THE Australia-Israel Chamber of Commerce (AICC) has discovered a range of flaws in the way Australia approaches innovation – including evidence that workplaces in general are not supportive enough of innovation – on its fourth dynamic innovation index in collaboration with Sky News Business.
Named the Q1 Innovation Index 2017, AICC’s latest analysis provides crucial insights for business executives and policy makers, capturing the current perspectives of executives on the state of innovation within their organisations.
There were four major findings of the index: workplaces are not supportive enough of innovation; consumer engagement is the key to business growth; R&D is seen as the leading driver of innovation; and most executives believe innovation will directly impact jobs in 2017.
The index focuses on changes in corporate culture, research and development (R&D), jobs and consumer engagement.
AICC CEO Michelle Blum Michelle Blum said the key indicators in this index were continually updated to reflect the evolution of the concept of innovation.
“As such, two novel indicators were added this quarter: firstly, to assess how executives expect innovation to affect employment; and secondly, what innovative changes executives are making within their companies in 2017,” Ms Blum said.
The four major findings of the index were:
- Workplaces aren’t supportive enough of innovation: “There has been a marked decline in the proportion of executives believing that their workplace environment allows innovation to flourish. Executives are also looking for more transparent structures in the workplace to support innovation.”
- Consumer engagement is key to business growth: “Executives are placing increasing importance on customer engagement as a driver of future business growth. Engagement was ranked as the largest area of future growth for businesses, and there has been a 100 percdent year-on-year increase in executives indicating that customer engagement is an area for future business growth.”
- R&D is seen as the leading driver of innovation: “Of the innovation-active companies in our survey (90%), investing in internal R&D, or seeking collaborative R&D partnerships were seen as the key ways of innovating in 2017.”
- Innovation and jobs: “(About)65 percent of executives believe that innovation will directly impact jobs in 2017. A quarter of participants think that innovation will reduce the need for some jobs, while four out of ten think that innovation will generate new jobs.”
- Ms Blum said, “In today’s disruptive climate the social imperative to innovate is stronger than ever. Key themes from this index are the importance of R&D, collaboration and a workplace environment supportive of innovation.”
- “Australia can take advantage of the progress and experiences in Israel, where embracing uncertainty, collaboration, and exploring new and dynamic ways of working, have led it to consistently be recognised as a role model for innovation.”