2018 State of Curiosity Report)

Curiosity Report 1 state of Curio sity Report 2018 Curiosity Report 2 State of CuRiosity RepoRt 2018

3 Foreword 4 Chapter 1 Why does Organizational Curiosity Matter 6 Chapter 2 Evolving for Success – New Learning, New Insight 15 Chapter 3 Reimagining the Future 17 Bibliography 18 Appendix Curiosity Report 3

Foreword

In the pursuit of human progress, the single most im- In 2018, the year of our 350th anniversary, we have looked portant trait is curiosity – the desire to learn, explore, deeper. Ground-breaking technologies, such as CRISPR/Cas, and discover. It is the driving force for new possibilities. 3D printing, robotics, and artificial intelligence are funda- mentally changing how businesses operate, and doing so at For the last 350 years, curiosity has fuelled our company’s break-neck speed. Those businesses that can adapt quickly growth beyond horizons. It has forged paths that have led will thrive. The importance of cultivating a culture of inno- to scientific and technological breakthroughs; many of which vation fuelled by curiosity cannot be underestimated. To this have not only driven our economic growth, but also ad- end, we have built on our previous work and leveraged the dressed significant societal challenges. latest scientific research to evolve our model for measuring curiosity. We are excited to share our findings. This report We believe that cultivating a culture of curiosity leads to showcases results from the survey conducted with over 3,000 open, innovation-friendly environments where passionate workers from China, Germany, and the United States across teams can contribute effectively to business success. This five industries to provide clues to unlock further the potential belief catalyzed our ambition to define the role and value of of curiosity to drive innovation. curiosity in the workplace. In essence, our report shows what we have always believed: In 2016, we sought to define a precise concept of curiosity No business can afford to ignore the power of curiosity in the and to evaluate its impact in different markets and across workplace. With our results we can see the gaps in workplace different industries, with leading curiosity experts in the curiosity, but also the potential for improvement. In pursuit field. We published our findings in our State of Curiosity of innovation, we must dare to seek more knowledge and Report—the first-ever broad look at the impact of curiosity open ourselves to new ideas to improve our future actively in the contemporary workplace. We learned that 20% of the and responsibly. 3,000 employees surveyed identify as curious, with the highly curious demonstrating qualities, such as being organized, We invite you to join us as we continue this exciting journey collaborative, and detail-oriented themselves—all traits re- to propel curiosity-driven innovation. quired for high-performance. Over 80% of those surveyed felt that curious colleagues were most likely to bring an idea to life at work. Stefan Oschmann, Chairman of the Executive Board and CEO of Merck KGaA, Darmstadt, Germany But as is always the case at our company, answers lead to more questions. We remain eager to understand which countries believe strongly that promoting curiosity to drive innovation is a sound investment. Does the size of the organization influence the state of curiosity in the workplace? Which generation is the most curious and eager to innovate? How can we foster curiosity in support of innovation?

Always Curious Organization size matters. Curiosity Report 4

Chapter 1 Why does Organizational Curiosity Matter?

“Being curious means being open to new information and This line of questioning is exactly what is needed to outpace the actively seeking it out. It means embracing facts that don’t changing world to gain and maintain competitive advantage. fit your worldview and trying to understand their implications. It means letting your mistakes trigger curiosity “What differentiates us from our competitors? Curiosity and instead of embarrassment. “How on earth could I be so innovation are pre-requisites to always renew our business; wrong about that fact? What can I learn from that mis- those aren’t just words; it’s part of how we operate and drive take? Those people are not stupid, so why are they using strategic thinking. Within our sectors, in the Innovation Cen- that solution?” It is quite exciting being curious, because it ter or our digitalization initiatives—innovation and curiosity means you are always discovering something interesting.” are always at the heart of every strategy across our company. We’ve learned that finding time and having the audacity for - Hans Rosling, Ola Rosling & Anna Rosling Rönnlund, Factfulness: Ten Reasons We’re Wrong About the World – and Why Things are curiosity is a worthwhile investment that will show returns for Better Than You Think (New York: Flatiron Books, 2018), 249. our employees and our business.” - Isabel de Paoli, Chief Strategy Officer, Merck KGaA, Darm- stadt, Germany A spark of curiosity may translate into a revolutionary idea or product. From precision medicine that unlocks the promise of cut- ting-edge cancer therapies for patients worldwide, to heat- The best employees are curious. They are learners, constantly reflecting blinds that offers energy efficiency, we have sur- discovering new and better ways of doing things. The most vived and thrived for 350 years. Our innovations have successful organizations are those that not only survive, but improved the lives of millions around the world. The unique also thrive, in uncertain, rapidly-evolving times. They nur- driver of this success? Curiosity. A trait that has enabled us to ture working environments that encourage continuous learn- cultivate a strong culture of innovation. ing and exploration to help them adapt. They are more likely to question existing routines and explore different vantage “Cognitive flexibility, a gift from evolution, offers us endless points by asking the following questions: innovations; however, it is curiosity that drives us to harness its full power.” • How can we do this better? - Dr. Kunlin Wei, Associate Professor, Department of • What challenges might we face? Psychology, Peking University • Who can help us with this? • How can our work support the work of others? • How do we prepare for workforce changes driven by AI-automation? Always Curious • What might the world need 20 years from today? Did you know that your date of birth Why? Why not? could determine your curiosity levels?

Critical Curiosity (Reio and Wiswell, 2000). It is also strongly associated with In 2016, research published in our first State of Curiosity an enhanced ability to learn from training (Hassan et al., report showed that 84% of the more than 3,000 workers sur- 2015), a propensity to ask more unprompted questions, and veyed felt that a curious colleague is most likely to bring an an increased ability to make use of ambiguous information idea to life at work. (Peters, 1978). Theorists also agree that curiosity enables individuals to react to events with open, non-defensive atti- So, what makes a curious person critical in the workforce? tudes and effortful thinking. This can be of benefit in an ever- changing and unpredictable work environment, as individuals Curiosity, by nature, induces behaviors, such as information are less likely to perceive change as stressful and more likely seeking, which plays a meaningful role in workplace learning to adapt effectively. Curiosity Report 5

