs. Reality of Impact

Section Three: Emerging Challenges • Future of Work• More Challenging Environment


section one:

Emerging Players


New Actors Driving Innovation

12

Executive Summary

• Globally, business executives see multinationals leading innovation (+4 since 2014) while small and medium enterprises (-11 since 2014) and entrepreneurs (-2 since 2014) have lost some of their innovation drive. In the Middle East and Asia especially, the private sector is becoming a more important driver of innovation while there is a decrease in governments driving innovation.

Since 2014 there has been a shift from small businesses and entrepreneurs driving innovation towards large enterprises and multinationals.

13

22%

20% 19%

14%

11%

9%

3%

1%

11%

18%

23%

18%

12%

9%

2%

5%

Small and mediumcompanies (10 to 250

employees)

Individual entrepreneursand start-ups

Multinational companiesinvesting in your country

Large enterprises (morethan 250 employees)

headquartered in yourcountry

Universities and researchlabs

Government and publicauthorities at national

level

Public authorities at locallevel (region / city)

State owned enterprises inyour country (SoE)

2014 2018

Q3. Who do you think is driving innovation the most today in your country? Base business executives 2014: 3,309, business executives 2018: 2,090

Who is the main driver for innovation in your country?(Historical tracking data at a global level)

Q3. Who do you think is driving innovation the most today in your country? Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes

listed in the appendix]

Multinationals are the main driver for innovation in your country(Historical tracking data at a global level)Ranked by largest increase from 2014 to 2018

Multinationals’ growing reputation as the driver of innovation is seen across the majority of countries.

17% 16%

23%20%

8%

30%

25%

7% 7%

22%

12%

27%

16% 17% 16%

11%

33% 33%

19%

26%

39%

29% 30%27%

15%

36%

30%

12% 12%

26%

14%

29%

17%19% 20%

13%

32% 31%

13%

21%

2014 2018

Emerging economies, notably Turkey and South Africa have seen the largest rise in business executives believing multinationals are the main driver of innovation in their country.

14

Increase Decrease

Q3. Who do you think is driving innovation the most today in your country? Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes


SMEs are the main driver for innovation in your country(Historical tracking data at a global level)Ranked by largest decrease from 2014 to 2018

SMEs are losing their reputation as a driver of innovation in developed economies – particularly in Europe.

18%

9%

27%

10%

4%6% 7%

14%

22%

14%

20%

24%

30%

24%

30%

37%

26%

35% 36%

49%

23%

10%

29%

8%

1% 3% 1%

6%

13%

5%

10% 12%15%

8%

13%

20%

7%

11%9%

18%

2014 2018

15

Increase Decrease

16

Europe has experienced a significant decrease in SMEs and entrepreneurs driving innovation.

49%

36% 35% 37%

18%

9% 11%

20%

Germany UK Sweden France

2014 2018

28%

19% 20%

13%

18%

12%14%

8%

Poland Sweden UK Germany

(Historical tracking Individual entrepreneurs and start-ups)(Historical tracking SMEs)

Q3. Who do you think is driving innovation the most today in your country? Base business executives 2014: 3,309, business executives 2018: 2,090

19%

10%

37%

22%

Germany UK

(Historical tracking large companies headquartered in your country)

Germany and the UK

have seen an increase

in large companies

driving innovation

In emerging economies, governments are now not seen to be driving innovation as much as they were in 2014.

Decrease

21%

33%

23% 24% 25%

13%

26%

12% 11%9%

Malaysia UAE China Turkey Saudi Arabia

2014 2018

Q3. Who do you think is driving innovation the most today in your country? Base Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes listed

in the appendix]

-7

-8 -11 -13 -16

17

Governments are the main driver for innovation in your country(Historical tracking data at a global level)Ranked by 2014 – 2018 growth

In parallel, in some economies where government traditionally dominated innovation, such as Turkey and South Africa, business executives now see increasing value driven by the private sector.

Increase

Q3. Who do you think is driving innovation the most today in your country? Base Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base

sizes listed in the appendix]

Multinationals are the main driver for innovation in your country(Historical tracking data at a global level)Ranked by 2014 – 2018 growth

17% 16%

23%20%

8%

30%

25%

39%

29% 30%27%

15%

36%

30%

Turkey South Africa Indonesia Poland France Nigeria Mexico

2014 2018+22

+13 +7 +7

+7

+6

+5

18


Emerging Confidence

19

Executive Summary

• With the United States (-8) and Germany (-7) see a drop in championship status from 2014, Japan (+8) and China (+4) take more share. Asia (34+ since 2014) and emerging markets are gaining confidence, viewing themselves as more innovative than they did in 2014.

Over time, we see the US and Germany losing their share of championship status to Japan and ChinaWhat is the country that you consider to be the leading innovation champion?Ranked by 2018 data

38%

12%13%

15%

1%

4%3%

1%

3%1%

36%

13%

10%

16%

1%

4% 3%

0%2% 1%

33%

17%

10%10%

2%4% 4%

1%3% 3%

28%

21%

14%

9%

3% 3% 3% 2% 2% 2%

USA Japan China Germany Sweden South Korea UK Canada India UAE

2013 2014 2016 2018

20

Q1. What is THE country that you consider to be the leading innovation champion? Base business executives 2013: 3,100, business executives 2014: 3,309, business

executives 2016: 2,748, business executives 2018: 2,090 [Full base sizes listed in the appendix]

Only five countries are seen to have a very strong innovation conducive environment with the Innovation Champions leading the wayFor each of the following markets, how far would you say that they have developed as an innovation conducive environment?Percentage that have a strong innovation conducive environment (top 3 box)

76%73%

65%

59%

53%49%

46% 45% 45% 45% 43%40%

36% 35% 34% 34%31%

28% 27% 25% 24% 23%20% 20% 20% 19% 18%

16%13%

11% 10% 10%

21Q2. For each of the following markets, how far would you say that they have developed an Innovation conducive environment? [Top 3 Box 8-10] Base business

executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150, Indonesia: 80, Japan: 100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80,

Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150

Emerging markets have seen the largest increase in how their ability to foster innovation is viewed

22

For each of the following markets, how far would you say that they have developed as an innovation conducive environment?

Percentage increase from 2014 to 2018

Q2. For each of the following markets, how far would you say that they have developed an Innovation conducive environment? [Top 3 Box 8-10] Base business


Russia 18%

Australia 16%

UAE 16%

Saudi Arabia 16%

Ireland 15%

Poland 15%

Italy 14%

Mexico 13%

France 13%

Malaysia 13%

Netherlands 12%

Indonesia 12%

Canada 11%

Turkey 11%

Singapore 11%

China 10%

Algeria 9%

Switzerland 9%

Vietnam 9%

Kenya 9%

Sweden 9%

Nigeria 9%

UK 9%

Brazil 7%

South Africa 7%

South Korea 5%

Japan 5%

Finland 3%

India 1%

USA 0%

Israel -1%

Germany -5%

Business executives report increased satisfaction about their country’s ability to foster innovation

23

For your own market, how far would you say that you have developed as an innovation conducive environment?Percentage that feel they have a strong innovation conducive environment (top 3 box)


executives 2014: 3,309, business executives 2018: 2,090

24%28%

14%7%

32%23%

18%

7%

21%

73%67%

43%35%

58%49%

44%

30%

44%

China India Brazil Malaysia Canada Mexico Indonesia Poland Turkey

2014 2018

40% 40%36%

30%

11%

72%

53%

20%26%

7%

41%

77%

61% 61%56%

48%

28%

85%

59%

24% 27%

8%

38%

65%

UAE UK France Global Total Saudi Arabia USA Sweden South Africa South Korea Nigeria Japan Germany

Asian markets have seen the biggest increase in the way they evaluate how innovation conducive their country is

24

For your own market, how far would you say that you have developed as an innovation conducive environment?Percentage that have a strong innovation conducive environment (top 3 box)


executives 2014: 3,309, business executives 2018: 2,090

49%

39%

29% 28% 26%

China India Brazil Malaysia Indonesia

Top 5 increases 2014 to 2018

On average Asian countries see a 34

percentage point increase in how they

evaluate their ability to foster innovation

Asia

LATAMAfrica

Africa to ChinaA relationship of trade and investment41% of business leaders in Africa see China as the innovation champion. Chinese companies are investing in Africa and it is now the country’s biggest economic partner.

