U.S.A.: Innovation Nation

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July 26 (Bloomberg) -- On today's "Insight & Action," Adam Johnson looks at innovative companies in the U.S. on Bloomberg Television's Street Smart." (Source: Bloomberg)

There's a reason why the u.s. has the largest economy in the world.


Real simple.

Time for insight and action.

Let me share with you two important numbers, they're very similar, and that makes perfectly good sense.

The u.s. accounts for 21% of world g.d.p. the u.s. also accounts for 25% of the world's patents.

All right?

If you innovate, you grow.

It's real simple.

You don't need to think this one through too hard.

As a matter of fact, the real important angle here is what it means for all of us as investors.

You may recall yesterday when we were joined by the head of research at bank of america-merrill lynch.

Here's what she said about the connection between patents, growth and stocks.

We've gone back and done the back testing and we found that those companies that actually have a line for r&d in their financials they disclose what that r&d spending is, those companies outperform.

You want to see what outperformance looks like?

Let me show you.

We found a group of r&d leaders and there they are.

Outperformance this year, 25% vs.

The s&p 500 of 18.5%. here's what we did.

We started with the s&p 1500. 1,500 stocks, right?

We screened for all the companies that allocate at least 10% of their revenues to r&d, research and development, and who are upping their r&d budgets this year.

We found 50 name, again, they're up 25%. beating the s&p 500. i'm going to share eight of the names with you right now.

Look at this.

A.c.i. payments.

Accorda drugs.

Creed, semiconductors, 12% of their sales go back into r&d. gilead, google, luminex.

They're growing and the stocks are moving up.

I gave you eight names.

If you want to see all 50, visit my new blog, bloomberg .com/insightandaction.

All 50 tickers are right there.

You can read all about it.

I'm going to do that right after the show.

Thanks a lot, adam.

This text has been automatically generated. It may not be 100% accurate.


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