Extensive research shows a strong association between in- innovation goals. In collaboration with teams from Porsche creased curiosity and increased innovation—business lead- Consulting, the Weizmann Institute, and a team within our ers worldwide are recognizing and embracing curiosity as a organization, we measured baseline curiosity and then guid- mechanism to drive success. In a 2018 Harvard Business ed teams through interventions designed to unlock specific Review report developed in collaboration with our compa- Curiosity dimensions over a six-month period. At the end of ny, 1,000 business leaders in sectors such as technology, the study all teams reported that the interventions of the pro- healthcare, and manufacturing were asked “what makes gram had not only enhanced their curiosity levels, but also an innovation culture?” The leading answer for every sector? helped them reach their innovation goals (see quotes below). Encouraging and rewarding curiosity. “For companies to tap into their full potential, they don’t The Superpowers: Unlocking organizational curiosity need new technologies, but a new culture of working. A What are the inputs that drive curiosity? Does the possession culture of togetherness, where people build on the ideas of specific characteristics, or superpowers, determine an em- of others. A culture of openness, where it’s more import- ployee’s ability to be curious? Can curiosity be taught? ant to ask questions than to give answers. In short: a culture of curiosity. The CEO of the future is thus a Curiosity We are born with an innate curiosity that allows us, as chil- Enhancing Officer.” dren, to explore our new world. As we learn to crawl, walk, - Andreas Steinle, Managing Director of Zukunftsinstitut and talk, childhood curiosity ignites a passion to learn. Main- Workshop & Curiosity Council Member taining this passion to learn is the fundamental basis of curiosity. Our research shows that the highly curious, those high-performers with the greatest potential to innovate in our Organizational curiosity can be encouraged and with the organizations, possess four distinct characteristics, or Curi- right working environment no employee should be left be- osity dimensions, which together form the basis of our new hind. The results from this study have inspired us to create Multi-dimensional Work-Related Curiosity Scale: a more robust curiosity-enhancing toolset that seeks to unlock the power of organizational curiosity. We believe that the innovations of tomorrow will be determined by our organization’s most curious employees today. An organization’s JOYOUS corporate survival lies in the hands (and hungry minds) of its employees. EXPLORATION Gaining great pleasure from recognizing and seeking out new knowledge and information at work, and the Always Curious subsequent joy of learning and growing. One’s appetite for technology, digitalization and innovation is shaped by the country DEPRIVATION one resides in. SENSITIVITY Recognizing a gap in knowledge and pondering abstract or complex ideas to try to solve the problem and reduce the gap (offers a sense of relief when solved). OPENNESS TO PEOPLE’S IDEAS Training Curiosity “ They ask more, they have ideas they wouldn’t Valuing diverse perspectives and ideas from others, and have before, because before maybe they would have intentionally seeking out different approaches at work. been afraid of criticism.” DISTRESS - Weizmann Institute team lead TOLERANCE “The way the team approaches a new area has totally shifted to look forward to new things and hunt for Willingness to embrace the anxiety and discomfort that new things. come from exploring the new, unfamiliar and uncertain. ” - Merck KGaA, Darmstadt, Germany team lead

“The team is more aware of curiosity for sure. Now, If an enabling environment is fostered and supportive tools if there’s a task I need to work on, curiosity comes are provided, can these characteristics be exhibited by all naturally. Before the program I would have tackled employees? Driven by the desire to answer this question, we it by brainstorming with the team, but now I have conducted a six-month feasibility study in 2017 to assess the more useful tools at hand.” potential to increase workplace curiosity and achieve defined - Porsche Consulting team lead Curiosity Report 6

Chapter 2 Evolving for Success – New Learning, New Insight

ALWAYS CURIOUS One’s appetite for technology, digitalization and In our never-ending exploration of curiosity, we have evolved The Overallinnovation Scores is shaped by the country one resides in. our critical understanding of this important trait. In collaboration with experts, researchers, and business leaders in the • The overall Employee Curiosity Index score for the total fields of psychology, business, and innovation, we have devel- 3,004 survey respondents is 70.3.

oped a more sophisticated and rigorous model to measure the Abb• Theildung overall 1 Employee Curiosity scores are: Figure 1 • Deprivation Sensitivity score: 69.8 four distinct Curiosity dimensions that enable curiosity. OUR 2018 MERCK CURIOSITY MODEL MEASURES: OVERALL EMPLOYEE CURIOSITY SCORES • Joyous Exploration score: 69.9 Index value “Curiosity is not only about finding new ideas. It is about • Distress Tolerance score: 67.4 74.2 JOYOUS 70.3 69.8 69.9 being able to deal with the new, the complex. It is about • Openness to People’s Ideas score: 74.2 67.4 being able and willing to continue even if the new brings EXP• Average LemployeeOR OpennessATION to People’s Ideas is higher unpleasant feelings with it. That is the real strength of than all other Gainingdimensions great pleasure at 74.2. from recognizing and seeking out the Multidimensional Curiosity Scale: It combines all the 69.9• Average employeenew knowledge Distress and Tolerance information is at lower work, andthan the all pieces you really need for curiosity to function as fuel for other dimensionssubsequent at 67.4. joy of learning and growing. innovation.” Our research looks closer at curiosity in four distinct areas: - Carl Naughton,ALWAYS Ph.D., CURIOUS Linguistics and Educational Science, DEPRIVATION • Geographies ExecutiveO ne’sLecturer appetite at European for technology, Business digitalization School Wiesbaden, and SENSITIVITY co-founder of Braincheck GmbH & Merck KGaA, Darmstadt, • Generations Overall Deprivation Joyous Stress Openness to innovation is shaped by the country one resides in. Recognizing a gap in knowledge and pondering abstract Sensitivity Exploration Tolerance People’s Ideas Germany Curiosity Council Member • Industry Sectors or complex ideas to try to solve the problem and reduce 69.8• Organization Sizes the gap (offers a sense of relief when solved).

Using our new Curiosity scale, we aim to answer a few central Abbiquestions:ldung 1 Where are the curious? How old are the curious? OPENNESSFigure 1 TO Abbildung Detailvergleich OURWhich 2018 industries MERCK CURIOSITYhave the most MODEL curious MEASURES: employees? Does size PEOPLE’SOVERALL EMPLOYEE CURIOSITY IDEAS SCORES VERGLEICH IM DETAIL matter? Index value Valuing diverse perspectives and ideas from others,74.2 and JOYOUS 74.270.3 69.8intentionally seeking69.9 out different approaches at work. We launched our Curiosity survey in Germany, China, and the 67.4 EXPUS and LaskedO overR A3,000TION employees, across five industries, Average employee Openness to Gaining great pleasure from recognizing and seeking out to respond to questions regarding the role of curiosity in their STRESS People’s Ideas new knowledge and information at work, and the 69.9workplaces, and the enhancers and barriers to curiosity (see 72.2% subsequent joy of learning and growing. TOLERANCE Stress Tolerance appendix for full study methodology). Willingness to embrace the anxiety and discomfort that 67.4% 67.4 come from exploring the new, unfamiliar and uncertain. DEPRIV“The 2018 StateA of TIONCuriosity research highlights the similarities and differences in curiosity across countries and SENSITIVITY Overall Deprivation Joyous Distress Openness to industries. It’sRecognizing an important a gap in knowledgeupdate forand ponderingunderstanding abstract the Sensitivity Exploration Tolerance People’s Ideas 69.8characteristicsor complexof today’s ideas workforce. to try to solve” the problem and reduce - Sophie von theStumm, gap (offers Ph.D., a sense Director of relief Hungry when solved). Mind Lab, Abbildung Balkendiagramm mit Icons Figure 2 Department of Education, University of York & Merck KGaA, HEADLINE Darmstadt, Germany Curiosity Council Member TOTAL THRESHOLD INDEX VALUES Value Abbildung Detailvergleich OPENNESS TO Index value xxx 61.7 PEOPLE’SAnd our results have left usIDEAS more curious than ever. This is VERGLEICH IM DETAIL 56.6 55.4 Average 65.0 to 77.5 50.7 what we learned.Valuing diverse perspectives and ideas from others, and 34% 74.2 intentionally seeking out different approaches at work.

