BCG finds Asian firms surging ahead in innovation focus, while digital maturity and agentic AI reshape competitive landscapes.
Mumbai/New Delhi, 30th June 2025: A new report from Boston Consulting Group (BCG), Most Innovative Companies 2025: In Disruptive Times, the Resilient Win, reveals that 95% of Indian companies consider innovation a top-three strategic priority—the highest level globally alongside China.
Analyzing two decades of innovation data, BCG found top innovators outperformed the broader market by an average of 2.4 percentage points annually in total shareholder return (TSR). Yet despite steady R&D investments, many firms struggle to maintain innovation leadership, with a 24-point drop since 2021 in executives seeing their firms as innovation leaders.
BCG’s study also shows Asian firms, especially from China and India, rising sharply in the global innovation landscape. In 2023, Chinese companies claimed 16% of the top 50 most innovative firms, compared to none in 2005. Meanwhile, Europe continues to lag, with companies ranking lower and appearing less consistently on the list.
Digital maturity is a clear differentiator: serial innovators referenced digital innovation topics nearly four times more often than their peers. Looking ahead, agentic AI is poised to raise the bar for innovation even further.
BCG’s report calls on C-suite leaders to rethink their innovation strategies in light of geopolitical shifts by reassessing ambitions, portfolios, talent, and global footprints.
Amy MacDougall, BCG partner and coauthor, said,
> “The best innovators don’t just weather storms—they redesign their strategies in real time. Now is the time for bold action to future-proof innovation systems.”
Links: https://www.bcg.com/
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