[Innovation] GE Global innovation Barometer 2018 - Full Report

Edelman Intelligence / © 2017
GEGlobalInnovationBarometer2018
FullReport
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
2012
9 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
2014
Most business leaders want to embrace innovation that disrupts markets
— even if that deals a blow to their established business models
2016
A 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 data
2013
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

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
FromChaostoConfidence:
EmergingPlayers,
EmergingTechnologies,
EmergingChallenges
7
Key Findings

2018 Key Findings
From 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 Findings
From 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.
8

Edelman Intelligence / © 2017 10
Deep dive on the
findingsSection 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

sectionone:
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 medium
companies (10 to 250
employees)
Individual entrepreneurs
and start-ups
Multinational companies
investing in your country
Large enterprises (more
than 250 employees)
headquartered in your
country
Universities and research
labs
Government and public
authorities at national
level
Public authorities at local
level (region / city)
State owned enterprises in
your 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
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
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
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
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 China
What 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
way
For 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%
21
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
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
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
LATAM
Africa
Africa to China
A relationship of trade and investment
41% 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 Japan
A relationship of trade and
investment
33% 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 relationship
Asia looks to the USA, with
34% of business executives
viewing them as the
innovation champion (64%
in China).
Europe
A 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 US
A confident view
The 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)
GlobalEvaluationofinnovationconducive
environments/10
Self-evaluation of innovation conducive environments /10
USA
China
India
Germany
UAE
UK
Canada
Sweden
France
Mexico
Indonesia
Brazil
Japan
Turkey
Malaysia
South Korea
Poland
Saudi
Arabia
South 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
Singapore
Sweden
Australia
UAE
Saudi Arabia
%ofinnovationconduciveenvironment(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

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
Singapore
Sweden
Australia
UAE
Saudi Arabia
IndonesiaTurkey
The Netherlands
Finland
Israel
Ireland
Malaysia
Poland
South Africa
Vietnam
Kenya
Algeria
Singapore, Switzerland and Sweden are outliers when comparing
their lower GDPs to their higher innovation conducive status
%ofinnovationconduciveenvironment(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

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 Saudi
Arabia
Indonesia Malaysia UK Mexico Turkey Canada Global
Average
Japan USA Nigeria Brazil China Germany South
Korea
Poland South
Africa
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 innovations
NET: Agree
2016datanotavailable
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 South
Korea
Poland Japan UK Nigeria France South
Africa
Global
Average
Turkey Germany Sweden USA India Indonesia China Malaysia Saudi
Arabia
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 South
Korea
Poland Japan UK Nigeria France South
Africa
Global
average
Turkey Germany Sweden USA India Indonesia China Malaysia Saudi
Arabia
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
37
Q.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 +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)
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%
Multinational
companies
Large enterprises Individual
entrepreneurs/
start-ups
Universities and
research labs
Government at a
national level
SME's State owned
enterprises
International
organisations
Public authorities
at 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%
Multinational
companies
Large enterprises Government at a
national level
Individual
entrepreneurs/
start-ups
State owned
enterprises
International
organisations
Universities and
research labs
SME's Public authorities
at 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.

sectiontwo:
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 on
businesses in my country
I think 3D printing will have both a positive and
negative impact on businesses in my country
I think 3D printing will have a negative impact on
businesses 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 in
manufacturing
Businesses that invest in 3D printing will leave other
businesses 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 and
goods 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
No, I am not familiar
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 reality
that 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%
South
Africa
South
Korea
Poland Indonesia Saudi
Arabia
Canada Brazil Japan Turkey UK Global
Total
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 Industrial
Products
Energy related Health related Professional
services /
Business
services
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 impacted
the 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 cautious
in 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 to
make informed business decisions (% perform
well)
To have a data security program in place to
mitigate against any risks of losing data, data
breaches or being hacked (% perform well)
To put digital capability at the core of their
business model (% perform well)
Digitalization has made it much easier and
efficient 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 clients
and users (% perform well)
We have to measure the impact of innovation on
business performance to get further investment and
funding (% agree)
We have measurement frameworks in place to keep our
investors 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 the
profitability needed to support Research & Innovation efforts (% agree)
To wait to perfect and test the innovation before launch, in order to make sure
the 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 favored
globally 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
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

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
(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
To protect the core business as much as possible, so it continues to generate the profitability needed to
support Research & Innovation efforts
Ranked by 2016 to 2018 difference
Increase Decrease

