GE Global Innovation Barometer 2018

GE Global Innovation Barometer 2018
Full Report
Edelman Intelligence / © 2017 1

Contents
ONE:
Introduction to the GE Global Innovation Barometer (GIB) 2018
TWO:
Methodology
THREE:
Key findings
FOUR:
Deep dive on the findings
2
Introduction to the
GE GIB 2018
3
The evolution of the GE GIB
KEY MEDIA HEADLINES FURTHER THEMES IN THE RESEARCH
2010 – pilot What is innovation, what industries

A society that allows innovation to flourish, understands that innovation, 2010 drive innovation and what drives
research and education are linked to one another innovation generally
2012 The impact of the financial crisis,

9 in 10 executives are shy about moving ahead with innovation in a 2012 the global innovation environment,
sinking economy future expectations and optimism
2013
Innovation at a company level,
“Innovation vertigo:” anxious over global economic instability, executives
2013 country policy, business
are unsure how to move forward with disruptive ideas, products and
collaboration and big data
services
2014 The pace of innovation provides an

Most business leaders want to embrace innovation that disrupts markets 2014 uncertain future. The state of innovation,
— even if that deals a blow to their established business models partnership, models, policy and people
2016 The innovation optimists. Innovation

A belief in the transformative power of innovation persists; however 2016 at a company and country level,
there is enormous pressure put on businesses to disrupt themselves human capital and start ups
and the marketplace in today’s increasingly competitive business
4
environment
Methodology
5
This year’s method and scope
Innovation
2,090 Business Executives
Business Executives
All respondents’ line of work involves
taking part in their company’s innovation
process/policies.
They are responsible for making decisions
related to innovation, product
development or research and
development (R&D) activities in their
company.
20 countries: 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).
6
Key Findings
From Chaos to Confidence:
Emerging Players,
Emerging Technologies,
Emerging Challenges
Edelman Intelligence / general electric

7
2018 Key Findings
From Chaos to Confidence: Emerging Players, Emerging Technologies, Emerging Challenges
1 New Actors Driving Innovation: Globally, business

executives see multinationals leading innovation (+4 since
3 Working in a Protectionist World: Global executives
want the best of both worlds: on one hand they want the
2014) while small and medium enterprises (-11 since 2014) benefits of protectionist policies on domestic businesses
and entrepreneurs (-2 since 2014) have lost some of their and jobs, and on the other hand, they want the benefits of
innovation drive. In the Middle East and Asia especially, the globalization and open markets. A small majority of global
private sector is becoming a more important driver of executives (55%) believe protectionist policies benefit
innovation while there is a decrease in governments businesses within their country and 73% believe it is good
driving innovation. for the workforce. However, 68% globally believe their
2
government cannot keep up with the pace of change and
Emerging Confidence: While the United States (-8) 22% (of those that prefer protectionism) see multinationals
and Germany (-7) see a drop in championship status as the drivers of innovation.
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.
2018 Key Findings
From Chaos to Confidence: Emerging Players, Emerging Technologies, Emerging Challenges
4 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
7 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%)
market faster (89%). At the same time, 53% believe 3D printing global executives believe a lack of skills is an issue facing their
has yet to reach its full potential, requiring more education and industry—a challenge that has increased over time (64% say a lack
reassurance. of talent/inadequate skills is a key challenge today, up from 56% in
2014).
5 Maximizing the Return on Innovation: Globally, 40% of

innovations are having a positive impact on the bottom line.
8
What’s the secret to success for these “innovation achievers”?
They’re taking a more measured approach. Businesses are waiting More Challenging Environment: The challenges confronting
to perfect and test their innovation before launch rather than innovative businesses are tough – and getting tougher – both
getting to market quickly—a 10-point jump since 2016 (now 65%). externally and internally. There is a 13-point increase (now 67%)
Innovation achievers also are more willing to wait for long-term since 2014 in lack of sufficient funding, a 6-point increase (now
ROI for breakthrough innovation (84%) and have a clear structure 65%) in the inability to scale innovations to a wider market, an 8-
and process in place to measure that return (50% vs. 43%). point increase (now 64%) in lack of adequate talent/ skillsets, and a
14-point increase (now 64%) in the inability of businesses to take
6 Hype vs Reality of Impact: Hype around certain

technologies does not always equate to transformative impact.
risks. Emerging markets such as Poland, South Africa, Malaysia and
Saudi Arabia are experiencing the greatest increase in challenges.
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%).
Deep dive on the
Section One: Emerging Players
• New Actors Driving Innovation
findings
• 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

section one:
Emerging Players

New Actors Driving
Innovation
Executive Summary
• Globally, business executives see multinationals leading innovation (+4 since 2014) while small and
medium enterprises (-11 since 2014) and entrepreneurs (-2 since 2014) 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.
Edelman Intelligence / general electric 12

Since 2014 there has been a shift from small businesses and
entrepreneurs driving innovation towards large enterprises and
multinationals.
Who is the main driver for innovation in your country?
(Historical tracking data at a global level)
2014 2018
23%
22%
20% 19%
18% 18%
14%
12%
11% 11%
9% 9%
5%
3%
2%
1%
Small and medium Individual entrepreneurs Multinational companies Large enterprises (more Universities and research Government and public Public authorities at local State owned enterprises in
companies (10 to 250 and start-ups investing in your country than 250 employees) labs authorities at national level (region / city) your country (SoE)
employees) headquartered in your level
country
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
13
Multinationals’ growing reputation as the driver of innovation
is seen across the majority of countries.
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.
Multinationals are the main driver for innovation in your country

Ranked by largest increase from 2014 to 2018
2014 2018
39%
36%
33%
32% 33%
30% 30% 30% 31%
29% 29%
27% 26% 27% 26%
25%
23% 22%
20% 20% 21%
19% 19%
17% 16% 17%
16% 17% 16%
15% 14%
12% 12% 12% 13% 13%
11%
8% 7% 7%
Increase Decrease
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] 14
SMEs are losing their reputation as a driver of innovation in
developed economies – particularly in Europe.
SMEs are the main driver for innovation in your country
Ranked by largest decrease from 2014 to 2018
2014 2018
49%
37% 36%
35%
29% 30% 30%

27% 26%
24% 24%
23% 22%
20% 20%
18% 18%
14% 13% 14% 15% 13%
12% 11%
9% 10% 10%
8%
10%
8% 9%
6% 7% 6% 7%
4% 5%
1% 3% 1%
Increase Decrease
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
Europe has experienced a significant decrease in SMEs and
entrepreneurs driving innovation.
(Historical tracking SMEs) (Historical tracking Individual entrepreneurs and start-ups)
2014 2018
49%
28%
36% 35% 37%
19% 20%
18%
20% 14% 13%
18% 12%
11% 8%
9%
Germany UK Sweden France Poland Sweden UK Germany
(Historical tracking large companies headquartered in

your country)
Germany and the UK
37%
have seen an increase
in large companies 19% 22%
driving innovation 10%
Germany UK
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 16
In emerging economies, governments are now not seen to be
driving innovation as much as they were in 2014.
Governments are the main driver for innovation in your country
Ranked by 2014 – 2018 growth
33% -7 2014 2018

26%
-13 -16
21% -8 23% -11 24% 25%
13% 12% 11%

9%
Malaysia UAE China Turkey Saudi Arabia
Decrease
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
17
in the appendix]
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.
Multinationals are the main driver for innovation in your country
Ranked by 2014 – 2018 growth
+22 2014 2018

+6
39%
+13 +7 +7 36% +5
29% 30% 30% 30%
27%
25%
23%
20% +7
17% 16% 15%
8%
Turkey South Africa Indonesia Poland France Nigeria Mexico
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
18
sizes listed in the appendix]
Emerging Confidence
Executive Summary
• With 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.

