The greatest innovations of our time will be those that help address human needs, rather than those that simply create the most profit, according to a new study that outlines a changing landscape for innovation in the 21st century.

In his State of the Union address last month, President Obama called on the United States to “out-innovate” the rest of the world. According to a new survey of executives worldwide, the U.S. already has.

In a first-of-its-kind report, released last month, 67 percent of business leaders surveyed said the U.S. tops the list of innovation-leading countries, followed by Germany (44 percent), Japan (43 percent) and China (35 percent).

General Electric’s GE Global Innovation Barometer, which outlines a new landscape for innovation, is based on an independent survey of 1,000 business executives in 12 countries, including Australia, Brazil, China, Germany, India, Japan, Sweden and the U.S.

According to the study, 95 percent of executives believe innovation is the main lever for a more competitive national economy, while 88 percent believe innovation is the best way to create jobs in their country.

While the notion that innovation drives prosperity is not new, the survey sheds light on the evolving definition of prosperity. In the study, 77 percent of respondents said they believe the greatest innovations of the 21st century will be those that help address human needs — such as improving health quality (87 percent), enhancing energy security (82 percent) and improving access to education (81 percent) — rather than those that simply create the most profit.

“But just how to accomplish that will take a uniquely 21st century path, as respondents are prioritizing technology that addresses local needs; looking for innovation from smaller organizations; and pursuing strategic partnerships to make tangible innovation happen,” according to GEreports. “All of these areas are converging as problems are now bigger — which involves a wider system of players.”

The findings show that traditional means of innovation are changing, placing more emphasis on individuals and small to midsized enterprises (SMEs) while creating a greater need for collaboration.

In fact, 75 percent of business leaders agreed that the way organizations innovate in the 21st century will be “totally different” from the way they innovated in the past. For instance, the same percentage said that more than ever, individuals and SMEs will be as innovative as large corporations, and 86 percent said that 21st century innovation is about partnership between several entities as opposed to the success of a single organization. Moreover, 76 percent of executives said they believe innovation must be tailored to local market needs.

Respondents also emphasized creativity as a critical means to innovation. Nearly seven in 10 executives (69 percent) said that innovation is now driven more by people’s creativity than by high-level scientific research, while 58 percent agreed that having more “out-of-the-box” thinkers on the team is the No. 1 factor that will help organizations be more innovative.

The report illustrates that the rules around innovation are changing, according to Beth Comstock, senior VP and chief marketing officer at GE.

Companies must “embrace a new innovation paradigm that promotes collaboration between all players — big, small, public and private — fosters creativity and emphasizes solutions that meet local needs,” Cornstock said in an announcement of the findings.

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How to Make Room for Big Ideas

Cultivate Corporate Creativity

Resources

GE Global Innovation Barometer 2011
GE, January 2011

…New Expectations and Parameters for Innovation in the 21st Century
GE, Jan. 26, 2011

GE Global Innovation Barometer: Partners & Localization Are Key
GEreports.com, Jan. 26, 2011