Study: German Business in China | Page 9

German Business in China – Greater Shanghai Innovation Survey 2018/19 Top Innovators Innovation is considered one of the main drivers of competitiveness and long-term corporate success. Empirical research shows a positive correlation between innovation and company performance 1 and, as the results of this survey confirm, innovation performance is positively related to sales growth. Innovative companies demonstrate an above average sales growth within their industry in the past three years. We used six indicators to measure innovation performance of the surveyed manufacturing companies. These six indicators all measure innovation output in terms of quantity, quality, timing, and speed. Innovation scope (1) Types of innovation practiced in the organization Product / process innovation (2) Number of new products/services launched in the last three years compared to competitors (3) Number of changes in processes in the last three years compared to competitors (4) Launch of innovative business models in the last three years compared to competitors Pioneer disposition (5) Pioneer disposition to introduce new products/services in the last three years compared to competitors Speed (6) Time to market of an average product/innovation in comparison to industry average Based on the respondents' self-assessed performance within these six indicators, we have identified the 20% best-in-class innovators – the so-called Top Innovators. Throughout the survey, we have specifically considered what Top Innovators do that differentiates these companies from less innovative companies. 1 Prajogo (2006) 8