Read the full article: https://medium.com/the-corporate-startup/the-current-state-of-corporate-innovation-2019-b86928245a46 Companies understanding that R&D is the process of converting capital into ideas and that innovation is the process of converting ideas back into capital are the ones having an equal or higher position in the innovation top than the position they hold in the R&D spending top.

1. @danto_ma
The Current State of Corporate
Innovation in 2019
Innovation is not R&D

2. @danto_ma
Dan Toma
co-author of the award winning
book The Corporate Startup |
15 innovation management
experience | MBA | certified
lean startup coach

3. @danto_ma
Top 50 most innovative companies of 2018
1. Alphabet (Google)
2. Amazon
3. Apple
4. Microsoft
5. Samsung
6. Netflix
7. IBM
8. Facebook
9. Tesla
10. Adidas
11. Boeing
12. BASF
13. T-Mobile
14. J&J
15. Dow DuPont
16. Siemens
17. Cisco Systems
18. LG
19. Vale
20. JP Morgan Chase
21. McDonalds
22. Marriott
23. Alibaba
24. Bayer
25. AT&T
26. Allianz
27. BMW
28. SAP
29. Philips
30. Royal Dutch Shell
31. Axa
32. Unilever
33. Salesforce
34. Pfizer
35. Strike
36. NTT Docomo
37. Toyota
38. Volkswagen
39. 3M
40. GM
41. Dell
42. Walmart
43. eBay
44. HP
45. ING
46. BP
47. Daimler
48. Huawei
49. Rio Tinto
50. Hilton
Source: BCG report

4. @danto_ma
Top 20 R&D spenders of 2018
1. Amazon
2. Alphabet (Google)
3. Volkswagen
4. Samsung
5. Intel
6. Microsoft
7. Apple
8. Roche
9. J&J
10. Merck
11. Toyota
12. Novartis
13. Ford
14. Facebook
15. Pfizer
16. GM
17. Honda
18. Daimler
19. Sanofi
20. Siemens
Source: Statista report

5. @danto_ma
Working innovation ecosystem
Innovation top position
3rd
9th
10th
R&D expenditure top position
7th
>20th
>20th

6. @danto_ma
Faulty innovation ecosystem
Innovation top position
38th
>20th
>20th
R&D expenditure top position
3rd
5th
12th

7. @danto_ma
Companies understanding that R&D is the
process of converting capital into ideas and
that innovation is the process of converting
ideas back into capital are the ones having
an equal or higher position in the
innovation top than the position they hold
in the R&D spending top.

8. @danto_ma
Innovation & invention
Invention
(Research & Development)
Innovation
(Experiment & Scale)
$ $ $ $ $ $

9. @danto_ma
Strategy & Business, a unit within PricewaterhouseCoopers, has been publishing an annual report of
the top 1000 most innovative companies in the world for over twelve years. In that time, they have
found that there is no statistically significant relationship between R&D spending and sustained
financial performance. This finding applies to total R&D spend, as well as R&D spending as a
percentage of revenues. Spending on R&D is not related to growth in sales or profits, increases in
market capitalization or shareholder returns.

10. @danto_ma
Innovation blockers
Research done at Innov8rs conference Paris 2019

11. @danto_ma
Innovation Strategy blockers
On innovation strategy most participants mentioned that innovation in their
companies is hindered by:
- the company is investing mainly in optimizing the core business
- the lack of a clear innovation strategy
- a lack of transparency of the company's portfolio

12. @danto_ma
Innovation management blockers
When it comes to innovation management, most participants acknowledged that
innovation in their company would be better if only:
- the decision making process would require customer validation/insight, not just
Excel business cases
- in the early stages of the development of an idea, middle managers would place
more emphasis on exploration & validation than on execution
- the criteria for investing in ideas would be more transparent

13. @danto_ma
Innovation practice blockers
On innovation practice the attendees of Innov8rs Paris consider that innovation in
their respective companies is stifled by:
- the outdated technology infrastructure which is making rapid live experimenting
difficult
- the fact that a clear development plan is required before ideas are even being
considered for investment
- the fact the working on innovation only happens in the employees free time
unless they work in the company's innovation lab or accelerator program

14. @danto_ma
However disarming all of the
evidence above may sound, as our
collective understanding of
corporate innovation management
matures we are going to see less
and less discrepancies between the
top innovation companies and top
R&D spenders.

15. @danto_ma
Contact Email: me@danto.ma
Website: danto.ma
thecorporatestartupbook.com
innovationaccountingbook.com
Twitter: @danto_ma
LinkedIN: linkedin.com/in/dantoma/