Innovation is essential. Nearly 75% of companies say innovation is one of their top three management priorities, and 35% rank it above all others. That’s not surprising. After all, a winning innovation strategy—paired with the right innovation system—can make a big difference. Since 2005, the businesses in BCG’s annual ranking of the world’s 50 most innovative companies have delivered a total shareholder return two percentage points higher than that of the global market.
But innovation is hard. Only about 30% of companies think they are good at it. And it’s only getting more challenging. Digital and data are requiring even the strongest innovators to continually master new capabilities and develop faster and more agile research and development processes.