Unilever Foundry has launched a global study and whitepaper The State of Innovation a report looking at the future of corporate and startup collaboration, identifying three predictions for the industry in the next decade, including that corporates and startups will be working under the same roof by 2025.
The report uncovers:
· 80% of corporates believe that startups can have a positive impact on a large company’s approach to innovation
· 46% of startups who have not worked with corporates are likely to do so in the future
· 89% of startups believe they’re able to deliver business solutions which can scale
‘The State of Innovation’, a global study and white paper from Unilever Foundry, was launched this week at Dmexco by Unilever EVP Global Marketing, Aline Santos.
The report looks at how the relationship between corporates and startups will continue to evolve. The white paper identifies three predictions on how the industry will change over the next decade.
Aline Santos, Unilever EVP Global Marketing, said: “Collaboration can no longer be viewed as an optional extra, it’s a strategic imperative. Startups are now widely recognised as invaluable sources of innovation, fueling growth and providing pioneering business solutions.
“The State of Innovation report reveals the appetite for collaboration between corporates and startups and signals a shift in the models adopted for future partnerships. As the Unilever Foundry continues its journey looking for exciting new partnerships, we are continually learning to ensure our future collaborations are effective as possible.”
Key findings from The State of Innovation:
1. Startups and corporates to work side by side in the same office by 2025
As the pace of change increases, corporations know that to meet evolving consumer needs they need to look for the right partners to innovate and build relationships with.
With 90% of corporates already working with a startup expecting to continue to do so, Unilever Foundry predicts physical shared working spaces will become commonplace to facilitate growth and break down barriers to collaboration. The research reveals the three most important reasons for working together: learning something new (startups 88%/corporates 85%); improving efficiency (startups 81%/corporates 81%); and solving business problems in new ways that can scale (startups 89%/corporates 80%).
2. The future of corporate and startup innovation: a short-term boom in “tech tourism” but structured programmes emerging as the long-term winner
After an initial rise in “tech tourism” – shorter term activity ranging from trips to tech HQs to less formal partnerships – a longer-term model will win out. While 83% of startups value the publicity from these short-term models, 80% of corporates believe that startups can have a positive impact on large companies’ approaches to innovation. As a result, Unilever Foundry predicts that large businesses will become more willing to invest in structured programmes as companies choose meaningful partnerships over PR-driven quick fixes. One startup described their experience with tech tourism models saying:
“At the low end of the spectrum is tech tourism: a brand shows up in Silicon Valley, rides the Google slide, meets a couple of startups – at best it’s inspirational but basically it’s a waste of time. […] Startups want meaningful new initiatives and uses of technology.”
3. Startup and corporate collaboration will evolve from an optional extra to a business–critical investment in the next five years.
In order to keep up with the accelerating rate of innovation in business, Unilever Foundry predicts that startup collaboration will become a necessity for corporates over the next five years, with around four out of five corporates (79%) and startups (78%) anticipating more collaborative work in the future. Startups believe they are up to the task, with almost nine in ten (89%) claiming they’re able to deliver business solutions which can scale.
Visit foundry.unilever.com/SOI-whitepaper for more information and to read “The State of Innovation” white paper.
The in-depth research was conducted with over 200 brand managers and heads of innovation and over 100 startup founders and directors across India, Singapore, United Kingdom and United States.