80% of large businesses know importance of innovation,
but a third have no strategy in place
- Cybersecurity, increasing profitability and developing sustainable operations are key concerns for businesses in Ireland driving corporate innovation
- More than a third of companies are considering investment in AI and Machine Learning
- Over a third of large businesses (34%) do not have a defined innovation strategy and nearly half of these (45%) don’t expect to have one in place in the next three years.
Dublin, 12th September: According to a research report from The Innovation Exchange, an initiative of Skillnet Ireland, when it comes to corporate innovation, Ireland continues to perform above the EU average but there is still room for improvement. The report outlines the potential impact of innovation for individual businesses and the economy citing its role in improving productivity and efficiency as well as in achieving growth, expansion and competitive advantage. Other benefits include helping business adapt to change and attracting talent.
According to the survey, carried out by Amarach Research, 80% of large organisations expect that innovation will become more important to their business in the next one to three years, however, over a third of large businesses do not have a defined innovation strategy and nearly half of these (45%) don’t expect to have one in place in the next three years.
The main barriers for companies to having an innovation strategy in place include budget, time and the expertise for implementation, indicating that the pressures associated with the day-to-day running of a business are preventing ‘bigger picture’ thinking.
The survey found 9 in 10 large firms said they were open to collaborating with third party businesses to overcome some of the barriers to innovation. However most businesses recognise there could be barriers to collaborating while only 7% think there would be no barriers at all. The research found that long and complex procurement processes are the most significant barrier to collaborative innovation for both large businesses (29%) and SMEs (20%).
The Innovation Exchange was established in 2022 to overcome the barriers to innovation in Ireland. The programme, which has 500 companies engaged with it, connects large organisations facing innovation challenges with technology SMEs that fast track solutions.
Conor Carmody, Director of The Innovation Exchange commented: “According to our research, innovation is twice as likely to be driven by process changes than product development. Innovation is not necessarily about the latest and greatest invention or technology. There is huge value for organisations to adopt innovative solutions to improve business processes and operational efficiency and ultimately deliver cost benefits and better ROI for large businesses exploring digital transformation.”
Skillnet Ireland’s Mark Jordan, Chief Strategic Officer said: “Our focus at Skillnet Ireland is on driving business success and enabling innovation within both multinationals and SMEs. The Innovation Exchange has been very powerful in doing exactly that, by connecting large firms seeking business solutions with SMEs that can provide them. This will add greatly to driving innovation across a wide range of areas including digitalisation, climate and advanced manufacturing.”
What are the Barriers to innovation?
In terms of the companies that have a basic innovation strategy in place, or none at all, the top four barriers score equally high (33%) and include: no dedicated budget for innovation initiatives, lack of time to identify/implement them, a difficulty prioritising where innovation needs to be applied and a lack of time required for implementation.
While 90% of large firms are open to collaborative innovation, internal working practices can act as a barrier. In relation to large firms, the research found that concerns around the sensitive nature of the business to be the largest barrier to working with a third party (39%); 29% said the lengthy procurement process/onboarding of suppliers was an issue; the direct cost for third-party involvement accounted for 29%, while the indirect cost of resourcing the management of third-party involvement came in at 24%. This skill and resources gap is echoed in the barriers for businesses implementing innovation strategies with 27% citing a lack of technical staff 24% saying a lack of managerial staff/innovation leaders was a factor.
Both large corporations and SMEs identified the lengthy procurement or onboarding process as the biggest barrier to working together. (Corporates – 29%; SMEs – 20%)
Drivers of Innovation
While AI has dominated business discussions, cybersecurity (57%), increasing profitability (48%) and operating more sustainably (47%) are the top three challenges facing businesses in Ireland in the next one to three years.
In terms of digital technology investment, cybersecurity (55%) topped the poll for large businesses, followed by Data/predictive analysis (48%), Sustainable/New Energy Solutions (43%), Payment Processing (40%) and Artificial Intelligence and Machine Learning came in at 36%.
How do we bridge the innovation gap?
Almost 9 in 10 (87%) of digital SMEs surveyed, that are currently not working with tThe Innovation Exchange, are interested in using the services of an agency to help their organisation navigate the potential barriers of working with corporate partners.
59% of the same digital SMEs, again excluding those already working with The Innovation Exchange, are interested in an Irish enterprise that connects corporate partners who want to innovate with providers of new and emerging technologies.
The survey of 132 digital SMEs (including start-ups and more mature businesses, as well as SMEs working within tThe Innovation Exchange network and others outside of it), shows that most SMEs are ready to meet the needs of larger businesses. Over 6 in 10 digital SMEs are already selling digital solutions in the marketplace and can immediately add value to larger business partnerships. Nor are their solutions niche or extremely specialised with 57% offering digital technologies that can be used by most businesses across multiple sectors and functions.
