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Weekly UpdatesDid you know that innovative companies are more likely to conduct research and development, work with customers and suppliers, get information from public knowledge sources such as universities, invest in training and make capital investments to support innovation? According to the 2008 Georgia Manufacturing Survey, these are the drivers of innovation--at least for companies located in the state.
Responses from 738 companies with more than 10 employees were collected by the Enterprise Innovation Institute and the School of Public Policy at the Georgia Institute of Technology. The survey is conducted periodically to assess the business and technological conditions of Georgia's manufacturing community.
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"Innovators are present not only in science and high-tech industries, but among large companies in food, textiles and apparel, materials-based firms (pulp and paper, plastics and non-metallic materials) and machinery industries," said Jan Youtie, manager of policy serivces at the Georgia Tech Enterprise Innovation Institute.
"The biggest issue with the latter three is the gap between large and small firms with respect to innovation. Science-based and high-tech industries are also more likely to have new-to-the-market goods and services, which can have greater potential for commanding a price premium."
The survey showed that companies competing on the basis of innovation had a three-year average return on sales of 14.5 percent--nearly twice the 7.6 percent average for companies competing with low prices. Slightly less than 20 percent of Georgia manufacturers compete based on price, compared to fewer than 10 percent that use innovation as the competitive edge, the survey also concluded. Half of the state's manufacturers report gaining a competitive edge from quality products or services, quick delivery and adding value and adapting to customer needs.
"Interestingly, receiving tax credits or loans and grants from the government (national, state, local) was not significant in part because few companies received these financial support mechanisms," said Youtie.
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