Low < 65.0 Average employee Openness to DISTRESS 33% People’s Ideas 72.2% TOLERANCE Stress Tolerance High > 77.5 Willingness to embrace the anxiety and discomfort that Total micro small medium large 67.4% 33% 67.4 come from exploring the new, unfamiliar and uncertain. respondents

*Important to note, gender differences had no significant impact on Overall Curiosity Index score. Figure 3 Abbildung low – high

AbbTOTALildung SCOREBalkendiagramm THREASHOLDS mit Icons OVERALL EMPLOYEE CURIOSITY SCORES AND Figure 2 THRESHOLD VALUES BY COUNTRY HEADLINEIndex value Value TOTAL THRESHOLD INDEX VALUES Value Index value xxx 71.9 Low Average Low 61.7 Average 70.3 70.4 68.6 56.6 55.4 35% 31% 50.727% 38% Average 65.0 to 77.5 USA Germany

34% High High

Low < 65.0 34% 35% 33%

Low High > 77.5 Total USA Germany China 38% Average medium large Total micro China small Respondants Respondents Respondents Respondents 33% respondents 32%

High 30%

Figure 3 Abbildung low – high

TOTAL SCORE THREASHOLDS OVERALL EMPLOYEE CURIOSITY SCORES AND THRESHOLD VALUES BY COUNTRY Index value Abbildung low – high horizonale Alternative Value TOTAL SCORE THREASHOLDS 71.9 Low Average Low Average Index70.3 value 70.4 68.6 35% 31% 27% 38% USA Germany Low Average High

High High 35% 31% 34%

34% 35%

27% 38% 35% Low Total USA Germany China 38% Average China Respondants Respondents Respondents Respondents 32% 38% 30% 32% High 30%

Abbildung low – high horizonale Alternative

TOTAL SCORE THREASHOLDS Index value

Low Average High

35% 31% 34%

27% 38% 35%

38% 30% 32% ALWAYS CURIOUS One’s appetite for technology, digitalization and innovation is shaped by the country one resides in.

Abbildung 1 Figure 1 OUR 2018 MERCK CURIOSITY MODEL MEASURES: OVERALL EMPLOYEE CURIOSITY SCORES Index value 74.2 JOYOUS 70.3 69.8 69.9 EXPLORATION 67.4 Gaining great pleasure from recognizing and seeking out 69.9 new knowledge and information at work, and the subsequent joy of learning and growing. ALWAYS CURIOUS One’s appetite for technology, digitalization and DEPRIVATION innovation is shaped by the country one resides in.

SENSITIVITY Overall Deprivation Joyous Stress Openness to Recognizing a gap in knowledge and pondering abstract Sensitivity Exploration Tolerance People’s Ideas 69.8 or complex ideas to try to solve the problem and reduce the gap (offers a sense of relief when solved). Abbildung 1 Figure 1 Curiosity Report 7 OUR 2018 MERCK CURIOSITY MODEL MEASURES: OVERALL EMPLOYEE CURIOSITY SCORES OPENNESS TO Abbildung Detailvergleich Index value 74.2 VERGLEICH IM DETAIL PEOPLE’S IDEAS JOYOUS 70.3 69.8 69.9 67.4 Valuing diverse perspectives and ideas from others, and EXPLORATION 74.2 intentionally seeking out different approaches at work. Where are the Curious? Curiosity is the driving force for innovation. Here at our Gaining great pleasure from recognizing and seeking out “ In looking at the landscape of curiosity we wanted to know, company, more than 51,000 employees worldwide work 69.9 new knowledge and informationAverage employeeat work, and the where do the curioussubsequent reside? joy of learning Do Opennessculture and growing. toand environment every day on developing, producing and selling advances in STRESS People’s Ideas influence how workers practice their curiosity? How does this science and technology for a better life. We are convinced 72.2% TOLERANCE relateStress to the trends of global innovation? that curiosity is one of the core competencies with which we Tolerance Willingness to embrace the anxiety and discomfort that DEPRIVATION are well prepared for the challenges that are ahead of us. 67.4% 67.4 come from exploring the new, unfamiliar and uncertain. SENSITIVITYThe Country Scores But curiosityOverall doesDeprivation not just happenJoyous by chance.Stress This isOpenness where to • Survey respondentsRecognizing from a gap Germany in knowledge had and the pondering highest abstract HR comes in. WeSensitivity work with Explorationleaders in theTolerance business People’sto pro Ideas- 69.8Employee Curiosityor complex Index ideas score to try toat solve 71.9 the compared problem and toreduce mote a corporate culture in which curiosity and the drive to scores of 70.4the and gap 68.6 (offers for a senserespondents of relief when from solved). the US discover new things are supported, including the acceptance and China, respectively (Figure 3). of failures. Our recruiting teams pay specific attention to the Abbildung Balkendiagramm mit Icons • Germany has the fewest employees with low curiosity expectations of future employees in R&D or product develop- Figure 2 OPENNESS TO Abbildung Detailvergleich HEADLINEwith only 27% of the German cohort with a low Curiosity ment, e.g. what type of work environment they need – and TOTAL THRESHOLD INDEX VALUES VERGLEICH IM DETAIL PEOPLE’SValueindex score compared to 35% IDEAS and 38% for the US and work with the business teams to ensure this is provided. In Index value xxx China cohorts,Valuing respectively diverse perspectives (Figure 3). and ideas61.7 from others, and addition, we deliver training and development solutions with intentionally56.6 seeking out different approaches at 55.4work. Average 65.0 to 77.5 74.2• The dimension scores across 50.7the three markets reflect the a focus on innovative working techniques, risk management 34% same trend as seen in the overall Employee dimensions or biases in decision making.” Average employee scores - Dietmar Eidens, Head of Group HumanOpenness Resources, to STRESS People’s Ideas Low < 65.0 • O penness to People’s ideas is rated highest and Merck KGaA, Darmstadt, Germany 72.2% TOLERANCE Stress 33% Distress Tolerance is lowest in all three markets. Tolerance Willingness to embrace the anxiety and discomfort that • In general, dimension scores in Germany tend to be Spotlight67.4% on Germany 67.4 come from exploring the new, unfamiliar and uncertain. High > 77.5 the highest, and in China the lowest. Germany had the highest overall Curiosity score. In Germany Total micro small medium large 33% respondents • An exception is Distress Tolerance, which is lowest in we saw the fewest employees with low Curiosity scores (27% the US. compared to 35% in US and 38% in China) (Figure 3.). All of the German employees’ dimension scores were higher than

thoseAbb ofildung China Balkendiagramm and US. mit Icons Figure 3 Abbildung low – high Figure 2 HEADLINE OVERALL EMPLOYEE CURIOSITY SCORES AND With the highest Curiosity score among the three countries TOTAL SCORE THREASHOLDS TOTAL THRESHOLD INDEX VALUES Value THRESHOLD VALUES BY COUNTRY surveyed, German respondents have a great desire to seek Index value Index value xxx Value 61.7 out new knowledge and56.6 information, coping well with stimuli55.4 Average 65.0 to 77.5 50.7 71.9 that are uncertain, complex, and conflict-laden. This may be Low Average Low Average 70.3 70.4 68.6 34% attributed to how many employees feel autonomous (48% 35% 31% 27% 38% USA Germany said they were offered personal ownership of their projects

Low < 65.0 versus 38% in the US. and 33% in China) and do not feel High High 33% restricted by their environment (only 14% said they were 34% 35% highly supervised in their work versus 19% in the US. And High > 77.5 33% in China). Total micro small medium large Low 33% respondents Total USA Germany China 38% Average “Individuals who believe they can cope with volatile, un- China Respondants Respondents Respondents Respondents 32% certain, complex, and ambiguous environments are more

High likely to gain the best positions and be most competitive Figure 3 Abbildung low – high 30% in the world of ideas. The ability to tolerate the anxiety TOTAL SCORE THREASHOLDS of dealingOVERALL with EMPLOYEE the new is CURIOSITYa new dimension SCORES to understand AND THRESHOLD VALUES BY COUNTRY Index value which people are prepared to be both successful and ful- Value filled in work and in life.” Abbildung low – high horizonale Alternative 71.9 Low Average Low Average - Todd70.3 Kashdan, Ph.D., professor70.4 and senior scientist at68.6 George TOTAL SCORE THREASHOLDS 35% 31% 27% 38% Mason University and author of Curious? and The Upside of USA Germany Index value Your Dark Side & Merck KGaA, Darmstadt, Germany Curiosity Council Member Low Average High High High

34% 35% 35% 31% 34%

Low

Total USA Germany China 38% Average 27% 38% 35% China Respondants Respondents Respondents Respondents 32%

High 38% 30% 32% 30%

Abbildung low – high horizonale Alternative

TOTAL SCORE THREASHOLDS Index value

Low Average High

35% 31% 34%

27% 38% 35%

38% 30% 32% Curiosity Report 8

Figure 4 Spotlight on the US OVERALL EMPLOYEE CURIOSITY SCORES / AND BY The US did not fall far behind Germany with an overall Curi- DIMENSION ON A SCALE OF 0–100 osity score of 70.4. However, US employees who were sur-

Overall veyed scored lowest in Distress Tolerance when compared 71.9 to other Curiosity dimensions and compared to employees 70.3 70.4 68.6 in Germany and China. The US employees surveyed tended to avoid anxiety-provoking work or felt their motivation was affected by distress (Figure 5).

