No crisis for innovation

CRISIS is not curbing innovation, data from a survey of 144 national and international professionals from all sectors representative of the food industry. On the contrary, in these times of economic upheaval, what emerges R&D and innovation would seem to be an aid to competitiveness and development. As something new, companies are no longer hesitating to call on all their resources for that purpose. Good news, not only are investments in R&D and innovation up on 2008 levels, but they are also expected to keep rising over the next two years. All food industry sectors were represented, with dairy and cheese products (13%), liquids and beverages (12%), meat products/fish (10.5%), and bakery/pastry/confectionery (9%) being slightly better represented. All sizes of companies are represented, and third of respondents belong to decision-making departments or are involved in R&D and innovation. Nearly a third of those replying were European, with 42% from France. The most represented geographical zone outside Europe was North Africa (17%). The second 2010 Flash Survey on Knowledge Management, R&D and Innovation* indicates that 78.5% of respondents declare having launched one or more new products, services or processes over the last two years, compared to 71% in 2008. In 2010 only 2% of companies state that innovation is not part of their current strategy, a figure clearly falling when compared to the 11% in 2008. As in 2008 the central objectives of innovation remain growth in sales/turnover (65% vs. 62.5% in 2008) and the development of a competitive advantage (53% vs. 52.5% in 2008). Putting customers at the heart of concerns, 2010 responses show a marked increase in the interest industrial concerns have in "customer service": improve product quality (37.5% vs. 23% in 2008), meet demand (31% vs. 19%), enhance reputation (14.5% vs. 10.5%). In these troublesome times economic worries dominate: productivity gains are a growing objective (21% vs. 13.5% in 2008). Still, whilst in-house R&D department understandably remains the leading player in innovation, companies are also relying more heavily on external innovation/competitiveness/ technical centres (14% vs. 8.5% in 2008) and laboratories (13% vs. 9.5% in 2008). Budget, the biggest drag on innovation The three drags on innovation are the same as in 2008. Whilst there has been a decrease in the problems of human time (27% vs. 33.5% in 2008) and resources (26% vs. 32.5% in 2008), budgetary problems have seen a significant increase (47% vs. 35.5% in 2008). Closely following are technical and technological difficulties (24%) and access to external financing (19%). Nonetheless, R&D investments are on the rise. Companies are not hesitating to dig into their own pockets to finance research: the share of turnover devoted to R&D is markedly up. This is a daring gamble in times of economic instability and one that bears witness to the growing interest amongst companies in R&D and Innovation: 28% of companies devote 1 to 3% of turnover to R&D (vs. 18.5% in 2008); 16% more than 3% of turnover (vs. 13.5% in 2008); and 24% less than 1% of turnover (vs. 28.5% in 2008). Over half of the companies (63%) have not made use of state aid to finance research, steady on 2008. Those eligible have primarily used research tax credits (10.7%) and regional aid (8%). This upward trend in investment is expected to last as 68% of companies believe that the share invested in R&D will increase (38%) or remain stable (30%) in the coming two years. At the same time, 77% of respondents plan on bringing innovations to market. Most innovative sectors The top four most innovative sectors in the food industry are the same as in 2008 but in a different order. In 2010, respondents were most impressed by dairy and cheese products (44% vs. 30% in 2008), liquids and beverNike