W W W . I N N O V A T I O N L E A D E R S . O R G

2016/17AnalysisLaunchInsightsfromtheLeaders

9March2017

W W W . I N N O V A T I O N L E A D E R S . O R G

Topics

§  BackgroundContext§  2016/17InnovaConLeaders

§  3KeyTrends§  InnovatorstoWatch

§  InnovaCveCiCes

W W W . I N N O V A T I O N L E A D E R S . O R G

BackgroundContext

W W W . I N N O V A T I O N L E A D E R S . O R G

Forthepast15yearswehavebeenidenCfyingandprofilingtheworldsmostinnovaCvecompaniesacross25sectors

ThispublishedanalysishasconsistentlyidenCfiedorganisaConsthatsubsequentlydeliverhigherorganicgrowth

W W W . I N N O V A T I O N L E A D E R S . O R G

Backin1999,exploringgrowthstrategiesinpharma,wewantedtoknowwhowerethemosteffecCveinnovators

1.  “IfwearegoingtogainmoremorefromorganicgrowththenwhichcompaniesthataredeliveringsustainedgrowtharethemosteffecCveinnovatorstolearnfrom?”

2.  “HowbestshouldwemeasureinnovaConperformance?”

CompanyInnovaConCapabiliCes

InnovaConInput InnovaConOutput

e.g.$R&DSpend e.g.#Patents

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ButtoknowwhoisthemosteffecCveinnovatorthenwehadtounderstandkeyraCosofoutputtoinput–thatwasthestart

CompanyInnovaConCapabiliCes

InnovaConInput InnovaConOutput

InnovaConInput

InnovaConOutput

W W W . I N N O V A T I O N L E A D E R S . O R G

Ourmodelanalysesthe1500largestcompaniesinthesesectorsandsystemaCcallyselectsthetopinnovators

25InnovaConLeaders

Singlecompanyforeachsector

75Companies

25Sectors1500Companies

Largestcompaniesacross25sectors

25mostinnovaCon-focusedsectors

Top3companiespersector

QuanCtaCveAnalysisThroughoutProcess

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A2012back-testoftheInnovaConLeadersagainstS&P500showedclearoutperformanceovertheprevious10years

CompoundAnnualGrowthRate:14%,StdDev:20%,Alpha:12,Beta:0.74

W W W . I N N O V A T I O N L E A D E R S . O R G

The2016/17InnovaConLeaders

WWW.INNOVATIONLEADERS.ORG W W W . I N N O V A T I O N L E A D E R S . O R G

Acrossthe25sectorsassessed,thecurrentinnovaConleadersareclearandshowhowbestinclassinnovaConpracCceisevolving

W W W . I N N O V A T I O N L E A D E R S . O R G

Amazon Successfulexpansionfromretailtocloud servicesextendingintoAIandautonomy

2016KEYDATA27.1%RevenueGrowth298%NetIncomeGrowth1696USPatents

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Humana Advancingdigitalhealthcaretoincrease engagementandreducecosts

2016KEYDATA12%RevenueGrowth11%NetIncomeGrowthGrowingPatentPorgolio

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LEGO World’smostvaluablebrandexploring anddeliveringthefutureofplay

2016KEYDATA25.2%RevenueGrowth31%NetIncomeGrowth109NetPromoterScore

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Nvidia High-impactexpansionfromprocessors forgamingintoautomoCveandAI

2016KEYDATA353USPatents$1.3bnR&DInvestment7.0%RevenueGrowth

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ReckijBenckiser Non-stopincrementalinnovatorgrowing globallyasconsumerhealthpowerhouse

2016KEYDATA11.1%RevenueGrowth60.9%GrossMargin5.1%NetIncomeGrowth

W W W . I N N O V A T I O N L E A D E R S . O R G

ThreeKeyTrends

W W W . I N N O V A T I O N L E A D E R S . O R G

Acrosstheleadersfor2016/17wecanseethreenotabletrends

USDominance§  20ofthe25leadersareUSbasedorganisaCons§  ThisisthehighestsinglecountryconcentraConsincetheresearchbegan§  Europeanpresence,down50%,shouldberaisingsomehardquesConsPartnershipsattheFore§  CollaboraConhasbeenakeycomponentforsomesectorsforsomeCme§  TodayitisincreasinglyinfluenCalacrosstheboard§  DeliveringhighimpactchangerequiresnewalliancesBigBets§  RadicalapproachesarecoretoseveralorganisaCons’growthstrategies§  Alphabet,Amazon,Apple,TeslabeingjoinedbyBankofAmerica,LEGO,Nvidia§  Moreestablishedcompaniesmakingmajorfuturegrowthinvestmentbets

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InnovatorstoWatch

WWW.INNOVATIONLEADERS.ORG W W W . I N N O V A T I O N L E A D E R S . O R G

WeidenCfyupcomingleaders–start-upsandcompanieshavingimpactbutyettoachievefullscale:Futurecatalystsforchange

W W W . I N N O V A T I O N L E A D E R S . O R G

24MRe-invenCnglithium-ionbajeries

http://24-m.com @24M_Tech

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OxfordNanoporeDNA/RNAsequencinginreal-Cmewithnocapitalcost

https://nanoporetech.com @nanopore

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SoulMachinesInteracCve,animated,virtualpsychobiologicalsimulaCon

http://soulmachines.com @MachinesSoul

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WorldViewRadicallyrethinkingaccesstospace

http://www.worldview.space @WorldViewSpace

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ZiplineDronebasedmedicalsupplydeliveryinremoteareas

http://flyzipline.com @zipline

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InnovaCveCiCes

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WehavebeenaskedtoadaptourapproachtonowbejeranalyseandsharewhicharetheworldsmostinnovaCveciCes

W W W . I N N O V A T I O N L E A D E R S . O R G

MoreInformaCon

W W W . I N N O V A T I O N L E A D E R S . O R G

FormoreinformaConpleaseseetheInnovaConLeaderswebsiteTodiscusspleasecontactresearch@innovaConleaders.org

W W W . I N N O V A T I O N L E A D E R S . O R G

2016/17AnalysisInsightsfromtheLeaders

9March2017