The importance of this dimension cannot be underesti mated. How we cope with the discomfort of exploring the new is

Total USA Germany China crucial to expressing and acting on curiosity. Even if a US Respondants Respondents Respondents Respondents employee exhibits high levels of Joyous Exploration, Depri- vation Sensitivity, or Openness to People‘s Ideas, their

Deprivation Sensitivity overall curiosity can be hindered by his or her lack of Distress Tolerance. 70.5 71.4 69.8 67.5

Figure 5 TOTAL DISTRESS MEASUREMENTS FOR US RESPONDENTS

Not at all or Moderately Quite a bit/ Total USA Germany China Slightly/a Little Extremely Respondants Respondents Respondents Respondents 21% 30% 49%

Joyous Exploration I do not shy away from the unknown or unfamiliar even if it seems scary

69.9 69.9 71.1 69.6 23% 30% 47%

When probing deeper into a project that interests me, feeling anxious does not derail me

24% 31% 45%

The possibility of being distressed does not impact my motivation to work Total USA Germany China on new projects Respondants Respondents Respondents Respondents

25% 33% 42% Distress Tolerance When work is anxiety provoking, I tend to explore rather than avoid

67.4 68.9 67.1 66.3

Total USA Germany China Respondants Respondents Respondents Respondents

Openness to People’s ideas 74.2 76.1 76.3 70.3

Total USA Germany China Respondants Respondents Respondents Respondents Curiosity Report 9

Spotlight on China We explored Curiosity Index scores by generation to assess China had an overall Curiosity score of 68.6%. Four in ten the impact of age difference on curiosity levels. (42%) Chinese employees felt their organization provides them time to explore new ideas and allows them to choose The Generational Scores their own means to accomplish assigned tasks; however only • Millennials have the highest overall Employee Curiosity 33% of the employees surveyed felt that their organization Index score and highest curiosity dimensions scores offers them personal ownership of their projects compared to for Deprivation Sensitivity, Joyous Exploration and 48% of the German cohort – who enjoyed greater autonomy. Distress Tolerance, when compared with Generation Z, The Chinese employees also scored significantly lower on the Generation X and baby boomers. Openness to People’s Ideas dimension, at 70.3 when com- • Generation Z had the lowest overall Employee Curiosity pared to the US (76.1) and German (76.3) cohorts. This is Index score and lowest scores for Deprivation Sensitivity not a surprise as nearly 30% of employees from China high- and Distress Tolerance curiosity dimensions when lighted that they are rarely able to communicate with individ- compared with all other generations. uals outside their own project teams – reducing diversity of • Baby boomers had the lowest Joyous Exploration score perspectives and the opportunity for collaborative generation and highest Openness to People’s Ideas score when of ideas. compared to other generations.

How old are the curious? Millennials had the highest curiosity scores when compared ‘The youth are the future’ is a universal doctrine that has to other generations. Surprisingly, the youngest generation, shaped growth strategies across economies and businesses Generation Z, is falling short on curiosity. Millennials thrived worldwide. As stewards of future innovations, there is an ex- in their Deprivation Sensitivity, meaning that they are moti- pectation that they are the embodiment of curiosity and inno- vated to seek knowledge to fill a gap. They also reported feel- vation within the workplace. Bringing bold, fresh thinking that ing as though they have more support for curiosity than any disrupts established norms and delivers against the prom- other generation. For example, 46% of millennials feel that ise of tomorrow’s successes. The war for young talent rages they can choose their own means to accomplish a task (as across most business sectors. opposed to 29% of Generation Z).

Digitalization and Innovation at the Forefront in China Out of the three countries we surveyed, one stood out with regard to its view on the role of innovation and digitalization Lessons Learned in the workplace: China. More employees in China compared The articulated factors that enhance and to those in the US and Germany invested in a more inno- prevent curiosity vary across the three vative culture and placed a higher emphasis on digitaliza- countries, providing insight into the work- tion. This is most likely driven by an intentional drive by their place environments that encourage, government to invest and spend in these areas. This meant enable, and reward curiosity. Undoubt- that they were more likely to actively search for new ideas edly, cross-cultural differences play a sig and innovations at all stages of product service development nificant role in determining the culture in (52% of employees in China, verses 39% in the US and 37% these workplace environments. The value in Germany). They are also more likely to work in compa- systems of one’s society is present in nies that have defined goals and objectives related to digita- organizational life, and can shape hierar- lization (50% of employees in China, verses 39% in the US chical attitudes, behaviours and commu- and 41% in Germany). While China may have lower scores in nication styles. These cultural tenants can curiosity, they are more likely to place an emphasis on inno- have an impact on the different practices vation and digitalization in order to transform their work. In of curiosity in the workplace, for exam- the coming years, we will see if China’s focus on developing ple, determining whether employees are business-critical ideas and recognizing the role of digitaliza- given the autonomy to drive innovation or tion in their organization puts them at an advantage. To learn encouraged to communicate with individ- about the influence of cross-cultural differences on curios- uals outside their teams to garner diverse ity and innovation levels between the three markets investi- perspectives. gated, see ‘Exploring the Power of Culture’ in the Appendix. Curiosity Report 10

Figure 6 On the opposite end, why are we seeing the lowest Curiosity OVERALL EMPLOYEE CURIOSITY SCORES scores among our youngest generation? How do we foster BY GENERATION their curiosity, such that they have greater opportunity to

Overall innovate within our organizations? Can we unlock their inner superpowers using curiosity-enhancing tools? 70.3 72.2 70.1 69.9 66.5 When asked about how their employer encourages their curi osity, fewer Generation Z employees said they felt supported. For example, only 23% felt that they were given time to explore new ideas and just 31% said they were offered personal ownership of projects. The youngest employees

Total Generation Millennials Generation Baby also showed the lowest scores in Distress Tolerance, which Respondants Z X Boomers means they are less likely to explore a new idea for fear of negative consequences.

Deprivation Sensitivity

71.3 69.8 70.0 69.6 65.3

Total Generation Millennials Generation Baby Respondants Z X Boomers

Joyous Exploration

73.2 69.9 67.2 69.2 66.9

Total Generation Millennials Generation Baby Respondants Z X Boomers

Distress Tolerance

67.4 69.6 65.1 66.9 65.9

Digitalization and Innovation at the Forefront in China Total Generation Millennials Generation Baby Respondants Z X Boomers When looking at how employees value the role of innovation in the workplace, millennials are consis-

Openness to People’s ideas tently more positive about the importance of inno- 77.3 vation. 61% of surveyed millennials highly agreed 74.2 74.9 74.3 68.4 that investing in curiosity to drive innovation is a sound investment whereas only 43% of Genera- tion Z believed the same.

