Our friends at PwC have just published a fascinating study on the relationship between innovation and revenue growth. Based on more than 1700 interviews that they conducted with business leaders worldwide, they found that firms that see innovation as a key driver of growth anticipate that they’ll grow by more than 62% over the coming five years, while firms that are not innovation focused expect overall growth of about 21%.
We all recognize that effective innovation makes your company grow. That’s not news , but these numbers are nothing but astonishing! How huge is it for business leaders to recognize the enormous benefits of innovation, and to do so based on data collected from themselves.
The findings also show that innovative firms have grown on average 16% more than non-innovators over the last 3 years.
So what happens when you compound these numbers over many years of innovative behavior? It’s clear that if the patterns identified in the survey are correct, the innovators will get so far ahead that the value that they provide to their customers, and their market valuations, will put them in an entirely different category. It seems plausible to say that the laggards are really risking everything, as the likelihood that they will even survive does come into question.
Making the study even more useful, PwC has presented an overall framework for innovation management, and provided considerable detail as to the survey findings and how these map to the framework.
A study of this depth and magnitude is rare, and PwC have done a great job of making the findings accessible and relevant.
You can check it out for yourself, and you should, at their web page.