Europe (Inward Looking)

North America(Inward Looking)

LATAM to JapanA relationship of trade and investment33% of business executives in LATAM believe Japan is the

innovation champion, and with Japan investing heavily in the region this relationship aligns.

Asia & the US An aspirational relationshipAsia looks to the USA, with

34% of business executives viewing them as the innovation champion (64% in China).

EuropeA self-serving relationship Europe sees countries within the continent as being key innovation champions (Germany 12%, Sweden 10%, UK 6%).However 22% of business executives in Europe look to the US as champions and 19% of executives look to Japan.

The USA confident viewThe US believes the US is the innovation champion (61%).

Q1. What is THE country that you consider to be the leading innovation champion? Base business executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100,

Germany: 100, India: 150, Indonesia: 80, Japan: 100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80,

Turkey: 80, UAE: 80, UK: 150, USA: 150 Base business executives: 2,090

25

Innovation influence becomes multipolar; China and Japan become aspirational

0

1

0 1

26

Countries see themselves as being more innovation conducive than they are perceived by others

Global Evaluation /10

Self-evaluation /10

The exceptions to this are countries like Japan and South Korea that are thought to be more innovation conducive by others than themselves.

Countries that view themselves

more positively than other

countries do (overly confident)

Countries that view

themselves more

negatively than other

countries do (under

confident)

Glo

ba

l Eva

lua

tio

n o

f in

no

vati

on

co

nd

uci

ve

en

viro

nm

en

ts /

10

Self-evaluation of innovation conducive environments /10

USA

China

India

Germany

UAE

UK

Canada

SwedenFrance

MexicoIndonesia

Brazil

Japan

Turkey

Malaysia

South Korea

Poland

Saudi

ArabiaSouth Africa

Nigeria



Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150

27

The top five innovation conducive countries have the five largest GDPs

0%

10%

20%

30%

40%

50%

60%

70%

80%

$0 $5,000,000,000,000 $10,000,000,000,000 $15,000,000,000,000 $20,000,000,000,000

USA

China

Japan

Germany

UK

France

India

Canada

South Korea

Switzerland

Italy

Brazil

Russia

Mexico

Nigeria

SingaporeSweden

Australia

UAE

Saudi Arabia

% o

f in

no

vati

on

co

nd

uci

ve e

nvi

ron

me

nt

(Q2

)

GDP (Gross Domestic Product $)



Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150 // GDP from the World Bank

Innovation Champions

https://data.worldbank.org/indicator/NY.GDP.MKTP.CD

28

0%

10%

20%

30%

40%

50%

60%

$0.00 $500,000,000,000.00 $1,000,000,000,000.00 $1,500,000,000,000.00 $2,000,000,000,000.00 $2,500,000,000,000.00 $3,000,000,000,000.00

France

India

Canada

South Korea

Switzerland

Italy

Brazil

Russia

Mexico

Nigeria

SingaporeSweden

Australia

UAESaudi Arabia

IndonesiaTurkey

The Netherlands

Finland

IsraelIreland

MalaysiaPoland

South Africa

Vietnam

Kenya

Algeria

Singapore, Switzerland and Sweden are outliers when comparing their lower GDPs to their higher innovation conducive status

% o

f in

no

vati

on

co

nd

uci

ve e

nvi

ron

me

nt

(Q2

)



Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150 // GDP from the World Bank

GDP (Gross Domestic Product $)

These countries fall short of achieving on innovation status in comparison to their GDP

Singapore, Switzerland and Sweden are innovation conducive outliers when compared with GDP

https://data.worldbank.org/indicator/NY.GDP.MKTP.CD


Working in a Protectionist World

29

Executive Summary

• Global executives want the best of both worlds: on one hand they want the benefits of protectionist policies on domestic businesses and jobs, and on the other hand, they want the benefits of globalization and open markets.

• A small majority of global executives (55%) believe protectionist policies benefit businesses within their country and 73% believe it is good for the workforce. However, 68% globally believe their government cannot keep up with the pace of change and 22% (of those that prefer protectionism) see multinationals as the drivers of innovation.

Globally, a small majority of business executives think that protectionist policies towards innovation would benefit the business sector

30

Q6. There have recently been discussions about the potential impact of protectionist politics and policy on innovation and businesses. Out of the statements below

related to protectionism, which do you agree with the most? Base business executives: 2,090

55% of business executives think that

if the government had protectionist policies towards innovation it would benefit the business sector.

55%

45%

Pro-protectionism

Anti-protectionism

If the government had a political protectionist stance on innovation in my country it would be beneficial to businesses

71%

65% 63% 63% 63% 61% 60% 58% 57% 56% 56% 55% 53% 53% 51% 51% 51% 49% 47%43%

39%

UAE Sweden India France SaudiArabia

Indonesia Malaysia UK Mexico Turkey Canada GlobalAverage

Japan USA Nigeria Brazil China Germany SouthKorea

Poland SouthAfrica

31

Only 4 countries had a majority that felt a protectionist stance to innovation would not be beneficial to business

Q6. There have recently been discussions about the potential impact of protectionist politics and policy on innovation and businesses. Out of the statements below

related to protectionism, which do you agree with the most? Base business executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150,

Indonesia: 80, Japan: 100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK:

150, USA: 150

The majority of business leaders believe a political protectionist stance on innovation would be beneficial to business at a national level

The majority of business executives agree that regulations around privacy and data are stifling innovation

69%

29%

2%

Regulations around privacy and data protection are

preventing businesses from adopting more

radical/transformative innovations

Q5. How much do you agree or disagree with the following statements? Regulations around privacy and data protection are preventing businesses from adopting

more radical / transformative innovations. Base business executives: 2,090, Pro-protectionism: 1,153, Anti-protectionism: 937

Agree

Disagree

Pro-protectionism

Anti-protectionism

70%

28%

2%

68%

30%

2%

Agree

Disagree

Don’t know

Don’t know

Don’t know

Agree

Disagree

32

And business leaders feel regulations around privacy and data protection are stifling innovation more so than two years ago

49%

55%

65%

60% 61%63%

61%

65%

55%

66%

74%

61%

69%65%

73%76%

79%

85%

69%

79%

70%

60%

80%

73% 73%75%

67%

74%

61%

69%

75% 75%

60%

70%

66%69%

71% 72%

77%

56%

65%

2016 2018

Q5. How much do you agree or disagree with the following statements? Base business executives 2016: 2,748, business executives 2017: 2,090 [Full base sizes listed in

the appendix]

Regulations around privacy and data protection are preventing businesses from adopting more radical / transformative innovationsNET: Agree

20

16

da

ta n

ot

ava

ilab

le

Increase Decrease

The private sector is seen as driving innovation as governments can’t cope with the pace of innovation

34

68%

31%

2%

In my country, the government is not able to

regulate innovation as the system cannot

keep up with the pace of innovation

Q5.4 How much do you agree or disagree with the following statements? In my country the government is not able to regulate innovation as the system cannot

keep up with the pace of innovation. Base business executives: 2,090 , Pro-protectionism: 1,153, Anti-protectionism: 937

Agree

Disagree

Don’t know

Pro-protectionism

Anti-protectionism

64%34%

2%

72%

26%

2%

Agree

Disagree

Don’t know

Don’t know

Agree Disagree

The majority of business executives across 20 markets feel that the government cannot keep up with the pace of innovation

Q5. How much do you agree or disagree with the following statements? Q5_D. In my country the government is not able to regulate innovation as the system cannot

keep up with the pace of innovation. Base business executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150, Indonesia: 80, Japan:

100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150

91%86%

80%78% 77% 76% 74%

71% 71%68% 68% 67% 66% 66% 65%

59%55% 55% 55%

51%

41%

Brazil Mexico SouthKorea

Poland Japan UK Nigeria France SouthAfrica

GlobalAverage

Turkey Germany Sweden USA India Indonesia China Malaysia SaudiArabia

Canada UAE

In my country the government is not able to regulate innovation as the system cannot keep up with the pace of innovation.