Baby boomers were generally more negative about the role of innovation in workplace culture. Only 30% of baby boomers (verses 55% of millennials) Total Generation Millennials Generation Baby Respondants Z X Boomers believe that innovation is an underlying culture and not just a word in the workplace Curiosity Report 11

Figure 7

FigureOVERALL 7 EMPLOYEE CURIOSITY INDEX SCORES AND THRESHOLD VALUES BY INDUSTRY SECTOR OVERALL EMPLOYEE CURIOSITY INDEX SCORES AND THRESHOLD VALUES BY INDUSTRY SECTOR

Low Average Low Average 27% 27% 28% 34% Low Average Low Average Lessons Learned 27% 27% 28% 34% Curiosity can and should be taught to all genera High High tions, however, Generation Z are prime candi- 46% 38% High High dates. With the right curiosity interventions and 46% 38% working environments, these newcomers to the Low workforce can offer their fresh perspectives and be 42% Average as curious as their millennial counterparts sooner. Low Average 33% Organizations can support these employees by 42% 33% creating a workplace culture where risk – and even High 25% failure – is encouraged in the pursuit of new ideas High and innovation. 25% Low Average Low Average 31% 34% 38% 38% Low Average Low Average

31% 34% 38% 38% High High

35% 24% High High Which industries have the most curious employees? Do cer- 35% 24% tain industry sectors employ the intellectually curious, or serve as fertile breeding grounds to cultivate curiosity and innovation? 74.8

74.8 71.9 71.5 We explore how employees scored on the Curiosity Index 70.3 across five industry sectors: Scientific R&D, Manufacturing, 71.9 68.1 70.3 66.9 71.5 Technology, Healthcare, and Public Administration. 66.9 68.1 The Sector Scores • Scientific R&D, Technology and Manufacturing employees have higher Employee Curiosity Index scores than the overall, or average, score for employees (70.3)

• Healthcare (68.1 Curiosity Index score) and Public Total Scientific Technology Public Manufact- HealthCare Administration (66.9 Curiosity Index score) are somewhat Respondents R&D Administration uring Total Scientific Technology Public Manu- HealthCare lower than average. Respondents R&D Administration facturing • 46% of Scientific R&D employees are highly curious, which is significantly higher than employees in all other sectors. This sector also has the lowest percentage of Employees working in Public Administration have the lowest employees with low Curiosity (27%) when compared to overall Employee Curiosity Index score (66.9) and the high- Scientific Technology Public Manufacturing Healthcare other sectors. est percentageR&D of employeesAdministration with low curiosity (42%). Only 25%Scientific of PublicTechnology AdministrationPublic employeesManufacturing feel that theirHealthcare orga- R&D Administration A scientist is innately driven to discover the undiscovered. nization employs creative individuals – hiring more creatives They pursue what they believe to be their mission: to try to would enhance their workplace curiosity. In addition, only one better understand the world in which we live. It is unsurpris- third of Public Administration employees believe their organi- ing therefore, that this sector has the largest percentage of zation provides them with time to explore new ideas. highly curious employees. 41% of Scientific R&D employees feel that their organization encourages curiosity by employ- ing creative individuals. In addition, a higher percentage of employees in this sector are provided with time to explore new ideas (47%), to have personal ownership of their projects (43%), and to choose their own means to accomplish assigned tasks (48%). Curiosity Report 12

Figure 8 OVERALL EMPLOYEE CURIOSITY SCORES / AND BY Innovative Discovery DIMENSION ON A SCALE OF 0–100 Employees working in Scientific R&D feel that

Overall their company is closely aligned with innovation, more so than any other industry, with 74.8 71.9 70.3 71.5 68.1 66.9 66% in high agreement that investing in curiosity to drive innovation is a sound investment and 51% believing that innovation is an underlying culture and not just a word. Again, these results are unsurprising due to the nature of Scientific R&D driven to discover

Total Scientific Technology Public Manu- Healthcare the undiscovered. Respondants R&D Administration facturing

Deprivation Sensitivity

74.1 71.3 69.8 70.7 69.1 66.6

Total Scientific Technology Public Manu- Healthcare Lessons Learned Respondants R&D Administration facturing Driven by a need to maintain competitiveness, all sectors, even ones that are not seen as innately

Joyous Exploration curious as an R&D focused sector, need to invest in 75.1 curiosity to thrive and survive. How do we change 69.9 72.0 71.3 65.5 67.2 the narrative that curiosity is not exclusive to scientific R&D? With today’s competitive environment, recognizing the importance of curiosity is a necessity—and an opportunity—for other sectors to begin to innovate in ways they never thought they would.

Total Scientific Technology Public Manu- Healthcare Respondants R&D Administration facturing

Distress Tolerance

71.5 67.4 68.8 69.0 64.1 64.5

Does size matter? There are arguments on either side regarding the relationship between organizational size and innovation. In large organi- Total Scientific Technology Public Manu- Healthcare Respondants R&D Administration facturing zations, robust structures, investments in R&D, and quality of talent are important factors that influence an organization’s

Openness to People’s ideas readiness towards innovation (Frambbach and Schilleweart, 78.6 2002) (Lee and Xia, 2006). In small organizations, flexibility 74.2 75.5 75.0 71.3 72.8 in structure, specialization, and strong ties with clients are innovation-influencing factors (Yusof et al., 2011). The Survey explores how employees scored on the Curiosity Index across organizations of different size: micro (0–9 employees), small (10–49 employees), medium (50–499 employees) and large (500+ employees).

Total Scientific Technology Public Manu- Healthcare Respondants R&D Administration facturing Curiosity Report 13

The Organizational Size Scores Figure 10 • Overall employee curiosity index score and the individual OVERALL EMPLOYEE CURIOSITY SCORES curiosity dimension indices increase proportionately as BY ORGANIZATION SIZE

the size of the organization increases. Overall • Employees working in large organizations had a curiosity 70.3 70.6 71.6 score of 71.6 63.8 65.7 • Employees working in micro-size organizations had a curiosity score of 63.8 • 37% of employees working in large organizations are highly curious compared to just 20% of employees working in micro-sized organizations.

Total Micro Small Medium Large “We have successfully spent the past 350 years working Respondants to make science faster due to our culture of curiosity. Our constant drive to do better for our customers has allowed Deprivation Sensitivity us to be at the forefront of the convergence of science 70.4 70.9 and technology. By leveraging technology, we are not only 69.8 63.4 64.9 able to make the lives of our customers easier, but we are also able to give our customers and ourselves more time to do what makes us uniquely human: be curious.”

- James Kugler, Chief Digital Officer, Merck KGaA, Darmstadt, Germany Total Micro Small Medium Large Respondants

Joyous Exploration

71.2 69.9 70.1 63.1 65.2

Figure 9 OVERALL EMPLOYEE CURIOSITY SCORES AND THRESHOLD VALUES BY ORGANIZATION SIZE

Low Average Low Average Total Micro Small Medium Large Respondants 52% 28% 47% 31%

High High Distress Tolerance

20% 22% 67.4 69.0 69.5 61.2 62.1

Low Average Low Average 32% 38% 30% 33%

High High

30% 37% Total Micro Small Medium Large Respondants

71.6 70.3 70.6 Openness to People’s ideas

74.2 75.8 65.7 70.4 74.0 63.8 67.5

Total Micro Small Medium Large Total Micro Small Medium Large Respondents Respondants

Micro Small Medium Large Curiosity Report 14

Figure 11 “Curiosity is a massive driver of intrapreneurship – that is, INDUSTRY DISTRIBUTION BY ORGANIZATION SIZE entrepreneurial behavior and actions on the inside of an established organization. Large organizations must cultur- Sci ally and systematically support the multiple dimensions of R&D Technology Public Admin Manufacturing HealthCare curiosity to help drive greater innovation and ultimately, Micro 3% 18% 25% 30% 24% sustainable growth for the future.”

