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The World's 50 Most Innovative Companies

In a climate when innovation efforts and research and development budgets are likely to see more scrutiny than ever, our 2008 list of the World's Most Innovative Companies adds three financial measures to the mix to determine the rankings. For this year's list, votes cast in the proprietary BusinessWeek-BCG survey received 80% of the overall weighting, stock returns were weighted 10%, while three-year revenue and margin growth each got 5%. While these changes -- only votes from our survey counted in the past -- marked the biggest shift yet in our rankings of the World's Most Innovative Companies, there are some similarities to previous years. Once again, Apple's design whizzes lead our list, followed by Google’s search geniuses and Toyota's hybrid car mavens. But the added financial metrics and the greater diversity of our survey, which polled more global and C-suite respondents than ever also helped to produce a few big changes. Global names such as Tata Group and Nintendo, both making their first appearance, landed in the top 10. Traditional innovation icon 3M plummeted from No. 7 to No. 22. And dark horses such as No. 18 General Motors, which has suffered through a tumultuous year financially, received a surprising number of votes thanks to concept cars like the electric Chevrolet Volt and the Detroit automaker's renewed focus on design. For a full explanation of our methodology, click here -- and see the footnotes at the bottom of the table.

DATA: Analysis and data provided in collaboration with the innovation practice of the Boston Consulting Group and BCG-VaueScience. Reuters and Compustat were used for financial and industry data and Bloomberg for total shareholder returns. *Compound growth rates for revenue and operating margins are based on 2004-07 fiscal year data as originally stated. Operating margin is earnings before interest and taxes, as a percentage of revenue. Where possible, quarterly and semiannual data were used to bring performance for pre-June yearends closer to December, 2007. Financial figures were calculated in local currency. **Stock returns are annualized, 12/31/04 to 12/31/07, and account for price appreciation and dividends. ***Calculating three-year compound annual growth rate for operating margins was not possible when either figure was negative.