35

And this opinion remains consistent across pro or anti-protectionist business executives

Q5. How much do you agree or disagree with the following statements? Q5D. In my country the government is not able to regulate innovation as the system cannot keep up

with the pace of innovation. Base business executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150, Indonesia: 80, Japan: 100, Malaysia: 80,

Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150 [Pro-protectionism / Anti-

protectionism base sizes too small for media]

92%

84%

79%

71%75%

79%76%

70%67%

64%

58%

65%69%

67%

61%

53%

46%42%

54%

46%

39%

91% 88%

81% 83%79%

71% 72% 73% 74% 72%

80%

69%

61%65%

73%68%

65%

75%

57% 57%

48%

Brazil Mexico SouthKorea

Poland Japan UK Nigeria France SouthAfrica

Globalaverage

Turkey Germany Sweden USA India Indonesia China Malaysia SaudiArabia

Canada UAE

Pro Protectionsism Anti Protectionism

In my country the government is not able to regulate innovation as the system cannot keep up with the pace of innovation:(NET AGREE)

-1 +4 +2 +12 +4 -8 -4 +3 +7 +8 +22 +4 -8 -2 +12 +15 +9 +33 +3 +11 +9

Difference in pro-protectionism / anti-protectionism results

Businesses are not just seen as the actors currently driving innovation, but also as the actors that should drive innovation

37Q.5C How much do you agree or disagree with the following statements? Business should be the main driver of the innovation agenda, not governments. Base

business executives: 2,090, Pro-protectionism: 1,153, Anti-protectionism: 937

Almost 9 in 10 business executives think that

businesses rather than governments should be the main drivers of the innovation agenda in their countries

86%

GovernmentBusiness

12%

85%

GovernmentBusiness

13%

87%

GovernmentBusiness

11%

Pro-protectionism

Anti-protectionism

Why do you think protectionism would have a beneficial effect on businesses in your country?

Q7. Out of the reasons below, why do you think protectionism would have a beneficial effect on businesses in your country? Base business executives who are pro-

protectionism: 1,153

+5 -1 - 1 +2 = + 1-3 = =NEW

ENTRANTS-6 +1 + 1 +135%

60%

73%

86%

It provides government control (NET)

It fosters ideas domestically (NET)

It is positive for jobs and the workforce (NET)

It gives domestic businesses a competitive edge (NET)

38

There are multiple reasons why protectionism would have a benefit on businesses, but key drivers are workforce and giving businesses a competitive edge

The negatives of protectionism are also multifaceted with barriers to creativity and to investment being key

Why do you think protectionism would have a negative effect on businesses in your country?

Q8. Out of the reasons below, why do you think protectionism would have a negative effect on businesses in your country? Base business executives who are anti-

protectionism: 937

+5 -1 - 1 +2 = + 1-3 =NEW

ENTRANTS-6 +1 + 1 +1 35%

59%

63%

69%

74%

It reduces our ability to attract talent from foreign countries(NET)

It hinders ideation (NET)

It reduces competitiveness (NET)

It creates barriers to investment (NET)

It gives government too much control (NET)

39

Generally, pro-protectionist respondents think more positively about the state of innovation than anti-protectionist business executives

40

See more countries as innovation conducive

environments

More likely to say they have a clear innovation

strategy

See the government and national bodies as the

main drivers and funders for innovation

Think they perform well against innovation success criteria

See more innovations creating ‘hype’ and having transformative potential

Pro-protectionism respondents: The optimists

See business as the main driver and funder for

innovation

Think that the government is not able to regulate innovation effectively

Think to a lesser degree that they have a clear

innovation strategy

See less countries as innovation conducive

environments

Anti-protectionism respondents: The realists


Protectionism attitudes impact business executives’ perceptions of innovation

Depending on the stance towards protectionism, business executives select different stakeholders as the main driver for innovation

42

22%

17%

14% 13%

10%9%

6% 6%

2%

22%

18%

21%

10%

6%

12%

3%5%

2%

Multinationalcompanies

Large enterprises Individualentrepreneurs/

start-ups

Universities andresearch labs

Government at anational level

SME's State ownedenterprises

Internationalorganisations

Public authoritiesat a local level


Q3. Who do you think is driving innovation the most today in your country? Base business executives who are pro-protectionism: 1,153, business executives who are anti-protectionism: 937

Those who favor protectionism are more likely to feel that state-owned enterprises are driving innovation. However, those who

are anti-protectionism are more likely to see individual entrepreneurs/ start-ups and SMEs as driving innovation.

Similarly, this is reflected in who business executives believe is funding innovation in their country

43

24%

17%16%

12%

8%7% 6% 6%

4%

28%

17%

14%

17%

5% 5% 5% 5%

3%

Multinationalcompanies

Large enterprises Government at anational level

Individualentrepreneurs/

start-ups

State ownedenterprises

Internationalorganisations

Universities andresearch labs

SME's Public authoritiesat a local level


Q4. Who do you think is funding innovation the most today in your country? Base business executives who are pro-protectionism: 1,153, business executives who are anti-protectionism: 937

Those who favor anti-protectionism are more likely to feel multinational companies and individual entrepreneurs/ start-ups are

funding innovation in their country.


section two:

Emerging Technologies


The Potential of Additive

45

Executive Summary

• Global executives are excited about the potential of 3D printing, saying it will have a positive impact (63%), increase creativity (91%) and get goods to market faster (89%). At the same time, 53% believe 3D printing has yet to reach its full potential, requiring more education and reassurance.

The majority of business executives believe 3D printing’s impact will be mostly positive for businesses in their country

46

Q13. We would now like to ask you about 3D (3-dimensional) printing and the impact you think this might have on businesses in your country. Do you think 3D (3-

dimensional) printing is beneficial or could have a negative impact on businesses? Base Business Executives: 2,090

63%

31%

4%3%I think 3D printing will have a positive impact onbusinesses in my country

I think 3D printing will have both a positive andnegative impact on businesses in my country

I think 3D printing will have a negative impact onbusinesses in my country

Don't know

Benefits include increased creativity, speed to market, lower costs, competitive advantage and improved CO2 footprint

47

Q14. Imagine 3D printing has become a reality in your country with business and industries adopting it. How far do you agree or disagree with the following

statements? Base Business Executives: 2,090

=80%

81%

83%

89%

91%

Beneficial for the environment and reduce CO2 inmanufacturing

Businesses that invest in 3D printing will leave otherbusinesses behind

Reduce the costs of goods making them more affordable

Enable goods to get to market faster

Allow businesses to be more creative in the products andgoods they can create

South Africa (73%), Sweden (70%)

Benefits of 3D printing do vary at a country level

48

Reduce the costs of goods making them more affordable

(83%)

Turkey (96%), Brazil (95%), India (90%)

Beneficial for the environment and reduce CO2 in

manufacturing (80%)

Indonesia (95%), China (93%), Malaysia (93%), Brazil (89%), India (89%)

Germany (68%), South Korea (67%), Japan (66%)

Businesses that invest in 3D printing will leave other

businesses behind (81%)

Saudi Arabia (94%), China (91%), Malaysia (89%), Turkey (89%)

Germany (72%), Sweden (71%), Indonesia (71%), Canada (69%)

Q14. Imagine 3D printing has become a reality in your country with business and industries adopting it. How far do you agree or disagree with the following

statements? [Net: Agree] Base business executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150, Indonesia: 80, Japan: 100,

Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150

Only 4 in 10 business executives are very familiar with 3D printing

49Q11. Are you familiar with 3D (3-dimensional) printing and what it is? Base Business Executives: 2,090

41%Are very familiar with 3D printing

Yes, I am very familiar with 3D printing (41%)

Yes, but I am only somewhat familiar

with 3D printing (52%)

No, I am not familiar with 3D printing (6%)

Don’t know (1%)

With only 4 in 10 business executives being very familiar with 3D printing, there is work to be done to encourage the majority of business executives to become more familiar and therefore adopt 3D printing.

