Although, innovation did decline overall from 2013 to 2014.
And 61 percent indicated that they are spending more on innovation this year than in 2013. While these numbers are largely consistent with those for 2013, important differences emerge when we look behind the averages at individual industries and countries. Notably, we see sharp shifts in the innovation stance of specific industries, a big change in the industry mix, and a heightened priority on innovation in rapidly developing economies (RDEs).
Overall, we saw only a 2 percentage point decline in the priority of innovation from 2013 to 2014—and a 3 percent decline in the proportion of respondent organizations that are spending more on innovation in 2014 than in 2013. But several sectors showed bigger shifts.
The biggest shift is in the automotive industry. Automakers reported both a 26 percent decline in innovation priority (from 84 percent to 62 percent) and the second-largest drop in the intention to spend more (from 71 percent to 62 percent). They also showed the most pronounced single-industry falloff among all the industries represented in the list of 50 most innovative companies. (See the section “The 50 Most Innovative Companies: Automakers Downshift.”) Cost cutting has reemerged as an important priority—even at the premium end of the market—as many automakers seem to be concerned that innovation alone will not preserve their margins.
Read more: Boston Consulting Group