Innovation drives middle-market growth, and new hiring is leaders’ top strategy to drive innovation. One-fourth of firms count on newly introduced products for 20% of their revenue, and 39% plan to innovate by continuing to hire over the next 12 months.

1. Innovation as a growth driver
according to the Q3 2016 Middle Market Indicator

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Innovation drives middle-market growth
They count on newly introduced products for 20%
of their revenue.
New-product revenue is expected to increase 32%
in the coming year.
25% of
middle-market
firms say

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What kinds of innovation will have the biggest impact on
performance?
32%
Improvements
to products
or services
21%
Development of
new processes
to improve
profitability
20%
Development of
new products
or services

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Innovation depends on talent + market smarts
60%
Hiring and
keeping talent
59%
In-depth
understanding of
market
conditions
Leaders say they're
equally key
45% said creation of
an environment and
culture are conducive
to innovation.

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Hiring new talent is the top choice for innovation
39%
continue to hire
new talent
19%
look to
acquisitions
invest in R&D
36%
How do firms plan to innovate in the next 12 months?
Learn more about
employment growth

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What’s the problem with innovation?
They give better rankings to other core competencies.
Watch: Key insights on balancing
revenue + employment growth
42% Only 42% of leaders say their company is
excellent or very good at driving innovation.
Despite its importance, many leaders rate their companies
only moderately well at innovating

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So what’s next?

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Innovation is expected to follow the hiring jump
Innovative talent is critical to driving innovation.
But don't go overboard — to sustain growth, balance
investments in new talent with those in revenue.
Check out resources for middle-market, high-growth companies
Read: Balancing revenue + hiring
See: High-growth businesses: Balance revenue + hiring

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