World's most innovative companies are set to grow by more than 60 per cent over the next five years, adding a total of more than $250bn in new revenues.
The report, based on data gathered by PwC by surveying 1,757 executive-level respondents responsible for overseeing innovation within their company across 25 countries and 30 sectors, concluded that the growth-inducing innovation includes everything from products, to business models, operating systems and customer experience.
"Innovation has gone mainstream. Five years ago, expansion into China was seen as the most powerful source of growth for just about every business. Now, companies see that innovation presents them with greatest potential for growth," said David Percival, PwC's Global Client Innovation Leader.
The most innovative companies anticipate a 62.2 per cent revenue growth over the next five years compared with the 20.7 per cent increase for the least innovative firms, the study found. That means a combined revenue growth of £160bn over the next five years among the top innovators, while the least innovative companies are expected to grow by less than £60bn.
The study also confirmed that successful innovation requires well-developed strategies. Nearly 80 per cent of top innovators said they had elaborate innovation strategies, compared with less than half among the least innovative companies.