Large corporations are missing out on a $1.5 trillion global growth opportunity by not collaborating with entrepreneurs on digital innovation, reveals a new study by Accenture. This missed opportunity, representing 2.2% of global GDP, exists despite the fact that businesses of all sizes recognize the need for digital transformation.

The report, “Harnessing the Power of Entrepreneurs to Open Innovation,” surveyed over 1,000 entrepreneurs and 1,000 large companies across G20 nations. Findings indicate that 82% of corporations acknowledge the learning potential startups offer in digital business transformation. These companies anticipate a rise in revenue generated through entrepreneur collaborations, from an average of 9% currently to 20% within five years.

Both parties agree that traditional corporate venturing and incubator models will evolve into more open, collaborative innovation. This shift involves moving beyond mere funding towards a model where corporations and startups jointly develop innovations within broader networks. However, discrepancies exist in how they perceive this collaboration.

While 78% of corporations view collaboration with entrepreneurs as crucial for their growth and innovation, only 67% of entrepreneurs share this sentiment. Furthermore, there’s a trust gap: 41% of corporations believe startups are committed to their growth, while only 24% of entrepreneurs feel the same about corporations. This disparity is further highlighted by the fact that entrepreneurs are four times more likely than corporations to perceive a lack of commitment from their counterparts (29% versus 7%).

“In today’s digital economy, corporations can disrupt markets by collaborating with innovative startups to co-create products and services,” says Paul Daugherty, Chief Technology Officer at Accenture. “This goes beyond simply funding startup innovation; it necessitates active participation—pooling ideas, assets, and intellectual property. It demands new approaches to risk and reward sharing, ensuring a more equitable distribution.”

The report highlights that enhanced digital collaboration between G20 corporations and entrepreneurs could unlock an additional US$1.5 trillion in global economic output. This equates to a 2.2% boost to global GDP, as per Accenture’s Digital Collaboration Index and economic model. Of this potential, US$779 billion would stem directly from increased corporate revenues, while US$671 billion would result indirectly through economic activity within value chains.

The Index, utilizing survey data and economic modeling, forecasts the potential benefits of increased digital collaboration. It reveals that the top 20% of collaborators experience higher revenue growth. If all companies were to emulate this level of collaboration, revenue growth rates could surge between 3% and 18% for entrepreneurs and 2% and 16% for large corporations.

“Transitioning to open innovation requires corporations to acknowledge that collaboration can’t be dictated solely on their terms, within their confines, or solely for their benefit,” states Jitendra Kavathekar, MD of Open Innovation at Accenture. “Thriving in digital disruption necessitates new innovation models where partners collaborate, experiment, embrace failure, and iterate in more entrepreneurial environments. This transformation hinges on increased participation within digitally-enabled networks, fostering collective innovation.”

*Accenture’s research delved into the perspectives of entrepreneurs and large companies on collaboration and innovation. This research, conducted in partnership with the G20 Young Entrepreneurs’ Alliance, encompassed:

· An online survey of 1,002 entrepreneurs and 1,020 executives from large companies · In-depth interviews with 20 executives from companies and institutions · An analysis of the digital business and collaboration landscape across all G20 countries