However, a majority of business executives believe 3D printing has yet to realize its full potential.

50Q12. How mature would you say the 3D (3-dimensional) printing industry is in your country. Base Business Executives: 2,090

5%14%

3D printing has already had an

impact on businesses

21%

3D printing is talked about, but isn't a

reality yet

3D printing isn't being talked about

27% 32%

3D printing is starting to become a reality but

won't impact businesses for several

years

3D printing has become a realitythat is impacting

businesses

53% say 3D printing hasn’t reached its full potential yet

Outside of larger countries with strong manufacturing industries, most do not believe 3D printing has made an impact yet in their country

69

%

68

%

66

%

61

%

60

%

58

%

57

%

55

%

54

%

54

%

53

%

52

%

52

%

50

%

50

%

49

%

46

%

45

%

44

%

40

%

31

%

27

%

29

% 33

%

34

%

31

%

31

%

41

%

34

% 41

%

37

% 41

% 44

%

42

% 46

%

34

%

48

%

48

% 55

%

48

% 53

%

61

%

SouthAfrica

SouthKorea

Poland Indonesia SaudiArabia

Canada Brazil Japan Turkey UK GlobalTotal

Germany France Malaysia Nigeria Mexico UAE China Sweden USA India

Being talked about Having an impact

Q12. How mature would you say the 3D (3-dimensional) printing industry is in your country? Base Business Executives: 2,090, Brazil: 150, Canada: 100, China: 150,

France: 100, Germany: 100, India: 150, Indonesia: 80, Japan: 100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100,

Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150

How mature would you say the 3D (3-dimensional) printing industry is in your country?India stands out as a key market where business executives state that 3D printing is having a much greater impact than it is being talked about.

51

Globally, the high-tech /IT and manufacturing sectors are most likely to see the impact of 3D printing

52

52%

43% 43% 42% 41% 40% 40% 39%36% 35% 34%

High-tech / IT Manufacturing(Other)

FMCG Electronics Total IndustrialProducts

Energy related Health related Professionalservices /Businessservices

Telecoms /Internet

Automotive /transport /

logistics

3D printing is having an impact in my country

Sectors above average Sectors below average

Q12. How mature would you say the 3D (3-dimensional) printing industry is in your country. Base Business Executives: 2,090

53

Innovation Achievers more readily recognize the positive impact of 3D printing in their

country

The positive impact of 3D printing is recognized more by innovation Achievers

54

Q13. Do you think 3D (3-dimensional) printing is beneficial or could have a negative impact on businesses? Base business executives 2018: 2,090, innovations

winners: 709, innovation losers: 693.

Innovation Achievers are more likely to see the benefit of 3D printing in their country, with almost 7 in 10 innovation Achievers agreeing to the statement.

54%68%

3D printing will have a positive impact on business in my country:

Innovation non-achievers

Innovation achievers

+14


Maximizing the Return on Innovation

55

Executive Summary

• Globally, 40% of innovations are having a positive impact on the bottom line. What’s the secret to success for these “innovation achievers”? They’re taking a more measured approach.

• Businesses are waiting to perfect and test their innovation before launch rather than getting to market quickly—a 10-point jump since 2016 (now 65%). Innovation achievers also are more willing to wait for long-term ROI for breakthrough innovation (84%) and have a clear structure and process in place to measure that return (50% vs. 43%).

56

40% of innovations over the last five years have had a positive impact on business’s bottom line

Q23 - Mean(Including Zero) Summary - What percentage of your company’s innovations over the past 5 years do you think have fallen into the following categories?

Base business executives 2018: 2,090

40%

25%

20%

15%60% of innovations over the last five years have not resulted in a positive impact on the bottom line

A success that positively impacted the bottom line and improved our position in the market

A success that improved our position in the market but did not positively impact our bottom line

A failure that provided useful learnings for future innovations

A failure that did not provide any useful learnings for future innovations

57

22% of business executives have seen up to half of their innovations positively impact their bottom line over the last five years


Base business executives 2018: 2,090

However, ROI success varies across the globe with France claiming the highest achievement and Japan claiming the lowest

58Q23. Mean (Including Zero) Summary - What percentage of your company’s innovations over the past 5 years do you think have fallen into the following categories?

Base 0-25% 693, 26-49% 688, 50-100% 709. [Full base sizes listed in the appendix]

Mean scores:• Below 50• 50 - 59• 60 - 69• 70 or above

What percentage of your company’s innovations over the past 5 years do you think have been a success that positively impactedthe bottom line and improved our position in the market?

Percentage of ROI that is more than 50 percent

59

We dug deeper and looked at The Achievers and Non-Achievers to see

what differentiated them

0-25% 26-49% 50-100%

The Non-Achievers The Achievers

Business executives whose average % of their company’s innovations have positively impacted their bottom line over the last 5 years


Base business executives 2018: 2,090. Base 0-25% 693, 26-49% 688, 50-100% 709.

What makes a business a ROI Achiever?

60

They know how key digitalization is to

innovation success

They focus on measurement

They are thinking about

long-term strategies

They are more cautiousin their approach to innovation

Business executives

that say 50-100% of

their company’s

innovations have

positively impacted

their bottom line

over the last 5 years

Achievers are using data effectively and integrating digital capabilities into the business model

61

They know how key digitalization is to innovation

success

78% 78% 77%

37%

88% 86% 84%

54%

To harness and use data in effective ways tomake informed business decisions (% perform

well)

To have a data security program in place tomitigate against any risks of losing data, data

breaches or being hacked (% perform well)

To put digital capability at the core of theirbusiness model (% perform well)

Digitalization has made it much easier andefficient for us to measure our return on

investment (% agree)

Non-Achievers

Achievers

Q23 – Mean (Including Zero) Summary - What percentage of your company’s innovations over the past 5 years do you think have fallen into the following categories? Base business

executives 2018: 2,090. Base 0-25% 693, 26-49% 688, 50-100% 709. Table Q17 How does your company currently perform against these success criteria? Q22 - Which of the below

statements represent your attitudes to measuring the return on investment of innovation at your company? Base business executives 2018: 2,090

Achievers are more likely to focus on demonstrating the value to investors, clients and users, and measure the successes of their innovations

62

They know how key measurement is to innovation

success

80%

40%35%

88%

46%41%

To demonstrate the value of their innovations to clientsand users (% perform well)

We have to measure the impact of innovation onbusiness performance to get further investment and

funding (% agree)

We have measurement frameworks in place to keep ourinvestors happy (% agree)

Non-Achievers

Achievers


executives 2018: 2,090. Base 0-25% 693, 26-49% 688, 50-100% 709. Q17 How does your company currently perform against these success criteria? Q22 - Which of the below statements

represent your attitudes to measuring the return on investment of innovation at your company? Base business executives 2018: 2,090

Achievers are more cautious and measured in their approach to innovation

63

They know how key being cautious is to innovation

success

63%

58%

74%72%

To protect the core business as much as possible, so it continues to generate theprofitability needed to support Research & Innovation efforts (% agree)

To wait to perfect and test the innovation before launch, in order to make surethe customer is completely satisfied from the start (% agree)

Non-Achievers Achievers

Q23 – Mean (Including Zero) Summary - What percentage of your company’s innovations over the past 5 years do you think have fallen into the following categories? Base business executives

2018: 2,090. Base 0-25% 693, 26-49% 688, 50-100% 709. Q16. On a scale from 1 to 10, how crucial do you think the following elements are for a company to be able to innovate successfully?

