How Mid-Market Companies Innovate

Mid-Market 1The most successful middle-market companies—those growing at least four times the rate of GDP growth—are 40 percent more likely to describe themselves as innovative than less dynamic businesses of their size, according to the National Center for the Middle Market (NCMM)’s “Organizing for Innovation in the Middle Market.” Overall, middle-market companies surveyed also fare relatively well with execution of innovation projects, reporting that 57 percent of ideas generated in 2014 made it to market.

This success may be partly due to the fact that their innovation efforts tend to skew conservatively, focusing on familiar markets and knowledge rather than unmapped “blue oceans.” Furthermore, mid-market companies tend to use their own internal resources to generate ideas and to manage innovation risk carefully.

The most effective innovators tend to engage the entire company around innovation initiatives, fostering cross-departmental interaction, as well as the involvement of senior leaders. They are also more likely to possess a well-developed set of capabilities and practices—formal processes, tools to track and measure innovation, attention from senior leadership—to better manage the risks they take.

The statistics, tables and charts to follow offer insights on how the most successful mid-market companies foster innovation.


 

Mid-Market 2


 

Mid-Market 3

This article is taken from the November/December 2015 issue of Chief Executive magazine, page 22. To subscribe to Chief Executive, click here

SHARE
Chief Executive magazine (published since 1977) is the definitive source that CEOs turn to for insight and ideas that help increase their effectiveness and grow their business. Chief Executive Group also produces e-newsletters and online content at chiefexecutive.net and manages Chief Executive Network and other executive peer groups, as well as conferences and roundtables that enable top corporate officers to discuss key subjects and share their experiences within a community of peers. Chief Executive facilitates the annual “CEO of the Year,” a prestigious honor bestowed upon an outstanding corporate leader, nominated and selected by a group of peers, and is known throughout the U.S. and elsewhere for its annual ranking of Best & Worst States for Business. Visit www.chiefexecutive.net for more information.

PARTNER CENTER