The Boston Consulting Group, working in partnership with BusinessWeek, recently completed its fifth annual global survey of senior executives on their innovation practices. This report summarizes the survey’s results. It covers the full suite of interrelated activities involved in turning ideas into financial returns, going well beyond idea generation and new-product development to include such issues as portfolio and life-cycle management, organizational alignment, and demands on leaders. It discusses what works and what doesn’t and the actions companies are taking to make innovation happen. Finally, the report offers pragmatic advice for individuals who want to make a difference in their organizations.