Lack of ideas has become a problem

Following a joint investigation of innovation, 3M, NatWest and the CBI have concluded that there is simply a lack of new ideas in UK business.

(OK, we're all thinking the same thing - painful irony that NatWest should be involved in a study that tends to support the criticisms levelled at it by the Bank of Scotland. Maybe just a case of bad timing.)

Other main constraints on innovation are the difficulty of finding finance and the amount of competition.

On the other hand, competition also works as a spur to innovation, the study confirms. This is second only to pressure from customers as a motivator. In response, the amount of money spent on developing new products and services has continued to increase, focusing mainly on process efficiency and cost control.

3M rounds out the results of the survey by offering its own tips for innovation:

• create goals and communicate the vision
• understand the customer's needs for today and for tomorrow
• encourage creativity
• empower employees
• encourage risk taking
• support implementation
• know how to fund new ideas
• protect your ideas
• be ready to share when that is more appropriate
• be ready for change.

Elliott Chase