Sci - Dr. Simone Ahuja, innovation strategist and founder of consultancy R&D Technology Public Admin Manufacturing HealthCare Blood Orange, HBR.org contributor, and author of the forthcoming Disrupt-It-Yourself: Eight Steps to Hacking a Better Business Before Small 6% 24% 22% 32% 16% the Competition Does (HarperCollins Leadership, 2019).

Sci R&D Technology Public Admin Manufacturing HealthCare

Medium 5% 25% 22% 34% 14%

Sci R&D Technology Public Admin Manufacturing HealthCare

Large 7% 27% 22% 31% 13% Lessons Learned While Curiosity increases among employees as organizational size grows, the research also shows that There is a direct, positive correlation between the number of individuals in smaller organizations benefitted in ways employees in an organization and the level of support they different from their counterparts. While employees receive for curiosity. Employees of larger organizations re- at smaller organizations are less likely to report reported that they received higher levels of support for curiosity ceiving autonomy, personal ownership of projects or from their employers than employees in smaller organiza- choosing their own means to accomplish tasks, they tions. Interestingly, the opposite is the case for barriers: the also are more likely to feel as though they can com- larger the organization, the more employees report that they municate with individuals outside their team or that encounter more curiosity barriers. For example, employees they can act on a new idea. While these results give in the largest organizations reported receiving little time to us a better sense of the experiences of employees, it work on curiosity, experienced less autonomy, and had fewer also only fuels the debate further over the ideal orga- opportunities to communicate with others outside their team. nization environment for innovation.

Innovation Connection business environments, increasingly shaped by technologi- The three types of employees who felt they were connect- cal advancements, digitalization is a necessary strategy for ed to an innovation movement in their organization and who an organization to remain successful—and the employees we knew how to personally contribute to innovation were: surveyed agreed. • Employees in China • Millennials Most surveyed employees highlighted that technology is • Highly curious cohorts essential for their organization’s success. These three types of employees also understand the role they can play towards innovation. Overall, the increase in While the majority see the role played by digitalization in employee curiosity correlates with how prepared they are to their organizations, the results stand out when we look at its innovate and our findings on how employees value innovation relationship with organizational size. There is a clear, posi- supports this. Demographic groups who have a higher curi- tive correlation between the adoption of digitalization initia- osity, such as millennials or employees in Scientific R&D, also tives and the size of the organization—in our survey as the tend to put a larger emphasis on the importance of innovation number of employees in an organization increased, so did in the workplace and the role it plays in daily work. the percentage of people who saw the value of digitalization. This correlation can be attributed to the idea that the larger Digitalization of the Future the company, the more resources, operational structures, and We are seeing a rise in the role of digitalization and technol- adoption initiatives can be implemented to support uptake ogy to drive innovation in organizations. In our fast-paced of technology. Curiosity Report 15

Chapter 3 Reimagining the Future

“The future for all organizations and their employees is: curiosity is highest among our millennials and lowest among change. We all will have to acquire new knowledge and Generation Z. If we truly are aware that ‘the youth are the adapt to new processes. In order for this not to be over- future’, then organizations must recognize and take effective whelming, we need more curiosity. Curiosity helps to measures to evoke innovation in the youngest cohort. see change as positive. Curiosity is the glue that keeps companies together on their way to the future. Curiosity “ Megatrends such as Big Data, autonomous driving and ensures their survival” artificial intelligence mean that the demand for increasingly small and powerful computer chips will continue to grow in the - Andreas Steinle, Managing Director of Zukunftsinstitut Workshop future. And all this also increases the need for innovative elec- & Merck KGaA, Darmstadt, Germany Curiosity Council Member tronic materials. Our business sector Performance Materials is one of the leaders in this vast market for electronic materi- Curiosity is more important now than ever before. als and we will stay very curious to pursue future innovations As the world of work continues to evolve, organizations seek in this area. Without our specialty chemicals, semiconductor novel technological advancements, and pursue breakthroughs technology could not have made such impressive progress that will drive expansion and innovations that offer economic over the past decades. In the future, our Semiconductor Solu- benefits. Likewise, the way in which we achieve these goals tions will continue to enable chip manufacturers to develop will also evolve. Curiosity has been our mechanism at our or- microchips with ever smaller structures, larger memory banks, ganization to facilitate this change over 350 years and it has higher processing speeds, and lower power consumption.” held a momentous role for us as we continue to fuel our jour- - Kai Beckmann, CEO Performance Materials, Merck KGaA, ney as a leader in science and technology. Darmstadt, Germany

“Curiosity is one of the most important engines of working People generate ideas and resources brings them to fruition. life. We almost never know the value a project will have when Curiosity has been shown to be indicative of workplace pro- we start out, and many pivotal inventions have come about gression. The integration of curiosity will see a shift in the from pure curiosity without visibility on practical application. way we attract the curious, the way we retain the curious, This study isolates important aspects of management-super- and the way we find the curious. As the results have demon- vision, communication, credit, and team-working that allow strated, it is no longer enough to hire the best, but to also all of us to bring our most creative and curious selves into retain the best, as the most curious amongst us seek stimu- the workplace.” lation within their working environments. - Amy Whitaker, Author, Art Thinking and Assistant professor, New York University Steinhardt Development of innovation-friendly industries As workplace curiosity cultivates momentum and organiza- The future is uncertain tions begin to recognize its potential, the dissemination of At our company, we have long recognized the power that cu- a curious culture at the organization level also increases. As riosity can have to establish an environment that cultivates organizations seek novel ways to address global challenges, innovation and our success can largely be attributed to the curiosity and its packaging will continue to disseminate across culture we have cultivated. With the emergence of disruptive industries, as a tool to accelerate an innovation-friendly technologies – artificial intelligence, big data - the future is environment. ambiguous, but curiosity will ensure organizations can thrive amidst change. Again, how does this change our current ap- “Curiosity is one of the keys relevant to unlock the innovative proach to achieving success? What does this mean for the potential of corporations. We see that the overall score is a bit future of work? lower in the last generation than it has been in the generations before. I believe that corporations will have to invest more into There will be a shift in approaches to workplace personal development programs, into processes that are fos- learning, training and professional development tering human-centered approaches to solve global challenges An organization’s most valuable asset are its people. Within and to accomplish global aspirations. I personally believe that environments where continuous learning is a key component Merck KGaA, Darmstadt, Germany, with its Innovation Center, of progress, such as the workplace, curiosity holds increasing has created an artifact that points in the right direction. How- value. Curious workers learn faster, retain information bet- ever, an artifact without philosophy is not enough. The organi- ter, seek out missing information and innovate more. Most zation will also need to embrace the principles and processes in importantly, studies have demonstrated that curiosity can in- the right fields of application to stay successful in the future.” deed be fostered and developed. Our results have shown that - Oliver Kempkens, Managing Director, Adapt or Die Ventures Ltd Curiosity Report 16

Curiosity is the future Figure 12 The future is uncertain. Both global and organizational chal- CAN CURIOSITY ADDRESS THESE GLOBAL ISSUES? lenges are more apparent than ever. If our research has Cancer illustrated anything, it is that demographic characteristics 72% determine curiosity and that there are visible gaps in work- 57% 58% place curiosity—but that is not where curiosity ends. 41%

Curiosity is malleable; it can be taught and cultivated. This research has provided a better sense of what different demographic cohorts value, and how organizations can grow their Total Low Average High curiosity to unlock their potential for innovation. With the right Respondants working environment, no employee should be left behind. If actively encouraged and nurtured throughout an organi- Climate Change zation, curiosity can accelerate idea generation and enable us to address global challenges and change with efficiency 73% and precision. Curiosity will and should have an increasingly 54% 53% important role at all levels, and it is never too late to take 37% a closer look at the curiosity around you and ask, what are we missing?