Carmody added, “The Innovation Exchange is building an ecosystem that is driving digital transformation. Our primary aim is to work with 1,000 companies by 2025 and only 18 months in, we are already facilitating the talent development of over 500 companies by offering structured learning in the areas of sales, marketing and commercial disciplines while supporting new business development, revenue generation and sales.
“We facilitate successful deals between SMEs and large corporates and as part of this, we are de-risking the engagement for corporate members who to date have brought 27 digital transformation challenges to us including Bord na Móna, Ryanair, ESB and most recently Irish Water. The bottom line is that we want more corporates to reach out to us with their problems. We have a growing bank of innovative solutions providers that are being taught how to overcome the hurdles of working with a large, process driven organisation.”
<ENDS>
About The Innovation Exchange:
The Innovation Exchange is an initiative of Skillnet Ireland and is a collaborative ecosystem that connects innovators with innovation seekers, facilitating collaboration between companies and creating opportunities for talent development, business opportunities and commercial success for all involved.
It is an innovation marketplace where large corporates facing innovation challenges are connected with ambitious solutions providers with the skills to solve challenges and fast-track innovation.
Large corporates get access to collaboration opportunities with Ireland’s most talented SMEs, accelerating their digital transformation. There are currently 27 corporate members of The Innovation Exchange, including Ryanair, Glanbia, ESB, Axa Insurance, Microsoft, IBM and IDA Ireland.
Scaling technology companies get an instant sales pipeline as well as access to prospective customers, market intelligence, learning and collaboration opportunities along with the capability to sell to large corporates via a structured process. Our SME members have deep expertise in emerging technologies such as AI, process automation, robotics, cybersecurity, digital communications and IoT.
The Innovation Exchange is an initiative of Skillnet Ireland and is managed by Furthr. It was launched in February 2022 and since this time over 500 companies have engaged with the programme. By 2025 over 1000 companies will be part of The Innovation Exchange ecosystem as it works to overcome the barriers to corporate innovation in Ireland.
About the survey
The Innovation Exchange commissioned Amárach Research to survey businesses throughout Ireland about current and future innovation practices, as well as exploring the potential for collaboration between corporates and SMEs. The research was conducted in April and May 2023.
In order to explore innovation activities in detail, Amárach surveyed:
- 75 large businesses/corporates employing over 250 people
- 126 SMEs employing fewer than 250 people, of which 86 were in digital technology sectors or services
- 46 SMEs operating as part of the Innovation Exchange community
In addition, Amárach conducted in-depth interviews with 5 corporate members of the Innovation Exchange community.
Note that, in the analysis that follows, we have combined the findings from the 86 digital technology SMEs with the 46 SMEs in the Innovation Exchange community (who are also digital technology businesses) to better understand this key constituency for the Innovation Exchange.
For further details or to speak to a member of The Innovation Exchange please email at info@theinnovationexchange.ie
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We are excited to continue our collaboration with Platform94 and to cultivate new, impactful relationships with businesses in the northwest. We especially look forward to highlighting the exceptional talent within northwest companies and supporting their growth as they scale their businesses”. Marie Donnellan, CEO, Platform94 said, “At Platform94, we’ve always maintained a regional approach in our work with innovative and scaling businesses throughout the west and northwest of Ireland. We’ve focused on fostering a strong spirit of collaboration across both the west and northwest region. This extended partnership will enable us to offer even greater support to these businesses and the broader scaling ecosystem in the West/Northwest.” <END> Download Press Release About Skillnet Innovation Exchange Skillnet Innovation Exchange is where businesses facing digital transformation challenges are connected with innovative solutions providers with the talent to help them achieve their ambitions. Large corporations get access to Ireland’s most talented solutions providers to accelerate digital transformation. Scaling technology companies get an instant sales pipeline as well as access to key decision makers, market intelligence and the capability to sell to large corporates. To learn more, visit www.theinnovationexchange.ie About Skillnet Ireland Skillnet Ireland is the national talent development agency of the Government of Ireland, responsible for advancing the competitiveness, productivity, and innovation of Irish businesses through enterprise-led talent development. Skillnet Ireland partners with 57 industry bodies, supporting over 26,600 businesses and more than 97,700 trainees annually, through its 70 Skillnet Business Networks and National Initiatives – Skillnet Climate Ready Academy, Skillnet Innovation Exchange, Skillnet MMC Accelerate and MentorsWork – across most sectors and all regions in Ireland. Skillnet Ireland is funded from the National Training Fund through the Department of Further and Higher Education, Research, Innovation and Science. To learn more about Skillnet Ireland visit: www.skillnetireland.ie Skillnet Business Network search tool: https://www.skillnetireland.ie/our-networks/ Facebook: @SkillnetIreland Twitter: @SkillnetIreland LinkedIn: www.linkedin.com/company/skillnetireland About Platform94: https://platform94.com/ For further information or interview requests, please contact: Oonagh Fox, Skillnet Innovation Exchange 0878554406 oonagh@theinnovationexchange.ie Noreen Conway, Platform94 0861973638 noreen.conway@platform94.com
