More business executives in the Philippines now consider that innovation has critical role to grow their businesses, the Philippine CEO Survey Report of the Management Association of the Philippines (MAP) showed.
The Survey, conducted by Isla Lipana and Co./PwC Philippines, reported that 84 percent of Philippine-based firms’ chief executive officer respondents said innovation is an important factor for their businesses’ growth.
The MAP’s CEO Survey noted that almost half of total respondents or some 46 percent believed that innovation is critical to business and there is the need to be innovative to survive in the market.
About 56 percent of these CEOs who said that innovation is critical also allocate at least 5.0 percent of their revenues to fund R and D (research and development) and innovation, the Philippine CEO Survey Report mentioned.
Most of these companies that consider innovation critical to business are in the sectors of technology, information and communication, entertainment and media, and financial services.
The Survey noted that 96 percent of the CEO-respondents push for innovation to stay on top of competition, to remain relevant, and to grow revenues.
Although CEOs claimed that innovation is important for their business growth, they cited challenges in pursuing innovation.
Majority of the business executives consider costs of investments for innovation and R and D as major challenge.
MAP Chair for ASEAN Integration Committee Alma Rita Jimenez, in a briefing on Monday, said government policies will help the business sector to further innovate by providing them incentives.
You need to have an environment that promotes that kind of thinking that it is very important for us to go the next generation,” said Jimenez.
We lack the support to make the prototype of the project and roll it out. So they were bought by foreign countries; they roll out in other countries. The sad thing is the intellectual capital comes from the Philippines but the roll out and advantages come from those far willing to risk investments to roll the product out, she stressed.
Aside from providing incentives to businesses that invests in R and D and innovation, the Survey noted that the government should also focus in improving the country’s digital infrastructure.
To speed up economic growth and spur further innovation, we need to fix the lagging digital infrastructure, MAP’s survey read.
Other challenges for CEOs also include execution issues, high risks, lack of resources, business distraction, and some executives said they are already happy with their status quo.
The Philippine CEO Survey Report is in line with the 13th MAP International Conference’s theme METAMORPHOSIS: Inspired by Vision, Fueled by Innovation happening on Tuesday (Sept. 8) at the Makati Shangri-La Hotel. (PNA)