Innovation Innovation potentialpotential

Distinct innovation types-- four clustersDistinct innovation types-- four clusters

Stars36%

Erratic11%

Moderate29%

Lacklustre24%

33%

33%

13%21%

Wales

The Innovation IndexThe Innovation Index

* R&D, design, new technologyR&D, design, new technology

* links to universitieslinks to universities

* learning from failurelearning from failure

* ideas generationideas generation

* ideas management & follow-upideas management & follow-up

* innovation targetsinnovation targets

Ideas generationIdeas generation(internal, external, (internal, external, holistic)holistic) 0 20 40 60 80 100

Formal staff suggestion scheme

Time/resources to generate own ideas

Training in ideas generation/ creativity

Monitor academic research

Involve customers

Involve suppliers

Foresight/ future watching activity

%

Ideas managementIdeas management(people, processes, (people, processes, technology)technology)

0 20 40 60 80 100

Use knowledge transfer specialists

Board-level Champion

Regular review of ideas

Review /audit of innovation processes

Use IT system to track ideas

%

Ideas Ideas exploitationexploitation

0 20 40 60 80 100

Innovation sales targets

Sale, trade or spin out of ideas

Subscribe to ideas tradingorganisation/ web site

Give away ideas

%

Culture differences- stars vs. lacklustreCulture differences- stars vs. lacklustre

0 20 40 60 80 100

Board level champion for innovation

Foresight/ future watch

University links for skills development

Formal staff suggestion scheme

Time/resources to generate own ideas

Ideas generation/ creativity training

Regular audit of innovation process

%

Typical business profiles for the Typical business profiles for the clustersclusters

StarsStars

• InternationalisedInternationalised

• Multi-regionMulti-region

• Mostly large,Mostly large,but 45% are SMEsbut 45% are SMEs

LacklustreLacklustre

• Most only UK-focusedMost only UK-focused

• Single regionSingle region

• 78% SMEs78% SMEs

Typical business profiles for the Typical business profiles for the clustersclusters

ModeratesModerates

• Many UK-focused Many UK-focused (40%)(40%)

• Few multi-regionFew multi-region

• Few are very largeFew are very large

ErraticsErratics

• Moderate international Moderate international activityactivity

• Many in south, Many in south, southeast and Londonsoutheast and London

• Average 2000 Average 2000 employeesemployees

Innovation potential = innovation Innovation potential = innovation successsuccess

StarsStars

• Highest innovation Highest innovation outputoutput

ModeratesModerates

• Product and service Product and service innovation high. innovation high. Process & business Process & business model innovation OKmodel innovation OK

LacklustreLacklustre

• Lowest output of Lowest output of product, service and product, service and process innovationsprocess innovations

ErraticsErratics

• Process, product, Process, product, service innovation OK. service innovation OK. Worst for business Worst for business model innovation by model innovation by farfar

R&D, design and technologyR&D, design and technology

50 60 70 80 90 100

Conduct own R&D

Design rated as very important inproduct or service development

e-technology

Human factor technology

%

Stars Lacklustre Moderates Erratics

R&D and technology investment-- up or R&D and technology investment-- up or down?down?

-50

-40

-30

-20

-10

0

10

1-49 50-249 250-999 1000-4999 5000+

R&Dactivity

Newtechnology

Impact of economic Impact of economic conditionsconditions

-40

-30

-20

-10

0

10

20

30

40

R&D activity Spend onnew

technology

Training MarketingActivity

Recruitmentof skilled staff

Ba

lan

ce

of

Sc

ore

s

UK Wales

ConclusionsConclusions

• DANGER SIGNS:DANGER SIGNS: R&D and technology R&D and technology investmentinvestment

• Overall need to improve intangible aspects of Overall need to improve intangible aspects of innovation cultureinnovation culture

• LacklustresLacklustres need long-term investment and need long-term investment and culture change planculture change plan

• ModeratesModerates could focus on improving ideas could focus on improving ideas generation, management and exploitationgeneration, management and exploitation

• Erratics…Erratics… address design, internal working address design, internal working relationships, use of human factor technologiesrelationships, use of human factor technologies

Finally… constraints on innovation in Finally… constraints on innovation in WalesWales

1. Access to finance1. Access to finance

2. Availability/cost of information on markets2. Availability/cost of information on markets

3. Availability/cost of consultants and designers 3. Availability/cost of consultants and designers etcetc

4. Cost of finance4. Cost of finance

……and has the marketing activity paid off?and has the marketing activity paid off?