A global report by Altimeter Group’s Brian Solis and Capgemini Consulting has found that leading business are turning towards innovation centres to tackle their slow rate of innovation.
The report uncovers a shifting approach to digital innovation, with R&D teams at large, traditional corporations viewed as ill-equipped to rise to the challenge of digital Darwinism. In response, companies are increasingly looking to launch physical ‘innovation centres’ in major global technology hubs such as Silicon Valley to leverage an ecosystem of startups, venture capitalists, accelerators, vendors, and academic institutions.
The research found that 38 per cent of the leading 200 companies have set up innovation centres in a global tech hub, with The US and Europe have the largest share with 29 per cent of total innovation centres respectively followed by Asia at 25 per cent.
The most popular areas of research for innovation centres remain well-established technologies such as mobility and big data/analytics.
Although the number of innovation centres are increasing, Silicon Valley is still the most attractive area to locate an innovation centre for leading organisations, with 61 per cent of companies having established one or more centres in the Valley.
The purpose of innovation centres is to help accelerate the generation and implementation of new ideas, attract talent, drive employee engagement, and establish partnerships with startups
Jerome Buvat, Global Head of Research at Capgemini Consulting, believes innovation centres are important for any business.
“Many organisations are solving the issue of embracing innovation by partnering with or acquiring technology startups, but too often this is a sole focus. A more equal balance between external and internal thinking is required. Innovation centres are proving an effective means to cultivate the agile startup mentality needed to remain at the forefront of the market, but it is clear that establishing an effective centre has many challenges.”