CEOs of China-headquartered companies are prioritizing innovation to drive growth and have highlighted it as one of their top priorities, a recent report showed.
Almost half of the China respondents placed "fostering innovation" as one of three strategic priorities for the next three years -- compared to a just 21 percent worldwide, according to a report from global accounting firm KPMG, which gathered responses from 1,268 CEOs worldwide, including 129 from China.
In addition, 92 percent of China respondents believed it was important to include innovation in their business strategy, with 47 percent placing innovation at the top of their personal agendas -- compared to 23 percent globally.
"In a rapidly evolving and vibrant market like China, CEOs need to think about adapting their business models to ensure their products and services are attractive to a growing consumer market," says Honson To, co-chairman of KPMG China.
The survey showed that about half of the China respondents viewed new products as the primary source of growth over the next three years.
In addition, China's CEOs identify "new product development," "increasing data analysis capabilities," and the "Internet of Things, machine-to-machine technology, Industrial Internet or other aspects of technology" as the top three focus areas for further investment in the next three years.
Meanwhile, about two-thirds of China CEOs regard China as the market with the greatest potential for growth, followed by ASEAN and the United States. Fifty-three percent said they would pursue new partnerships and alliances to accelerate the execution of business strategy -- a significantly higher percentage than their peers in other countries.
China CEOs said emerging technology and strategic risks were the key issues they were most concerned about, while worries over whether or not their products or services will be relevant three years from now also weigh heavily. Finding the right talent in the strategic areas of the Internet; data and analytics; digital; innovation; and corporate social responsibility is another pressing issue.
The survey results underscored China's transition from an investment-intensive, export-led model of growth to one driven by consumption and innovation. The findings are also consistent with the 13th Five-Year Plan, which highlighted innovation as a key growth tenet.
