Where Investment Meets Innovation
The Innovation Index is a weighted stock price index of the Top 20 Innovators in North America.
Innovation Index Group publishes detailed reports, analysis, insights and research and analysis on the Innovation Index and the top innovative companies.
Background
The Innovation Index is a compilation of the Top 20 Innovators in North America. Most of these Innovators are prestigious companies including GE, 3M, HP, IBM, and Proctor & Gamble who have created numerous innovations and shaped our lives over the past fifty plus years; some leaders are better known by their innovative product brands - Blackberry by Research In Motion, iPod and iMac by Apple, online shopping by Amazon.com, Windows and Office by Microsoft, Microprocessor powered by Intel; the list also includes leaders whose creativity and brands have become synonymous to markets: networks by Cisco, computers by Dell, marketplace of traders by eBay, hot coffee and cappuccino by Starbucks, fashionable clothing by Target, lowest price shopping by Wal-Mart, low airline fares by Southwest Airlines, and search nirvana by Google. America Movil and Yahoo! were added to the Innovation Index for 2007. In 2008, AT&T, Best Buy, Costco, McDonald's, Merck and Nike were added to the Innovation Index.
Historical Performance
The Innovation Index was introduced in December 2006. The Innovation Index would have returned 174% gross over five years (2002-2006) or an average of 34.8% gross a year based on historical model*. This assumes an equal investment in each stock of The Innovation Index (buying each stock in equal value as of December 31, 2001). Here is the yearly historical performance of The Innovation Index beginning in 2002 along with the major U.S. indices:
$10,000 invested in The Innovation Index on December 31, 2001 would have returned 174% or $27,351 gross as of December 29, 2006*, with a net gain of $17,351. By comparison, $10,000 invested in each of S & P 500, NASDAQ and Dow Jones Index would have returned 24% or about $12,400 as of December 29, 2006., with a net gain of $2,400. Thus, The Innovation Index would have outperformed the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the last five years based on historical model.
The Innovation Index gained 66% gross return for the year*. By comparison, S & P 500 was up 4% for the year, NASDAQ was up 10% for the year and the Dow Jones Index was up 6% for the year.
Here is a snapshot of how the Top 20 Innovators performed in 2007 and the Innovation Index performance:
The following is an alphabetical list of the Top 20 Innovators of The Innovation Index for 2007:
3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Dell Inc. - (NASDAQ: DELL)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Microsoft Corporation - (NASDAQ: MSFT)
Research In Motion Limited - (NASDAQ: RIMM)
Southwest Airlines Co. - (NYSE: LUV)
Starbucks Corporation - (NASDAQ: SBUX)
Target Corp. - (NYSE: TGT)
The Proctor & Gamble Company - (NYSE: PG)
Wal-Mart Stores, Inc. - (NYSE: WMT)
Yahoo! Inc. - (NASDAQ: YHOO)
2008 Top 20 Innovators
The following is an alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 (there were six changes):
3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)
Selection Methodology
The Innovators in The Innovation Index are determined using intensive factual research and analysis, leveraging the following resources:
1. Rankings of world’s top innovative companies as published by BusinessWeek and Boston Consulting Group
2. Rankings of the top Innovators as published by Forbes, Fortune and other business publications
3. Analysis of revenue, earnings, cash flow and management performance
4. Assessment of the tangible value of the Innovators including their brand value
5. Historical analysis of launched innovations – products, acquisitions, pricing, distribution, business model, services, process – and their impact on current and future revenue and earnings growth
6. Analysis of planned market innovations and potential revenue growth
7. Independent analysis by S & P, Zack’s, Barron’s, IBD and related resources
8. Complete analysis of the Innovators’ customers, competitors, environment and macro-economic factors that could impact their growth and stock performance
9. Wherever possible, interviews with key members of the management
Learn more
Please Contact Us if you are interested in learning more about the Innovation Index.
*Past Performance Does Not Guarantee Future Results. Investments are not FDIC insured, may lose value and have no bank guarantee. Please consult your financial adviser for investments.