Over time, we see the US and Germany losing their share of
championship status to Japan and China
What is the country that you consider to be the leading innovation champion?
Ranked by 2018 data
38%
36%
2013 2014 2016 2018
33%
28%
21%
17%
15% 16%
14%
13% 13%
12% 10%
10% 10%
9%
3% 4% 4% 4% 3% 4% 3%
2% 3% 3% 2% 3% 3% 2% 3%
1% 1% 2% 1% 1% 2%
1% 0% 1%
USA Japan China Germany Sweden South Korea UK Canada India UAE
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]
20
Only five countries are seen to have a very strong innovation
conducive environment with the Innovation Champions leading the
way
For each of the following markets, how far would you say that they have developed as an innovation conducive environment?
Percentage that have a strong innovation conducive environment (top 3 box)
76%
73%
65%
59%
53%
49%
46% 45% 45% 45%
43%
40%
36% 35% 34% 34%
31%
28% 27%
25% 24%
23%
20% 20% 20% 19%
18%
16%
13%
11% 10% 10%
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
21
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
Emerging markets have seen the largest increase in how their
ability to foster innovation is viewed
For each of the following markets, how far would you say that they have developed as an innovation conducive environment?
Percentage increase from 2014 to 2018
Russia 18% Algeria 9%

Australia 16% Switzerland 9%
UAE 16% Vietnam 9%
Saudi Arabia 16% Kenya 9%
Ireland 15% Sweden 9%
Poland 15% Nigeria 9%
Italy 14% UK 9%
Mexico 13% Brazil 7%
France 13% South Africa 7%
Malaysia 13% South Korea 5%
Netherlands 12% Japan 5%
Indonesia 12% Finland 3%
Canada 11% India 1%
Turkey 11% USA 0%
Singapore 11% Israel -1%
China 10% Germany -5%
22
Business executives report increased satisfaction about their
country’s ability to foster innovation
For your own market, how far would you say that you have developed as an innovation conducive environment?
Percentage that feel they have a strong innovation conducive environment (top 3 box)
73% 2014 2018
67%
58%
49%
43% 44% 44%
35% 32%
28% 30%
24% 23% 21%
18%
14%
7% 7%
China India Brazil Malaysia Canada Mexico Indonesia Poland Turkey

85%
77%
72%
65%
61% 61% 59%
56% 53%
48%
40% 40% 41% 38%
36%
30% 28%
24% 26% 27%
20%
11%
7% 8%
UAE UK France Global Total Saudi Arabia USA Sweden South Africa South Korea Nigeria Japan Germany
executives 2014: 3,309, business executives 2018: 2,090 23
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)
On average Asian countries see a 34
percentage point increase in how they
49%
Top 5 increases 2014 to 2018 evaluate their ability to foster innovation
39%
29% 28% 26%
China India Brazil Malaysia Indonesia
executives 2014: 3,309, business executives 2018: 2,090 24
Innovation influence becomes multipolar; China and Japan
become aspirational
Europe
Asia & the US A self-serving relationship
An aspirational relationship Europe sees countries within the continent as being key innovation
Asia looks to the USA, with champions (Germany 12%, Sweden 10%, UK 6%).
34% of business executives However 22% of business executives in Europe look to the US as
viewing them as the
innovation champion (64%
North Europe champions and 19% of executives look to Japan.
(Inward Looking)
in China). America
(Inward Looking)
The US
Africa to China
A confident view
The US believes the US is the Asia A relationship of trade and investment
41% of business leaders in Africa see China
innovation champion (61%).
as the innovation champion. Chinese
companies are investing in Africa and it is
LATAM to Japan now the country’s biggest economic partner.
A relationship of trade and
investment
Africa
33% of business executives in
LATAM believe Japan is the
LATAM
innovation champion, and with
Japan investing heavily in the
region this relationship aligns.
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, 25
Turkey: 80, UAE: 80, UK: 150, USA: 150 Base business executives: 2,090
Countries see themselves as being more innovation conducive
than they are perceived by others
1
Global Evaluation /10
Countries that view
The exceptions to this are
countries like Japan and South
themselves more USA
Global Evaluation of innovation conducive
environments /10
Japan Germany
Korea that are thought to be more negatively than other
innovation conducive by others countries do (under UK China
than themselves.
confident) France Canada
Sweden
South Korea
UAE India
Malaysia
Poland
Saudi Indonesia
Arabia Brazil Turkey Mexico
South Africa
Countries that view themselves
Nigeria more positively than other
countries do (overly confident)
Self-evaluation /10
0
0 Self-evaluation of innovation conducive environments /10 1
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, 26
Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150
The top five innovation conducive countries have the five largest
GDPs
80%
Innovation Champions
% of innovation conducive environment (Q2)
USA
Japan
70%
Germany
60% China
Canada
UK
50% Switzerland
Sweden
Singapore France
40% South Korea
Australia
Italy
30% UAE Russia
India
Saudi Arabia
20% Brazil
Mexico
10% Nigeria
0%
$0 $5,000,000,000,000 $10,000,000,000,000 $15,000,000,000,000 $20,000,000,000,000
GDP (Gross Domestic Product $)
Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150 // GDP from the World Bank
Singapore, Switzerland and Sweden are outliers when comparing
their lower GDPs to their higher innovation conducive status
Singapore, Switzerland and Sweden are innovation
60%
conducive outliers when compared with GDP These countries fall short of achieving on
% of innovation conducive environment (Q2)
innovation status in comparison to their GDP

50% Canada
Switzerland
Singapore France
Sweden South Korea
40% The Netherlands Australia

Russia
Finland Italy
30% UAE
India
Ireland Saudi Arabia
Israel
Turkey Indonesia
Malaysia
20% Brazil
Poland
Mexico
South Africa
Kenya
10% Vietnam Nigeria
Algeria
0%
$0.00 $500,000,000,000.00 $1,000,000,000,000.00 $1,500,000,000,000.00 $2,000,000,000,000.00 $2,500,000,000,000.00 $3,000,000,000,000.00
GDP (Gross Domestic Product $)

Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150 // GDP from the World Bank
Working in a
Protectionist World
Executive Summary
• 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.

