The report indicates a pressing need for Israeli organizations to embrace a broader approach to innovation, particularly in traditional sectors, to maintain their competitive edge.
The disparity between central and peripheral organizations suggests that targeted investments in innovation infrastructure in less developed areas could stimulate overall economic growth in Israel.
If the current trends continue, Israel may risk losing its reputation as a global innovation powerhouse, particularly if organizations do not adapt to changing market conditions and embrace more disruptive innovation strategies.
Increased focus on innovation metrics and defined roles for innovation managers could lead to more effective change management and a revitalization of the innovation landscape in Israel.
The recent Innovation Report 2024 by the Israeli Institute for Innovation Assessment (INSA) reveals concerning trends in Israel's innovation landscape. Conducted in collaboration with the Ono Academic College, the report surveyed 200 organizations across 35 industries, highlighting significant gaps that threaten Israel's status as a global innovation leader.
Key findings indicate that only 2% of organizations in Israel are engaged in promoting disruptive innovation, which is essential for creating new market opportunities. In contrast, 55% of organizations focus on conservative innovation, primarily improving existing products, indicating a reluctance to venture beyond established comfort zones.
The report also underscores a lack of clear innovation metrics (KPIs), making it challenging for companies to assess their success and guide future innovations. Many organizations lack a defined role for innovation managers, which hampers decision-making and strategic innovation efforts.
Additionally, the report highlights a stark contrast between organizations in central Israel and those in peripheral regions. Companies in the center outperform their peripheral counterparts on nearly all innovation indicators, facing fewer barriers such as resource limitations and knowledge gaps.
- The auto-tech sector stands out as a positive exception, with significant investments in open innovation, which fosters collaboration between organizations and external entities like startups and research institutions. However, traditional industries such as retail and logistics struggle to adapt to evolving market demands.
- Despite the challenges outlined in the report, there are positive developments in the food industry and local authorities, which are making strides in customer experience innovation. The transportation sector is also showing promising trends towards efficiency and profitability.