Q24A - Now we are going to present different views on the ideal innovation process. For each you will be shown two options. We would like you to pick the one you feel is the truest or the most

relevant in driving successful innovation. Base business executives 2018: 2,090c

When innovating, it is best… When innovating, it is best…

In 2018, a more cautious approach to innovation is favoredglobally rather than getting to market quickly

64

Q24. Now we are going to present different views on the ideal innovation process. For each you will be shown two options. We would like you to pick the one you

feel is the truest or the most relevant in driving successful innovation. Sometimes you may feel your opinion sits in the middle, but please try to select the one which

you believe is the most critical. [Top 3 Box 8 - 10] Base business executives 2016: 2,748, business executives 2018 2,090

When innovating, it is best...(19 markets no UK)

45%55%

35%

65%To get to market as

quickly as possible to

keep an edge on

competition even if this

means having an

imperfect product or

service and improving it

along the way

To wait to perfect and test

the innovation before

launch in order to make

sure the customer is

completely satisfied from

the start

2016 2018 2016 2018

-10

+10

This increased slow and steady approach is happening across most countries

65



50%

60%

51%

34%

61%

53%

68%

55% 53%49%

62%

47%

66% 68%

51%55%

49%55%

54%

63%

73%78%

66%

49%

73%

64%

78%

65% 63%59%

71%66%

74% 75%

58%61%

65%60%

54% 56%

67%

2016 2018

When innovating, it is best...

To wait to perfect and test the innovation before launch in order to make sure the customer is completely satisfied from the start Ranked by 2016 to 2018 difference

Increase Decrease

20

16

da

ta n

ot

ava

ilab

le

In 2018 it is more important to protect the core business as much as possible and look at the long term impact of innovating

66

Q24. Now we are going to present different views on the ideal innovation process. For each you will be shown two options. We would like you to pick the one you

feel is the truest or the most relevant in driving successful innovation. Sometimes you may feel your opinion sits in the middle, but please try to select the one which

you believe is the most critical. [Top 3 Box 8 - 10] Base business executives 2016: 2,748, business executives 2018 2,090

When innovating, it is best...(19 markets no UK)

65%

35%

69%

31%

To protect the core

business as much as

possible, so it

continues to generate

the profitability

needed to support

Research &

Innovation efforts

To bring innovative products and/or

services to market as fast as

possible without worrying about

the short-term impact it can have

on the core business

2016 2018 2016 2018

-4

+4

At a country level, business executives are focusing on protecting their core business as much as possible

67



67%

56%

64%

52%

62%66%

57%

65%72%

77% 76%

65% 63% 61%

72%76%

59%65% 65% 63%

85%

72%78%

64%

72% 75%

66% 69%

89%

80% 79%

68% 66%

60%

70% 73%

55% 58% 55%49%

67%

2016 2018

When innovating, it is best...To protect the core business as much as possible, so it continues to generate the profitability needed to support Research & Innovation effortsRanked by 2016 to 2018 difference

Increase Decrease

20

16

da

ta n

ot

ava

ilab

le

Achievers are also more prepared to strategically work towards a long-term return on investment

68

They know how key long-term strategy is to innovation

success

75% 76%

66%

84% 84%

75%

To be ready to accept a long-term return on investmentto allow for breakthrough innovation

(% perform well)

To follow the long-term business strategy towardsinnovation rather than focus on current innovation trends

that have little meaningful impact (% perform well)

To create innovations that prioritise a long-term societalor environmental benefit (% agree)



executives 2018: 2,090. Base 0-25% 693, 26-49% 688, 50-100% 709. Q17 - How does your company currently perform against these success criteria? Q24C - Now we are going to

present different views on the ideal innovation process. For each you will be shown two options. We would like you to pick the one you feel is the truest or the most relevant in driving

successful innovation. Base business executives 2018: 2,090

69

The Achievers are seeing a positive impact on their bottom line as they are

more likely to strategize and measure ROI

70

Those with a higher rate of ROI success are more likely to have a clear innovation strategy and measure their ROI

Q19. Does your company have a clear innovation strategy? Base business executives 2018: 2,090 Q20. Do you measure the contribution of innovation to your business

performance? Base business executives 2018: 2,090 Q23 – Mean (Including Zero) Summary - What percentage of your company’s innovations over the past 5 years do

you think have fallen into the following categories? Base 0-25% 693, 26-49% 688, 50-100% 709.

My company does have a clear innovation strategy (top 3 box)

42%

61%


43%

59%


I do measure the contribution of innovation to my business performance (top 3 box)

71

And the Achievers are measuring their ROI in different ways: a clearer structure of how to report and measuring factors other than profit

Having a clear process and structure in place to measure innovation across various parts of the business or have

innovation teams report directly to the CEO.

43%

50%


41%

50%


Measuring factors other than revenue, such as reputation of the company, the outcome of the service, customer adoption rates or

impact at a societal level to decide which product or service should be funded or not funded (% agree)

Q23 – Mean (Including Zero) Summary - What percentage of your company’s innovations over the past 5 years do you think have fallen into the following categories?

Base 0-25% 693, 26-49% 688, 50-100% 709 Q21.Thinking more about measuring the contribution of innovation to your business performance, [ONLY SHOW IF 2-10 AT

Q20: what do you do to measure this contribution, if anything, and] what do you think you should be doing? Base business executives 2018: 2,090

72

When it comes to policy, innovation Achievers are more likely to favor anti-protectionist

policies

Despite a general leaning towards protectionism, innovation Achievers are more likely to favor anti-protectionism policies around innovation

73Q6. There have recently been discussions about the potential impact of protectionist politics and policy on innovation and businesses. Out of the statements below

related to protectionism, which do you agree with the most? Base business executives 2018: 2,090, innovations winners: 709, innovation losers: 693.

59%

41%

51%49%

If the government had a political protectionist stance on innovation in mycountry it would be beneficial to businesses

If the government had a political protectionist stance on innovation in mycountry it would have a negative impact on businesses


-8 +8

Pro-protectionism Anti-protectionism

The key reasons for this are perceived barriers to innovation and too much government control

74Q8. Out of the reasons below, why do you think protectionism would have a negative effect on businesses in your country? Base business executives 2018: 2,090,

innovations winners: 709, innovation losers: 693.

Why do you think protectionism would have a negative effect on businesses in your country?

52%

53%

39%

38%

It gives the government too much control

It is less appealing to foreign investment whichwould slow down the pace of innovation


Innovation Achievers are more likely to think that protectionism policies would slow down the pace of innovation due to less foreign investment, and it would give the government too much control – significantly more so than innovation losers.


Hype vs. Reality of Impact

75

Executive Summary

• Hype around certain technologies does not always equate to transformative impact. In fact, global executives believe that many under-hyped technologies will have a transformative impact, including energy grids (74% say it will bring transformative change to their country), virtual healthcare (68%) and smart cities (71%).

