…delivering 30% higher value growth for firms achieving both

Strategic alignment of innovation strategy with overall corporate strategy and a corporate culture which is supportive of innovation, are more important than R&D spend to drive results. These are the findings of The Annual Booz & Co. Innovation Study.

Companies with both highly aligned cultures and highly aligned innovation strategies have 30% higher enterprise value growth and 17% higher profit growth than companies with low degrees of alignment. However only 44% of respondents fell in to this category. 36% of all respondents admitted that their innovation strategy is not well aligned to their company’s overall strategy, and 47% said their company’s culture does not support their innovation strategy.

The report also details a strong rebound in R&D spend in 2010, after the first fall in the study’s ten years the previous year.  The Booz study looks at some of the companies considered leaders in R&D and demonstrates that R&D spend, either total spend or spend as a share of revenue, is not a key driver for success. Read the full report here.