Booz & Co.’s 2012 China Innovation Survey consisted of more than 100 executives at Chinese firms and multinational companies (MNCs) in the industry, automotive, health/life sciences, consumer goods, and chemical and energy sectors. Of surveyed MNCs, 45% “perceive Chinese competitors as equally or more innovative than themselves.” The two areas in which MNCs rated Chinese firms as having the greatest advantage were “government support” and “faster decision making.” Chinese firms rated their two greatest advantages as “better stakeholder inclusion” and “better read of market.” Among Chinese firms, 96% viewed R&D is an important part of their businesses. For MNCs, 64% use the same innovation strategy in China as they use elsewhere. The three R&D activities that the greatest percentage of MNCs expect to become “more prevalent in China” in 2022 were ideation (75%), cost reduction (64%) and applied research (56%). The three R&D activities that the greatest percentage of Chinese companies expect to become “more prevalent in China” in 2022 were applied research (56%), ideation (44%) and process improvement (40%). Forty percent of MNCs develop products in China for other markets, while 50% of Chinese firms do.

Source: Booz & Co.