AI, IoT, Fintech and 3D printing are receiving the most hype globally

76

Q9.When we talk about innovation “hype”, we mean hot topics or trends that are being widely discussed but aren’t necessarily having an impact yet. Out of the

innovations listed below, please rate each based on how much “hype” they are creating in your country today. Base Business Executives: 2,090

71%70%

69%68%

67%66%

65% 64%

62% 62% 62%

57%

Artificial andmachine

intelligence

Internet ofThings

Financialtechnology and

currency

3D printing AugmentedReality/ Virtual

reality

Big data andanalytics

Smart energygrids

Nanotechnology Driverlesstransport

Smart cities Electrification ofthe transport

system

Virtualhealthcarediagnosis

How much “hype” are they are creating in your country today? (NET hype)

65% average hype

Yet several other innovations are viewed to be just as transformative and impactful as those receiving the most hype

77Q10. Next, please rate each of these innovations in terms of how much impact and transformative change they will bring to your country. Base Business Executives:

2,090

How much impact and transformative change will they bring to your county? (NET impact)

74%

71% 70%

69% 68%

71%

74%

72%

68%

71%72%

68%


intelligence

Internet ofThings


currency


reality


Smart energygrids



system


71% average impact

The potential impact of smart energy grids, smart cities, electrification of transport and virtual healthcare significantly exceeds their hype

78

Q9.When we talk about innovation “hype”, we mean hot topics or trends that are being widely discussed but aren’t necessarily having an impact yet. Out of the

innovations listed below, please rate each based on how much “hype” they are creating in your country today. Base Business Executives: 2,090. Q10. Next, please rate

each of these innovations in terms of how much impact and transformative change they will bring to your country. Base Business Executives: 2,090

How much “hype” are they are creating in your country today? (NET hype)

How much impact and transformative change will they bring to your county? (NET impact)

71%70%

69%68%

67%66%

65%64%

62% 62% 62%

57%

74%

71%70%

69%68%

71%

74%72%

68%

71%72%

68%


intelligence

Internet ofThings


currency


reality


Smart energygrids



system


79

Looking by country, we see different innovations offering a strong future impact

Brazil

Canada

ChinaFrance

Germany

India

Indonesia

Japan

Malaysia

Mexico

Nigeria

Poland

Saudi Arabia

South Africa

Sweden

Turkey

UAE

UK

USA

South Korea

Q10. Next, please rate each of these innovations in terms of how much impact and transformative change they will bring to your country. Base Business Executives: 2,090

3D printing

Artificial and machine intelligence

Augmented Reality/ Virtual reality

Big data and analytics

Driverless transport

Electrification of the transport system Financial technology and

currency

Internet of ThingsNanotechnology

Smart cities

Smart energy grids

Virtual healthcare diagnosis

80

There is a job to be done to raise awareness of the importance of smart cities, smart energy grids and electrification of the transport system

Less Hype, Stronger Impact

INN

OV

ATI

ON

IM

PA

CT

INNOVATION HYPE

Q9. When we talk about innovation “hype”, we mean hot topics or trends that are being widely discussed but aren’t necessarily having an impact yet. Out of the

innovations listed below, please rate each based on how much “hype” they are creating in your country today. Base Business Executives: 2,090. Q10. Next, please rate

each of these innovations in terms of how much impact and transformative change they will bring to your country. Base Business Executives: 2,090

Less Hype, Weaker Impact

More Hype, Stronger Impact

More Hype, Weaker Impact

Q9.When we talk about innovation “hype”, we mean hot topics or trends that are being widely discussed but aren’t necessarily having an impact yet. Out of the innovations listed below, please

rate each based on how much “hype” they are creating in your country today. Base Business Executives: 2,090 Q10. Next, please rate each of these innovations in terms of how much impact and

transformative change they will bring to your country. Base Business Executives: 2,090

There are two innovations that stand out regarding their innovation impact and/or hype potential

For Smart Energy Grids, meaning “advanced energy infrastructures that distribute energy on a grid system and can integrate renewable energy with non-renewable energy sources, we observe a discrepancy between ‘hype’ and ‘impact’. Although the innovation does not generate a lot of hype, innovation executives expect an impact.

Artificial Intelligence (AI), defined as “the ability of machines and software to harness large amounts of data to do tasks, to make decisions and find solutions”, sees itself at the top position throughout the different markets. For both ‘hype’ and ‘impact’, a majority of countries are ranking AI among the highest four innovations in both categories.

Hype Impact ImpactHype


section three:

Emerging Challenges


Future of Work

83

Executive Summary• The workforce is considered the most crucial element to innovation success in most markets, yet skills gaps

continue to be a top concern among businesses. Nearly 3 in 4 (74%) global executives believe a lack of skills is an issue facing their industry—a challenge that has increased over time (64% say a lack of talent/inadequate skills is a key challenge today, up from 56% in 2014).

The impact of automation and pace of change have led to a real skills gap – 3 in 4 innovation executives believe a lack of skills is an issue their industry is facing

84

5%

19%

43%

31%

Strongly disagree Somewhat disagree Somewhat agree Strongly agree

2018

Q5B. How much do you agree or disagree with the following statements? There is currently a skills gap in my industry. Base business executives: 2,090

There is currently a skills gap in my industry

Level of agreement is

consistent across sectors (74%)

85

Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Base business executives 2014: 3,309,

business executives 2016: 2,748, business executives 2018: 2,090

56%

60%

64%Do you consider the following a key challenge restricting your business’s

ability to innovate efficiently?

A lack of talent / inadequate skill set

2016

2018

2014

NET: A challenge

This challenge only seems to be growing for business executives - finding the right talent and skill sets is apparently restricting business’s ability to innovate efficiently

+8 ppt

Business executives are increasingly recognizing that robotics and automation will radically transform the job market

86

2%

9%

43%44%

2%

7%

30%

59%

Strongly disagree Somewhat disagree Somewhat agree Strongly agree

2016 2018

Q5E. How much do you agree or disagree with the following statements? In the next 10 years, technological developments such as robotics and automation are

going to radically transform the job market and nature of work. Base business executives 2016: 2,748, business executives 2018 2,090

In the next 10 years, technological developments, such as robotics and automation are

going to radically transform the job market and nature of work (19 markets no UK)

And the potential effects of a shift to automation has seen the largest increase in emerging markets

87Q5. How much do you agree or disagree with the following statements? In the next 10 years, technological developments such as robotics and automation are going

to radically transform the job market and nature of work. [NET: Agree Top 2 Box] [Full base sizes listed in the appendix]

67%

81% 81%

75%

91%

88%86%

91%

86%

77%

84%

87%89%

87%

92%90%

76%

94%

81%83%

94%96%

93%

86%

99%

95%93%

96%

91%

82%

88%90%

91%89%

93%91%

84%

76%

93%

80%

76%

2016 2018

In the next 10 years, technological developments such as robotics and automation are going to radically transform the job market and nature of workNET: Agree – Ranked by 2016 to 2018 difference

20

16

da

ta n

ot

ava

ilab

le

Why do you think protectionism would have a beneficial effect on businesses in your country?

Q7. Out of the reasons below, why do you think protectionism would have a beneficial effect on businesses in your country? Base business executives who are pro-

protectionism: 1,153

+5 -1 - 1 +2 = + 1-3 = =NEW

ENTRANTS-6 +1 + 1 +1 35%

60%

73%

86%

It provides government control (NET)

It fosters ideas domestically (NET)

It is positive for jobs and the workforce (NET)

It gives domestic businesses a competitive edge (NET)

88

Pro-protectionists place job security and positivity for the workforce as a key benefit of more protectionism in their country

And this extends across regions—the workforce is considered the most crucial element to innovation success across most markets

89

Key: Themes

Workforce

Data

ROI

Strategy

Q16. On a scale from 1 to 10, how crucial do you think the following elements are for a company to be able to innovate successfully? [Top 3 Box] Base business executives:

2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150, Indonesia: 80, Japan: 100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia:

80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150

Elements most crucial to innovation success

for businesses


More Challenging Environment

90

Executive Summary• The challenges confronting innovative businesses are tough – and getting tougher – both externally and

internally. There is a 13-point increase (now 67%) since 2014 in lack of sufficient funding, a 6-point increase (now 65%) in the inability to scale innovations to a wider market, an 8-point increase (now 64%) in lack of adequate talent/ skillsets, and a 14-point increase (now 64%) in the inability of businesses to take risks.