Globally, a small majority of business executives think that
protectionist policies towards innovation would benefit the
business sector
55% of business executives think that

if the government had protectionist
policies towards innovation it would 45%
benefit the business sector.
55%
Pro-protectionism
Anti-protectionism
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 30
The majority of business leaders believe a political protectionist
stance on innovation would be beneficial to business at a
national level
If the government had a political protectionist stance on innovation in my country it would be beneficial to businesses
Only 4 countries had a majority that felt

71%
a protectionist stance to innovation
65%
would not be beneficial to business
63% 63% 63% 61% 60% 58% 57% 56% 56% 55% 53% 53% 51% 51% 51% 49% 47%
43%
39%
UAE Sweden India France Saudi Indonesia Malaysia UK Mexico Turkey Canada Global Japan USA Nigeria Brazil China Germany South Poland South
Arabia Average Korea Africa
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, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150,
31
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
The majority of business executives agree that regulations
around privacy and data are stifling innovation
Regulations around privacy and data protection are Pro-protectionism

Don’t know
preventing businesses from adopting more 2%
radical/transformative innovations
28%
Disagree
Don’t know 70%
2% Agree
29% Anti-protectionism
Disagree
Disagree 2% Don’t know

69%
30%
Agree
68%
Agree
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 32
And business leaders feel regulations around privacy and data
protection are stifling innovation more so than two years ago
Regulations around privacy and data protection are preventing businesses from adopting more radical / transformative innovations 2016 2018
NET: Agree
85%
80% 79% 79%
76% 77%
75% 74% 74%75% 75%
73% 73% 73% 72%
70% 71%
69% 69%70% 69% 69%
67% 66%
65% 65% 65%66% 65%
63%
60% 60% 61% 61% 61% 61% 60%
55% 55% 56%
49%
2016 data not available

Increase Decrease
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]
The private sector is seen as driving innovation as
governments can’t cope with the pace of innovation
Pro-protectionism
In my country, the government is not able to
2% Don’t know
regulate innovation as the system cannot
keep up with the pace of innovation 34%
Disagree 64%
2% Don’t know
Agree
31% Anti-protectionism
Disagree
Don’t know
2%
68%
26%
Agree Disagree
72%
Agree
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 34
The majority of business executives across 20 markets feel that
the government cannot keep up with the pace of innovation
In my country the government is not able to regulate innovation as the system
cannot keep up with the pace of innovation.
91%
86%
80%
78% 77% 76% 74%
71% 71%
68% 68% 67% 66% 66% 65%
59%
55% 55% 55%
51%
41%
Brazil Mexico South Poland Japan UK Nigeria France South Global Turkey Germany Sweden USA India Indonesia China Malaysia Saudi Canada UAE
Korea Africa Average Arabia
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: 35
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
And this opinion remains consistent across pro or anti-
protectionist business executives
In my country the government is not able to regulate innovation as the system cannot keep up with the pace of innovation:
(NET AGREE)
-1 +4 +2 +12 +4 -8 -4 +3 +7 +8 +22 +4 -8 -2 +12 +15 +9 +33 +3 +11 +9
Difference in pro-protectionism / anti-protectionism results
92%
91% 88%
84% 83% Pro Protectionsism Anti Protectionism
81% 80%
79% 79% 79%
75% 76% 74% 75%
71% 71% 72% 70%73% 72% 73%
67% 69% 69% 67% 68%
64% 65% 65% 65%
61% 61%
58% 57% 57%
53% 54%
46% 46% 48%
42%
39%
Brazil Mexico South Poland Japan UK Nigeria France South Global Turkey Germany Sweden USA India Indonesia China Malaysia Saudi Canada UAE
Korea Africa average Arabia
Q5. How much do you agree or disagree with the following statements? Q5D. 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 [Pro-protectionism / Anti-
protectionism base sizes too small for media]
Businesses are not just seen as the actors currently driving
innovation, but also as the actors that should drive innovation
Almost 9 in 10 business executives think that
Pro-protectionism
businesses rather than governments should be the

main drivers of the innovation agenda in their countries
85% 13
%
86% 12 Anti-protectionism
Business Government
%
Business Government
87% 11
%
Business Government
Q.5C How much do you agree or disagree with the following statements? Business should be the main driver of the innovation agenda, not governments. Base
business executives: 2,090, Pro-protectionism: 1,153, Anti-protectionism: 937 37
There are multiple reasons why protectionism would have a
benefit on businesses, but key drivers are workforce and giving
businesses a competitive edge
Why do you think protectionism would have a beneficial effect on businesses in your country?
It gives domestic businesses a competitive edge (NET) 86%
It is positive for jobs and the workforce (NET) 73%
It fosters ideas domestically (NET) 60%
It provides government control (NET) 35% NEW

-3 +5 -6 -1 -1 +1 +2 = = +1 +1 +1 ENTRANTS =
Q7. Out of the reasons below, why do you think protectionism would have a beneficial effect on businesses in your country? Base business executives who are pro- 38
protectionism: 1,153
The negatives of protectionism are also multifaceted with barriers
to creativity and to investment being key
Why do you think protectionism would have a negative effect on businesses in your country?
It gives government too much control (NET) 74%
It creates barriers to investment (NET) 69%
It reduces competitiveness (NET) 63%
It hinders ideation (NET) 59%
It reduces our ability to attract talent from foreign countries NEW

-3 +5 -6 -1 (NET) - 1 +1 +2 = = +1 +1 +1 35%
ENTRANTS
Q8. Out of the reasons below, why do you think protectionism would have a negative effect on businesses in your country? Base business executives who are anti- 39
protectionism: 937
Generally, pro-protectionist respondents think more positively
about the state of innovation than anti-protectionist business
executives
Pro-protectionism respondents: The optimists Anti-protectionism respondents: The realists
More likely to say they See more countries as Think that the government See business as the main
have a clear innovation innovation conducive is not able to regulate driver and funder for
strategy environments innovation effectively innovation
See the government and

See more innovations
national bodies as the
creating ‘hype’ and having
main drivers and funders Think to a lesser degree See less countries as
transformative potential
for innovation that they have a clear innovation conducive
innovation strategy environments
Think they perform well against innovation success

criteria
40
Protectionism attitudes impact business
executives’ perceptions of innovation

Depending on the stance towards protectionism, business
executives select different stakeholders as the main driver for
innovation
Those who favor protectionism are more likely to feel that state-owned enterprises are driving innovation. However, those who
are anti-protectionism are more likely to see individual entrepreneurs/ start-ups and SMEs as driving innovation.
22% 22%
21%
Pro Protectionsism Anti Protectionism
18%
17%
14% 13% 12%
10% 10%
9%
6% 6% 6% 5%
3%
2% 2%
Multinational Large enterprises Individual Universities and Government at a SME's State owned International Public authorities
companies entrepreneurs/ research labs national level enterprises organisations at a local level
start-ups
Q3. Who do you think is driving innovation the most today in your country? Base business executives who are pro-protectionism: 1,153, business executives
who are anti-protectionism: 937 42
Similarly, this is reflected in who business executives believe is
funding innovation in their country
Those who favor anti-protectionism are more likely to feel multinational companies and individual entrepreneurs/ start-ups are
funding innovation in their country.
28%
24% Pro Protectionsism Anti Protectionism
17% 17% 17%

