“The results are surprising – German industry has plenty of room for improvement when it comes to innovative strength. In Germany in particular, we must ask ourselves how we can make better use of the potential on offer,” says Dr. Matthias L. Wolfgruber, Chief Executive Officer of the ALTANA Group.

Corporate Culture not Always Innovation-Friendly

It is very important for companies to have a culture in which innovation can thrive. “The innovative strength of a company is not solely dependent on its research and development budget,” says Dr. Georg F. L. Wießmeier, Chief Technology Officer at ALTANA. “Instead, it is the combination of many important innovation-friendly structures, values and practices that must be rooted firmly in the company.”

For example, it is important for an innovation-friendly working environment for supervisors to react positively to unusual suggestions. Breaking new ground and thinking outside the box are key to developing innovations. And yet the study shows that two-thirds of companies do not always respond favorably to ideas that deviate from the norm. According to the young professionals surveyed, only 15 percent of companies actively promote unconventional thinking and actions. And this result is confirmed by managers, with just twelve percent acknowledging widespread acceptance for employees who want to break new ground at their company. Even tools thought to be standard for driving innovation, such as a company suggestion scheme, are fully established in less than a quarter of companies.

Managers Understand the Problems – but Lack Courage to Make Changes

As the ALTANA study shows, managers are well aware that they are not setting the best example. Only 17 percent claim to personally make an optimal contribution to help drive innovation. And yet these decision-makers are aware of the positive effects of strong innovative strength. Of those surveyed, 41 percent believe a very high level of innovation is needed to gain a competitive edge.

Background to the “Industry Innovation Index” Study

The “Industry innovation index” study shows where German industrial companies stand with regard to innovative strength and a culture of innovation. In November and December 2013, market research institute Forsa was commissioned by the ALTANA Group to conduct 500 telephone interviews with representatives from industrial companies with over 250 employees. A total of 250 board members, managing directors and senior managers were interviewed. Forsa also quizzed 250 young professionals aged between 18 and 35 with between two and five years professional experience at industrial companies.

The industry innovation index developed as part of this study depicts the relationship between companies that are perceived as being innovative and those that are not. An index value higher than 100 indicates that the innovative strength of the sector of industry is perceived positively.