Report: Innovation hype is triggering market skepticism

New report into Australia's top 100 ASX-listed companies shows shareholders are increasingly skeptical about the trapping of innovation

Innovation might the buzzword echoing across corporate hallways today, but a new piece of research on Australia’s top 100 companies shows deep scepticism from shareholders around the benefits of innovation activities on the bottom line.

The new study, which was commissioned by Terem Technologies of Australia’s top 100 ASX-listed companies found 41 per cent have a publicly announced innovation lab, 23 per cent have a venture fund dedicated to innovation, and 69 per cent account on their financial statements for innovation, R&D or related technology.

But what the report also highlighted was that innovation activities such as these are not being rewarded by the share market without the tangible business results to support them.In fact, the report claimed innovation hype is now being viewed with increasing scepticism by the market.

In addition, the report found companies that claimed a large innovation footprint in their communications to shareholders did not necessarily out-perform companies that did not have the same commitment to innovation.

The top five “innovators by press release” identified by Terem Technologies were Rio Tinto, Commonwealth Bank, Amcor, Bendigo and Adelaide Bank and Aristocrat Leisure.

However, companies producing tangible innovation results are being rewarded even when they do not trumpet innovation.

For Terem Technologies CEO, Scott Middleton, the results suggest companies that want to foster innovation must not only demonstrate actual results from these activities, but also put the emphasis on disruption over iterative improvement.

“Companies can’t talk their way to growth,” he said. “For innovation to have an impact on a company’s performance, it must move the company into a significant, growing market. This takes time and commitment. Innovation around process is important, but these days, it’s just table stakes.”

The report was based on analysing the ASX100 over the short, medium and medium to long term (up to five years), looking at public innovation infrastructure, venture capital funds, collaboration with universities, patents field and board composition. Terem Technologies said it also looked at an organisation’s shareholder-focused rhetoric around innovation by analysing financial reports and press releases.

The report also featured a breakdown of the innovation claims of Australia’s top four banks. According to these findings, all four – CommBank, Westpac, ANZ and National Australia Bank – have innovation labs as well as research collaboration programs underway, and both NAB and Westpac had venture funds.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

In these tough times finding an earning opportunity that can be weaved into your lifestyle is hard. Doordash fits the bill nicely until y...

Fred Lawrence

DoorDash launches in Australia

Read more

Hello , great article!Fake followers have really become a big issue that needs to be identified and bring to an end.You can also include ...

Caitlyn Davis

Fake Twitter-follower market is adapting, growing, and getting ever cheaper

Read more

Did anyone proofread this document before it was published?

Beau Ushay

CMO Momentum 2020: How to embrace agile marketing

Read more

he decision to limit the initial version of the code to two US companies is discriminatory and will inevitably give an unfair advantage t...

Azeem Sohail

Google hits out at ACCC draft code of conduct for news media negotiations

Read more

You’re a warrior woman from way back. Just let the muscle memory take over!

Hannah Sturrock

Why fear trumps marketing theory - Marketing edge - CMO Australia

Read more

Blog Posts

Creating a culture club builds ownership of teamwork

Workplace cultures are the sum of everyone’s beliefs, behaviours, attitudes and skills. This means that no single person is responsible for culture, it belongs to the team.

Colin D Ellis

Culture change expert, author

A Brand for social justice

In 2020, brands did something they’d never done before: They spoke up about race.

Dipanjan Chatterjee and Xiaofeng Wang

VP and principal analyst and senior analyst, Forrester

Determining our Humanity

‘Business as unusual’ is a term my organisation has adopted to describe the professional aftermath of COVID-19 and the rest of the tragic events this year. Social distancing, perspex screens at counters and masks in all manner of situations have introduced us to a world we were never familiar with. But, as we keep being reminded, this is the new normal. This is the world we created. Yet we also have the opportunity to create something else.

Katja Forbes

Managing director of Designit, Australia and New Zealand

Sign in