* Senior executives say new frontiers in innovation will be driven by creativity, localization, integration and public-private partnerships
* Saudi Arabia and the UAE business leaders cite innovation as key driver for greener national economy and to improve lives of citizens
* Respondents from Saudi Arabia and the UAE underscore the power of innovation in improving overall health and boosting energy efficiency
Dubai, UAE: A first-of-its-kind report released today outlines a new landscape for innovation in the 21st century, placing an increased premium on addressing local needs, marshaling the creativity of individuals and smaller organizations, and forging strategic partnerships. According to the inaugural "GE Global Innovation Barometer," an independent survey of 1,000 business executives in 12 countries, the greatest innovations of our time will be those that help address human need, more so than those that simply create the most profit. The "GE Global Innovation Barometer" was commissioned by GE (NYSE:GE) and conducted by research and consulting firm StrategyOne to identify drivers and deterrents of innovation and analyze perceptions around innovation challenges.
"This groundbreaking study illustrates the new face of innovation and shows that as a global community, our priorities have shifted from innovations that just make money to innovations that also have the power to create good in people's lives," said Nabil Habayeb, GE's President & CEO for the Middle East and Africa region. "The report indicates a very high level of support for innovation, especially from the Arab world. There is a clear consensus that innovation can be the catalyst for a more prosperous and competitive economy. The report also recognizes the role that collaboration between parties will play in driving future innovations and the potential for more public private partnerships."
He added: "The rules of engagement are changing too as innovation becomes even more tied to economic progress, which is why companies like ours are changing our strategies. For the right kind of innovation to flourish, we must create an environment that promotes collaboration, creativity, and meeting local needs. We have continuously committed ourselves to sharing innovative technologies and solutions to address pressing requirements in the Middle East region across the energy, water, healthcare, aviation and finance sectors. With the Arab world's current focus on sustainable growth, GE is ideally positioned as a partner in bridging the gaps, and fueling innovation-led development."
An overwhelming majority of respondents in Saudi Arabia and the UAE -- the two countries selected from the Arab world for the research - underscored the importance of innovation as the main lever for a greener national economy. The two countries lead the ranking in Innovation Optimism Index, which evaluates how innovation can improve citizens' lives. Saudi Arabia ranks highest in the Innovation Optimism Index at 88, followed by UAE at 86 while the average of the 12 countries is 75, underscoring the increasing appreciation in the Arab world on the value of innovation for its positive impact on the society.
The two countries also lead in the Innovation Context Index, which ranks the satisfaction level on the innovation environment in the countries. Saudi Arabia and the UAE rank at 72 and 70, respectively, much higher than the 12-country average of 59. An overwhelming 76% of the respondents in the UAE, followed by Saudi Arabia (62%), say public private partnerships are essential in developing innovation. The top three factors that help companies innovate are -- out of the box thinkers, more people with advanced technical expertise and more financial support from public authorities.
Healthcare and Energy
The research also focused, specifically, on healthcare and energy -- two key growth sectors for the Middle East region. The majority of respondents in Saudi Arabia (90%) and the UAE (94%) said innovation will improve energy independence; the country's carbon footprint (Saudi Arabia -- 88%; UAE -- 84%); and energy distribution quality (92% for both the countries). Some 76% of UAE respondents said innovation will help manage energy costs while 66% from Saudi Arabia endorsed the view. In driving the efficiency of energy consumption too, innovation has a strong role, observed most respondents (Saudi Arabia -- 82%, UAE -- 74%). The figures were higher than the international average, highlighting the confidence of the region in innovation-powered energy use efficiency.
In a similar trend, the Saudi Arabian and UAE response to innovation to improve healthcare efficiency was also recorded as higher than the international averages. Some 92% of Saudi and 82% of UAE respondents said innovation by companies operating in their countries could improve overall health of the population. They also observed that innovation can improve healthcare solutions for ageing populations (Saudi Arabia -- 84%; UAE -- 78%); health system design and delivery (Saudi Arabia and UAE -- 86% each); economic sustainability of healthcare (Saudi Arabia -- 92%; UAE -- 88%); and rate of chronic diseases such as obesity and diabetes (Saudi Arabia -- 70%; UAE -- 80%).
Innovation Will Deliver a New Brand of Prosperity
In the study, innovation was consistently seen as a strong driver of a prosperous economy. Ninety-five percent of executives said innovation is the main lever for a more competitive national economy, and 88% agreed that innovation is the best way to create jobs in their country. While the notion that innovation drives prosperity is not new, the survey sheds light on the evolving definition of prosperity.
More than three-quarters of executives (77%) said they believe the greatest innovations of the 21st century will be those that help address human needs more than those that create the most profit. They believed innovation would be a catalyst for improving multiple areas of citizens' lives in the next 10 years, including health quality (87%), environmental quality (85%), energy security (82%), and access to education (81%).
New Players, New Rules
The survey showed that the traditional means of innovation are changing, placing more emphasis on individuals and small- to mid-size enterprises (SMEs) and creating a greater need for collaboration. In fact, 75% of respondents agreed that the way companies innovate in the 21st century will be "totally different" than the way they innovated in the past.
The same percentage said that more than ever, individuals and SMEs will be as innovative as large companies, and 86% said that 21st century innovation is about partnerships between several entities as opposed to the success of a single organization. At the same time, 76% of executives said that innovation must be tailored to local market needs.
Respondents also emphasized creativity as a critical means to innovation. Nearly seven in 10 (69%) said that innovation is now driven more by people's creativity than by high-level scientific research, while 58% agreed that having more "out-of-the-box" thinkers on the team is the No. 1 factor that would help companies innovate more.
A Clear Path Forward for Global Innovation
With findings from this survey in mind, GE has embarked on several initiatives that will foster innovation in lock step with today's global needs. For example, the company established the GE ecomagination Challenge, a US$200 million fund to help drive collaboration among entrepreneurs, researchers, and SMEs to accelerate the pace of innovation. The challenge is currently focused on novel ideas for powering the home.
About GE:
GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world's toughest challenges. From aircraft engines and power generation to financial services, health care solutions and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's website at www.ge.com.
About the Survey:
The research has been commissioned by GE and conducted by StrategyOne between December 10, 2010 and January 14, 2011. Interviews with the 1,000 senior business executives were conducted by telephone across 12 countries. All respondents are directly involved in their company's innovation processes and are VP and above with 30% of those surveyed C-suite. Innovation was primarily defined by respondents as the development and invention of new products, creativity and definition accounting by 31% of the respondents.
About StrategyOne:
Founded in 1999 StrategyOne is an independent research company with offices in New York, Washington, Paris, London, Chicago, Abu Dhabi, Atlanta, and Silicon Valley.
Kelly Home
ASDA’A Burson-Marsteller
[email protected]
+971 4 4507 600