The International Institute for Management Development (IMD) study was conducted between May and June 2023, and involved 83 executives from 50 multinational companies across various industries. The results showed that although 84% of executives agree that innovation is critical for business growth in Asia, only 6% are satisfied with the outcome.
“The role of Asia is expected to increase across the board for all types of innovation. It’s a combination of fast-growing economies, government support, ambitious workforce, and hunger for new technologies,” says Mark Greeven, Professor of Innovation and Strategy and CEO of IMD China, who leads the research work on which the study is based.
It has identified a number of challenges that multinationals are facing in Asia, including:
- Lack of alignment between headquarters and regional leaders
- Difficulty building and leveraging ecosystems
- A shift from incremental to disruptive innovation
The study also offered a number of recommendations for multinationals, including:
- Bring headquarters into the conversation
- Invest in business intelligence and benchmarking
- Increase the autonomy of frontline teams
- Take a strategic approach to talent development
It also suggests that multinationals need to take a more strategic approach to innovation in Asia if they want to be successful. By addressing the challenges they face and following the recommendations in the study, they can increase their chances of success.
