Study: The Puzzle of Innovation in China | Page 19

19
07
CONCLUSION
The question is
not whether to
innovate, but
The upwind in China is transforming the country from being
low-cost and labor-intensive to knowledge- and technologybased,
driving the motor of innovation. Local competition and
MNCs have realized their chance to get on board and benefit
from China’s blossoming. While Chinese competitors can
build on their knowledge of local market demands, MNCs
have understood the urgency of innovating in order to keep up.
how.
Yet, most MNCs are lacking a clear innovation strategy,
hampering their way toward innovation success – only a
well-structured innovation road map can provide a remedy.
This requires the thorough research of customer preferences,
market trends and competitive dynamics, as well as a detailed
understanding of the organization and its structures, capabilities
and potentials. On this basis, a long list of potential innovation
endeavors can be derived that is further prioritized
for concrete opportunities. Finally, by systematically enabling
Chinese entities to evolve their local innovation competecies,
the road map can be translated into action.
So far, as clear as it appears in theory, in practice most organizations
lack an in-depth understanding of their own innovation
capabilities and potentials. The goetzpartners’ Innovation
Benchmarking Tool can provide relief, helping MNCs to identify
concrete areas of improvement in which to add the final
piece to the puzzle and bring innovation out on the road. ||