16%
14%
12%
8%
7% 6% 6%
5% 5% 5% 5%
4%
3%
Multinational Large enterprises Government at a Individual State owned International Universities and SME's Public authorities
companies national level entrepreneurs/ enterprises organisations research labs at a local level
start-ups
Q4. Who do you think is funding innovation the most today in your country? Base business executives who are pro-protectionism: 1,153, business executives 43
who are anti-protectionism: 937
section two:
Emerging Technologies

The Potential of
Additive
Executive Summary
• 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
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

31%
negative impact on businesses in my country
I think 3D printing will have a negative impact on

63%
businesses in my country
Don't know
Q13. 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 46
Benefits include increased creativity, speed to market, lower
costs, competitive advantage and improved CO2 footprint
Allow businesses to be more creative in the products and

goods they can create 91%
Enable goods to get to market faster 89%
Reduce the costs of goods making them more affordable 83%
Businesses that invest in 3D printing will leave other

businesses behind 81%
Beneficial for the environment and reduce CO2 in

manufacturing 80% =
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? Base Business Executives: 2,090 47
Benefits of 3D printing do vary at a country level
Turkey (96%), Brazil (95%), Saudi Arabia (94%), China (91%), Indonesia (95%), China (93%), Malaysia
India (90%) Malaysia (89%), Turkey (89%) (93%), Brazil (89%), India (89%)
Reduce the costs of goods Businesses that invest in 3D Beneficial for the environment
making them more affordable printing will leave other and reduce CO2 in
(83%) businesses behind (81%) manufacturing (80%)
South Africa (73%), Germany (72%), Sweden (71%), Germany (68%), South
Sweden (70%) Indonesia (71%), Canada (69%) Korea (67%), Japan (66%)
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, 48
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
With only 4 in 10 business executives being very familiar with 3D printing, there is work to be done to encourage the majority of business
executives to become more familiar and therefore adopt 3D printing.
No, I am not familiar Don’t know (1%)

with 3D printing (6%)
Yes, but I am only

somewhat familiar
41% Yes, I am very familiar
Are very familiar

with 3D printing
Q11. Are you familiar with 3D (3-dimensional) printing and what it is? Base Business Executives: 2,090 49
However, a majority of business executives believe 3D printing
has yet to realize its full potential.
53% say 3D printing hasn’t reached its
full potential yet
14% 27% 32% 21% 5%
3D printing isn't
3D printing has being talked about
already had an 3D printing is talked
3D printing has
impact on about, but isn't a
become a reality 3D printing is starting to
businesses reality yet
that is impacting become a reality but
businesses won't impact
businesses for several
years
Q12. How mature would you say the 3D (3-dimensional) printing industry is in your country. Base Business Executives: 2,090 50
Outside of larger countries with strong manufacturing industries,
most do not believe 3D printing has made an impact yet in their
country
How mature would you say the 3D (3-dimensional) printing industry is in your country?
India stands out as a key market where business executives state that 3D printing is having a much greater impact than it is being talked about.
Being talked about Having an impact

69%
68%
66%
61%
61%
60%
58%
57%
55%
55%
54%
54%
53%
53%
52%
52%
50%
50%
49%
48%
48%
48%
46%
46%
45%
44%
44%
42%
41%
41%
41%
40%
37%
34%
34%
34%
33%
31%
31%
31%
29%
27%
South South Poland Indonesia Saudi Canada Brazil Japan Turkey UK Global Germany France Malaysia Nigeria Mexico UAE China Sweden USA India
Africa Korea Arabia Total
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, 51
Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150
Globally, the high-tech /IT and manufacturing sectors are most
likely to see the impact of 3D printing
3D printing is having an impact in my country
Sectors above average Sectors below average

52%
43% 43% 42% 41% 40% 40% 39%

36% 35% 34%
High-tech / IT Manufacturing FMCG Electronics Total Industrial Energy related Health related Professional Telecoms / Automotive /
(Other) Products services / Internet transport /
Business logistics
services
Q12. How mature would you say the 3D (3-dimensional) printing industry is in your country. Base Business Executives: 2,090 52
Innovation Achievers more readily recognize
the positive impact of 3D printing in their
country
53
The positive impact of 3D printing is recognized more by
innovation Achievers
Innovation Achievers are more likely to see the benefit of 3D printing in their country, with almost 7 in 10 innovation Achievers agreeing to
the statement.
3D printing will have a positive impact on business in my country:
+14
68%
54%
Innovation non- Innovation achievers
achievers
Q13. Do you think 3D (3-dimensional) printing is beneficial or could have a negative impact on businesses? Base business executives 2018: 2,090, innovations
winners: 709, innovation losers: 693. 54
Maximizing the
Return on Innovation
Executive Summary
• 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%).

40% of innovations over the last five years have had a positive
impact on business’s bottom line
A failure that did not provide
any useful learnings for
future innovations
60% of 15%
innovations over
the last five years 40%
A success that positively
impacted the bottom line
have not resulted A failure that provided and improved our position
20%
in a positive useful learnings for in the market
impact on the future innovations
bottom line
25%
A success that improved our position in the market but did

not positively impact our bottom line
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? 56
Base business executives 2018: 2,090
22% of business executives have seen up to
half of their innovations positively impact
their bottom line over the last five years
Base business executives 2018: 2,090
However, ROI success varies across the globe with France
claiming the highest achievement and Japan claiming the lowest
What percentage of your company’s innovations over the past 5 years do you think have been a success that positively impacted
the bottom line and improved our position in the market?
Percentage of ROI that is more than 50 percent
Mean scores:
• Below 50
• 50 - 59
• 60 - 69
• 70 or above
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? 58
Base 0-25% 693, 26-49% 688, 50-100% 709. [Full base sizes listed in the appendix]
We dug deeper and looked at The
Achievers and Non-Achievers to see
what differentiated them
Business executives whose average % of their company’s innovations have
positively impacted their bottom line over the last 5 years
The Non-Achievers The Achievers
0-25% 26-49% 50-100%
Base business executives 2018: 2,090. Base 0-25% 693, 26-49% 688, 50-100% 709.
What makes a business a ROI Achiever?
They know how key