Skillnet Innovation Exchange Expands into Limerick
Skillnet Innovation Exchange, the initiative that connects large businesses facing innovation challenges with SMEs that can fast track the solutions, has announced an expansion into the southwest region through its regional partner, RDI Hub, as part of its continuing nationwide expansion. RDI Hub and Innovate Limerick will join forces to bring the benefits of Skillnet Innovation Exchange to businesses in Limerick city and county. The partnership will offer ambitious and innovative SMEs the opportunity to get connected with large companies looking to access digital transformation solutions. Attending today’s launch in Limerick’s Engine Collaboration Centre, Patrick O’Donovan TD, Minister for Further and Higher Education, Research, Innovation and Science, said: “I’m delighted that Skillnet Innovation Exchange is extending its reach and influence to Limerick and in doing so, is contributing to the competitiveness of companies in the region. Now, through Innovate Limerick, SMEs in the southwest can avail of the very real benefits Skillnet Innovation Exchange has to offer including upskilling, networking and access to business opportunities”. The nationwide expansion of the programme offers more SMEs access to a wide range of benefits, including access to a readymade sales pipeline, upskilling and collaboration opportunities with large corporations. To date, the Innovation Exchange has facilitated the delivery of 50 innovation challenges to its SME member base. Corporate members of the Innovation Exchange, which now number over 40, include some of Ireland’s leading companies including EY, Hilton Foods, BWG, Coolmore Stud, ESB, Ryanair, An Post, and many more. Paul Healy, Skillnet Ireland Chief Executive, said: “Skillnet Ireland is pleased to announce the latest expansion of Skillnet Innovation Exchange, this time in the Limerick region. The programme is offering much coveted opportunities for SMEs to expand their business horizons and engage with larger corporations. The Skillnet Innovation Exchange is also delivering substantial commercial solutions to domestic and multinational corporations that are engaged with the programme, and benefiting greatly from the creativity and innovation of our home-grown SMEs.” Other Skillnet Innovation Exchange regional partners include the Ludgate Hub in Cork, The Mill in Drogheda, Platform 94 in Galway and GreenTech HQ in Enniscorthy. Conor Carmody, Director, Skillnet Innovation Exchange, said: “Skillnet Innovation Exchange’s regional expansion throughout Ireland has afforded many SMEs the unique opportunity to collaborate with large corporates, bridging the innovation divide and strengthening the Irish business ecosystem. We are excited to continue our collaboration with RDI Hub and to cultivate new, impactful relationships with businesses in the southwest. We especially look forward to highlighting the exceptional talent within companies and supporting their growth as they scale their businesses”. Megan Daly-Tyrell, Business Development Manager, RDI Hub “‘The ethos at the RDI Hub is all about making connections for start-ups, scale-ups, SMEs, corporates and enterprises to create, digitalise, innovate and scale businesses. To this end, the Innovation Exchange is a perfect partnership for us as it supports our key focus which is creating new jobs, products and services in the southwest. RDI Hub is delighted to partner with Innovate Limerick to bring the benefits of Skillnet Innovation Exchange to businesses in Limerick city and county”. Dennis Barry, CEO Innovate Limerick: “We are delighted to host the Skillnet Innovation Exchange launch here at the Engine. Innovate Limerick is synonymous with expanding and furthering the local ecosystem through collaboration and partnerships in all sectors. We are looking forward to partnering with the RDI Hub and expanding the Skillnet Innovation Exchange program to Limerick”. <END> Download Press Release About Skillnet Innovation Exchange Skillnet Innovation Exchange is where businesses facing digital transformation challenges are connected with innovative solutions providers with the talent to help them achieve their ambitions. Large corporations get access to Ireland’s most talented solutions providers to accelerate digital transformation. Scaling technology companies get an instant sales pipeline as well as access to key decision makers, market intelligence and the capability to sell to large corporates. To learn more, visit www.theinnovationexchange.ie About Skillnet Ireland Skillnet Ireland is the national talent development agency of the Government of Ireland, responsible for advancing the competitiveness, productivity, and innovation of Irish businesses through enterprise-led talent development. Skillnet Ireland partners with 57 industry bodies, supporting over 26,600 businesses and more than 97,700 trainees annually, through its 70 Skillnet Business Networks and three National Initiatives – Skillnet Climate Ready Academy, Skillnet Innovation Exchange and MentorsWork – across most sectors and all regions in Ireland. Skillnet Ireland is funded from the National Training Fund through the Department of Further and Higher Education, Research, Innovation and Science. To learn more about Skillnet Ireland visit www.skillnetireland.ie Skillnet Business Network search tool: https://www.skillnetireland.ie/our-networks/ Facebook: @SkillnetIreland Twitter: @SkillnetIreland LinkedIn: www.linkedin.com/company/skillnetireland For further information or interview requests, please contact: Oonagh Fox 0878554406 oonagh@theinnovationexchange.ie
