The survey results suggest that innovation is clearly in the air in the Indian business environment. The survey found that innovation gained in importance in the decision making processes of firms – both large and small. Firms find that an increasing proportion of their growth in revenue, profitability, reduction in costs and increase in market share can be attributed to innovations.
Thus investing in innovation is being seen as a necessity for business success. Most innovation is incremental, though breakthrough innovations can bring a more dramatic jump in sales, profitability and the like. As might be expected, it is large firms that can hope to do breakthrough innovations, while small firms typically do incremental innovations.