GCC chemical producers are increasingly open to innovative insights and ideas from research institutions, academia and technology providers to identify new business opportunities and maintain their competitive edge, said a new survey.

The report titled ‘Unlocking Open Innovation in the GCC chemical industry’, by the Gulf Petrochemicals and Chemicals Association (GPCA), is based on a survey amongst GPCA member companies and measures perceptions, challenges and opportunities in fostering open innovation in the chemical industry in the region.

The clear majority of the GPCA member companies surveyed support open innovation and practices it, said a statement.

Dr Abdulwahab Al Sadoun, secretary general, GPCA, said: “Open innovation has a key role in maintaining the global competitiveness of the chemical industry in the Arabian Gulf.”

“The broadening of research beyond traditional research and development (R&D) boundaries and the increased collaboration with external parties has become a crucial component in the race for new, innovative technologies,” he said.

Investments in R&D were estimated at $529 million in 2014, according to the GPCA. This figure is nearly double from the $368 million expenditure in 2013 and is notable for being the highest increase in R&D spending in petrochemicals globally, said the report.

Al Sadoun: “Open innovation enables GCC chemical producers to access external solutions, experiences and competencies relevant to their innovation agenda faster, cheaper and often at a higher level of innovativeness.”

“There are positive developments: more than half of all respondents have indicated that this attitude has been employed within their organisations, and there is a strong indication that this trend will continue into the medium term,” he added.

An estimated two-thirds of the sample has been practicing open innovation within the last five years, with a further 24 per cent indicating that these policies are or will be implemented within their companies, added the report.

These activities include collaborating in R&D with academia, integrating customer networks in the production cycle and joining forces with competitors through sharing best practice, it said.

For Open Innovation to succeed, organisations must nurture the right kind of environment for this mindset to develop, whether it is through supporting the employees to providing rationale behind innovation spending.

“There are qualitative and quantitative activities that achieve an Open Innovation culture,” concluded Al Sadoun.

The report was released during the 3rd Research and Innovation Summit, which kicked off yesterday (March 1) and concludes today (March 2), in Dubai, UAE. – TradeArabia News Service