Always Curious

Addressing global challenges is a key focus for the future. Total Low Average High Respondants Curiosity is a mechanism to fuel the development of innovative solutions. This has significant implications for the world of work, where addressing global challenges will remain a pri- Infertility ority across industries and sectors.

52% Examples of key global challenges include addressing the ris- 38% 37% ing burden of non-communicable diseases such as cancers, 26% tackling pressing matters such as climate change, reducing the rate of infertility, increasing access to clean water, and finding a sustainable solution for world hunger. Now the question stands, does curiosity have the capacity to fuel the gen- Total Low Average High Respondants eration of solutions for these challenges?

We explored the future of work, by asking employees the Clean Water extent to which they feel curiosity had a role to play in address- 76% ing global challenges. Overall, the results agree that curiosity 58% 59% play a fundamental role in tackling that which lies ahead. 39%

As can be seen in figure 12 approximately 70% of the highly curious agree that curiosity plays a large role across these global challenges, whilst between 28–41% of those low in curiosity agree with this notion. Total Low Average High Respondants

“At Healthcare we thrive on curiosity! Scientific breakthroughs that treat or cure disease are driven by three World Hunger key qualities: 66% - A willingness to take intelligent risk unhampered by 49% 47% fear of failure 33% - An open-minded attitude towards non-consensus ideas that buck the trend - The humility to be comfortable with the idea that you don’t already have all the answers” Total Low Average High - Belén Garijo, CEO of Healthcare Business Sector, Merck KGaA, Respondants Darmstadt, Germany Curiosity Report 17

Bibliography

1. Frambach, R.T., Schillewaert, N., 2002. Organizational innovation adoption: a multi-level framework of deter- minants and opportunities for future research. Journal of Business Research 55, 163–176. https://doi.org/10.1016/ S0148-2963(00)00152-1 2. Hassan, M.M., Bashir, S., Mussel, P., 2015. Personality, learning, and the mediating role of epistemic curiosity: A case of continuing education in medical physicians. Learning and Individual Differences 42, 83–89. https:// doi.org/10.1016/j.lindif.2015.07.018 3. Hofstede, G., 2001. Culture’s consequences: comparing values, behaviors, institutions, and organizations across nations. 2 ed. thousand oaks, calif. : sage publications. 4. Kong-Seng and Lai and Nor’Aini Yusof, 2011. Organizational Culture and Innovation Adoption/Generation: A Proposed Model. International Journal of Social, Behavioral, Educa- tional, Economic, Business and Industrial Engineering 5, 1231–1237. 5. Lee, G., Xia, W., 2006. Organizational size and IT innovation adoption: A meta-analysis. Information & Management 43, 975–985. https://doi.org/10.1016/j.im.2006.09.003 6. Northouse, P, 2007. Leadership: Theory and Practice, 4th ed. Sage Publications, Thousand Oaks, CA. 7. Peters, R.A., 1978. Effects of anxiety, curiosity, and per- ceived instructor threat on student verbal behavior in the college classroom. Journal of Educational Psychology 70, 388–395. https://doi.org/10.1037/0022-0663.70.3.388 8. Reio, T.G., Wiswell, A., 2000. Field investigation of the relationship among adult curiosity, workplace learning, and job performance. Human Resource Development Quarterly 11, 5–30. https://doi.org/10.1002/15321096(200021)11:1<5: :AID-HRDQ2>3.0.CO;2-A Appendix Curiosity Report 18

Appendix

From our 2016 Curiosity Model to our 2018 Multi- dimensional Work-Related Curiosity Scale

In collaboration with Todd Kashdan, Ph.D., professor and senior scientist at George Mason University and author of Curious? and The Upside of Your Dark Side, we broke down curiosity into four definitive dimensions: Inquisitiveness; Creativity in problem solving; Openness to other ideas; and Distress Tolerance. This framework became the foundation of our unique approach to measuring curiosity.

In 2018, there was an opportunity to evolve our Curiosity Model in line with developments in the curiosity research. Therefore, we assessed the robustness of our model to see what, if anything, has changed. Again, we worked closely with our experts, Todd Kashdan, Ph.D., Carl Naughton Ph.D., Linguistics and Educational Science, Executive Lecturer at European Business School Wiesbaden, co-founder of Braincheck GmbH, and Sophie von Stumm, Ph.D., Director Hungry Mind Lab, Department of Education, University of York, to understand curiosity across markets. The findings left us more curious than ever.

When looking at the evidence we found that our dimensions had evolved. The dimensions Openness to Other Ideas and Distress Tolerance were still central features of curiosity. However, we found that Creativity in Problem Solving no longer sat within curiosity but worked in parallel with it. Inquisitiveness remained a key trait of a curious worker, however, exploring deeper, we found that inquisitiveness was motivated by two very different factors—either joy or anxiety. When we analysed it further, we found that employees either pursue knowledge for the pure joy of learning—what we may think of as the prototype of curiosity—or to address the anxiety associated with not knowing, essentially to fill a missing gap in their understanding. 33% 33% 33%

1,001 1,002 1,001 Respondents Respondents Respondents USA Germany China

45% 55%

Appendix 1,352 1,652 Curiosity Report 19 respondents respondents

45% 30% Survey Respondent Profile 13% A total of 3,004 respondents completed the survey. Demo- 33% 12% 33% 33% graphic breakdown of total respondents can be found below. Limitations of this research include the number of country markets surveyed, and that the Curiosity Index has only been validated in33% the US and 33%Germany. 33%

348 907 1,354 395 Respondents Respondents Respondents Respondents 33% 33% 33% Geographies 1,001GenerationGender Z1,002 Millennials1,001 Generation X Baby Boomers Respondents(after 1995)Respondents(1982-1995)Respondents(1961-1981) (before 1961) USA Germany China 33% 33% 33%

1,001 1,002 1,001 32% Respondents Respondents Respondents 25% 22% USA Germany China 45% 55% 14% 6% 1,001 1,002 1,001 Respondents Respondents Respondents USA Germany China

1,001 1,00245% 1,00155% Respondents Respondents Respondents 1,352 1,652 USA Germany China respondents respondents 188 765 671 953 427 45% 55% Respondents Respondents Respondents Respondents Respondents Science R&D Technology Public Manu- Healthcare Administration facturing 45% 1,352 1,652 30% Generation45% respondents 55% respondents Size of Organisation 12% 13% 56% 1,352 1,652 respondents 45%respondents 29% 30% 10% 12% 1,352 1,652 13% respondents respondents 45% 5% 30% 348 907 1,354 395 Respondents Respondents Respondents Respondents 12% 13% 45% Generation Z Millennials Generation X Baby Boomers (after 1995) (1982-1995) (1961-1981) (before 1961) 30%

