February 2018 GE Global Innovation Barometer 2018 Brazil ... · Brazil Report February 2018 1. Edelman Intelligence / general electric ONE: Methodology TWO: Global Summary From Chaos

Edelman Intelligence / general electric

GE Global Innovation Barometer 2018

Brazil Report

February 2018

1


ONE:Methodology

TWO:Global Summary From Chaos to Confidence

THREE:Brazil Executive Summary

FOUR:Narratives in Detail

Contents

2

Methodology

3


This year’s method and scope

Innovation Business Executives

2,090 Business Executives in total across 20 markets

Each respondent’s line of work involves taking part in their company’s innovation

process/policies

Responsible for making decisions related to innovation, product development or

research and development (R&D) activities in their company

4

In Brazil, we talked to 150 Innovation Business Executives

All answered a 30 minute interview

Fieldwork dates:12th of October – 1st of December 2017


From Chaos to Confidence:Emerging Players,

Emerging Technologies, Emerging Challenges

5

Global Summary

2018 Key FindingsFrom Chaos to Confidence: Emerging Players, Emerging Technologies, Emerging Challenges

Emerging Confidence: While the United States (-8) and Germany (-7) see a drop in championship status from 2014, Japan (+8) and China (+4) take more share. Asia (34+ since 2014) and emerging markets are gaining confidence, viewing themselves as more innovative than they did in 2014.

New Actors Driving Innovation: Multinationals are now leading the innovation pack (+4 since 2014), while small and medium-size enterprises (SMEs) (-11 since 2014) and entrepreneurs (-2 since 2014) seem to have lost some of their innovation drive. In the Middle East and Asia especially, the private sector is becoming a more important driver of innovation while there is a decrease in governments driving innovation.

Working in a Protectionist World: Global executives want the best of both worlds: on one hand they want the benefits of protectionist policies on domestic businesses and jobs, and on the other hand, they want the benefits of globalization and open markets. A small majority of global executives (55%) believe protectionist policies benefit businesses within their country and 73% believe it is good for the workforce. However, 68% globally believe their government cannot keep up with the pace of change and 22% (of those that prefer protectionism) see multinationals as the drivers of innovation.

1

2

3

The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact (63%), increase creativity (91%) and get goods to market faster (89%). At the same time, 53% believe 3D printing has yet to reach its full potential, requiring more education and reassurance.

Maximizing the Return on Innovation: Globally, 40% of innovations are having a positive impact on the bottom line. What’s the secret to success for these “innovation achievers”? They’re taking a more measured approach. Businesses are waiting to perfect and test their innovation before launch rather than getting to market quickly—a 10-point jump since 2016 (now 65%). Innovation achievers also are more willing to wait for long-term ROI for breakthrough innovation (84%) and have a clear structure and process in place to measure that return (50% vs. 43%).

Hype vs Reality of Impact: Hype around certain technologies does not always equate to transformative impact. In fact, global executives believe that many under-hyped technologies will have a transformative impact, including energy grids (74% say it will bring transformative change to their country), virtual healthcare (68%) and smart cities (71%).

4

5

6

Future of Work: The workforce is considered the most crucial element to innovation success in most markets, yet skills gaps continue to be a top concern among businesses. Nearly 3 in 4 (74%) global executives believe a lack of skills is an issue facing their industry—a challenge that has increased over time (64% say a lack of talent/inadequate skills is a key challenge today, up from 56% in 2014).

7

2018 Key FindingsFrom Chaos to Confidence: Emerging Players, Emerging Technologies, Emerging Challenges

More Challenging Environment: The challenges confronting innovative businesses are tough – and getting tougher – both externally and internally. There is a 13-point increase (now 67%) since 2014 in lack of sufficient funding, a 6-point increase (now 65%) in the inability to scale innovations to a wider market, an 8-point increase (now 64%) in lack of adequate talent/ skillsets, and a 14-point increase (now 64%) in the inability of businesses to take risks. Emerging markets such as Poland, South Africa, Malaysia and Saudi Arabia are experiencing the greatest increase in challenges.

8


Brazil Executive Summary

8

9

Key findings

Although business executives across the globe don’t see Brazil as an innovation leader, Brazilian executives are increasingly confident about their country’s capacity to fulfill this role.

Lack of organizational capacities and an increasing lack of funding exacerbates the tensions between the long-term and short-term innovation goals amongst Brazilian business executives. Tensions also emerged between the business executives’ stated capacities and the existing market incentives to measure the impact of innovation on their company’s ROI.

Brazilian business executives are turning to protectionism, while wanting to take advantage of globalization and open markets. In Brazil, a slight majority (51%) of executives favor protectionist policies because they see it as a competitive advantage, but they overwhelmingly believe that the private sector should drive innovation with 91% saying the government cannot keep up with the pace of innovation.

Attitudes towards 3D printing are very positive in Brazil. Percentages are significantly above the global average, with 79% of Brazilian business executives believing that 3D printing will have a positive impact on businesses.

As in previous years, multinationals are perceived as the main drivers of innovation in Brazil, while small and medium-size enterprises (SMEs) are increasingly viewed with skepticism. Business executives are particularly skeptical about the suitability of government authorities to drive innovation.

10

- Brazil aligns with the global trend as multinational companies are seen as the main innovation drivers in the country (29%). This has been a consistent trend over the previous three Innovation Barometers, with multinational companies also taking the top spot in 2016 (30%) and 2014 (27%).

- Mirroring the global average, SMEs are not thought to be driving innovation as much as they were in 2014. Brazil has seen a significant drop off since 2014 with an 10 percentage point decrease from 20% down to 10% in 2018.

- Globally, public authorities are not viewed as drivers of innovation, which has been a consistent trend since 2014. Only 9% of business executives considered public authorities to be innovation drivers in both waves (2014 and 2018). Brazil is in line with this trend; however, Brazilian business executives are even more skeptical about the role of public authorities in driving innovation than the global average. Six percent of business executives considered government authorities to be driving innovation in 2014, as compared to only 3% sharing this opinion in 2018.

New Actors Driving Innovation:

Multinationals are now leading the innovation pack (+4 since 2014), while small and medium-sized enterprises or SMEs (-11 since 2014) and entrepreneurs (-2 since 2014) seem to have lost some of their innovation drive. In the Middle East and Asia especially, the private sector is becoming a more important driver of innovation while there is a decrease in governments driving innovation.

11

- Throughout the different versions of the GE GIB, Brazil has not been seen as an innovation champion, consistently occupying the lowest positions in the rankings. With 1% of business executives across the world considering Brazil as the leading innovation champion in 2018, Brazil’s position hasn’t changed dramatically.

