Study: German Business in China | Page 25

German Business in China – Greater Shanghai Innovation Survey 2018/19 Attitude towards innovation – Key takeaways � Innovation has become a strategic imperative for competing in China: Innovation ranks among the top three priorities for more than 80% of surveyed manufacturing companies, up 16 percentage points from 2017 � Innovation not yet fully integrated in companies’ strategies: Only 43% of surveyed manufacturing companies have a well-defined innovation strategy (vs. 65% of Top Innovators) � Introducing new products is vital for maintaining a competitive position: 88% consider innovation important to differentiate from competitors; 85% innovate to better meet customer needs; more than 80% expect innovation to generate an increase in revenues; for the next three years, most of the surveyed manufacturing companies expect an increase in new product launches and the share of revenue generated by new products 24