Apple And Google Are Down But The New S&P/BusinessWeek Global Innovation Index Shows That Innovation-Driven Companies Perform Much Better Than Most.

Posted by: Bruce Nussbaum on February 13, 2008

The news on Apple and Google is grim, as their stocks fall sharply from their highs. The fear is that people will pull back their discretionary spending as the recession unfolds, hurting sales and advertising.

That may be true for the immediate months ahead, but for anyone taking the medium and long-term view, it is clear that innovation and design pay real returns in revenues, profits and higher stock prices.

The new S&P/BusinessWeek Global Innovation Index shows that for the year past, from 2/12/07 to 2/12/08, the 25 companies in the index

outperformed the 100 companies in the S&P Global 100 by over 7% (7 percentage points) in price. This is a huge gain for innovation-driven companies over the normal constellation of global corporations.

The overall price gain for the S&P/BusinessWeek Global Innovation Index for the past year is plus 4.42% compared to the overall price loss of minus 3.18% for the S&P Global 100.

Now bare in mind this gain occurred despite Motorola blowing up (it's in the index because it ranked high in the 07 Most Innovative Companies survey and will probably drop out when the 08 rankings come out in April), and despite the fall of tech stocks in general.

Reader Comments

TOSPOL

March 4, 2008 8:47 AM

Very good article about INNOVATION and companies which have been drived by the Advanced Technology and the skilled employees

Post a comment

 

About

Want to stop talking about innovation and learn how to make it work for you? Bruce Nussbaum takes you deep into the latest thinking about innovation and design with daily scoops, provocative perspectives and case studies. Nussbaum is at the center of a global conversation on the growing discipline of innovation and the deepening field of design thinking. Read him to discover what social networking works—and what doesn’t. Discover where service innovation is going and how experience design is shaping up. Learn which schools are graduating the most creative talent and which consulting firms are the hottest. And get his take on what the smartest companies are doing in the U.S., Asia and Europe, far ahead of the pack.

BW Mall - Sponsored Links

Buy a link now!