- There has been an increase in Brazilian business executives stating their country is the innovation champion (from 2% in 2014 to 8% in 2018). Moreover, whereas in 2014, only 14% of Brazilian business executives pointed at their own country as an innovation-conducive environment, 43% of business executives in Brazil now think this way in 2018.

- In line with a regional trend in Latin America, 35% of Brazilian business executives consider Japan to be the global innovation champion over the US (at 25%). This increasingly favorable view of the Japanese innovation environment in Latin America explains, to a large extent, the rise of Asia in the global innovation landscape analyzed by the GE GIB over previous years.

Emerging Confidence:

While the United States (-8) and Germany (-7) see a drop in championship status from 2014, Japan (+8) and China (+4) take more share. Asia (34+ since 2014) and emerging markets are gaining confidence, viewing themselves as more innovative than they did in 2014.

12

- In Brazil, the opinion of business executives is divided when it comes to their stand on protectionism, with a very small majority of 51% of business executives agreeing that protectionism is beneficial for innovation; while 49% of business executives think that protectionist policies would have a negative impact on business in Brazil.

- For those executives that favor protectionist polices, the largest benefit is seen to be creating more domestic investment opportunities, with 59% of business executives believing this.

- While a narrow majority of business executives in Brazil favor protectionism, they also want the benefits of globalization and open markets at the same time. In Brazil, executives favoring protectionism do it for business reasons (creating more domestic investment opportunities), while an overwhelming majority of all business executives think that government is not driving innovation and is unable to keep up with the pace of innovation (91%).

Working in a Protectionist World:

Global executives want the best of both worlds: on one hand they want the benefits of protectionist policies on domestic businesses and jobs, and on the other hand, they want the benefits of globalization and open markets. A small majority of global executives (55%) believe protectionist policies benefit businesses within their country and 73% believe it is good for the workforce. However, 68% globally believe their government cannot keep up with the pace of change and 22% (of those that prefer protectionism) see multinationals as the drivers of innovation.

13

- Attitudes towards 3D printing are very positive in Brazil; way above the global average (64%), with 79% of Brazilian executives believing that 3D printing will have a positive impact on businesses.

- The two main reasons 3D printing is seen as a positive thing is that it would (1) enable goods to get to market faster; and (2) allow businesses to be more creative in the products and goods they can create (95% of business executives in Brazil agree to both).

The Potential of Additive:

Global executives are excited about the potential of 3D printing, saying it will have a positive impact (63%), increase creativity (91%) and get goods to market faster (89%). At the same time, 53% believe 3D printing has yet to reach its full potential, requiring more education and reassurance.

14

Maximizing the Return on Innovation (1):

Globally, 40% of innovations are having a positive impact on the bottom line. What’s the secret to success for these “innovation achievers”? They’re taking a more measured approach. Businesses are waiting to perfect and test their innovation before launch rather than getting to market quickly—a 10-point jump since 2016 (now 65%). Innovation achievers also are more willing to wait for long-term ROI for breakthrough innovation (84%) and have a clear structure and process in place to measure that return (50% vs. 43%).

- In line with the global trend, Brazilian business executives state a mean score of 42% of their innovations have had a positive impact on their bottom line and improved their position in the market.

- Only 58% of Brazilian business executive see the importance of creating innovations that prioritize a long-term societal or environmental benefit (as opposed to 72% at a global level), whereas 42% want to create innovations that prioritize short-term profitability (as opposed to 28% of the global level).

- In line with the global trend, 66% of Brazilian business executives prefer to wait to perfect and test their innovations before launch to make sure the customer is completely satisfied from the start. Since the GE GIB 2016, there has been a 15 percentage point increase in business executives wanting to wait to perfect and test the innovation before launch (from 51% in 2016 to 66% in 2018) rather than get to market quickly.

- While Brazilian business executives seem to show a more short-term attitude towards the impact of their innovations in the environment and society at large, they seem to be increasingly more cautious when it comes to the effects these innovations have on consumers’ satisfaction.

15



- In line with the global sample, 17% of Brazilian business executives say that it is impossible to measure the impact of innovation on business performance.

- Despite growing investment in Brazil, only 39% of Brazilian business executives (compared to 45% in the global sample) stated that they have to measure the impact of innovation on business performance to get further investment and funding. However, over half of business executives state that they have in place a framework to measure the impact of innovation (53%), which is higher than the global average (39%).

- Furthermore, Brazil also over indexes in the percentage of business executives stating that digitalization has made it much easier and efficient to measure the return on investment (59% compared to 47% for the global average).

16



- 63% of Brazilian business executives state that they currently demonstrate the value of their innovations to clients and users well, and 65% say they demonstrate the value of their innovation for society at large.

- As the Brazilian market emerges into the global innovation space and looks to attract multinational investors and talent, there is an opportunity for the country to implement measurement frameworks to assess the real impact of innovation on ROI.

- Just over half (52%) of business executives in Brazil say they have a clear process and structure in place to measure innovation across various parts of the business or have innovation teams report directly to the CEO.

17

- Brazilian business executives consider the most ‘hyped’ innovations to be: Financial Technology (86%), Augmented Reality (84%) and IoT (79%). Brazil over indexes in thinking these three innovations drive ‘hype’. It is important to highlight that, diverging from the global trend, Driverless Transport doesn’t seem to create ‘hype’ in Brazil, with only 45% of the business executives surveyed thinking this way. This percentage is significantly lower than the global average (62%).

- When it comes to impact, Brazil over-indexes on all the innovations included in the survey. Smart Energy Grids (89%), IoT (89%) and Nanotechnology (88%) are perceived to have had the most transformative impact according to Brazilian business executives.

- Therefore, a large majority of Brazilian business executives believe current innovations have a very high impact on the transformation of their economy and society. Apart from the IoT, there is a gap between what is perceived to be hype, and what is perceived to be having a real impact when it comes to innovation in Brazil.

Hype vs. Reality of Impact:

Hype around certain technologies does not always equate to transformative impact. In fact, global executives believe that many under-hyped technologies will have a transformative impact, including energy grids (74% say it will bring transformative change to their country), virtual healthcare (68%) and smart cities (71%).

18

- In Brazil, 79% of business executives believe that there is a skills gap in their industry, with 39% saying they agree strongly to this statement.

- On top of this, business executives see a lack of talent / inadequate skillset as a key challenge restricting their business’s ability to innovate efficiently. 75% of business executives in Brazil agreed to this statement in the GE GIB 2018, compared to 59% in 2014 showing that this is a growing issue.