They focus on
digitalization is to
measurement
innovation success
Business executives
that say 50-100% of
their company’s
innovations have
positively impacted
their bottom line
over the last 5 years
They are They are more cautious
thinking about in their approach to
long-term strategies innovation
60
They know how key
digitalization is to innovation
success
Achievers are using data effectively and integrating

digital capabilities into the business model
Non-Achievers
Achievers
88% 86% 84%

78% 78% 77%
54%
37%
To harness and use data in effective ways to To have a data security program in place to To put digital capability at the core of their Digitalization has made it much easier and
make informed business decisions (% perform mitigate against any risks of losing data, data business model (% perform well) efficient for us to measure our return on
well) breaches or being hacked (% perform well) investment (% 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. Table Q17 How does your company currently perform against these success criteria? Q22 - Which of the below 61
statements represent your attitudes to measuring the return on investment of innovation at your company? Base business executives 2018: 2,090
They know how key
measurement is to innovation
success
Achievers are more likely to focus on demonstrating the value

to investors, clients and users, and measure the successes of
their innovations
Non-Achievers
Achievers
88%
80%
46%
40% 41%
35%
To demonstrate the value of their innovations to clients We have to measure the impact of innovation on We have measurement frameworks in place to keep our
and users (% perform well) business performance to get further investment and investors happy (% agree)
funding (% agree)
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
62
represent your attitudes to measuring the return on investment of innovation at your company? Base business executives 2018: 2,090
They know how key being
cautious is to innovation
success
Achievers are more cautious and measured in their

approach to innovation
Non-Achievers Achievers
When innovating, it is best… When innovating, it is best…

74% 72%
63%
58%
To protect the core business as much as possible, so it continues to generate the To wait to perfect and test the innovation before launch, in order to make sure
profitability needed to support Research & Innovation efforts (% agree) 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? 63
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
In 2018, a more cautious approach to innovation is favored
globally rather than getting to market quickly
When innovating, it is best...
+10
(19 markets no UK)
-10
To get to market as To wait to perfect and test

quickly as possible to 65% the innovation before
keep an edge on 55% launch in order to make
competition even if this 45% sure the customer is
means having an 35% completely satisfied from
imperfect product or the start
service and improving it
along the way
2016 2018 2016 2018
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 64
This increased slow and steady approach is happening across
most countries
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
Ranked by 2016 to 2018 difference
78% 78%
73% 73% 74% 75%
71%
66% 68% 66% 66% 68% 67%
64% 65% 63% 65% 63%
60% 61% 62% 61% 60%
59% 58%
53% 55% 53% 55% 55% 56%
50% 51% 49% 49% 51% 49% 54%54%
47%

34%
Increase Decrease
executives 2016: 2,748, business executives 2018: 2,090 [Full base sizes listed in the appendix] 65
In 2018 it is more important to protect the core business as
much as possible and look at the long term impact of innovating
+4
(19 markets no UK)
To protect the core -4 To bring innovative products and/or

business as much as services to market as fast as
65% 69%
possible, so it possible without worrying about
continues to generate the short-term impact it can have
the profitability on the core business
35% 31%
needed to support
Research &
Innovation efforts
2016 2018 2016 2018
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 66
At a country level, business executives are focusing on
protecting their core business as much as possible
To protect the core business as much as possible, so it continues to generate the profitability needed to
support Research & Innovation efforts
Ranked by 2016 to 2018 difference 2016 2018
89%
85%
78% 80%
77% 79%
75% 76% 76%
72% 72% 69% 72% 72% 73%
67% 66% 66% 65% 68% 66% 70% 65% 65% 67%
64% 64% 62% 65% 63% 61% 63%
56% 57% 60% 59% 58%
52% 55% 55%
49%

Increase Decrease
They know how key long-term
strategy is to innovation
success
Achievers are also more prepared to strategically
work towards a long-term return on investment
84% 84%
75% 76% 75%
66%
To be ready to accept a long-term return on investment To follow the long-term business strategy towards To create innovations that prioritise a long-term societal
to allow for breakthrough innovation innovation rather than focus on current innovation trends or environmental benefit (% agree)
(% perform well) that have little meaningful impact (% perform well)
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? Q24C - Now we are going to 68
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: 2,090
The Achievers are seeing a positive
impact on their bottom line as they are
more likely to strategize and measure ROI
69
Those with a higher rate of ROI success are more likely to have
a clear innovation strategy and measure their ROI
My company does have a clear innovation I do measure the contribution of innovation
strategy (top 3 box) to my business performance (top 3 box)
61%
42%
59%
43%
Q19. Does your company have a clear innovation strategy? Base business executives 2018: 2,090 Q20. Do you measure the contribution of innovation to your business
70
performance? Base business executives 2018: 2,090 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 0-25% 693, 26-49% 688, 50-100% 709.
And the Achievers are measuring their ROI in different ways: a
clearer structure of how to report and measuring factors other
than profit
Having a clear process and structure in place to measure Measuring factors other than revenue, such as reputation of the
innovation across various parts of the business or have company, the outcome of the service, customer adoption rates or
innovation teams report directly to the CEO. impact at a societal level to decide which product or service should be
funded or not funded (% agree)
Non-Achievers Achievers Non-Achievers Achievers
50% 50%
43%
41%
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 0-25% 693, 26-49% 688, 50-100% 709 Q21.Thinking more about measuring the contribution of innovation to your business performance, [ONLY SHOW IF 2-10 AT 71
Q20: what do you do to measure this contribution, if anything, and] what do you think you should be doing? Base business executives 2018: 2,090
When it comes to policy, innovation Achievers
are more likely to favor anti-protectionist
policies
72
Despite a general leaning towards protectionism, innovation
Achievers are more likely to favor anti-protectionism policies
around innovation
Pro-protectionism Anti-protectionism
-8
59% +8
51%
49%
41%
If the government had a political protectionist stance on innovation in my If the government had a political protectionist stance on innovation in my
country it would be beneficial to businesses country it would have a negative impact on businesses
Q6. There have recently been discussions about the potential impact of protectionist politics and policy on innovation and businesses. Out of the statements below 73
related to protectionism, which do you agree with the most? Base business executives 2018: 2,090, innovations winners: 709, innovation losers: 693.
The key reasons for this are perceived barriers to
innovation and too much government control
Innovation Achievers are more likely to think that protectionism policies would slow down the pace of innovation due to less foreign
investment, and it would give the government too much control – significantly more so than innovation losers.
Why do you think protectionism would have a negative effect on businesses in your country?
38%
It is less appealing to foreign investment which
would slow down the pace of innovation
53%
39%
It gives the government too much control
52%
Q8. Out of the reasons below, why do you think protectionism would have a negative effect on businesses in your country? Base business executives 2018: 2,090, 74
innovations winners: 709, innovation losers: 693.
Hype vs. Reality of
Impact
Executive Summary
• 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%).

