The S&P/BusinessWeek Global Innovation Index is updated at the end of every business day and available on BusinessWeek.com's Innovation & Design channel. The index is made up of 25 of the most innovative public companies around the globe, based on The Most Innovative Companies rankings (BusinessWeek.com, 2008), an annual survey prepared by BusinessWeek in partnership with Boston Consulting Group. The Innovation Index's rise or fall is calculated at the end of each trading day, and the results are posted online the next morning.
Each day you'll see how the index has fared and the company whose stock price rose the most—and which fell the most in that 24-hour period. We expect the S&P/BusinessWeek Global Innovation Index to be a valuable resource for investors and the broader business community. Innovation is proving to be the key defining factor for the world's most successful corporations, and the Global Innovation Index is a new measure of that success. Historical data show that the S&P/BusinessWeek Global Innovation Index companies outperformed S&P Global 100 Index companies by more than 7% in 2007 and have done 5% better since the middle of 2005. The index, which can be seen on Bloomberg as SPBWIV (in dollars) and SPBWIVE (in euros), is a vehicle for investors to participate in the growth of innovation-driven companies, as well as a means of tracking the performance of those companies.
Each May, after the Most Innovative Companies ranking is published in BusinessWeek, the 25 companies in the index will be rebalanced. Some companies will fall off; others will be added. The current index is based on the 2008 ranking of The Most Innovative Companies and features the following:
Toyota Motor (TM)
General Electric (GE)
Procter & Gamble (PG)
Research in Motion (RIMM)
Honda Motor (HMC)
Walt Disney (DIS)
General Motors (GM)
Reliance Industries (RELI.BO)
Goldman Sachs (GS)
Samsung Electronics (SAME_pq.F)
Each company's weight in the index is derived from a combination of two rankings. The first is a qualitative ranking based on the company's position in the annual BusinessWeek/BCG survey. The second is a quantitative ranking based on three factors used to estimate a company's innovation—three-year earnings growth; three-year sales growth, and R&D as a percentage of sales. A composite score is calculated for each company by adding the qualitative and quantitative scores. For details, go to www.indices.standardandpoors.com.