Future of Work:

The workforce is considered the most crucial element to innovation success in most markets, yet skills gaps continue to be a top concern among businesses. Nearly 3 in 4 (74%) global executives believe a lack of skills is an issue facing their industry—a challenge that has increased over time (64% say a lack of talent/inadequate skills is a key challenge today, up from 56% in 2014).

19

- In line with the global trend, the lack of funding in innovation has gained prominence as the key challenge for innovation in Brazil.

- However, departing from the global trend, organizational and institutional limitations are perceived as particularly challenging in Brazil. This might explain why, in 2014, the incapacity to define innovation-conducive business models (67%) and internal organizational inertia (67%), were mentioned as key challenges for innovation by a majority of Brazilian business executives.

- By 2016, the incapacity to define an innovation-conducive business model was still the main challenge for innovation, mentioned by 64% of Brazilian business executives, followed by the lack of sufficient funding as the second most important concern, at 61%.

- In 2018, the lack of sufficient funding is perceived to be the main challenge to innovate in Brazil, mentioned by 80% of business executives, followed by the incapacity to define an innovation-conducive business model (mentioned by 76% of business executives).

More Challenging Environment:

The challenges confronting innovative businesses are tough –and getting tougher – both externally and internally. There is a 13-point increase (now 67%) since 2014 in lack of sufficient funding, a 6-point increase (now 65%) in the inability to scale innovations to a wider market, an 8-point increase (now 64%) in lack of adequate talent/ skillsets, and a 14-point increase (now 64%) in the inability of businesses to take risks. Emerging markets such as Poland, South Africa, Malaysia and Saudi Arabia are experiencing the greatest increase in challenges.


Narratives in Detail

20

21

Section One: Emerging Players• New Actors Driving Innovation• Emerging Confidence• Working in a Protectionist World

Section Two: Emerging Technologies• The Potential of Additive• Maximizing the Return on Innovation (ROI)• Hype vs. Reality of Impact

Section Three: Emerging Challenges • Future of Work• More Challenging Environment

Contents

Edelman Intelligence / © 2017 22

section one:

Emerging Players

Edelman Intelligence / © 2017

New Actors Driving Innovation

23

Executive Summary

• Multinationals are now leading the innovation pack (+4 since 2014), while SMEs (-11 since 2014) and entrepreneurs (-2 since 2014) seem to have lost some of their innovation drive. In the Middle East and Asia especially, the private sector is becoming a more important driver of innovation while there is a decrease in governments driving innovation.

22%

20% 19%

14%

11%

9%

3%1%

11%

18%

23%

18%

12%

9%

2%

5%

Small and medium companies (10 to 250

employees)

Individual entrepreneurs and start-ups

Multinational companies investing in your country

Large enterprises (more than 250 employees)

headquartered in your country

Universities and research labs

Government and public authorities at national

level

Public authorities at local level (region / city)

State owned enterprises in your country (SoE)

2014 2018

Q3. Who do you think is driving innovation the most today in your country? Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes listed in the appendix]

Who is the main driver for innovation in your country?(Historical tracking data at a global level)

Multinational companies are indeed back in the driving seat for innovation, while SMEs seem to lose some of their innovation drive.

24

27%

20%

15%

12%

20%

2%

6%

0%

29%

22%

15% 14%

10%

5%3%

1%

Multinational companies investing in your country

Individual entrepreneurs and start-ups

Large enterprises (more than 250 employees)

headquartered in your country

Universities and research labs

Small and medium companies (10 to 250

employees)

State owned enterprises in your country (SoE)

Government and public authorities at national

level

Public authorities at local level (region / city)

2014 2018

Q3. Who do you think is driving innovation the most today in your country? Base business executives in Brazil 2014: 200, Brazilian business executives 2018: 150 [Full base sizes listed in the appendix]

Who is the main driver for innovation in your country?(Historical tracking data at a global level)

In Brazil, SMEs are not viewed as a driver of innovation, but individual entrepreneurs and multinationals are still seen as a key driving force

25


Multinationals are the main driver for innovation in your country(Historical tracking data at a global level)Ranked by largest increase from 2014 to 2018

Multinationals’ growing reputation as the driver of innovation is seen across the majority of countries.

17% 16%

23%20%

8%

30%

25%

7% 7%

22%

12%

27%

16% 17% 16%

11%

33% 33%

19%

26%

39%

29% 30%27%

15%

36%

30%

12% 12%

26%

14%

29%

17%19% 20%

13%

32% 31%

13%

21%

2014 2018

Emerging economies, notably Turkey and South Africa have seen the largest rise in business executives believing multinationals are the main driver of innovation in their country.

26

Increase Decrease


SMEs are the main driver for innovation in your country(Historical tracking data at a global level)Ranked by largest decrease from 2014 to 2018

SMEs are losing their reputation as a driver of innovation in developed economies – particularly in Europe.

18%

9%

27%

10%

4%6% 7%

14%

22%

14%

20%

24%

30%

24%

30%

37%

26%

35% 36%

49%

23%

10%

29%

8%

1% 3% 1%

6%

13%

5%

10%12%

15%

8%

13%

20%

7%

11%9%

18%

2014 2018

27

Increase Decrease

In emerging economies, governments are now not seen to be driving innovation as much as they were in 2014.

Decrease

21%

33%

23% 24% 25%

13%

26%

12% 11%9%

Malaysia UAE China Turkey Saudi Arabia

2014 2018

Q3. Who do you think is driving innovation the most today in your country? Base Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes listed in the appendix]

-7

-8 -11 -13 -16

28

Governments are the main driver for innovation in your country(Historical tracking data at a global level)Ranked by 2014 – 2018 growth

6% in 20143% in 2018

In parallel, in some economies where government traditionally dominated innovation, such as Turkey and South Africa, business executives now see increasing value driven by the private sector.

Increase Q3. Who do you think is driving innovation the most today in your country? Base Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes listed in the appendix]

Multinationals are the main driver for innovation in your country(Historical tracking data at a global level)Ranked by 2014 – 2018 growth

17% 16%

23%20%

8%

30%

25%

39%

29% 30%27%

15%

36%

30%

Turkey South Africa Indonesia Poland France Nigeria Mexico

2014 2018+22

+13 +7 +7

+7

+6 +5

29

27% in 201429% in 2018


Emerging Confidence

30

Executive Summary: Emerging Confidence

• While the United States (-8) and Germany (-7) see a drop in championship status from 2014, Japan (+8) and China (+4) take more share. Asia (34+ since 2014) and emerging markets are gaining confidence, viewing themselves as more innovative than they did in 2014.

