Fortune 1000 innovation and R&D teams are spending around 50% of their efforts on incremental innovation, 30% on adjacent innovation and about 20% on transformational innovation, according to a new Innovation Leader report. This study encompassed 270 executives responsible for innovation, R&D, and strategy.
This marks a shift away from the traditional 70-20-10 ratio that was previously considered conventional wisdom.
"To address Wall Street pressures and the threat of disruption, corporations need to overcome the obstacles that stand in the way of becoming more innovative," said CEO and editor-in-chief of Innovation Leader, Scott Kirsner. "That's why we conducted this research — to find out what's working and what isn't. Our mission is to equip innovation teams with the answers and data they need to take their innovation programs from the 'just talking about innovation' stage to fully formed programs that deliver results for the business."
The Innovation Leader report found that the most common innovation obstacles that companies tend to face are down to cultural issues, the inability to act on market signals, lack of strategy and politics and turf wars.
The report also suggested that companies pursuing innovation tend to focus on three foundational elements: aligning strategically, funding deliberately and delivering impact. Executive leadership support was cited as the top enabler of innovation success. Also listed was the ability to test, learn and iterate, align the correct team and have the correct strategy.