“We’re starting to see the beginning of a new world order,” says James P. Andrew, the head of Boston Consulting Group’s innovation practice. “Increasingly, rapidly developing economies, led by China, India, and Brazil are beginning to seize the [Innovation] leadership reins from more-mature countries. This is not a new story, but innovation will likely be the best, and perhaps only, lever for staying ahead of this new wave of advantaged, motivated competitors.”
Business Week and the Boston Consulting Group surveyed 1,590 executives worldwide to identify the most innovative companies. These perception findings were then combined with company financial performance with specific focus on Turnover growth, Margin Growth and Stock performance over the past 3 years.
For the first time, Asian companies boasted 15 of the 50 most innovative companies, compared with just five in the 2006 study.
There are 5 Key Observations of Asia’s Most Innovative:
- 10 of Asia’s top 15 have moved up the rankings, while 5 have lost ground to more innovative companies.
- North Asia dominates, South and South East Asia do not feature, although India’s Tata Group (#17) and Reliance Industries (#33) have made good progress.
- Japan, China and South Korea dominate the Asia rankings, Japan and China both have 4 companies in the Top 15, although the Japanese companies clearly dominate. South Korea has 3 entries in the Top 15.
- Product centred rather than service (just two service brands, Fast Retailing #27 and China Mobile #44 in the Asia top 15)
- Asia’s Most Innovative Environments – Singapore and Hong Kong have yet to yield Innovation Results with a lack of performance in the rankings. (See my post on Innovation Competitiveness).
According to James P. Andrew, the head of BCG’s innovation practice. The ascendance of Asia in the Innovation league “ is not a new story, but innovation will likely be the best, and perhaps only, lever for staying ahead of this new wave of advantaged, motivated competitors.”