Traditional companies getting in on the innovation push
BY TAVIA GRANT
It’s not just Apple and Google. Auto makers, industrial companies and old-fashioned conglomerates are now some of the most innovative companies in the world.
Tech and telecom firms still dominate Boston Consulting Group’s annual ranking, to be released Thursday, taking seven of the top 10 spots. But turbulence in their sector means many – including Waterloo, Ont.-based Research In Motion – have tumbled out of the global top-50 list while traditional companies such as General Motors and Siemens are gaining ground.
Innovation – or successfully creating value out of new ideas – is a big buzz word these days. It pays off, as the most innovative companies tend to see sustained, above-average returns. More executives are moving innovation higher up on their priority list to drive growth, especially given that most have completed cost cuts, and that mergers or acquisitions are too expensive.
“One of the big untapped value drivers is to dramatically increase rates of organic growth – and that leads to innovation,” Andrew Taylor, partner and manager director at Boston Consulting, said in an interview.
Canadian companies are notably absent from the top-50 list, after RIM tumbled out of the ranking. Innovation is a broader challenge in Canada; in its most-recent assessment, the Conference Board of Canada gave the country a “D” grade, saying Canada remains below average in its capacity to innovate. ….