AI, IoT, Fintech and 3D printing are receiving the most hype
globally
How much “hype” are they are creating in your country
today? (NET hype)
71%
70%
69%
68%
67%
66%
65% 64% 65% average hype
62% 62% 62%
57%
Artificial and Internet of Financial 3D printing Augmented Big data and Smart energy Nanotechnology Driverless Smart cities Electrification of Virtual
machine Things technology and Reality/ Virtual analytics grids transport the transport healthcare
intelligence currency reality system diagnosis
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 76
Yet several other innovations are viewed to be just as
transformative and impactful as those receiving the most hype
How much impact and transformative change will they bring to your
county? (NET impact)
74% 74%
72% 72%
71% 70% 71% 71% 71% average impact
69% 68% 68% 68%
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 77
The potential impact of smart energy grids, smart cities,
electrification of transport and virtual healthcare significantly
exceeds their hype
How much “hype” are they are creating in your country How much impact and transformative change will they bring to your
today? (NET hype) county? (NET impact)
74% 74%
72% 72%
71% 71% 71% 71%
70% 70%
69% 69%
68% 68% 68% 68%
67%
66%
65%
64%
62% 62% 62%
57%
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 78
each of these innovations in terms of how much impact and transformative change they will bring to your country. Base Business Executives: 2,090
Looking by country, we see different innovations offering a strong
future impact Sweden
Canada UK Poland
Germany South Korea

France China
Turkey
USA
Japan
UAE
Saudi Arabia
Mexico
Nigeria India
Malaysia Indonesia
Brazil
South Africa
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
79
There is a job to be done to raise awareness of the importance of
smart cities, smart energy grids and electrification of the transport
system
Less Hype, Stronger Impact More Hype, Stronger Impact
Smart cities
Artificial and machine
intelligence
Smart energy grids
INNOVATION IMPACT
Electrification of the
transport system Internet of Things Financial technology and
Nanotechnology
3D printing currency
Driverless transport
Virtual healthcare diagnosis Big data and analytics
Augmented Reality/ Virtual

reality
Less Hype, Weaker Impact More Hype, Weaker Impact

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 80
each of these innovations in terms of how much impact and transformative change they will bring to your country. Base Business Executives: 2,090
There are two innovations that stand out regarding their
innovation impact and/or hype potential
Artificial Intelligence (AI), defined as “the ability of machines and software to harness large amounts
of data to do tasks, to make decisions and find solutions”, sees itself at the top position throughout the
different markets. For both ‘hype’ and ‘impact’, a majority of countries are ranking AI among the
highest four innovations in both categories.
Hype Impact
Hype Impact
For Smart Energy Grids, meaning “advanced energy infrastructures that distribute energy on a grid
system and can integrate renewable energy with non-renewable energy sources, we observe a
discrepancy between ‘hype’ and ‘impact’. Although the innovation does not generate a lot of hype,
innovation executives expect an impact.
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
section three:
Emerging Challenges

Future of Work
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).

The impact of automation and pace of change have led to a real
skills gap – 3 in 4 innovation executives believe a lack of skills is
an issue their industry is facing
Level of agreement is
There is currently a skills gap in my industry consistent across sectors (74%)
43%
31%
19%
5%
Strongly disagree Somewhat disagree Somewhat agree Strongly agree

2018
Q5B. 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 84
This challenge only seems to be growing for business executives
- finding the right talent and skill sets is apparently restricting
business’s ability to innovate efficiently
NET: A challenge
Do you consider the following a key

2018 64%
challenge restricting your business’s
ability to innovate efficiently? 2016 60%
+8 ppt
A lack of talent / inadequate skill set 2014 56%
Q25.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 85
Business executives are increasingly recognizing that robotics
and automation will radically transform the job market
In the next 10 years, technological developments, such as robotics and automation are 59%
going to radically transform the job market and nature of work (19 markets no UK)
2016 2018 43% 44%
30%
9%
7%
2% 2%
Strongly disagree Somewhat disagree Somewhat agree Strongly agree
Q5E. How much do you agree or disagree with the following statements? In the next 10 years, technological developments such as robotics and automation are
going to radically transform the job market and nature of work. Base business executives 2016: 2,748, business executives 2018 2,090 86
And the potential effects of a shift to automation has seen the
largest increase in emerging markets
In the next 10 years, technological developments such as robotics and automation are going to radically transform the job market and nature
of work
NET: Agree – Ranked by 2016 to 2018 difference
99% 2016 2018

96% 95% 96%
94% 94%
93%
91%
93%
91% 91% 91% 92%93% 93%
90% 89% 89% 90%91%
88% 88% 87% 87%
86% 86% 86%
84% 84% 83%
81% 81% 82% 81%
80%
77% 76%
75% 76% 76%

67%
Q5. How much do you agree or disagree with the following statements? In the next 10 years, technological developments such as robotics and automation are going
to radically transform the job market and nature of work. [NET: Agree Top 2 Box] [Full base sizes listed in the appendix] 87
Pro-protectionists place job security and positivity for the
workforce as a key benefit of more protectionism in their country
Why do you think protectionism would have a beneficial effect on businesses in your country?
It gives domestic businesses a competitive edge (NET) 86%
It is positive for jobs and the workforce (NET) 73%
It fosters ideas domestically (NET) 60%
NEW
-3 +5 -6 -1It provides
-1 government
+1 +2 control
= = (NET)+ 1 +1 +1 35%
ENTRANTS =
Q7. Out of the reasons below, why do you think protectionism would have a beneficial effect on businesses in your country? Base business executives who are pro-
protectionism: 1,153 88
And this extends across regions—the workforce is considered the
most crucial element to innovation success across most markets
Elements most crucial

to innovation success
for businesses
Key: Themes
Workforce
Data
ROI
Strategy
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? [Top 3 Box] 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: 89
80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150
More Challenging
Environment
Executive Summary
• 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
Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently?
NET: Top 2 / A Challenge
2018
67%
65% 64% 64% 64% 64% 64%
62%
60%
57%
The lack of sufficient The incapacity to A lack of talent / The difficulty to The incapacity of The increased The difficulty to The internal inertia The lack of internal The overwhelming
investment and scale up successful inadequate skillset define an effective the business to take pressure to conform come up with and the incapacity support from the amount of
financial support innovations, to a business model to risks to ‘innovation hype’ radical and to be nimble, failing leadership team/top information
wider or support new ideas and trends around disruptive ideas at rapidly management
international market and make them certain innovations converting ideas
profitable into actions
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 91
And these key issues have become even bigger challenges
than they were four years ago
2014 2018
+14 +13 67% +6 +6 +5

64% 65% 64%
62%
59% 59%
56%
54%
50%
The incapacity of the business to The lack of sufficient investment The incapacity to scale up The internal inertia and the The difficulty to define an effective
take risks and financial support successful innovations, to a wider incapacity to be nimble, failing at business model to support new
or international market rapidly converting ideas into ideas and make them profitable
actions
challenge (2), a bit of a challenge (3), a critical challenge (4) Base business executives 2014: 3,309, business executives 2018: 2,090 92
Globally, a lack of financial support and the inability to
scale up stifle both developed and emerging markets
Do you consider any of the following as key
challenges to be restricting your business’s
ability to innovate efficiently?
NET: Challenge
Top 1 Challenge
The majority cite a lack of financial support and the

inability to scale up as a challenge to innovation, but for
Asia it is a lack of ideas and talent that are the key
barriers.
NET Challenge (Top 1):

