SINGAPORE - A nationwide study by branding specialist StrategiCom highlighted that many small and medium enterprises (SMEs) are still not applying tools and techniques that can promote innovation to boost their company's value.
Among the 100 SMEs interviewed, 91 per cent of SMEs said they understood innovation as the introduction of a new product or method which will boost value for both company and shareholders.
But only 21 per cent successfully apply innovation tools, which lead to improved efficiency and quality, product novelty and better market positioning, as well as a more unique business model for their products and services.
The objective of the survey is to explore the perception of innovation among Singapore SMEs.
It studies the extent of how innovation is managed and applied, what is perceived as innovation success and how branding affects the results of innovation.
According to the survey, the most popular technique used by SMEs to achieve successful innovation is hiring and training individuals in conceptualising innovative ideas.
Other key techniques include identifying fresh opportunities in the market through liaising with external parties, co-operating to share risks and costs of innovation and working in teams to synergise knowledge.
Chief executive officer of StrategiCom Dr Wilson Chew said it is vital for SMEs to manage innovation through three or four of these key techniques, as "innovation is a broad concept that involves people, process technology and research rather than one that is limited to technical issues".
However, SMEs face challenges in attracting the right talent for innovation. "In the interviews, SME leaders attributed this difficulty in hiring to the small pool of talent in Singapore, as well as the preference of potential employees to work in multi-national companies," he explained.
The full results of this survey will be released during the annual Singapore Brand Conference next week.
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