Countries that traditionally dominated global innovation leadership, notably the U.S. and Germany, are stalling, ceding ground to emerging and developed Asia. Emerging markets catch up aggressively, and China and Japan have become an alternative hotspot for global Innovation—confirming that innovation is disrupting the global competitive landscape at the regional as well as industry level. Previous GE Global Innovation Barometers had already highlighted stronger innovation momentum in emerging markets.

What is the country that you consider to be the leading innovation champion?Ranked by 2018 data

38%

12% 13%15%

1%

4%3%

1%3%

1%

36%

13%

10%

16%

1%4% 3%

0%2% 1%

33%

17%

10%10%

2%4% 4%

1%3% 3%

28%

21%

14%

9%

3% 3% 3% 2% 2% 2%

USA Japan China Germany Sweden South Korea UK Canada India UAE

2013 2014 2016 2018

Q1. What is THE country that you consider to be the leading innovation champion? Base business executives 2013: 3,100, business executives 2014: 3,309, business executives 2016: 2,748, business executives 2018: 2,090 [Full base sizes listed in the appendix] 31

0% in 20130% in 20140% in 20161% in 2018

This shift in innovation is also felt internally, with many countries recognizing their own market as being a more innovation conducive environment than it was in 2014.For your own market, how far would you say that you have developed an Innovation conducive environment?Percentage that feel they have a strong innovation conducive environment (top 3 box)

Q2. For each of the following markets, how far would you say that they have developed an Innovation conducive environment? [Top 3 Box 8-10] Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes listed in the appendix]

24% 28%

14%7%

32%23%

18%7%

21%

73%67%

43%35%

58%49%

44%

30%

44%

China India Brazil Malaysia Canada Mexico Indonesia Poland Turkey

2014 2018

40% 40% 36%30%

11%

72%

53%

20%26%

7%

41%

77%

61% 61% 56%48%

28%

85%

59%

24% 27%

8%

38%

65%

UAE UK France Global Total Saudi Arabia USA Sweden South Africa South Korea Nigeria Japan Germany

32

Asian markets have seen the biggest increase in the way they evaluate how innovation conducive their country is.

For your own market, how far would you say that you have developed as an innovation conducive environment?Percentage that have a strong innovation conducive environment (top 3 box)

Q2. For each of the following markets, how far would you say that they have developed as an Innovation conducive environment? [Top 3 Box 8-10] Base business executives 2014: 3,309, business executives 2016: 2,748, business executives 2018: 2,090 [Full base sizes listed in the appendix]

49%

39%

29% 28% 26%

China India Brazil Malaysia Indonesia

Top 5 increases 2014 to 2018

On average Asian countries see a 34% increase in how they evaluate

their ability to foster innovation

33

The innovation influence has become multipolar; China and Japan have become aspirational.

34

Asia

LATAMAfrica

Q1. What is THE country that you consider to be the leading innovation champion? Base business executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150, Indonesia: 80, Japan: 100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150 Base business executives: 2,090

Africa to ChinaA relationship of trade and investment41% of business executives in Africa see China as the innovation champion. Chinese companies are investing in Africa and China is now the country’s biggest economic partner.

Europe (Inward Looking)

North America(Inward Looking)

LATAM to JapanA relationship of trade and investment33% of business executives believe Japan is the innovation champion as Japan invests heavily in the region.

In Brazil specifically, 34% of business executives believe Japan is the innovation champion.

Asia & the U.S. An aspirational relationshipAsia looks to the U.S., with 34% of business executives viewing them as the innovation champion (64% in China).

Europe a self-serving relationship Europe sees countries within the continent as being key innovation champions (Germany 12%, Sweden 10%, U.K. 6%).However 22% of business executives in Europe look to the U.S. as champions and 19% of executives look to Japan.

The U.S. a confident viewThe U.S. believes the U.S. is the innovation champion (61%).

Working in a Protectionist World

35

Executive Summary: Working in a Protectionist World• Global executives want the best of both worlds: on one hand they want the benefits of protectionist policies on

domestic businesses and jobs, and on the other hand, they want the benefits of globalization and open markets. A small majority of global executives (55%) believe protectionist policies benefit businesses within their country and 73% believe it is good for the workforce. However, 68% globally believe their government cannot keep up with the pace of change and 22% (of those that prefer protectionism) see multinationals as the drivers of innovation.

A slightly more defensive approach to innovating (defending against international competition) is reflected in the contrasted views that global business executives have of protectionist policies. A small majority of them depict protectionism as potentially conducive for innovation success.

55% of business executives think that if their government had protectionist policies towards innovation it would benefit the business sector.

55%45%

Pro-protectionism

Anti-protectionism

51%

Q6. There have recently been discussions about the potential impact of protectionist politics and policy on innovation and businesses. Out of the statements below related to protectionism, which do you agree with the most? Base business executives: 2,090, business executives in Brazil 2018: 150

If the government had a political protectionist stance on innovation in my country it would be beneficial to businesses.

71%65% 63% 63% 63% 61% 60% 58% 57% 56% 56% 55% 53% 53% 51% 51% 51% 49% 47% 43% 39%

Only 4 countries had a majority that felt a protectionist stance to

innovation would not be beneficial to business.

36

49%

The majority of business executives agree that regulations around privacy and data are stifling innovation. Brazilscores above the global average.

69%

29%

2%

75%

0%

Regulations around privacy and data protection are preventing businesses from adopting more

radical/transformative innovations

Q5. How much do you agree or disagree with the following statements? Regulations around privacy and data protection are preventing businesses from adopting more radical / transformative innovations. Base business executives: 2,090, Pro-protectionism: 1,153, Anti-protectionism: 937. Protectionism base sizes too small to report on in Brazil.

Agree

Disagree

Pro-protectionism

Anti-protectionism

70%

28%2%

68%30%

2%

Agree

Disagree

Don’t know

Don’t know

Don’t know

Agree

Disagree

37

23%

And business leaders feel regulations around privacy and data protection are stifling innovation more so than two years ago

49%

55%

65%

60% 61%63%

61%65%

55%

66%

74%

61%

69%65%

73%76%

79%

85%

69%

79%

70%

60%

80%

73% 73%75%

67%

74%

61%

69%

75% 75%

60%

70%66%

69%71% 72%

77%

56%

65%

2016 2018

Q5. How much do you agree or disagree with the following statements? Base business executives 2016: 2,748, business executives 2017: 2,090 [Full base sizes listed in the appendix]

Regulations around privacy and data protection are preventing businesses from adopting more radical / transformative innovationsNET: Agree

2016

dat

a no

t ava

ilabl

e

Increase Decrease

Private sector is seen as driving innovation as governments can’t cope with the pace of innovation. Brazilian business executives agree overwhelmingly with the latter.