• The increased pressure to conform to ‘innovation hype’ and trends around certain innovations
• The incapacity to scale up successful innovations to a wider or international market
• The difficulty to come up with radical and disruptive ideas
• The difficulty to define an effective business model to support new ideas and make them profitable
• The lack of sufficient investment and financial support
• A lack of talent / inadequate skillset
The overwhelming amount of information
• The incapacity of the business to take risks
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 [Full base sizes listed in the appendix] [Of note, “The internal inertia and the incapacity 93
to be nimble, failing at rapidly converting ideas into actions” not listed as a top 1 NET challenge in any market surveyed]
Poland, Canada and South Africa are less able to take risks
than they were four years ago
Do you consider any of the following as key challenges restricting your business’s ability to innovate efficiently?
Above average increase from 2014 - 2018

2014 2018
+14 64%
+47 +25 +22
Poland Canada South Africa
+14 point global average jump from 2014 - 2018

50%
-1 -5
Germany Turkey
The incapacity of the business to take risks

Below average increase from 2014 - 2018
challenge (2), a bit of a challenge (3), a critical challenge (4) Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes listed in the 94
appendix]
Emerging economies are more likely to lack sufficient
investment and financial support than in 2014
2014 2018
67%
+13 +27 +25 +22
Malaysia Saudi Arabia South Africa,
54%
Brazil
+1 -3
Sweden, Turkey Germany
The lack of sufficient investment and
financial support
appendix]
Scaling up innovations is a growing issue across the markets,
but Mexico and Sweden are not experiencing this challenge
2014 2018
+6 65% +27 +22 +20 +18 +17
59% Poland Malaysia China Canada France
-16 -17
Mexico Sweden
The incapacity to scale up successful
innovations, to a wider or international
market
appendix]
Poland and Asian markets increasingly struggle with inertia, but
Mexico and Sweden don’t face this issue as much as in 2014
2014 2018
+6 62% +38 +22 +16
56% Poland Indonesia South Korea,
Mexico and Sweden also score
Saudi Arabia lower this year for “the incapacity
+6 point global average jump from 2014 - 2018 to scale up successful innovations,
to a wider or international market.”
Does this mean that the ability to
scale up has helped them combat
-8 -14 inertia?
Mexico Sweden
The internal inertia and the incapacity to be
nimble, failing at rapidly converting ideas
into actions
appendix]
European markets are divided; some feel it’s increasingly difficult
to define an effective business model as Turkey and Germany
state improvements in this area
2014 2018
+5 64% +25 +22 +21
59% Poland France Malaysia
-10 -18
Turkey Germany
The difficulty to define an effective business
model to support new ideas and make them
profitable
appendix]
Appendix

Completebasesizesperyear(countrylevel)
2013: Base business executives: 3,309, Canada: 100, China: 200, Australia: 100, Sweden: 100, Germany: 100, Brazil: 200, Mexico:
100, India: 203, Singapore: 100, Japan: 100, South Korea: 100, Malaysia: 100, Russia: 200, Italy: 100, UK: 100, Poland: 100, UAE: 102, Saudi
Arabia: 101, Israel: 100, Turkey: 100, Nigeria: 100, South Africa: 100, Indonesia: 101, Algeria: 100, Kenya: 102, France: 100
2014: Base business executives: 3,309, Canada: 100, China: 200, Australia: 100, Sweden: 100, Germany: 100, Brazil: 200, Mexico:
100, India: 203, Singapore: 100, Japan: 100, South Korea: 100, Malaysia: 100, Russia: 200, Italy: 100, UK: 100, Poland: 100, UAE: 102, Saudi
Arabia: 101, Israel: 100, Turkey: 100, Nigeria: 100, South Africa: 100, Indonesia: 101, Algeria: 100, Kenya: 102, France: 100
2016: Base business executives: 2748, Algeria: 97, Australia: 106, Brazil: 200, Canada: 103, China: 207, France: 102, Germany: 101, India:
204, Indonesia: 101, Israel: 100, Japan: 103, Saudi Arabia: 100, Malaysia: 101, Mexico: 102, Nigeria: 100, Poland: 101, Russia: 101, South
Africa: 105, South Korea: 102, Sweden: 102, Turkey: 103, UAE: 100, USA: 207
2018: 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
Edelman Intelligence / © 2017

100
Historical data tracking
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.
Edelman Intelligence / general electric

101
Appendix slides for
Maximizing the
Return on Innovation

More business executives in emerging markets say it’s
crucial to put digital capability at the core of their business
model than they did two years ago
It is crucial to put digital capability at the core of their business model
NET: Top 3
2016 2018
81% 81%
80% 76…
73% 75% 75% 74%
72% 70% 70%
68% 69%
63% 64% 65%
64%
63% 63% 62% 60%
58% 58% 59% 58% 59% 59% 59%
55% 57%
53%

50% 48% 50%
45%
40% 40%
37%
31% 31%
28%
Increase Decrease
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? [NET Top 3 Box] Base business
executives 2018: 2,090, business executives 2016: 2,748, [Full base sizes listed in the appendix] 103
And business executives are putting this into practice with
executives stating they do well at keeping digital at the core of the
business
My company currently puts digital capability at the core of its business model
NET: Well / Top 2 Box 2016 2018
91% 93%
90% 89% 90% 89%
88% 87%
85% 85% 84% 85% 84% 85%
82% 83%
81% 81% 80% 80%
78%
76% 76% 75%
73% 73% 74% 74%
72% 71% 71% 72% 72% 72%
69% 69%
65% 65%
61% 60%

57%
Increase Decrease
Q17. How does your company currently perform against these success criteria? Base business executives 2016: 2,748, business executives 2017: 2,090 [NET: Well / Top
2 Box] [Full base sizes listed in the appendix] 104
Business executives in emerging markets increasingly state
that it is crucial to use big data and analytics to improve
strategy
It is crucial to use big data and analytics to improve strategic knowledge and inform decision-making
NET: Top 3
2016 2018
82%
80% 81% 81%
79%
75% 75% 75%
72%
67% 66% 67%
65% 65%
65% 65% 65%
63% 62% 61%
61% 60% 60% 60% 61%
58% 58%
56% 58% 57%
55%
53% 53% 53%
46%
44%

40% 39%
34% 33% 33%
Increase Decrease
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? [NET: Top 3 Box] Base business 105
The majority feel their company is better at using big data
effectively than they were in 2016
My company uses big data and analytics to improve strategic knowledge and inform decision-making
NET: Well / Top 2 Box
2016 2018
93% 93%
91%
89% 87%
85% 87% 87% 86% 86%
84% 84% 83%
82%
80% 79% 80% 79%
78% 78% 78%
75% 76% 76% 76% 75%
74% 73% 74%
71%
68% 67% 67%
66% 65%
63% 62%

