OpenInnovation

Top 10 Companies The Market Is Rewarding For Their Unique Innovations

Market pressures can drive companies to innovate, but corporate innovation can also drive market value.  One of the biggest drivers in how the market rewards companies and drives their stock prices higher is how well they can sustain innovation and invest in that innovation.  Across industries, as companies successfully innovate, valuations tend to move higher.  By identifying the companies the market is rewarding for continued success in innovation, we might be able to understand what kind of companies the market will reward in the future.

The GIM Institute (GIMI) and Valens Research worked together on this piece, leveraging GIMI’s deep insights in innovation and Valens knowledge of the UAFRS framework and corporate performance and valuation to identify great innovators who the market is rewarding for their innovation.  We’ve found 10 unique companies across the global corporate universe that are worthy of highlight.

We identified these companies using a multi-step process:

  • Identified firms with an excellent history of innovation, in products, processes, creating new markets and other areas.
  • Reviewed that universe of companies to see which companies have been able to generate value in terms of innovation based on their UAFRS-adjusted Return on Assets (ROA) being well above their required rate of returns for a multi-year period of time.
  • Verified those companies continued to invest in innovation and to grow, as identified by rapid investment in UAFRS-adjusted Asset growth into high ROA businesses.
  • Identified which of those companies the market was rewarding for their innovation with premium valuations.

To read more about GIMI and Valens and the processes we use to analyze companies, read at the bottom of the article.

 

Below are the 10 unique companies

 

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Top 10 Innovation Trends in Pharmaceutical Industry

Pharmaceutical (Pharma) industry is a set of public and private organizations that discover, develop, and manufacture drugs and medications (pharmaceuticals).  The 19th century is the beginning of the modern era of the pharmaceutical industry, because then it started focusing on chemical synthesis. Prior to that, for thousands of years people relied on medicinal properties of plants, animals, and minerals. The 20th century marks the unification of chemistry and physiology, which increased the understanding of basic drug-discovery processes. Today the pharmaceutical industry discovers myriad of drugs to prevent and treat even most complicated illnesses, while facing challenges of attaining regulatory approvals, confidentiality and pressure from patients.

The pharmaceutical industry invests more of its top line earnings into R&D than any other industry – roughly 15%. However pharma industry is still known as slow adopter of innovation. The reason is, that pharmaceutical industry is overly regulated, in order to ensure that medications are safe to consume. Furthermore, most of pharma companies have extremely strict internal policies, which restrict them from sharing the data with the others. It slows down the processes dramatically.

Innovation Thought Leaders Ronald Jonash and Hitendra Patel in one of their Innovation management and strategy books Healthovate! highlight:

Innovations in helping people feel better and live longer have recently exploded because of a simultaneous increase in our understanding of the health needs of consumers as well as the expansion of tools available to address those needs. This dizzying growth in demand and supply in this spectrum creates previously unimagined room for novel ideas and practices. For instance, the increased availability of information about therapeutic options have changed many people from passive consumers of health services to pro-active partners with healthcare providers in determining the best response to a health problem.

In these times of rapid changes, for Pharma companies it is not enough to focus solely on selling drugs and medications. Today the industry aims for more holistic approach with integrated services, customization and changes in life-styles. It leads to the trends, to which Pharma companies either have to respond to, or then to vanish. Top 10 Innovation Trends in Pharmaceutical Industry is an exquisite opportunity to learn how Pharma Industry is shifting to more digitized, customized and personalized era.

 

Scroll down to find out what are the Top 10 Innovation Trends that are shaping Pharmaceutical Industry.

 

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Innovation Methodology

Top 10 Innovation Methodologies

The perception of innovation is constantly shifting; the way we view innovation today is different from how we perceived innovation ten years ago.

Innovation methodology is a system of methods used in driving and managing innovation and innovation incentives. Innovation methodologies keep changing and they continue to impact how we deal with the key innovation challenges.

Click on the slide arrows below to find out what are the Top 10 Innovation Methodologies.

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