39

68%

31%

2%

91%

1%

In my country, the government is not able to regulate innovation as the system cannot

keep up with the pace of innovation

Q5.4 How much do you agree or disagree with the following statements? In my country the government is not able to regulate innovation as the system cannot keep up with the pace of innovation. Base business executives: 2,090 , Pro-protectionism: 1,153, Anti-protectionism: 937. Protectionism base sizes too small to report on in Brazil.

Agree

Disagree

Don’t know

Pro-protectionism

Anti-protectionism

64%34%

2%

72%

26%2%

Agree

Disagree

Don’t know

Don’t know

Agree Disagree

8%

Brazil is the country where most business executives feel that the government cannot keep up with the pace of innovation.

Q5. How much do you agree or disagree with the following statements? Q5_D. In my country the government is not able to regulate innovation as the system cannot keep up with the pace of innovation. Base business executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150, Indonesia: 80, Japan: 100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150

91%86%

80% 78% 77% 76% 74% 71% 71%68% 68% 67% 66% 66% 65%

59%55% 55% 55%

51%

41%

Brazil Mexico South Korea

Poland Japan UK Nigeria France South Africa

Global Average

Turkey Germany Sweden USA India Indonesia China Malaysia Saudi Arabia

Canada UAE

In my country, the government is not able to regulate innovation as the system cannot keep up with the pace of innovation,

40


section two:

Emerging Technologies

The Potential of Additive

42

Executive Summary: The Potential of Additive

• Global executives are excited about the potential of 3D printing, saying it will have a positive impact (63%), increase creativity (91%) and get goods to market faster (89%). At the same time, 53% believe 3D printing has yet to reach its full potential, requiring more education and reassurance.

The majority of business executives believe 3D printing’s impact will be mostly positive for businesses in their country.

43Q13. We would now like to ask you about 3D (3-dimensional) printing and the impact you think this might have on businesses in your country. Do you think 3D (3-dimensional) printing is beneficial or could have a negative impact on businesses? Base Business Executives: 2,090

63%

31%

4% 3%I think 3D printing will have a positive impact on businesses in my country

I think 3D printing will have both a positive and negative impact on businesses in my country

I think 3D printing will have a negative impact on businesses in my country

Don't know

18%

1%

79%

1%

Benefits include increased creativity, speed to market, lower costs, competitive advantage and improved CO2 footprint.

44Q14. Imagine 3D printing has become a reality in your country with business and industries adopting it. How far do you agree or disagree with the following statements? Base Business Executives: 2,090, Business Executives in Brazil: 150

=80%

81%

83%

89%

91%

Beneficial for the environment and reduce CO2 in manufacturing

Businesses that invest in 3D printing will leave other businesses behind

Reduce the costs of goods making them more affordable

Enable goods to get to market faster

Allow businesses to be more creative in the products and goods they can create

95%

94%

95%

86%

89%

South Africa (73%), Sweden (70%)

However, the benefits of 3D printing vary at a country level. Financial and environmental benefits score high in Brazil.

45

Reduce the costs of goods making them more affordable

(83%)

Turkey (96%), Brazil (95%), India (90%)

Beneficial for the environment and reduce CO2 in

manufacturing (80%)

Indonesia (95%), China (93%), Malaysia (93%), Brazil (89%), India (89%)

Germany (68%), South Korea (67%), Japan

(66%)

Businesses that invest in 3D printing will leave other

businesses behind (81%)

Saudi Arabia (94%), China (91%), Malaysia (89%), Turkey (89%)

Germany (72%), Sweden (71%), Indonesia (71%), Canada (69%)

Q14. Imagine 3D printing has become a reality in your country with business and industries adopting it. How far do you agree or disagree with the following statements? [Net: Agree] Base business executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150, Indonesia: 80, Japan: 100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150

Only 4 in 10 business executives are very familiar with 3D printing globally. In contrast, a majority of Brazilian business executives (63%) are familiar with 3D printing.

46Q11. Are you familiar with 3D (3-dimensional) printing and what it is? Base Business Executives: 2,090, Business Executives in Brazil: 150

41%Are very familiar with 3D printing

Yes, I am very familiar with 3D printing (41%)

Yes, but I am only somewhat familiar

with 3D printing (52%)

No, I am not familiar with 3D printing (6%)

Don’t know (1%)1% 0%

36%63%

However, globally as well as in Brazil, a majority of business executives believe 3D printing has yet to realize its full potential

47Q12. How mature would you say the 3D (3-dimensional) printing industry is in your country. Base Business Executives: 2,090, Business Executives in Brazil: 150

5%14%

3D printing has already had an

impact on businesses

21%

3D printing is talked about, but isn't a

reality yet

3D printing isn't being talked about

27% 32%

3D printing is starting to become a reality but

won't impact businesses for several

years

3D printing has become a realitythat is impacting

businesses

53% say 3D printing hasn’t reached its full potential yet

17% 25% 31% 25% 2%

57%

Outside of larger countries with strong manufacturing industries, most do not believe 3D printing has made an impact yet in their country.

69%

68%

66%

61%

60%

58%

57%

55%

54%

54%

53%

52%

52%

50%

50%

49%

46%

45%

44%

40%

31%

27%

29% 33

%

34%

31%

31%

41%

34% 41

%

37% 41

% 44%

42% 46

%

34%

48%

48% 55

%

48% 53

% 61%

South Africa

South Korea

Poland Indonesia Saudi Arabia

Canada Brazil Japan Turkey UK Global Total

Germany France Malaysia Nigeria Mexico UAE China Sweden USA India

Being talked about Having an impact

Q12. How mature would you say the 3D (3-dimensional) printing industry is in your country? Base Business Executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150, Indonesia: 80, Japan: 100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150

How mature would you say the 3D (3-dimensional) printing industry is in your country?

48

Globally, the high-tech /IT and manufacturing sectors are most likely to see the impact of 3D printing.