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 investment
to allow for breakthrough innovation
(% perform well)
To follow the long-term business strategy towards
innovation rather than focus on current innovation trends
that have little meaningful impact (% perform well)
To create innovations that prioritise a long-term societal
or 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 my
country it would be beneficial to businesses
If the government had a political protectionist stance on innovation in my
country 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 which
would 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 and
machine
intelligence
Internet of
Things
Financial
technology and
currency
3D printing Augmented
Reality/ Virtual
reality
Big data and
analytics
Smart energy
grids
Nanotechnology Driverless
transport
Smart cities Electrification of
the transport
system
Virtual
healthcare
diagnosis
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
77
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 impact and transformative change will they bring to your
county? (NET impact)
74%
71% 70%
69% 68%
71%
74%
72%
68%
71%
72%
68%
Artificial and
machine
intelligence
Internet of
Things
Financial
technology and
currency
Reality/ Virtual
reality
Big data and
analytics
Smart energy
grids
transport
the transport
system
Virtual
healthcare
diagnosis
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%
Artificial and
machine
intelligence
Internet of
Things
Financial
technology and
currency
Reality/ Virtual
reality
Big data and
analytics
Smart energy
grids
transport
the transport
system
Virtual
healthcare
diagnosis

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 Things
Nanotechnology
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
INNOVATIONIMPACT
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

sectionthree:
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
87
Q5. 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 work
NET: Agree – Ranked by 2016 to 2018 difference

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 sufficient
investment and
financial support
The incapacity to
scale up successful
innovations, to a
wider or
international market
A lack of talent /
inadequate skillset
The difficulty to
define an effective
business model to
support new ideas
and make them
profitable
The incapacity of
the business to take
risks
The increased
pressure to conform
to ‘innovation hype’
and trends around
certain innovations
The difficulty to
come up with
radical and
disruptive ideas
The internal inertia
and the incapacity
to be nimble, failing
at rapidly
converting ideas
into actions
The lack of internal
support from the
leadership team/top
management
The overwhelming
amount 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
92
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 to
take risks
The lack of sufficient investment
and financial support
The incapacity to scale up
successful innovations, to a wider
or international market
The internal inertia and the
incapacity to be nimble, failing at
rapidly converting ideas into
actions
The difficulty to define an effective
business model to support new
ideas 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
94
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?
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
+25
Canada
+22
South 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
95
appendix]
54%
67%
The lack of sufficient investment and
financial support
2014 2018
+13
-3
Germany
+1
Sweden, Turkey
+27
Malaysia
+25
Saudi Arabia
+22
South Africa,
Brazil

Scaling up innovations is a growing issue across the markets,
but Mexico and Sweden are not experiencing this challenge
96
appendix]
59%
65%
The incapacity to scale up successful
innovations, to a wider or international
market
2014 2018
+6
-17
Sweden
-16
Mexico
+27
Poland
+22
Malaysia
+20
China
+18
Canada
+17
France

Poland and Asian markets increasingly struggle with inertia, but
Mexico and Sweden don’t face this issue as much as in 2014
97
appendix]
56%
62%
The internal inertia and the incapacity to be
nimble, failing at rapidly converting ideas
into actions
2014 2018
+6
-14
Sweden
-8
Mexico
+38
Poland
+22
Indonesia
+16
South 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
98
appendix]
59%
64%
The difficulty to define an effective business
model to support new ideas and make them
profitable
2014 2018
+5
-18
Germany
-10
Turkey
+25
Poland
+22
France
+21
Malaysia

Appendix

Edelman Intelligence / © 2017
Completebasesizesperyear(countrylevel)
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 model
NET: Top 3
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
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-making
NET: Top 3
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-making
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
It is crucial to demonstrate the value of their innovations to clients and users
NET: 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
108
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]
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 users
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
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 issue
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 innovation
NET: Top 3
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 innovation
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 individuals
NET: 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 individuals
NET: Top 2 / Well
Increase Decrease

[Innovation] GE Global innovation Barometer 2018 - Full Report

Recomendados

Recomendados

Mais conteúdo relacionado

Mais de Patrick Barrabé® 😊

Mais de Patrick Barrabé® 😊 (20)

Último

Último (20)

[Innovation] GE Global innovation Barometer 2018 - Full Report