Wednesday, December 15, 2010
The Global Innovation 1000
Every year since 2005, Booz & Company has conducted the Global Innovation 1000 study, which investigates the relationship between how much companies spend on R&D and their overall financial performance. And every year, we reinforce the conclusion that there is no correlation between the two. Our findings and further analysis of what makes the most successful innovators great led The Economist to call the Global Innovation 1000 "the most comprehensive assessment of the relationship between R&D investment and corporate performance," and Tom Peters praised it as a "provocative, research-based article that is sure to get you thinking."
Since its inception, the study has been mentioned in more than 150 publications in 27 countries, including The New York Times, The Wall Street Journal and the Financial Times. In 2007, we received the Special Achievement Award for Advancing the Innovation Dialog from Innovate Forum, and in 2008 the Product Development & Management Association presented us with its Best of Visions award. And we were privileged to present the study’s results to the National Academy of Sciences & Engineering.
Since its inception, the study has included an analysis of corporate R&D by industry — the healthcare and software & internet sectors consistently spend the greatest proportion of their sales on R&D — and on global trends in innovation. Over the years, we have expanded the scope of the study to include critical issues such as the importance of customer-driven innovation and the recession's effect on R&D spending. Every year, the study has produced quantifiable insights and invaluable lessons for helping companies make more productive use of the R&D dollars they spend.
2010: How the Top Innovators Keep Winning
Succeeding at innovation requires two key elements: a focused set of innovation capabilities that is carefully tuned to a company’s innovation strategy, and the ability to align the innovation strategy with overall corporate strategy. This year’s Global Innovation 1000 reveals the capabilities best suited for each innovation strategy, whether it be need seekers, market readers, or technology drivers. Companies that achieve this, and then succeed in aligning their R&D efforts with overall strategy outperform their industry peers in terms of both profit margins and market capitalization growth.
To download the actual study in PDF, please click below:
Global Innovation 1000