The global economy has been jolted by a sharp recession in 2008 and sovereign debt crisis in 2011 – and there is hardly any industry which has escaped from the widespread effects of an acute slowdown in the economy.
Industrial recessions often results in slowdown of spending on research activities and innovative quotient within an organization. But, in this highly competitive business world, where change is the name of the game – nothing strikes the chord better than ‘innovation’ in continued sustenance and achieving future organizational goal.
Optimism from Innovation in India
Inevitably, most creative streaks ought to falter while innovating in an uncharted territory. But then, failures can be starting point for new innovations; and if creativity is blended with proper execution – it forms a perfect recipe of success.
On this note, a global research report on innovation has surveyed 2800 senior business executives directly involved in the innovation strategy with their company to gauge the impact of the financial crisis on business’ ability to innovate.
The Countries with Best Innovation Reputation
Interestingly, India has been ranked as sixth most innovative country by GE Global Innovation Barometer survey. While 64% of the global respondents identified USA as top-most innovation champion, developed economies like Germany (48%) and Japan (43%) followed the suit on the Innovation Barometer 2012.
On being asked as to how the economic crisis has affected business’ ability to innovate – 77% of the global respondents indicated a change in culture with firms reassessing current risks, whereas almost 65% surveyed pointed towards crunched access to private and public funding.
In order to promote innovation in businesses, a country requires a right blend of environment such as level of government support, trade regulations, efficacy of public-private partnerships, support of private investors and ease of partnership with academia for R&D.
How business perceive their home country’s innovation environment
For India, the report indicates a ‘balanced perception’ on the Innovation Environment Index that illustrates how satisfied businesses in each market are about the environmental elements that promote innovation.
However, 66% of the 200 senior executives from India that participated in the survey were reserved in their approach when asked how optimistic business is that innovation will successfully convert into improved quality of life for the citizens.
The desire for innovation needs to come out from inside – it can not be bought. Innovation is not something that only large companies can afford; it’s a mind game, at the end of the day it’s about creativity eve in smaller organizations.
Almost 84% of the Indians surveyed quipped that harnessing the innovative potential of the SMEs and individuals can be as innovative as large companies; and this could as well be through localized initiatives and combination of players partnering together.