• Emerging markets, such as Poland, South Africa, Malaysia and Saudi Arabia are experiencing the greatest increase in challenges.

Businesses are struggling to scale up, investment is not available, and it is a challenge to convert ideas into action

91

67%

65% 64% 64% 64% 64% 64%

62%

60%

57%

The lack of sufficientinvestment and

financial support

The incapacity toscale up successful

innovations, to awider or

international market

A lack of talent /inadequate skillset

The difficulty todefine an effectivebusiness model tosupport new ideas

and make themprofitable

The incapacity ofthe business to take

risks

The increased pressure to conform to ‘innovation hype’ and trends around certain innovations

The difficulty tocome up with

radical anddisruptive ideas

The internal inertiaand the incapacityto be nimble, failing

at rapidlyconverting ideas

into actions

The lack of internalsupport from the

leadership team/topmanagement

The overwhelmingamount of

information

2018

Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Not a challenge at all (1), not a real

challenge (2), a bit of a challenge (3), a critical challenge (4) Base business executives 2018: 2,090

Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently?NET: Top 2 / A Challenge

And these key issues have become even bigger challenges than they were four years ago

92Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Not a challenge at all (1), not a real

challenge (2), a bit of a challenge (3), a critical challenge (4) Base business executives 2014: 3,309, business executives 2018: 2,090


50%

54%

59%56%

59%

64%67%

65%62%

64%

The incapacity of the business totake risks

The lack of sufficient investmentand financial support

The incapacity to scale upsuccessful innovations, to a wider

or international market

The internal inertia and theincapacity to be nimble, failing at

rapidly converting ideas intoactions

The difficulty to define an effectivebusiness model to support newideas and make them profitable

2014 2018

+14 +13 +6 +6 +5

Globally, a lack of financial support and the inability to scale up stifle both developed and emerging markets

93

NET Challenge (Top 1):• The increased pressure to conform to ‘innovation hype’ and trends around certain innovations

• The incapacity to scale up successful innovations to a wider or international market• The difficulty to come up with radical and disruptive ideas• The difficulty to define an effective business model to support new ideas and make them profitable• The lack of sufficient investment and financial support• A lack of talent / inadequate skillset

The overwhelming amount of information• The incapacity of the business to take risks

Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently?NET: Challenge Top 1 Challenge

The majority cite a lack of financial support and the inability to scale up as a challenge to innovation, but for Asia it is a lack of ideas and talent that are the key barriers.

Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Not a challenge at all (1), not a real challenge (2),

a bit of a challenge (3), a critical challenge (4) Base business executives 2018: 2,090 [Full base sizes listed in the appendix] [Of note, “The internal inertia and the incapacity

to be nimble, failing at rapidly converting ideas into actions” not listed as a top 1 NET challenge in any market surveyed]

Poland, Canada and South Africa are less able to take risks than they were four years ago


challenge (2), a bit of a challenge (3), a critical challenge (4) Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes listed in the

appendix]

Do you consider any of the following as key challenges restricting your business’s ability to innovate efficiently?NET: Top 2 / A Challenge

50%

64%

The incapacity of the business to take risks

2014 2018

+14

+14 point global average jump from 2014 - 2018

-1 Germany

-5 Turkey

+47 Poland

+25Canada

+22South Africa

Above average increase from 2014 - 2018

Below average increase from 2014 - 2018

Emerging economies are more likely to lack sufficient investment and financial support than in 2014



appendix]


54%

67%

The lack of sufficient investment andfinancial support

2014 2018

+13


-3 Germany

+1 Sweden, Turkey

+27 Malaysia

+25Saudi Arabia

+22South Africa,

Brazil



Scaling up innovations is a growing issue across the markets, but Mexico and Sweden are not experiencing this challenge



appendix]


59%

65%

The incapacity to scale up successfulinnovations, to a wider or international

market

2014 2018

+6


-17 Sweden

-16 Mexico

+27 Poland

+22Malaysia

+20China



+18Canada

+17France

Poland and Asian markets increasingly struggle with inertia, but Mexico and Sweden don’t face this issue as much as in 2014



appendix]


56%

62%

The internal inertia and the incapacity to benimble, failing at rapidly converting ideas

into actions

2014 2018

+6


-14 Sweden

-8 Mexico

+38 Poland

+22Indonesia

+16South Korea, Saudi Arabia



Mexico and Sweden also score lower this year for “the incapacity to scale up successful innovations, to a wider or international market.” Does this mean that the ability to scale up has helped them combat

inertia?

European markets are divided; some feel it’s increasingly difficult to define an effective business model as Turkey and Germany state improvements in this area



appendix]


59%

64%

The difficulty to define an effective businessmodel to support new ideas and make them

profitable

2014 2018

+5


-18Germany

-10Turkey

+25 Poland

+22France

+21Malaysia




Appendix

Edelman Intelligence / © 2017

Complete base sizes per year (country level)

100

2018: Base business executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150, Indonesia: 80, Japan: 100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150

2016: Base business executives: 2748, Algeria: 97, Australia: 106, Brazil: 200, Canada: 103, China: 207, France: 102, Germany: 101, India: 204, Indonesia: 101, Israel: 100, Japan: 103, Saudi Arabia: 100, Malaysia: 101, Mexico: 102, Nigeria: 100, Poland: 101, Russia: 101, South Africa: 105, South Korea: 102, Sweden: 102, Turkey: 103, UAE: 100, USA: 207

2014: Base business executives: 3,309, Canada: 100, China: 200, Australia: 100, Sweden: 100, Germany: 100, Brazil: 200, Mexico:100, India: 203, Singapore: 100, Japan: 100, South Korea: 100, Malaysia: 100, Russia: 200, Italy: 100, UK: 100, Poland: 100, UAE: 102, Saudi Arabia: 101, Israel: 100, Turkey: 100, Nigeria: 100, South Africa: 100, Indonesia: 101, Algeria: 100, Kenya: 102, France: 100

2013: Base business executives: 3,309, Canada: 100, China: 200, Australia: 100, Sweden: 100, Germany: 100, Brazil: 200, Mexico:100, India: 203, Singapore: 100, Japan: 100, South Korea: 100, Malaysia: 100, Russia: 200, Italy: 100, UK: 100, Poland: 100, UAE: 102, Saudi Arabia: 101, Israel: 100, Turkey: 100, Nigeria: 100, South Africa: 100, Indonesia: 101, Algeria: 100, Kenya: 102, France: 100


Historical data has been used from 2013, 2014, 2016 and this year’s 2018 data.

The only question that is comparable across all four years is Q1 - Innovation Champions.• To compare scoring from previous years we have reweighted the previous total scores, so that countries

that are not included in this year’s GE GIB are removed, so only including the 20 countries that we have this year. This ensures all data is directly comparable.

• The UK was not included in GE GIB 2016 so an average score from 2018 data and from 2014 was created at act as

a proxy.

• In 2013 France was not included so a proxy from looking at 2014 and 2016 data has been used.

• In 2016 Nigeria was not included so an average score from 2018 data and from 2014 was created to act as a proxy.

This method (of reweighting the total scores and creating proxies) has been used consistently across all questions where we have compared historical data.

Where tracking questions have been used for only 2016 and 2018 (because these questions were not tracked in 2013 or 2014), data for these questions is based on a 19 market total only as no proxy could be created for the UK in 2016.

