In past editions of the Global Innovation 1000, we found that companies focused on developing cutting-edge products and services fall under one of three fundamental innovation strategy models: Need Seekers, Market Readers, and Tech Drivers. This year, our seventh annual study of the world’s 1000 largest corporate R&D spenders focuses on the link between the three strategy models, culture, and organization — and their effect on companies’ alignment to innovation objectives and the impact on financial performance. The key finding: culture is key to innovation success, and its impact on performance is measurable. Specifically, the 44 percent of companies who reported that their innovation strategies are clearly aligned with their business goals — and that their cultures strongly support those innovation goals — delivered 33 percent higher enterprise value growth and 17 percent higher profit growth on five-year measures than those lacking alignment.
Every year since 2005, Booz & Company has conducted the Global Innovation 1000 study, which investigates the relationship between how much companies spend on R&D and their overall financial performance — and every year, we reinforce the conclusion that there is no correlation between the two. Our findings and further analysis of what makes the most successful innovators great led The Economist to call the Global Innovation 1000 "the most comprehensive assessment of the relationship between R&D investment and corporate performance," and Tom Peters praised it as a "provocative, research-based article that is sure to get you thinking." Since its inception, the study has been mentioned in more than 150 publications in 27 countries, includingThe New York Times, The Wall Street Journal and the Financial Times, and was recognized by the Innovate Forum, the Product Development & Management Association, and the National Academy of Sciences & Engineering. |
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