GE's finding was based on a questionnaire sent to 3,100 business executives in 25 countries. Each person was asked about the business climate of each country in regard to "innovation." The "Global Innovation Barometer" survey was carried out between October and December.
Japan's self-assessments were the lowest among the surveyed countries in seven of the 12 total categories.
"(These results) reflect the feeling of self-doubt caused by the prolonged sluggish economy," said Seiichiro Yonekura, a business history professor at Hitotsubashi University who analyzed the survey findings.
When asked whether Japan has a favorable climate for innovation, 81 percent of the respondents answered yes, while only 41 percent of Japanese executives answered so.