49

52%

43% 43% 42% 41% 40% 40% 39%36% 35% 34%

High-tech / IT Manufacturing (Other)

Fast Moving Consumer

Goods

Electronics Total Industrial Products

Energy related Health related Professional services / Business services

Telecoms / Internet

Automotive / transport /

logistics

3D Printing is having an impact in my country

Sectors above average Sectors below average

Q12. How mature would you say the 3D (3-dimensional) printing industry is in your country. Base Business Executives: 2,090


Maximizing the Return on Innovation

50

Executive Summary: Maximizing the Return on Innovation (ROI)• Globally, 40% of innovations are having a positive impact on the bottom line. What’s the secret to

success for these “innovation achievers”? They’re taking a more measured approach. Businesses are waiting to perfect and test their innovation before launch rather than getting to market quickly—a 10-point jump since 2016 (now 65%). Innovation achievers also are more willing to wait for long-term ROI for breakthrough innovation (84%) and have a clear structure and process in place to measure that return (50% vs. 43%).

We measured a decrease in the appetite for bullish risk taking

Q23. What percentage of your company’s innovations over the past 5 years do you think have fallen into the following categories? (MEAN SCORE –including 0) Base business executives 2018: 2,090, business executives in Brazil 2018: 150

40%

25%

20%

15%

42%

24%

60% of innovations over the last five years have not resulted in a positive impact on the bottom line (Mean Score)

A success that positively impacted the bottom line and improved our position in the market

A success that improved our position in the market but did not positively impact our bottom line

A failure that provided useful learnings for future innovations

A failure that did not provide any useful learnings for future innovations

Businesses are placing further emphasis on protecting their bottom line and maximizing the “Return on Innovation” (ROI).

51

58%

14%

20%

Already challenged in their ability to disrupt themselves and keep up with the innovation race, business executives re-emphasize the basic and fundamental recipes for success.

Know how key digitalization is to innovation success

Focus on measurement

Think about long-term strategies

Be more cautiousin their approach to innovation

Business executives who say 51-100% of

their company’s innovations have

positively impacted their bottom line over

the last 5 years are more likely to…

Businesses are choosing their battles, with an emphasis on digital transformation; focusing on a properly measured ROI and being more measured in their go-to-market strategy.

52

Innovation achievers are using data effectively and integrating digital capabilities into the business model.

They know how key digitalization is to innovation

success

78% 78% 77%

37%

88% 86% 84%

54%

To harness and use data in effective ways to make informed business decisions (% perform

well)

To have a data security program in place to mitigate against any risks of losing data, data

breaches or being hacked (% perform well)

To put digital capability at the core of their business model (% perform well)

Digitalization has made it much easier and efficient for us to measure our return on

investment (% agree)

Non-Achievers Achievers

Q23 – Mean (Including Zero) Summary - What percentage of your company’s innovations over the past 5 years do you think have fallen into the following categories? Base business executives 2018: 2,090. Base 0-25% 693, 26-49% 688, 50-100% 709. Table Q17 How does your company currently perform against these success criteria? Q22 -Which of the below statements represent your attitudes to measuring the return on investment of innovation at your company? Base business executives 2018: 2,090 53

Achievers are more likely to focus on demonstrating the value to investors, clients and users, and measure the successes of their innovations.

They know how key measurement is to innovation

success

80%

40%35%

88%

46%41%

To demonstrate the value of their innovations to clients and users (% perform well)

We have to measure the impact of innovation on business performance to get further investment and

funding (% agree)

We have measurement frameworks in place to keep our investors happy (% agree)


Q23 – Mean (Including Zero) Summary - What percentage of your company’s innovations over the past 5 years do you think have fallen into the following categories? Base business executives 2018: 2,090. Base 0-25% 693, 26-49% 688, 50-100% 709. Q17 How does your company currently perform against these success criteria? Q22 - Which of the below statements represent your attitudes to measuring the return on investment of innovation at your company? Base business executives 2018: 2,090 54

Achievers are more cautious and measured in their approach to innovation.

They know how key being cautious is to innovation

success

63%58%

74% 72%

To protect the core business as much as possible, so it continues to generate the profitability needed to support Research & Innovation efforts (% agree)

To wait to perfect and test the innovation before launch, in order to make sure the customer is completely satisfied from the start (% agree)


Q23 – Mean (Including Zero) Summary - What percentage of your company’s innovations over the past 5 years do you think have fallen into the following categories? Base business executives 2018: 2,090. Base 0-25% 693, 26-49% 688, 50-100% 709. Q16. On a scale from 1 to 10, how crucial do you think the following elements are for a company to be able to innovate successfully? Q24A - Now we are going to present different views on the ideal innovation process. For each you will be shown two options. We would like you to pick the one you feel is the truest or the most relevant in driving successful innovation. Base business executives 2018: 2,090c

When innovating, it is best… When innovating, it is best…

55

With decreased emphasis on speed and more emphasis on protecting their core business, executives are undergoing a reality check.

56

Q24. Now we are going to present different views on the ideal innovation process. For each you will be shown two options. We would like you to pick the one you feel is the truest or the most relevant in driving successful innovation. Sometimes you may feel your opinion sits in the middle, but please try to select the one which you believe is the most critical. [Top 3 Box 8 - 10] Base business executives 2016: 2,748, business executives 2018 2,090

When innovating, it is best...(19 markets no UK)

65%

35%

69%

31%

To protect the core business as much as possible, so it continues to generate the profitability needed to support Research & Innovation efforts

To bring innovative products and/or services to market as fast as possible without worrying about the short-term impact it can have on the core business

2016 2018 2016 2018

-4

+4

A relatively large segment of Brazilian executives are willing ta take risks in order to reach the market since 2016, and retain this attitude in 2018.

57

Q24. Now we are going to present different views on the ideal innovation process. For each you will be shown two options. We would like you to pick the one you feel is the truest or the most relevant in driving successful innovation. Sometimes you may feel your opinion sits in the middle, but please try to select the one which you believe is the most critical. [Top 3 Box 8 - 10] Base business executives 2016: 2,748, business executives 2018 2,090. Business executives in Brazil 2016: 200, business executives in Brazil 2018: 150


61%

40%

60%

40%

To protect the core business as much as possible, so it continues to generate the profitability needed to support Research & Innovation efforts

To bring innovative products and/or services to market as fast as possible without worrying about the short-term impact it can have on the core business

2016 2018 2016 2018

0

-1%

And this reality check is being felt in the majority of countries –notably in China and Germany among others.

