Booz & Co. has just released its 7th annual report, The Global Innovation 1000: Why Culture is Key, and findings show that throwing money at R&D does not equal success. It matters more where that money goes, and that your corporate culture revolves around your goals.
The study looked at 400 companies across all major industry sectors and found that there isn’t a strong correlation between spending and success. Only 3 of the 10 largest spenders were also in the top 10 innovators: Microsoft, Samsung and Toyota Motor.
What set the innovators apart from the rest of the field was company culture. A positive corporate culture that reinforces a company’s innovative goals is the recipe for success. The press release stated, “The 44 percent of companies who reported that their innovation strategies are clearly aligned with their business goals — and that their cultures strongly support those innovation goals — delivered 33 percent higher enterprise value growth and 17 percent higher profit growth on five-year measures than those lacking such alignment.”
The takeaway here is that CEOs need to align their corporate culture with their innovative goals and spend strategically on those goals. Expensive R&D on its own won’t necessarily bring success.
Read: Press Release