Annually, the Boston Consulting Group (BCG) unveils its ranking of the world’s most innovative companies (Link). This year’s list, shaped by insights from over a thousand innovation executives surveyed in late 2022 and early 2023, evaluates companies across four key areas:

1. Global Mindshare: The tally of votes from innovation executives worldwide.
2. Industry Peer View: Votes from executives within the same industry.
3. Industry Disruption: The Diversity Index (Herfindahl-Hirschman) reflects the votes spread across various industries.
4. Value Creation: Overall shareholder return, including share buybacks, from January 2020 to December 2022.

Key Insights and Data The 2023 ranking, detailed in the table below, highlights several companies. For instance, Germany’s Bosch, ranked 37th, is lauded for its expansive global R&D team of 84,800 across 130 locations and consistent R&D investment (7.6% to 8.2% of sales from 2018 to 2021).

At 7th place, Samsung is notable for its $17 billion R&D investment in 2021 (9% of annual sales), earning it a top spot among global innovation spenders. In 2022, Samsung secured 6,300 U.S. patents, more than any other company.

This list demonstrates that innovation extends beyond tech firms. McDonald’s, ranked 34th, is recognized as a leader in technological innovation within the restaurant industry. Recent acquisitions like Apprente and Dynamic Yield underscore McDonald’s commitment to leveraging technology for enhanced customer experiences and efficiency.

Global Innovation by Nationality Examining the rankings through the lens of nationality reveals interesting trends. A comparison of the country distribution between 2013 and 2023 rankings shows a rise in U.S. and Chinese firms, with a corresponding decline in European, Japanese, and South Korean companies.

China’s growing economic influence suggests its continued ascendancy in future BCG rankings. Huawei, for instance, has consistently been in the top 50 since its first appearance in 2014, now ranked 8th.

This ranking highlights the current leaders in innovation and suggests trends and shifts in the global innovation landscape.

This is taken from the article https://www.visualcapitalist.com/most-innovative-companies-2023/

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By Andrew Constable MBA, LSSBB

Keywords: Innovation, Leadership, Business Strategy