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Asia overtakes Europe as destination for Innovation Center investment | Technology | Business Chief Asia

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Asia’s growth is currently so strong that it could soon overtake the US as the biggest hub of innovation centers if it continues to grow at the same rate. This is the finding of a new global report, ‘The Spread of Innovation Around the World: How Asia Now Rivals Silicon Valley as New Home to Global Innovation Centers’, by Capgemini Consulting’s Digital Transformation Institute in collaboration with Fahrenheit 212, part of the Capgemini Group and in partnership with Altimeter Group’s Brian Solis.

Europe’s share of innovation centers slipped 4 percentage points between July 2015 and October 2016 – from 30 percent to 26 percent, prompted by an uncertain economic environment and regulatory challenges. In the same time period, Silicon Valley’s share of the world’s total innovation centers also dropped, from 18 percent to 14 percent.

Innovation centers, typically physical sites located in major global technology hubs, are increasingly being set up by large organisations as they seek to contend with digital disruption and transform themselves. When operated successfully, innovation centers allow large organisations to leverage an ecosystem of start-ups, venture capitalists, accelerators, vendors, and academic institutions in order to develop breakthrough products and solutions.

The report suggests Asia’s increasing influence is due to a culture of technology-driven innovation, talent and Government support. This has led to heavy investment not only from Asian companies, but from Europe and US-based giants too.

Eric Turkington, Director at Fahrenheit 212, part of the Capgemini Group, said: “We are witnessing a rapid changing of the guard for global investment in innovation centers. The US and Europe have traditionally been viewed as dominant forces in innovation and technology but Asia could soon surpass the US for number of innovation centers built and operated.

Moreover, it is clear that funding alone is not enough — the success or failure of any innovation center hinges on how effectively it taps into the surrounding ecosystem, and the role it plays in driving a broader corporate innovation strategy.” 

Asia’s emergence as a leading hotbed of innovation is underscored by its position as a world leader in patent applications, a key indicator of technological and scientific breakthroughs. The region now accounts for over half (56 percent) of the world’s total patent grants. During the last decade (2005-15), Europe’s share of global patent grants has fallen from 24 percent to 13 percent.

“Innovation centers are corporate attempts at thwarting digital disruption. And companies seeking to out-manoeuvre disruption usually become the disruptors in their space. With Asia’s dominance in this edition of our research, it’s clear that innovation is becoming globally democratized.

Furthermore, by tracking associated technology trends, the focus on AI suggests that the future of corporate innovation will realize new business models, products and processes emanating out of Asia with global effects” said Brian Solis, co-author and Principal Analyst at Altimeter, a prophet company.

 The study also found:

Follow @BizRevAsia and @MrNLon on Twitter.

Asia’s growth is currently so strong that it could soon overtake the US as the biggest hub of innovation centers if it continues to grow at the same rate. This is the finding of a new global report, ‘The Spread of Innovation Around the World: How Asia Now Rivals Silicon Valley as New Home to Global Innovation Centers’, by Capgemini Consulting’s Digital Transformation Institute in collaboration with Fahrenheit 212, part of the Capgemini Group and in partnership with Altimeter Group’s Brian Solis.

Europe’s share of innovation centers slipped 4 percentage points between July 2015 and October 2016 – from 30 percent to 26 percent, prompted by an uncertain economic environment and regulatory challenges. In the same time period, Silicon Valley’s share of the world’s total innovation centers also dropped, from 18 percent to 14 percent.

Innovation centers, typically physical sites located in major global technology hubs, are increasingly being set up by large organisations as they seek to contend with digital disruption and transform themselves. When operated successfully, innovation centers allow large organisations to leverage an ecosystem of start-ups, venture capitalists, accelerators, vendors, and academic institutions in order to develop breakthrough products and solutions.

The report suggests Asia’s increasing influence is due to a culture of technology-driven innovation, talent and Government support. This has led to heavy investment not only from Asian companies, but from Europe and US-based giants too.

Eric Turkington, Director at Fahrenheit 212, part of the Capgemini Group, said: “We are witnessing a rapid changing of the guard for global investment in innovation centers. The US and Europe have traditionally been viewed as dominant forces in innovation and technology but Asia could soon surpass the US for number of innovation centers built and operated.

Moreover, it is clear that funding alone is not enough — the success or failure of any innovation center hinges on how effectively it taps into the surrounding ecosystem, and the role it plays in driving a broader corporate innovation strategy.” 

Asia’s emergence as a leading hotbed of innovation is underscored by its position as a world leader in patent applications, a key indicator of technological and scientific breakthroughs. The region now accounts for over half (56 percent) of the world’s total patent grants. During the last decade (2005-15), Europe’s share of global patent grants has fallen from 24 percent to 13 percent.

“Innovation centers are corporate attempts at thwarting digital disruption. And companies seeking to out-manoeuvre disruption usually become the disruptors in their space. With Asia’s dominance in this edition of our research, it’s clear that innovation is becoming globally democratized.

Furthermore, by tracking associated technology trends, the focus on AI suggests that the future of corporate innovation will realize new business models, products and processes emanating out of Asia with global effects” said Brian Solis, co-author and Principal Analyst at Altimeter, a prophet company.

 The study also found:

Follow @BizRevAsia and @MrNLon on Twitter.

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