Q24. For each of the following markets, how far would you say that they have developed an Innovation conducive environment? [Top 3 Box 8-10] Base business executives 2016: 2,748, business executives 2018: 2,090 [Full base sizes listed in the appendix]

67%

56%64%

52%

62%66%

57%65%

72%77% 76%

65% 63% 61%72%

76%

59%65% 65% 63%

85%

72%78%

64%72% 75%

66% 69%

89%80% 79%

68% 66%60%

70% 73%

55% 58% 55%49%

67%

2016 2018

When innovating, it is best...To protect the core business as much as possible, so it continues to generate the profitability needed to support Research & Innovation effortsRanked by 2016 to 2018 difference

Increase Decrease

2016

dat

a no

t av

aila

ble

58

In 2018, fully testing new products and solutions before bringing them to market emerges as a preferred strategy, rather than charging ahead with minimum viable products.

Q24.Now we are going to present different views on the ideal innovation process. For each you will be shown two options. We would like you to pick the one you feel is the truest or the most relevant in driving successful innovation. Sometimes you may feel your opinion sits in the middle, but please try to select the one which you believe is the most critical. [Top 3 Box 8 - 10] Base business executives 2016: 2,748, business executives 2018 2,090


45%55%

35%

65%To get to market as quickly as possible to keep an edge on competition, even if this means having an imperfect product or service and improving it along the way

To wait to perfect and test the innovation before launch, in order to make sure the customer is completely satisfied from the start

2016 2018 2016 2018

-10

+10

59

Brazil continues to favor a more cautious approach to innovation, and attitude that is stronger for this country than the global average

Q24.Now we are going to present different views on the ideal innovation process. For each you will be shown two options. We would like you to pick the one you feel is the truest or the most relevant in driving successful innovation. Sometimes you may feel your opinion sits in the middle, but please try to select the one which you believe is the most critical. [Top 3 Box 8 - 10] Base business executives 2016: 2,748, business executives 2018 2,090. Base business executives in Brazil 2016: 200, business executives in Brazil 2018: 150.


49% 51%

34%

66%To get to market as quickly as possible to keep an edge on competition, even if this means having an imperfect product or service and improving it along the way

To wait to perfect and test the innovation before launch, in order to make sure the customer is completely satisfied from the start

2016 2018 2016 2018

-15

+15

60


Hype vs. Reality of Impact

61

Executive Summary: Hype vs. Reality of Impact

• Hype around certain technologies does not always equate to transformative impact. In fact, global executives believe that many under-hyped technologies will have a transformative impact, including energy grids (74% say it will bring transformative change to their country), virtual healthcare (68%) and smart cities (71%).

The latest wave of innovation hype is comprehensive, spanning a number of disruptive forces, from Artificial Intelligence (AI) to robotics to advanced manufacturing.

Q9.When we talk about innovation “hype”, we mean hot topics or trends that are being widely discussed but aren’t necessarily having an impact yet. Out of the innovations listed below, please rate each based on how much “hype” they are creating in your country today. Base Business Executives: 2,090

71% 70% 69% 68% 67% 66% 65% 64%62% 62% 61%

57%

Artificial and machine

intelligence

Internet of Things

Financial technology and

currency

3D printing Augmented Reality/ Virtual

reality

Big data and analytics

Smart energy grids

Nanotechnology Driverless transport

Smart cities Electrification of the transport

system

Virtual healthcare diagnosis

How much “hype” are they are creating in your country today? (NET hype)

65% average hype

62

In Brazil there is greater hype surrounding innovation, with smart energy grids and driverless transport coming out on top

Q9.When we talk about innovation “hype”, we mean hot topics or trends that are being widely discussed but aren’t necessarily having an impact yet. Out of the innovations listed below, please rate each based on how much “hype” they are creating in your country today. Base Business Executives: 2,090, business executives in Brazil 2018: 150

86% 84%79% 77%

71% 69% 69% 68%63% 61%

55%

45%


currency

Augmented Reality/ Virtual

reality

Internet of Things

3D printing Artificial and machine

intelligence


Nanotechnology Smart energy grids

Electrification of the transport

system


Smart cities Driverless transport


69% average hype

63

The transformative impact of macro innovation still generates excitement from business executives around the world.

Q9.When we talk about innovation “hype”, we mean hot topics or trends that are being widely discussed but aren’t necessarily having an impact yet. Out of the innovations listed below, please rate each based on how much “hype” they are creating in your country today. Base Business Executives: 2,090. Q10. Next, please rate each of these innovations in terms of how much impact and transformative change they will bring to your country. Base Business Executives: 2,090


How much impact and transformative change will they bring to your county? (NET impact)

71% 70% 69% 68% 67% 66% 65% 64%62% 62% 62%

57%

74%

71% 70% 69% 68%

71%

74%72%

68%

71% 72%

68%


intelligence

Internet of Things


currency


reality


Smart energy grids



system


In particular, innovations such as AI, IoT and the development of Fintech, produce interest both in terms of hype (being talked about) and actually having impact on their industries and their economies.

64

Driverless Transport, Smart Cities, and Virtual Healthcare Diagnosis see the greatest hype to impact discrepancy in Brazil

Q9.When we talk about innovation “hype”, we mean hot topics or trends that are being widely discussed but aren’t necessarily having an impact yet. Out of the innovations listed below, please rate each based on how much “hype” they are creating in your country today. Base Business Executives: 2,090. Q10. Next, please rate each of these innovations in terms of how much impact and transformative change they will bring to your country. Base Business Executives: 2,090, business executives in Brazil 2018: 150


How much impact and transformative change will they bring to your county? (NET impact)

71%79%

86%77%

84%

69% 68% 69%

45%

55%63% 61%

82%89%

85%78% 77%

83%89% 88%

80%87% 85% 87%


intelligence

Internet of Things


currency


reality


Smart energy grids



system


In other words, despite not being talked about much, innovations applied to transport infrastructure seem to be creating a big impact in Brazil.

65

3D printing

Artificial and machine intelligence

Augmented Reality/ Virtual reality


Driverless transport

Electrification of the transport system Financial technology and

currencyInternet of ThingsNanotechnology

Smart cities

Smart energy grids


This being said, business executives report that transformation in transport, city-planning and infrastructure are “under-hyped” considering the benefits they could bring to their countries.

