21+ Business Innovation Statistics: A Must Know in 2024
Innovation is a hot topic in the modern business world. It can drive a company forward and take it to new heights of profitability and customer satisfaction.
But just how many innovations actually succeed in the marketplace?
With that in mind, we’ll cover key business innovation statistics that show the importance of innovation efforts and their impact on business outcomes.
Business Innovation Statistics: Key Numbers
- 84% of executives believed that innovation was critical to their future success.
- 95% of all product innovations fail, according to HBS professor Clayton Christensen.
- One in every five new products fails to meet customer expectations.
- 62% of fast-growing businesses intend to spend money on initiatives that boost innovation.
- Nearly 30% of companies actively include AI in their innovation plans. (Business Consulting Group)
- Compared to 44% of SMEs, 58% of large businesses were actively engaged in innovation.
- 84% of consumers cite innovation as being somewhat or very important in a company’s ability to sell them a product.
- 34% of consumers prefer to own products that make them appear innovative to others. 5
- Every year, an astounding 30,000 new products are introduced.
Source: (Accenture, HBS, Innvolo, PSG, CustomerThink, Nielseniq)
Importance of Innovation In Business
Staying innovative is what keeps businesses moving forward as more companies recognize its value. Here’s an overview of how companies prioritize innovation based on data from TechProResearch:
- Very important: 71%
- Somewhat important: 21%
- Not very important: 4%
- Not at all important: 3%
- Don’t know: 1%
Source: Tech Pro Research
Innovation Impact Metrics Used By Companies
- 69% of companies cite sales growth as the most important metric for measuring innovation at their organization.
- 43% of companies consider customer satisfaction ratings among the most important metrics for measuring innovation.
- 40% of companies regard the number of new ideas in the pipeline as a critical metric for innovation.
- 36% of companies list market share as an essential metric for assessing innovation.
- 31% of companies identify the number of products in the pipeline as a key metric for measuring innovation.
- 28% of companies consider the net value of the innovation portfolio as an important metric for innovation.
- 24% of companies highlight time to market as a significant metric for measuring innovation.
Source: PwC’s Innovation Benchmark
Innovation Blockers Statistics
- 42% of companies identify long development times as a common roadblock to innovation success.
- 32% of companies struggle with selecting the right ideas, as a barrier to innovation.
- 31% of companies cite a risk-averse culture as an obstacle to successful innovation.
- 25% of companies experience a lack of coordination as a hindrance to innovation.
- 22% of companies report that not having enough great ideas is a significant blocker to innovation.
- 20% of companies face challenges with marketing innovations as a barrier to their innovation efforts.
Source: Coplex
Key Success Factors for Innovation
- 72% of organizations say innovation is part of their strategic planning.
- 60% of companies are “need seekers” focused on engaging customers and being first to market.
- 11% of “need seekers” have aligned business and innovation strategies.
- 77% of strong innovators support open innovation.
Source: Coplex
Innovation Drives Faster Growth in Value, Revenue, and EBITDA
- Innovative companies experience 30% faster enterprise value growth.
- Innovative companies achieve 11% faster revenue growth.
- Innovative companies see 20% faster EBITDA growth.
Source: Coplex
Who Leads Innovation?
- 37% of innovation projects are led by innovation specialists.
- 14% of innovation projects are led by Chief Innovation Officers.
- 25% of innovation projects are led by executive management or corporate strategy leaders.
Source: Coplex
Leading Causes of Increased Innovation Pace
- 67% of companies cited the exploration of new possibilities as a reason for the increased pace of innovation at their company.
- 61% attributed the increase in innovation to better technology.
- 59% mentioned the development of new products as a key factor.
- 58% reported new ways of doing things as a driver of innovation.
- 56% credited visionary leaders with the increase in their company’s innovation pace.
- 45% noted the development of new markets as a significant reason for innovation.
- 42% highlighted more talent as a contributing factor to the increased pace of innovation.
Source: Tech Pro Research
We hope you enjoy our business innovation statistics page that shows the importance of innovation efforts and their impact on business outcomes across various industries. To learn more about businesses, check out here: https://www.businessdasher.com/business-statistics/
