Booz Allen Global Innovation study shows rising R&D investments in 2011 … what about 2013?

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The global innovation report is a yearly report showing R&D spendings across different industries. For reference, I have included the 2009 results by industry and the 2011 version below. The sectors which invest in R&D do not differ much from one year to another.

Although the report states that R&D investments doesn’t always mean that innovation is produced, or that this innovation is performing better than other products investments diluted across other budgets, there a precious few metrics that make it possible for us to measure how innovation is faring. So we’ll have to make do with this.

image_thumb[5]What the report shows as well is that rising investments mostly happe in America, whereas Europe was already deep in recession at that time. I can’t wait to see what the 2013 report will show.

At last, the report shows a strong correllation between sales and R&D investments. One could read this either of two ways: when sales are good, R&D investments grow, or … when R&D investments grow sales are better.

An interesting question would also be to wonder what is actually meant by R&D spending and whether all product development efforts are measured under that umbrella. I have seen a lot of companies in which R&D is kept as a separate effort and doesn’t represent the main area for product design and development ; this is significant in a world in which innovation is driven by vendors’ offerings, mostly in the Computing & Electronics world, the first sector for innovation in that study.s

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R&D Spending Returns to Pre-Recession Levels, Finds Booz & Company Global Innovation 1000 Study | Innovation Management

key findings from this year’s Global Innovation 1000 study:

  • The three industries with the greatest R&D investment were computing and electronics, health, and automotive (28 percent, 21 percent, and 16 percent of the total Global Innovation 1000 spend, respectively).
  • Two-thirds of the $53 billion increase in R&D spending between 2010 and 2011 came from the computing and electronics, automotive, and industrials sectors.
  • 75 percent of companies increased their R&D spending from the previous year in 2011, up from 68 percent in 2010.
  • This year Amazon joined the top 10 “Most Innovative” companies pushing out Facebook. For the third straight year Samsung rose in rank on the list (to fourth place, up from seventh place last year), and Apple, Google, and 3M took the top three positions, respectively, also for the third consecutive year.
  • Regionally, companies based in North America grew their R&D spending by 9.7 percent—just above the global average of 9.6 percent—while Europe and Japan grew theirs at below-average rates of 5.4 percent and 2.4 percent, respectively.
  • India- and China-based firms again increased R&D investment at the highest rate overall across regions (27 percent on average), although from a small R&D spending base.

via R&D Spending Returns to Pre-Recession Levels, Finds Booz & Company Global Innovation 1000 Study | Innovation Management.

80% of apps are making less than 1,000 downloads – #istrategy

The second panel today at iStrategy, the title of which was “Engaging Your Audience with Mobile Apps”. The panellists were:

  • Moderator: Mark Curtis – CEO, Flirtomatic
  • Panellists: Alex Musil – EVP Product Marketing, Shazam,
  • Noah Everett – Founder, Twitpic
  • Konstantinos Papamilitiadis – Product & Engineering, Taptu
  • Mark Boerrigter – Digital Marketeer, Green Orange

Mark Curtis described his method at Flirtomatic named “the funnel” which starts with

there is nothing magical behind application marketing

Alex Musil from Shazam said that “it all starts with the value proposition of your app” and the next step is to ensure that the “people who are in the best position to promote your app, know about you”. Then Shazam works on Appstore optimisation (working on keywords). Partner promotion includes carriers he added, but that the most important thing is “word of mouth” which – he said – is the reason why Shazam is adding a million users a month thanks to Word of Mouth. This is what is going to pay out he concluded, in the long term.

“not everyone can get under Apple’s underpants!”

Yet not anyone is Shazam! Mark Boerrigter (Football Meister Dutch app) said that the death rate is high amongst applications. Mark Curtis agreed and said that this was an important statement. He also talked about “the death valley” which Mark is calling “the long tail of despair” and these are the apps which are never downloaded. 80% of apps are flops added K Papamiliatiadis, that is to say that they make less than 1000 downloads! He added that Taptu tested all sorts of things but the only thing that worked was the promotion ads on Android and Apple Appstore. Once you have convinced them, he commented, your adoption rate will be staggering. Yet, Mark Curtis stated that “very few people can get under Apple’s underpants” meaning that few of apps manufacturers can actually sell their business case to Apple.

is product design the new marketing?

“What we haven’t heard here” added Mark Curtis, is that there should be a huge reliance on advertising, which means that a lot of effort has to be put on product design and that “product design [might well become] the new marketing”.

imagination 3.0: innovation with French flair (soon to be published)

If you have always wanted to know everything about innovation but were too afraid to ask, rest assured because Visionary Marketing will bring this information to you in a few days.

Our good friend Brice Auckenthaler (founder and general manager of Experts-Consulting, a leading edge Innovation Consultancy group based in Paris, France) has been kind enough to let us publish the first few sheets from his brand new book to come: Imagination 3.0. Although the official release of Imagination 3.0 will take place in late January, you will be able to read and download the first few pages of this new unmissable opus in a few days from now.

Brice is undoubtedly our best expert in innovation and his and his team’s ability cover the entire spectrum of innovation, from creativity to making the rubber meet the road. Their references encompass major players as Nestlé and Thalys, Maserati, Mc Donald’s, Ferrari, Kraft, Coca Cola, Société Générale and others. Their footprint is International (Europe, USA, Asia, South America, China, Australia etc.) and their teams multi-cultural. Their capabilities extend from benchmarking, interviews and research, scenario planning [brand architecture and brand stretching], to brand & innovation committees on the new brand assets, new initiatives for product launches.

Stay tuned to visionary marketing and don’t miss it!

  • Experts-consulting (English homepage)
  • Experts-consulting’s main references
  • Brice Auckenthaler’s bio and his traces on the Web
  • buy the book ‘l’imagination collective‘ (2007) by Pierre d’Huy and Brice Auckenthaler from Amazon in French