Top 10 Innovative Companies

Forbes had created its annual list of the World’s top innovative companies. The rank of the companies (which is called The Innovation Premium) is determined in the following way – the market capitalization of the company above its current business value which is based on expectations of its future innovative results (new products, services and markets). Also taken into account was the average annual yield of the company over the last 5 years and the annual growth of its sales.

It has to be mentioned that the companies on the list must have at least $10 billion in market capitalization, have seven years of available data (reports) and spend at least 2.5% of their revenue on R&D.

For the third consecutive year the most innovative company is – a provider of a cloud-based services for managing sales. Second place is taken by the pharmaceutical company Alexion Pharmaceuticals, the third – VMware, a provider of software solutions for virtualization.

The top 10 Innovative companies are:


1. (US)
Industry: Software & Programming
Innovation Premium: 72.8%
12-Month Sales Growth: 32.1%
5-Year Annualized Total Return: 21.6%


2. Alexion Pharmaceuticals (US)
Industry: Biotechs
Innovation Premium: 72.3%
12-Month Sales Growth: 39.2%
5-Year Annualized Total Return: 38.4%


3. VMware (US)
Industry: Software & Programming
Innovation Premium: 63.7%
12-Month Sales Growth: 16.3%
5-Year Annualized Total Return: 19.0%


4. Regeneron Pharmaceuticals (US)
Industry: Biotechs
Innovation Premium: 63.1%
12-Month Sales Growth: 128.3%
5-Year Annualized Total Return: 65.8%


5. ARM Holdings (UK)
Industry: Semiconductors
Innovation Premium: 61.2%
12-Month Sales Growth: 22.5%
5-Year Annualized Total Return: 47.9%


6. Baidu (China)
Industry: Computer Services
Innovation Premium: 60.6%
12-Month Sales Growth: 44.6%
5-Year Annualized Total Return: 32.8%


7. (US)
Industry: Computer Services
Innovation Premium: 60.2%
12-Month Sales Growth: 23.0%
5-Year Annualized Total Return: 31.0%


8. Intuitive Surgical (US)
Industry: Medical Equipment and Supplies
Innovation Premium: 53.9%
12-Month Sales Growth: 18.3%
5-Year Annualized Total Return: 5.2%


9. Rakuten (Japan)
Industry: Internet and Catalog Retail
Innovation Premium: 50.7%
12-Month Sales Growth: 14.1%
5-Year Annualized Total Return: 23.1%


10. Natura Cosmeticos (Brazil)
Industry: Household/Personal Care
Innovation Premium: 48.5%
12-Month Sales Growth: -3.9%
5-Year Annualized Total Return: 14.5%

You may also be interested to know that the following companies are also ranked in Innovation Premium: Starbucks (19th rank), Hershey (28th), Danone (29th), Procter & Gamble (30th), Yahoo Japan (38th), Google (47th), PepsiCo (58th), Carlsberg (66th), Apple (79th), Nintendo (84th), Adidas (92nd).

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