Which are the most innovative companies in the world? There is no way of absolutely measuring levels of innovation but three groups compile different lists using different methods.
Boston Consulting Group publish a list based on a survey of 1500 senior executives. So it tends to consist of large companies with strong brand awareness. Their top 12 for 2021 are:
- Apple
- Alphabet (Google)
- Amazon
- Microsoft
- Tesla
- Samsung
- IBM
- Huawei
- Sony
- Pfizer
- Siemens
- LG
The magazine Fast Company publishes a list of the 50 most innovative companies based on their perception of ‘businesses whose innovations are having the greatest impacts across their industries and our culture as a whole’. So they include many smaller high-tech US companies. Their top 12 for 2021 are:
- Moderna
- Pfizer
- Shopify
- SpaceX
- Springhill
- Epic Games
- Netflix
- Tock
- Microsoft
- Graphika
- Ping An Good Doctor
- Outschool
Forbes publish a list based on a measure of how much investors have bid up the stock price of a company above the value of its existing business based on expectations of future innovative results. Their 2018 reporst lists the top 12 companies as:
- Service Now
- Workday
- Salesforce
- Tesla Motors
- Amazon
- Netflix
- Incyte
- Hindustan Unilever
- Naver
- Monster Beverage
- Unilever Indonesia
The Forbes methodology used the wisdom of the crowd. ‘Our method relies on investors’ ability to identify firms they expect to be innovative now and in the future. You can learn more about our research on innovation by visiting learn.theinnovatorsmethod.com. Companies are ranked by their innovation premium: the difference between their market capitalization and a net present value of cash flows from existing businesses (based on a proprietary formula from Credit Suisse HOLT).
There is a wide divergence between the lists reflecting their different approaches. The Fast Company list is the most volatile with many changes year to year while the BCG list reflects the public love affair with Apple and the public recognition of big names. The Forbes list is the most international with many dynamic entries from Europe and Asia.
You can afford to be innovative if you don’t pay your full wack of tax and have stressful working conditions in your warehouses.
A very interesting observation! I will definitely be making reference to your take on the most innovative company during my corporate engagements.
I am also certain that this is a reflection of innovating at all levels and across the business as opposed to the more silo approach to innovation.