Historical data tracking

101


Appendix slides for Maximizing the

Return on Innovation

More business executives in emerging markets say it’s crucial to put digital capability at the core of their business model than they did two years ago

103

45%

58% 58%63%

53%

31%

55%

68% 69%

62%59%

57%

76…

65%

37%

59%

70% 70%

50%

74%80%

81% 81%

73%

63%

40%

63%

75%72%

64% 60%58% 59%

75%

64%

31%

50%

59%

48%

28%

40%

2016 2018

Q16. On a scale from 1 to 10, how crucial do you think the following elements are for a company to be able to innovate successfully? [NET Top 3 Box] Base business

executives 2018: 2,090, business executives 2016: 2,748, [Full base sizes listed in the appendix]

It is crucial to put digital capability at the core of their business modelNET: Top 3

20

16

da

ta n

ot

ava

ilab

le

Increase Decrease

And business executives are putting this into practice with executives stating they do well at keeping digital at the core of the business

104

61%

73% 72% 71%

57%

72%

65%

82%

65%

85%83%

74%

81%84%

80%

76%

72% 72%69%

85%

90% 91%89% 88%

71%

85%

78%

73%76%

93%90%

81%

87%89%

85%

80%

75% 74%

84%

60%

69%

2016 2018

Q17. How does your company currently perform against these success criteria? Base business executives 2016: 2,748, business executives 2017: 2,090 [NET: Well / Top

2 Box] [Full base sizes listed in the appendix]

My company currently puts digital capability at the core of its business model NET: Well / Top 2 Box

20

16

da

ta n

ot

ava

ilab

le

Increase Decrease

Business executives in emerging markets increasingly state that it is crucial to use big data and analytics to improve strategy

105

61%63%

67%

53%

67%65%

53%

65%

82%

62%58%

65%

40% 39%

60%

65%

58%

75%

57%

75%

80% 79%81%

66%

75%72%

60%

65%

58%

81%

60%56%

61%

34% 33%

53%55%

46%

61%

33%

44%

2016 2018

Q16. On a scale from 1 to 10, how crucial do you think the following elements are for a company to be able to innovate successfully? [NET: Top 3 Box] Base business


It is crucial to use big data and analytics to improve strategic knowledge and inform decision-makingNET: Top 3

20

16

da

ta n

ot

ava

ilab

le

Increase Decrease

The majority feel their company is better at using big data effectively than they were in 2016

106

66%

50%

68%

52%

67%

53%

67%63%

75%78%

71%

79%

86%

78%

86%

76% 76%

62%

83%87%

93%

74%

89%

73%

82%

65%

78%74%

85%87%

80%

87%

93%

84%

91%

80% 79%

84%

58%

76% 75%

2016 2018



My company uses big data and analytics to improve strategic knowledge and inform decision-makingNET: Well / Top 2 Box

20

16

da

ta n

ot

ava

ilab

le

Increase Decrease

Business leaders in emerging markets are relying more heavily on demonstrating the value of their innovations to clients and users

107

71%

64%60% 61%

73%

68% 68%

75%

63%67%

75%

54%

44%

89%

75%73%

47%

79%

51%

82%

88%

80%76%

73%

84%

76%73%

79%

64%

56%

65%

71%

50%

37%

81%

65%63%

36%

65%

30%

54%

2016 2018



20

16

da

ta n

ot

ava

ilab

le

It is crucial to demonstrate the value of their innovations to clients and usersNET: Top 3

Increase Decrease

And most countries feel they demonstrate this value well with countries at the lower end of the scale in 2016 catching up

108Q17. How does your company currently perform against these success criteria? [NET: Well / Top 2 Box] Base business executives 2018: 2,090, business executives

2016: 2,748 [Full base sizes listed in the appendix]

56%

72%

53%

74%

79%

68% 67%

85%

71%

78%

83%

89%

84% 84%87%

84%

75%

82%

95%

88%85%

93%

74%

89%

93%

80%

89%

94%

80%

86%88%

93%

88% 88%90%

87%

75%

85%

80%

88%

80%

2016 2018

My company currently demonstrates the value of its innovations to clients and usersNET: Well / Top 2 Box

20

16

da

ta n

ot

ava

ilab

le

Increase Decrease

Emerging markets have seen an increase in the importance of demonstrating innovation’s value to society

109

50%

65%

52%

67% 66%

58%

72% 72%

35%

56%

62%

82%

58%

67%

36%

69%67%

73%

48%

77%

65%

78%

64%

78%79%

69%

79%75%

36%

56% 56%58%

73%

48%

55%

24%

56%

51% 50%

24%

42%

2016 2018



It is crucial to demonstrate the value of innovation for society at large, and how it helps address or solve an important issue:NET: Top 3

20

16

da

ta n

ot

ava

ilab

le

Increase Decrease

In emerging markets, executives think they are doing well in creating innovations that provide a value to society

110

70% 70%

64%62% 61% 60%

81%

74%72%

55%

79%

73%

85%

78% 79% 78%

68%

64%

89%

84%

93% 91%

83%79%

74% 73%

92%

85%

80%

63%

86%

78%

88%

81% 80%79%

68%

83%

63%

86%

69%

2016 2018

Q17. How does your company currently perform against these success criteria? [NET: Well / Top 2 Box] Base business executives 2018: 2,090, business

executives 2016: 2,748 [Full base sizes listed in the appendix]

My company currently demonstrates the value of its innovation for society at large, and how it helps address or solve an important issueNET: Well / Top 2 Box

20

16

da

ta n

ot

ava

ilab

le

Increase Decrease

Emerging markets are now more ready to accept a long-term return on investment than in 2016

111

48%

66%

72%

49%

69%67%

63%

68%64%

61%

34%

80%

64%66%

74% 75%

70%

51%

59%

82%

66%

82%79%

56%

75%73%

69%

73%

66%63%

58%

33%

78%

62% 62%

66% 66%

61%

31%

35%

49%

2016 2018



It is crucial to be ready to accept a long-term return on investment to allow for breakthrough innovationNET: Top 3

20

16

da

ta n

ot

ava

ilab

le

Increase Decrease

Emerging and Asian markets state they are doing well in accepting a long-term return on investment

112

45%

70%

64%

73% 71%

82%

56%

85%

70%

65%

74%

67%

84%86%

83% 82%

62%

86% 87%90%

74%

93%

85%

89%

82%

91%

65%

93%

78%

73%

81%

74%

87% 87%84% 84%

79%

58%

80%

75% 76%

2016 2018



My company is ready to accept a long-term return on investment to allow for breakthrough innovationNET: Well / Top 2 Box

20

16

da

ta n

ot

ava

ilab

le

Increase Decrease


Appendix slides for A More Challenging

Environment

In economically mature markets, attracting and retaining talent is not as crucial as it was in the past – so is the skills gap hyped?

114

77%

67%

82% 82%86%

62%

71%

92%

79%76%

85%

97%

78%75%

84%80%

78%

83%

64%

75%

66%

86%

68%

80% 80%84%

59%

66%

86%

73%70%

78%

88%

67%64%

71%67%

62% 63%

43%

36%

27%

2014 2018

Q16. On a scale from 1 to 10, how crucial do you think the following elements are for a company to be able to innovate successfully? Base business executives 2014:

3,309, business executives 2018: 2,090 [Full base sizes listed in the appendix]

It is crucial to attract and retain the most talented and skilled individualsNET: Top 3

Increase Decrease

And the majority of countries are saying they do well at attracting and retaining talented and skilled individuals

115

51%

64%

48%

68%

74% 73%

87%

79%81% 81%

92%

88%

85%

65%

87%

81% 82%

89%

81%

91% 92%

82%

91%

73%

91%

88%

83%

94%

82% 83% 83%

93%

88%

85%

64%

85%

79%

76%

81%

72% 73% 73%

2014 2018

Q17. How does your company currently perform against these success criteria? Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes


My company currently attracts and retains the most talented and skilled individualsNET: Top 2 / Well

Increase Decrease

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