12% 348 907 1,354 13% 395 146 311 879 1,668 Respondents Respondents Respondents Respondents Respondents Respondents Respondents Respondents Generation Z Millennials Generation X Baby Boomers Micro Small 32% Medium Large (after 1995) (1982-1995) (1961-1981) (before 1961) 348 907 1,354 395 25% 22% Respondents Respondents Respondents Respondents 14% 6% Generation Z Millennials Generation X Baby Boomers (after 1995) (1982-1995) (1961-1981) (before 1961) 348 Industry S907ectors 1,354 32%395 Respondents Respondents Respondents Respondents 25% 22% Generation Z Millennials Generation X Baby Boomers 14% (after 1995)6% (1982-1995) (1961-1981) (before 1961) 32% 25% 22% 188 765 671 953 427 Respondents14% Respondents Respondents Respondents Respondents 6% Science R&D Technology Public Manu- Healthcare 32% Administration facturing 25% 22% 14% 6% 188 765 671 953 427 Respondents Respondents Respondents Respondents Respondents 56% Science R&D Technology Public Manu- Healthcare Administration facturing 188 765 671 953 427 Respondents Respondents Respondents Respondents Respondents 29% Science R&D Technology Public Manu- Healthcare Administration facturing 10% 56% 5% 188 765 671 953 427 Respondents Respondents Respondents Respondents Respondents Science R&D Technology Public Manu-29% Healthcare Administration facturing 56% 10% 5% 29% 146 311 879 1,668 56% 10% Respondents Respondents Respondents Respondents 5% Micro Small Medium Large 29%

10% 5% 146 311 879 1,668 Respondents Respondents Respondents Respondents Micro Small Medium Large 146 311 879 1,668 Respondents Respondents Respondents Respondents Micro Small Medium Large

146 311 879 1,668 Respondents Respondents Respondents Respondents Micro Small Medium Large Figure 13 CROSS-NATIONAL COMPARISONS OF CULTURE

Power distance 80 Appendix Curiosity Report 20

40 35

Exploring the Power of Culture Culture is defined as the learned set of beliefs, values, rules, Power Distance norms, symbols, and traditions that are common to a group is defined as the extent to which the less powerful USA Germany China of people (Northouse P, 2007). In the early 1980s, the world- members of institutions and organisations within a renowned Professor Geert Hofstede, conducted one of the Individualismcountry expect and accept that power is distributed 91 most comprehensive cross-national studies of how values in unequally. the workplace are influenced by culture (Hofstede G, 2001). 71,4 He determined patterns of similarities and differences across Individualism 53 countries, enabling him to develop the five measurable is the degree of interdependence a society maintains dimensions of culture (he has recently added a 6th dimension among its members. 20 to his model). Masculinity refers to the distribution of roles between the Figure 13 genders which is USAanother fundamentalGermany issueChina for any CROSS-NATIONAL COMPARISONS OF CULTURE society to which a range of solutions are found.

Power distance Masculinity 80 Uncertainty Avoidance deals with with a society’s tolerance66 for uncertainty 62 60 and ambiguity; it ultimately refers to a man’s search 40 for Truth. 35

Long-Term Orientation describes how every society has to maintain some links with its own past while dealing with the USA Germany China challenges of the USApresent andGermany future. China

Individualism Uncertainity Avodiance 91 Indulgence is defined as the extent to which people try to control 71,4 their desires and impulses, based65 on the way they were raised. 46 30 20

USA Germany China USA Germany China

Masculinity Long-term Orientation 87 83

66 62 60

USA Germany China USA Germany China

Uncertainity Avodiance Indulgence

65 68

46 40 30 24

USA Germany China USA Germany China

Long-term Orientation 87 83

USA Germany China

Indulgence

40 24

USA Germany China Curiosity Report 21

Using Professor Hofstede’s model, we can identify cultural Uncertainty Avoidance: This dimension looks at way that differences across our three countries that may influence the a society deals with the fact that the future can never be practice of curiosity in the workplace. known: should we try to control the future or just let it hap- pen? The extent to which the members of a culture feel Power Distance (PD): At 80 China sits in the higher rankings threatened by ambiguous or unknown situations and have of PD – indicating that individuals are highly influenced by created beliefs and institutions that try to avoid these is formal authority and sanctions; and are in general optimistic reflected in the score on Uncertainty Avoidance. The US about people’s capacity for leadership. In contrast, a direct scores below average, with a low score of 46, on the Uncer- and participative communication and meeting style is com- tainty Avoidance dimension. There is a fair degree of accep- mon amongst the German population, control is disliked, tance for new ideas, innovative products and a willingness and leadership is challenged to show expertise and best to try something new or different, whether it pertains to accepted when it’s based on it. For the US, the fairly low technology, business practices or food. Americans generally score on Power Distance (40) in combination with one of the tend to be more tolerant of ideas or opinions from anyone most Individualist (91) cultures in the world reflects explicit and allow the freedom of expression. Germany is among emphasis on equal rights in all aspects of American society the uncertainty avoidant countries (65) so there is a slight and government. Within American organizations, hierarchy preference for Uncertainty Avoidance. There is a strong pref- is established for convenience, superiors are accessible, and erence for deductive rather than inductive approaches, be managers rely on individual employees and teams for their it in thinking, presenting or planning. This high uncertainty expertise. Both managers and employees expect to be con- avoidance score may provide some insight into why Ger- sulted and information is shared frequently. At the same man respondents had the highest Curiosity index score. To time, communication is informal, direct and participative to avoid uncertainty, one will recognize a knowledge gap and a degree. ponder the possibilities – which is in line with high Depriva- tion Sensitivity score from the German employee cohort.In Individualism: At a score of 20 China is a highly collectiv- contrast, survey respondents from China had low Depriva- ist culture where people act in the interests of the group tion Sensitivity scores – perhaps, aligned to the low Uncer- and not necessarily of themselves. Whereas relationships tainty Avoidance score (30). The Chinese are comfortable with colleagues are cooperative for in-groups, they are cold with ambiguity. or even hostile to out-groups. Undoubtedly, this cultural dimension will impact how project teams collaborate within organizations. In contrast, The German society is a truly Individualist one (67). Communication is among the most direct in the world following the ideal to be “honest, even if it hurts” – and by this giving the counterpart a fair chance to learn from mistakes. Curiosity Report 22

Methodology Our 2018 State of Curiosity Report builds on research we first initiated in the United States in 2015 and later developed into the first State of Curiosity Report in 2016.

The initial work involved an online survey that engaged 2,606 employees in the United States who shared opinions about the role of curiosity in the places where they worked. The study was then expanded in 2016 to include two additional online surveys, engaging 1,002 workers in China and 1,000 in Germany. Data from these two later studies were analyzed and published in the 2016 State of Curiosity Report.

For the 2018 State of Curiosity Report, we developed a new survey with unique curiosity questions in collaboration with the Curiosity Council Members. The survey questions were then reviewed and validated by curiosity and business experts in the three markets, Germany, China, and the United States and then cross-validated in Germany and the United States. Once validated, the new survey was launched in the three markets in 2018. The new survey engaged 3,004 employees total with 1,001 in China, 1,001 in the United States and 1,002 in Germany. These employees were asked to answer questions on the role of curiosity in their workplaces, enhancers and barriers to curiosity, digitalization, and innovation. The employee’s discrete answers were collected and analyzed for this report. The means were tested for indices (t-test) and the proportions were tested for percent distributions (z-test).

For additional insight on the research, we reached out to a number of academic and business leaders in multiple countries, including China, Germany and the United States, asking them to share their insights into the results and the role of curiosity and innovation in the field. Many of their ideas were incorporated into this report. Curiosity Report 23

curiosity.emdgroup.com Published in January 2019 Merck KGaA, Group Communications Frankfurter Strasse 250 64293 Darmstadt Germany Phone: +49 6151 72-0 [email protected] Curiosity Report 24