World Monitor Mag, Industrial Overview WM_November_2018_WEB_Version - Page 91

additional content between 2016 and 2017, when spending increased by 3.2 percent. Revenues for the Global Innovation 1000 also increased by 11.4 percent, leaving R&D intensity, or innovation spending as a percentage of revenue, unchanged from 2017 (at 4.5 percent) and maintaining the 14-year high (see “R&D and Revenue”). Our analysis reveals that both the high-leverage innovators and the larger universe of companies that report relative high performance have six key characteristics. The first five are widely understood, though executed to varying degrees. The sixth is something that only the best innovators accomplish. We tailored our analysis this year to determine what sets high-leverage innovators apart from their competitors, interviewing innovation leaders and studying the innovation programs at a number of companies on the list. We also surveyed a sample of leaders and managers — 869 in all — to gain insights about where they are focusing their innovation efforts, how their innovation approaches are changing, what different innovation models they are pursuing, and how well they are succeeding. We separated out those companies that reported they were outperforming their competitors in terms of growth and profitability, and noted how their innovation practices contrasted with those that reported growth similar to or slower than that of their peers. 1. They closely align innovation strategy with business strategy. 2. They create company-wide cultural support for innovation. 3. Their top leadership is highly involved with the innovation program. 4. They base innovation on direct insights from end-users. 5. They rigorously control project selection early in the innovation process. 6. They excel at each of these first five characteristics and have been able to integrate them to create unique customer experiences that can transform their market. For companies looking to improve the reach and results of their R&D investment, examining the strategies of those that consistently perform at the top of their game offers invaluable insight. supported by EUROBAK 89