Housing is down sharply in the US and UK, food prices are soaring in Asia, and companies are getting hit by the deepening economic downturn. So what to do? Innovate. We launched a new S&P/BusinessWeek Global Innovation Index a few months ago based on our annual Most Innovative Companies list that Business Week does with the Boston Consulting Group. A look at the performance of the Innovation Index over the past 12 months shows that companies using innovation to drive organic growth do much better than the average.
Compare the numbers over the past 12 months:
S&P/BusinessWeek Global Innovation Index—up 2.16%
S&P 500 Index— down 7.76%
S&P Global 100 Index — down 3.2%
This is hugely significant. AS A.G. Lafley says in his book, Game-Change, innovation drives revene and profit growth. And in a recession, Lafley told me that it is innovation that allows P&G to maintain value and bolsters prices.
The new 2008 Most Innovative Companies list comes out Thursday night online and Friday in print as the lead package in IN--Inside Innovation. There are some great surprises in the Top 25, new companies from India and Detroit.
This will change the index, so S&P we will update it and bring out the fresh S&P BusinessWeek Global Innovation Index on May 1. It's the best way to track the most innovative companies around the globe.
So the conversation about innovation begins to change. Are the 25 companies in the index taking more risk than the rest of the corporate population? Same? Is the innovation incremental or disruptive? Or both? Is the innovation one-off or reliable and predictable?
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.