Positioned as a leading International Innovation and Technology Hub and a model SMART City, Hong Kong is strategically focusing on innovation to pave the way for future development and unlock new opportunities.
In this dynamic environment, comprehending how local enterprises approach innovation management is crucial. To this end, InnoEdge Consulting and SGS Hong Kong have partnered to conduct the “2024 HK Enterprise Innovation Management Survey.” This survey assesses the current innovation management practices among Hong Kong enterprises and juxtaposes these findings with those from a similar survey conducted in 2019. The objective is to discern and examine shifts in enterprise innovation management strategies and practices over five years.
The results of the 2024 Hong Kong Enterprise Innovation Management Survey were officially released on November 11, 2024, by Ms. Miranda Kwan from SGS Hong Kong and Mr. David Chung from InnoEdge Consulting. Data collection occurred from September 30 to October 8, with over 300 respondents from a diverse array of sizes and sectors within Hong Kong enterprises (Please read pages #8 to #12 of the report below for details). The survey revealed five key insights:
- Prioritization of Innovation in Business Planning: Over 80% of respondents have identified Product and Service Development Strategies as critical components of their business plans. More than half of these respondents prioritize innovation as a core aspect of their strategic initiatives, with 23% placing it at the forefront, thereby underscoring its vital role in maintaining a competitive edge (Please read page #14 of the report below for details).
- Areas of Focus for Enhancing Competitiveness: The primary areas for innovation aimed at boosting competitiveness among Hong Kong enterprises are customer experience, business models, and marketing (Please read page #18 of the report below for details). Although these areas were also highlighted in the 2019 survey, there has been a notable shift; customer experience now leads, while the focus on business model innovation has decreased slightly (Please read page #19 of the report below for details).
- Metrics for Measuring Innovation Success: Business growth, customer acquisition and retention, and operational efficiency are the top metrics used for evaluating innovation success (Please read page #20 of the report below for details). These align with 2019 survey results, with the exception that operational efficiency has advanced in priority, surpassing return on innovation investment (Please read page #21 of the report below for details).
- Internal Challenges to Innovation Implementation: The leading internal challenges in 2024 include insufficient financial resources, a shortage of employees ready to embrace change, and a gap in knowledge concerning innovation and technologies (Please read page #26 of the report below for details). The persistence of the first two challenges from 2019 and the emergence of knowledge gaps indicate evolving barriers within the corporate innovation landscape (Please read page #27 of the report below for details).
- Revenue Impact from Underinvestment in Innovation: In 2024, nearly 40% of the enterprises surveyed expect their revenue to decrease by more than 10% due to insufficient innovation investment. Within this group, close to 20% foresee a revenue reduction exceeding 20%, highlighting the substantial financial risks of neglecting innovation (Please read page #30 of the report below for details).
Please click the report cover below to download the 29-page essential edition of the report:
