Study: German Business in China | Page 29

German Business in China – Greater Shanghai Innovation Survey 2018/19 Shifting focus of innovation engagement German manufacturing companies in Greater Shanghai engage mostly in product innovation (72%) and less in other forms of innovation such as process innovation (53%) or business model innovation (43%). However, looking into the future, the data suggest a decreasing focus on product innovation and an increasing focus on business model innovation. Which of the following types of innovation do/will you engage in? 73% 72% 61% 60% 53% 53% 52% 43% 33% Product innovation Process innovation Business model innovation 2017 2018 Within the next 3 years This trend already emerged from the results of the Greater Shanghai Innovation Survey 2017, where only 33% of respondents indicated to engage in business model innovation, compared to 43% this year. While technological innovation has traditionally been a huge driver of competitive advantage and the core of innovation activity among manufacturing firms, there are limitations to a technological leadership strategy and companies that broaden their scope of innovation activity to remain competitive. 28