A majority of global innovators in the latest Top 100 list by Thomson Reuters hails from Asia, but India has drawn a blank.
No Indian company managed to push its way to the prestigious list that has all leading companies such as Apple, Boeing, Canon, Casio, Google, IBM, Hitachi, Honda, Intel, Microsoft, Nissan, Samsung, Sony, Toyota, Xerox and Yamaha, among others. This list of 100 companies represents the absolute vanguard of innovation – the organisations that are driving new breakthroughs, creating new jobs and igniting global economy, says the report.
Why are Indian companies missing from the list?
"I am not surprised. We are always driving into the future, looking through the rear view mirror," says Alyque Padamsee, veteran adman and theatre personality. Arun Maira, former Boston Consulting Group chairman and former member of the now-defunct Planning Commission, says that if India doesn't figure in the list, it only means that metrics and models they employed do not favour Indian companies.
So, what are the criteria to judge innovators?
The fourth annual 2014 Top 100 Global Innovators list honours the 100 most innovative organisations globally, as measured by a series of patent-related metrics.
Why Indian think-tanks question the survey?
Deepak Parkeh, chairman of HDFC, said the survey is biased and unfair. "I don't believe it. Maruti has just indigenously manufactured a Rs 3 lakh automatic car; Bharat Forge builds parts for all airlines including Airbus and Boeing. What about our space mission that was the cheapest - the parts of that space mission were all manufactured in India. What are we talking about? It is a one-sided survey," said Parekh.
Who should benefit from innovation?
Maira insists that innovation should benefit people and customers at large. "Apple, for instance, may be rated among the most innovative companies. It produces fancy phones with new patterns and designs, and indeed, gives a push to the company's stock price. But who gets benefitted? Most customers already own an Apple phone. We must be looking at innovators that bring in benefits. Look at what India has done in the segments of eye care, heart/health care and drinking water and the like, by producing innovative, less-expensive methods." Maira cites a recent list of 10 great innovators that an organisation in France drew up, which had five Indians.
Does investment in innovation lead to economic success?
According to the report, the 100 top innovators outperformed the S&P 500 for the fourth consecutive year, achieving year-over-year market cap weighted revenue growth of 12.6 per cent, roughly double the 6.85 per cent annual revenue growth generated by S&P 500 companies. These companies also generated $3.69 trillion in revenues last year. And, they had an increase in R&D investment of more than double their NASDAQ counterparts. The Top 100 increased R&D spend by 16.9 per cent, whereas NASDAQ's R&D investment jumped by 8.18 per cent and S&P 500's by only 3.97 per cent.
"By focusing exclusively on quantitative analysis of global business' intellectual property portfolios, we are able to identify not only what companies are inventing the most, but also how aggressively they are protecting those inventions," said Basil Moftah, president, Thomson Reuters IP & Science, in a statement
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