Less Hype, Stronger Impact

INN

OV

ATI

ON

IM

PAC

T

INNOVATION HYPE

Q9. When we talk about innovation “hype”, we mean hot topics or trends that are being widely discussed but aren’t necessarily having an impact yet. Out of the innovations listed below, please rate each based on how much “hype” they are creating in your country today. Base Business Executives: 2,090. Q10. Next, please rate each of these innovations in terms of how much impact and transformative change they will bring to your country. Base Business Executives: 2,090

Less Hype, Weaker Impact

More Hype, Stronger Impact

More Hype, Weaker Impact

66


section three:

Emerging Challenges

Edelman Intelligence / © 2017

Future of Work

68

Executive Summary• The workforce is considered the most crucial element to innovation success in most markets, yet skills gaps

continue to be a top concern among businesses. Nearly 3 in 4 (74%) global executives believe a lack of skills is an issue facing their industry—a challenge that has increased over time (64% say a lack of talent/inadequate skills is a key challenge today, up from 56% in 2014).

In Brazil, the skills gap is felt slightly more acutely than at a global level

69

5%

19%

43%

31%

Strongly disagree Somewhat disagree Somewhat agree Strongly agree

2018Q5B. How much do you agree or disagree with the following statements? There is currently a skills gap in my industry. Base business executives: 2,090, business executives in Brazil: 150

There is currently a skills gap in my industry

Level of agreement is consistent across sectors (74%)

9%

13%

39%

39%

79%

70Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Base business executives 2014: 3,309, business executives 2016: 2,748, business executives 2018: 2,090

56%

60%

64%Do you consider the following a key

challenge restricting your business’s ability to innovate efficiently?

A lack of talent / inadequate skillset

2016

2018

2014

NET: A challenge

This challenge only seems to be growing for business executives -finding the right talent and skillsets is apparently restricting business’s ability to innovate efficiently.

+8 ppt

71Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Base business executives in Brazil 2014: 200, business executives in Brazil 2016: 200, business executives Brazil 2018: 150

59%

49%

75%Do you consider the following a key challenge restricting your business’s

ability to innovate efficiently?

A lack of talent / inadequate skill set

2016

2018

2014

NET: A challenge

In Brazil, perception of the workforce’s skills set fluctuates, in 2018 there is a need for a better qualified workforce


More Challenging Environment

72

Executive Summary: More Challenging Environment• The challenges confronting innovative businesses are tough – and getting tougher – both externally and internally.

There is a 13-point increase (now 67%) since 2014 in lack of sufficient funding, a 6-point increase (now 65%) in the inability to scale innovations to a wider market, an 8-point increase (now 64%) in lack of adequate talent/ skillsets, and a 14-point increase (now 64%) in the inability of businesses to take risks. Emerging markets such as Poland, South Africa, Malaysia and Saudi Arabia are experiencing the greatest increase in challenges.

Businesses are struggling to scale up, investment is not available and it is a challenge to convert ideas into action.

73

67%

65% 64% 64% 64% 64% 64%

62%

60%

57%

The lack of sufficient investment and financial support

The incapacity to scale up successful

innovations, to a wider or

international market


The difficulty to define an effective business model to support new ideas

and make them profitable

The incapacity of the business to take

risks

The increased pressure to conform to ‘innovation hype’ and trends around certain innovations

The difficulty to come up with

radical and disruptive ideas

The internal inertia and the incapacity to be nimble, failing

at rapidly converting ideas into actions

The lack of internal support from the

leadership team/top management

The overwhelming amount of

information

2018

Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Not a challenge at all (1), not a real challenge (2), a bit of a challenge (3), a critical challenge (4) Base business executives 2018: 2,090

Do you consider any of the following as key challenges restricting your business’s ability to innovate efficiently?NET: Top 2 / A Challenge

Businesses feel pressured to conform with the ‘innovation hype’, investment is not available and struggle to define effective business models in Brazil

74

83% 80%76% 75% 74% 71% 70% 68% 67%

59%

The increased pressure to conform to ‘innovation hype’ and trends around certain innovations


The difficulty to define an effective business model to support new ideas

and make them profitable


The incapacity to scale up successful

innovations, to a wider or

international market

The internal inertia and the incapacity to be nimble, failing

at rapidly converting ideas into actions

The difficulty to come up with

radical and disruptive ideas

The overwhelming amount of

information

The incapacity of the business to take

risks

The lack of internal support from the

leadership team/top management

2018

Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Not a challenge at all (1), not a real challenge (2), a bit of a challenge (3), a critical challenge (4) Base business executives 2018: 2,090, business executives in Brazil 2018: 150


And these key issues have become even bigger challenges than they were four years ago.

75Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Not a challenge at all (1), not a real challenge (2), a bit of a challenge (3), a critical challenge (4) Base business executives 2014: 3,309, business executives 2018: 2,090


50%54%

59%56%

59%

64%67%

65%62%

64%

The incapacity of the business to take risks


The incapacity to scale up successful innovations, to a wider

or international market

The internal inertia and the incapacity to be nimble, failing at

rapidly converting ideas into actions

The difficulty to define an effective business model to support new ideas and make them profitable

2014 2018

+14 +13 +6 +6 +5

This trend can also be observed in Brazil. The impact of a recent economic recession propelled the lack of funding to the top of the list of innovation challenges.

76Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Not a challenge at all (1), not a real challenge (2), a bit of a challenge (3), a critical challenge (4) Base business executives 2014: 3,309, business executives 2018: 2,090. business executives in Brazil 2018: 150


50%

58%64%

67% 67%67%

80%74%

71%76%

The incapacity of the business to take risks


The incapacity to scale up successful innovations, to a wider

or international market

The internal inertia and the incapacity to be nimble, failing at

rapidly converting ideas into actions

The difficulty to define an effective business model to support new ideas and make them profitable

2014 2018

+17 +22 +10 +4 +9

Thank youJanuary 2018

77

Historical data has been used from 2013, 2014, 2016 and this year’s 2018 data.

The only question that is comparable across all four years is Q1 - Innovation Champions.• To compare scoring from previous years we have reweighted the previous total scores, so that countries that

are not included in this year’s GE GIB are removed, so only including the 20 countries that we have this year. This ensures all data is directly comparable. • The UK was not included in GE GIB 2016 so an average score from 2018 data and from 2014 was created at act as a

proxy. • In 2013 France was not included so a proxy from looking at 2014 and 2016 data has been used. • In 2016 Nigeria was not included so an average score from 2018 data and from 2014 was created to act as a proxy.

This method (of reweighting the total scores and creating proxies) has been used consistently across all questions where we have compared historical data.

Where tracking questions have been used for only 2016 and 2018 (because these questions were not tracked in 2013 or 2014), data for these questions is based on a 19 market total only as no proxy could be created for the UK in 2016.

Historical data tracking

78

February 2018 GE Global Innovation Barometer 2018 Brazil ... · Brazil Report February 2018 1. Edelman Intelligence / general electric ONE: Methodology TWO: Global Summary From Chaos

Documents