How Much Are You Spending on Innovation?
The CIMS Innovation Management Report, published six times a year, is jam-packed with informative, thorough articles on research in the field of innovation management and the management of technology, whether it’s being done by CIMS researchers or fellows or by other thought leaders. Here’s an excerpt from the January-February issue focusing on how much money companies allocate to innovation. Hint: It’s not enough.
By Mike Wolff
Editor, CIMS Innovation Management Report
Corporate leaders believe innovation should be a priority, but nearly half of their companies are investing less than 2% of their annual budgets on innovation. That’s the report from 200 middle and senior managers in 154 organizations surveyed by Imaginatik.
The innovation consulting/advisory firm conducted its State of Global Innovation Survey in May 2015 to assess how innovative today’s mid-and large-sized organizations have become. Responding companies had more than 200 employees and represented a wide range of industries, particularly manufacturing, consumer products, and business and financial services. Among the survey highlights:
The desire to keep up with changing customer needs drives innovation for 61% of responding companies.
- Nearly 40% have no formal process for innovation.
- 55% reported their biggest challenge is changing the mindset of their corporate culture to support innovation (see figure).
- And 50% called turning ideas into tangible results the biggest obstacle in their innovation process.