58%
52% 53%
50%
Increase Decrease
Business leaders in emerging markets are relying more heavily on
demonstrating the value of their innovations to clients and users
It is crucial to demonstrate the value of their innovations to clients and users
NET: Top 3
88% 89% 2016 2018
84%
81% 82%
80% 79% 79%
76% 76% 75% 75% 75%
73% 73% 73% 73%
71% 71%
68% 68% 67%
64% 65% 65% 65%
63% 64% 63%
60% 61%
56%
54% 54%
50% 51%

47%
44%
37% 36%
30%
Increase Decrease
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? [NET: Top 3 Box] Base business
107
And most countries feel they demonstrate this value well with
countries at the lower end of the scale in 2016 catching up
My company currently demonstrates the value of its innovations to clients and users
94% 95%
93% 93% 93%
89% 89% 89% 90%
88% 88% 88% 87% 87% 88% 88%
85% 85% 86% 85%
83% 84% 84% 84%
82%
79% 80% 80% 80% 80%
78%
74% 74% 75% 75%
72% 71%
68% 67%
56%

53%
Increase Decrease
Q17. How does your company currently perform against these success criteria? [NET: Well / Top 2 Box] Base business executives 2018: 2,090, business executives
2016: 2,748 [Full base sizes listed in the appendix] 108
Emerging markets have seen an increase in the importance
of demonstrating innovation’s value to society
It is crucial to demonstrate the value of innovation for society at large, and how it helps address or solve an important issue:
NET: Top 3 2016 2018
82%
78% 79% 79%
78% 77%
75%
72% 72% 73% 73%
69% 69%
67% 66% 67% 67%
65% 65% 64%
62%
58% 58% 58%
56% 56% 56% 56%
55%
52% 51%
50% 50%
48% 48%
42%

35%36% 36%
24% 24%
Increase Decrease
In emerging markets, executives think they are doing well
in creating innovations that provide a value to society
My company currently demonstrates the value of its innovation for society at large, and how it helps address or solve an important issue
NET: Well / Top 2 Box
2016 2018
93% 91% 92%
88% 89%
85% 86% 85% 86%
83% 83% 84%
81% 81% 80%
79% 80% 79% 78% 78% 79% 78%
79%
74% 73% 74% 73%
72%
70% 70% 69%
68%
68%
64% 63% 64%
63%
62% 61% 60%

55%
Increase Decrease
Q17. How does your company currently perform against these success criteria? [NET: Well / Top 2 Box] Base business executives 2018: 2,090, business
executives 2016: 2,748 [Full base sizes listed in the appendix] 110
Emerging markets are now more ready to accept a long-
term return on investment than in 2016
It is crucial to be ready to accept a long-term return on investment to allow for breakthrough innovation
NET: Top 3 2016 2018
82% 82%
79% 80%
78%
75%
73% 74% 75%
72% 73%
69% 69% 70%
67% 68%
66% 66% 66% 66% 66% 66%
63% 64% 63% 64%
61% 62% 62% 61%
58% 59%
56%
51%
48% 49% 49%

34% 35%
33%
31%
Increase Decrease
111
Emerging and Asian markets state they are doing well in
accepting a long-term return on investment
My company is ready to accept a long-term return on investment to allow for breakthrough innovation
93% 93%
89% 91% 90%
87% 86%87% 86% 87%
85% 85% 84% 84% 84%
82% 82% 83% 82%
81% 80%
78% 79%
75% 76%
74% 74% 74%
73% 73%
70% 71% 70%
67%
64% 65% 65%
62%
58%

56%
45%
Increase Decrease
Appendix slides for A
More Challenging
Environment

In economically mature markets, attracting and retaining talent
is not as crucial as it was in the past – so is the skills gap
hyped?
It is crucial to attract and retain the most talented and skilled individuals 2014 2018
NET: Top 3
97%
92%
86% 86% 86% 88%
84% 85% 84%
82% 82% 83%
80% 80% 79% 78% 80%
77% 78% 78%
76% 75% 75%
73% 71%
71% 70%
68%
67% 67% 67%
66% 66%
64% 63% 64%
62% 62%
59%
43%
36%
27%
Increase Decrease
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? Base business executives 2014:
114
3,309, business executives 2018: 2,090 [Full base sizes listed in the appendix]
And the majority of countries are saying they do well at
attracting and retaining talented and skilled individuals
My company currently attracts and retains the most talented and skilled individuals
NET: Top 2 / Well 2014 2018
94% 93%
91% 91% 92% 91% 92%
88% 88%88% 89%
87% 87%
85%85% 85%
83% 83% 83%
82% 82% 81% 81% 81% 82% 81% 81%
79% 79%
76%
73% 74% 73% 73%
72% 73%
68%
64% 65%64%
51%
48%
Increase Decrease
Q17. How does your company currently perform against these success criteria? Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes

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GE Global Innovation Barometer 2018

Edelman Intelligence / © 2017 1

2010 – pilot What is innovation, what industries

2012 The impact of the financial crisis,

2014 The pace of innovation provides an

2016 The innovation optimists. Innovation

Edelman Intelligence / general electric

1 New Actors Driving Innovation: Globally, business

4 The Potential of Additive: Global executives are excited

5 Maximizing the Return on Innovation: Globally, 40% of

6 Hype vs Reality of Impact: Hype around certain

Section Two: Emerging Technologies

Section Three: Emerging Challenges

Edelman Intelligence / © 2017 10

Edelman Intelligence / © 2017 11

Edelman Intelligence / general electric 12

Multinationals are the main driver for innovation in your country

29% 30% 30%

Germany UK Sweden France Poland Sweden UK Germany

(Historical tracking large companies headquartered in

33% -7 2014 2018

13% 12% 11%

Malaysia UAE China Turkey Saudi Arabia

+22 2014 2018

Turkey South Africa Indonesia Poland France Nigeria Mexico

Edelman Intelligence / general electric 19

Percentage increase from 2014 to 2018

Russia 18% Algeria 9%

China India Brazil Malaysia Canada Mexico Indonesia Poland Turkey

China India Brazil Malaysia Indonesia

innovation status in comparison to their GDP

40% The Netherlands Australia

GDP (Gross Domestic Product $)

Edelman Intelligence / general electric 29

55% of business executives think that

Only 4 countries had a majority that felt

Regulations around privacy and data protection are Pro-protectionism

Disagree 2% Don’t know

2016 data not available

businesses rather than governments should be the

It gives domestic businesses a competitive edge (NET) 86%

It is positive for jobs and the workforce (NET) 73%

It fosters ideas domestically (NET) 60%

It provides government control (NET) 35% NEW

It gives government too much control (NET) 74%

It creates barriers to investment (NET) 69%

It reduces competitiveness (NET) 63%

It hinders ideation (NET) 59%

It reduces our ability to attract talent from foreign countries NEW

See the government and

Think they perform well against innovation success

Edelman Intelligence / © 2017 41

24% Pro Protectionsism Anti Protectionism

17% 17% 17%

Edelman Intelligence / © 2017 44

Edelman Intelligence / general electric 45

I think 3D printing will have both a positive and

I think 3D printing will have a negative impact on

Allow businesses to be more creative in the products and