Businesses in the UK have de-prioritised innovation within their organisations and there is a notable lack of collaboration between UK companies and academia, according to a survey of 386 companies carried out on behalf of the software and services company Logica.
The survey found that decision makers throughout UK industry believe other nations are more advanced in terms of their ability to foster innovation, with almost half of respondents saying British organisations are less successful in generating innovative ideas in comparison to the US, while 42 per cent rate UK plc as being less innovative than the BRIC nations (Brazil, Russia India and China).
One of the leading causes is seen as the extent to which businesses have de-prioritised the fostering a culture of innovation. Thirty eight per cent of respondents did not consider their senior leadership teams to treat innovation as a business priority. And 58 per cent believe there is a tension between short-term financial priorities and the longer-term benefits of innovation, considering innovation to be a distraction to the organisation.
The research also identified a number of black spots, where sparks of inspiration are not acted upon, with organisations not collaborating to drive innovation or making the most of ideas. Only nine per cent of organisations polled collaborate with universities to develop inventive thinking and research, while 39 per cent of the respondents from the public sector believe that their organisation does not successfully exploit the ideas that it generates.
Stimulating a culture of innovation
In response to the research, Logica’s CEO Craig Boundy called for two tangible measures to encourage the sharing and development of innovative ideas:
1. The creation of a register to allow academic institutions to capture and share ideas and intellectual property. Companies will be able to access the registe under a strict non-disclosure agreement, allowing them to see if there is any intellectual property which they could use, and then develop commercial agreements with the respective universities.
2. The introduction of a policy under which public sector contracts are awarded only to companies which demonstrate a commitment to the principles of open innovation and foster a collaborative approach with small businesses and academia. This should be supported by a charter outlining the innovation and collaborative mechanisms which government contractors should meet.
Boundy said, “We strongly believe that collaboration is the cornerstone of innovation. However, as many as 50 per cent of organisations are sceptical, or closed to the concept, of open innovation. Innovation cannot thrive in a closed box, but this is the way industry has traditionally worked with ideas being kept in-house and developments patented and protected by law.”
But while very few organisations have the resources to innovate effectively on their own, it is virtually impossible to browse and commercially access intellectual property and existing research, Boundy added.
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