Barry Jaruzelski and Cesare R. Mainardi (Forbes),
Spending the most on innovation is not how they do it.
You can spend all you want on innovation, but you can’t guarantee success. In fact, the most innovative companies are not necessarily the biggest spenders, according to Booz & Company’s recent global innovation study. What matters instead? The ability to build the right innovation capabilities to connect with the overall business strategy and other critical capabilities.
In conducting our latest Global Innovation 1000 study, we surveyed more than 450 innovation executives (senior managers and R&D professionals) at more than 400 different companies around the globe. We asked them to identify the companies they thought were the most innovative.
The results were striking: Seven of the top 10 innovators were not among the top 10 spenders on innovation. Many of those identified by their peers as top innovators actually spent well below their industry averages on R&D, as a percentage of sales. And, most important, the top 10 innovators turned in better financial performances than the top 10 spenders.