INNOVATIVE COMPANIES OUTPERFORM THE MARKET
Aruba, July 2, 2019 – Innovative Companies Outperform the Market, Despite Headwinds in Global Economy
Innovative companies generate overall higher stock market performance in the long run relative to their benchmarks, but the index exhibited greater challenges due to market volatility in Q2 of 2019.
Going forward, global trade disputes and geopolitical uncertainties may disproportionally affect global Electronic Technology Manufacturers.
Health Technology, Finance, and Consumer Non-Durables top list of most innovative sectors for Q3
Companies focused on integrating technology to strengthen content or media delivery are likely to out-perform pure technology or media businesses.
The most innovative companies in the United States and global stock markets are not shielded from significant challenges in terms of stock market performance, according to two new indexes which The Conference Board will begin publishing today.
The indexes, which measure the financial performance of innovative companies, show they generate better financial performance in the long run relative to their benchmarks. However, moving into the third quarter, the indexes predict that companies in the Electronic Technology Manufacturing sector are facing the greatest challenges from global trade disputes and geopolitical uncertainties, while those focusing their innovations on data management are demonstrating the greatest resilience in the global market.
The Conference Board Innovation α Index Powered by M•CAM is developed by M•CAM, an investment firm that analyzes intellectual property and intangible assets to support credit and equity products. It consists of two indexes which rank and identify the 100 most innovative US companies in the Russell 1000 universe of companies and the 120 most innovative global companies in the MSCI World Index universe of companies, respectively. The selection is determined by the potential of those companies to generate substantial revenue growth through the use of proprietary technologies and innovations. The rankings result from a series of algorithms that gauge a company’s innovation standing by analyzing their patents, trademarks and copyrights and the value generated from them.
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