Analytics, Business, Innovations, Lithuania, Markets and Companies

Pulse survey conducted by PwC (PricewaterhouseCoopers) revealed that 53% of polled Lithuanian company leaders believe the development of new products and services ensures business success. However, only 9% indicated that innovation is among the top three priorities and that they plan to invest in it in the next 12 months. While as much as 67% of respondents stated that in the next 12 months they plan to invest in increasing operational efficiency.

According to PwC Management Consulting Director Audrius Cesiulis, the survey reflects a prevailing opinion that primary competitive advantages of Lithuanian companies' are lower operational expenses and production of goods with low prime cost. Such opinion became predominant due to the financial crisis.

"With the rising economy and increasing wages such competitive advantage will diminish. So in the long run we will have to find other sources of competitive advantage – one of which is innovation. It can be applied not only to production but to new business models, operational processes and information systems – this would give companies a unique long-term advantage," said Audrius Cesiulis.

The survey revealed that attitude towards business process efficiency and importance of innovation has changed significantly since 2009. About two thirds of world company leaders now think that innovation and operational efficiency are equally important to succeed.

46 leaders of the major Lithuanian companies of different industries participated in the survey.