Critical factor. 68% of Indian organisations plan to increase open innovation investments

At least 68 per cent of Indian organisations plan to increase investments in open innovation in the next two years and 32 per cent plan to maintain investment at the current level, according to a report by Capgemini.

The report finds that businesses adopt open innovation to improve existing offerings and develop new ones, create new business models, and ensure more efficient spending in R&D. Around 86 per cent of Indian organisations surveyed consider open innovation critical in addressing complex issues in businesses.

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Delhi, Bangalore, and Mumbai rank 12, 13, and 19 respectively among the 20 focus cities globally for investments in open innovation labs for organisations in Capgemini’s survey. 

Also, around 84 per cent of businesses surveyed in India say that open innovation is a critical success factor in achieving sustainability goals. A large majority - 62 per cent- of the businesses surveyed in India started to focus on open innovation for sustainability in the past two years.

Pascal Brier, Chief Innovation Officer at Capgemini and Member of the Group Executive Committee, said, “The research shows that although companies see open innovation as pivotal for sustainability and continue to step up investments in open innovation, many are still not satisfied with its current outcomes. To address this, large companies need to expand their ecosystem to incorporate a varied set of partners that will enable a bolder approach to innovation to see greater business value in the long run.”

Domino effect

The report further noted that 62 per cent of Indian respondents stated an increase in operational efficiency with open innovation, while 56 per cent reported an increase in revenue. 46 per cent mentioned an increase in the number of commercially successful product and service launches, and 30 per cent indicated access to public funding for open innovation projects.

Additionally, 50 per cent of Indian respondents said open innovation marked an increased speed of innovation, while 54 per cent mentioned increased access to talent. Additionally, 32 per cent stated an improvement in customer experience/engagement; however, only 6 per cent reported an improvement in brand value, according to the report.