The report, based on a survey of 2,800 senior business executives in 22 countries, including 200 respondents in India, identifies the top enablers for innovation in the country as talent ('creative' talent and people with technical expertise), financial support from public authorities and long-term support from investors.

When asked to identify the three countries they consider "innovation champions", 65 per cent of the global respondents identified the US, followed by Germany (48 per cent), Japan (45 per cent), China (38 per cent), Korea (13 per cent) and India (12 per cent).

"Creating conditions for meaningful innovation requires the right blend of internal and external factors that can readily be adapted to meet individual market and customer needs," GE Senior VP and Chief Marketing Officer Beth Comstock said.

Only 12 per cent of the global respondents identified India as one of the top three innovation champions, compared to 23 per cent of Indian respondents.

The report indicates a 'balanced' perception of the environment for innovation in the country, with respondents more satisfied with private investment and government support for innovation.

However, intellectual property protection and research and development partnerships with academic universities were cited as the key challenges to creating an innovation-friendly environment in the country.

The report said that 36 per cent of the Indian respondents in the survey expected 'large business' to drive most of the innovation over the next decade -- compared to 27 per cent in an earlier survey -- while 35 per cent believed small and medium enterprises would be the most innovative.

In terms of sectors, energy, followed by healthcare, telecommunication and FMCG, were the areas with the most innovation-driven growth potential, according to the survey.

A resounding 83 per cent of the Indian respondents believed that innovation must meet local market requirements.

While India respondents to the survey shared their global peers' view that "great" innovation would address human needs -- rather than reaping profits -- only 78 per cent of them said that great innovation brings value to society as a whole, compared to 84 per cent globally.