GAUGING INNOVATIONS PULSE

The GE Global Innovation Barometer 2012, a worldwide survey of around 3,000 senior executives in 22 countries, suggests that business leaders in developed economies such as the US, Germany and the UK believe their nations arent as innovative as they should be. Indian business leaders are largely tepid about the state of innovation in the country. For instance, in a countrywide ranking of satisfaction, India was placed 10th among the 22 countries with a consistently ambivalent perception of intellectual property security and government and university support for innovation. Interestingly, however, while respondents in most countries favoured the inclusion of more creative people for improving their organizations innovative abilities, Indian executives felt greater business partnerships and infusion of capital were more important for innovation. On a positive note, business leaders largely agreed that innovative practices, especially in energy, healthcare and consumer goods industries, could significantly improve the daily lives of people and were not just profit drivers. The survey sought to gauge the impressions of business executives about the scale, impact and government encouragement of innovation in their countries.

Highlights of the GE Global Innovation Barometer report

How business executives around the world perceive the environment for innovation in their country
IP and patent protection Countries Universities prepare tomorrows leaders intensity of Government support is adequate Easy to partner with universities for R&D Trade regulations are not limiting success Speed to market Society is ready is adequate to take risk Private investment is available

Innovation: global drivers and deterrents

Leading

Above average

Below average

Lagging

Israel Sweden United Arab Emirates Singapore China Canada Saudi Arabia South Korea Turkey India US Australia South Africa Mexico Germany UK Brazil France Algeria Japan Poland Russia
Leading Above average Below average Lagging

+
Population support for innovation Ability to partner with universities Effective IP and patent protection Efficacy of public-private partnerships

Efficiency and coordination of government support Government budget allocations to innovation

Private investment support

Speed at which innovative products come to the market

Energy and healthcare offered most scope for innovation

Energy Healthcare Telecommunications Construction Automotive Fast moving consumer goods Financial services and banking Media Hospitality Distribution/retail Other 5% 4% 3% 3% 7% 6% 6% 6% 6% 8% 7% 11% 10% 9% 10% 9% 11% 13% 13% 16% 16%

(% of respondents)

Innovation in these sectors could help improve citizens lives

Very successfully Communications Health quality The job/market Environmental quality Transport quality Energy security Access to education Education quality Access to healthcare Housing quality Citizen security Somewhat successfully
(% of respondents)

23%

52% 39% 37% 37% 37% 35% 35% 33% 32% 29% 29%

38% 42% 44% 43% 43% 43% 43% 42% 43% 44% 41%

Global India

SMEs and individuals play a key role in innovation

(country-wise breakdown)
95% 90% 85% 80% 75% 70% 65% 60% 55% 50% China Russia Poland Saudi Arabia Australia UAE Algeria Turkey US India Japan Germany South Korea Sweden Singapore South Africa UK Israel Canada Brazil France Mexico
(% of respondents)

Impact of economic crisis

This radar represents the % of respondents who agree that their organizations have been hurt by the economic crisis on various dimensions. It features a comparison between India (in orange) and the 22-market global average (in yellow).

There is a decrease in R&D spending or major R&D projects have been either cancelled or scaled back 90% 80% 70%

Global India

Access to private funding has become more difficult

61%

60% 50% 50% 40% 30%

74%

Greater focus on processes and incremental innovations

Access to public funding has become more difficult

71%

57% 51%
There is a change in culture, with firms taking fewer risks

Access to venture capital has become more difficult Source: GE GlobalGE Global Innovation Barometer 2012 Source: Innovation Barometer 2012

Graphics by Ahmed Raza Khan/Mint