Presentation from 9 March launch event in Dubai for new Innovation Leaders analysis. Hosted by Falcon & Associates (http://www.falconandassociates.ae/en) and brining together leaders from across the UAE. As well as the 2016/17 Innovation Leaders this also shares the latest Innovators to Watch and also upcoming analysis of the world's most innovative cities

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2016/17 Analysis Launch
Insights from the Leaders
9 March 2017

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Topics
§ Background Context
§ 2016/17 InnovaCon Leaders
§ 3 Key Trends
§ Innovators to Watch
§ InnovaCve CiCes

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Background Context

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For the past 15 years we have been idenCfying and profiling
the worlds most innovaCve companies across 25 sectors
This published analysis has consistently idenCfied organisaCons that subsequently deliver higher organic growth

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Back in 1999, exploring growth strategies in pharma, we wanted
to know who were the most effecCve innovators
1. “If we are going to gain more more from organic growth then which companies
that are delivering sustained growth are the most effecCve innovators to learn
from?”
2. “How best should we measure innovaCon performance?”
Company
InnovaCon
CapabiliCes
InnovaCon Input InnovaCon Output
e.g. $ R&D Spend e.g. # Patents

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But to know who is the most effecCve innovator then we had to
understand key raCos of output to input – that was the start
Company
InnovaCon
CapabiliCes
InnovaCon Input InnovaCon Output
InnovaCon Input
InnovaCon Output

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Our model analyses the 1500 largest companies in these
sectors and systemaCcally selects the top innovators
25 InnovaCon
Leaders
Single company for
each sector
75
Companies
25 Sectors
1500 Companies
Largest companies
across 25 sectors
25 most innovaCon-
focused sectors
Top 3 companies
per sector
QuanCtaCve Analysis Throughout Process

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A 2012 back-test of the InnovaCon Leaders against S&P500
showed clear outperformance over the previous 10 years
Compound Annual Growth Rate: 14%, Std Dev: 20%, Alpha: 12, Beta: 0.74

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The 2016/17 InnovaCon Leaders

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Across the 25 sectors assessed, the current innovaCon leaders are
clear and show how best in class innovaCon pracCce is evolving

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Amazon Successful expansion from retail to cloud
services extending into AI and autonomy
2016 KEY DATA
27.1% Revenue Growth
298% Net Income Growth
1696 US Patents

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Humana Advancing digital healthcare to increase
engagement and reduce costs
2016 KEY DATA
12% Revenue Growth
11% Net Income Growth
Growing Patent Porgolio

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LEGO World’s most valuable brand exploring
and delivering the future of play
2016 KEY DATA
25.2% Revenue Growth
31% Net Income Growth
109 Net Promoter Score

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Nvidia High-impact expansion from processors
for gaming into automoCve and AI
2016 KEY DATA
353 US Patents
$1.3bn R&D Investment
7.0% Revenue Growth

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Reckij Benckiser Non-stop incremental innovator growing
globally as consumer health powerhouse
2016 KEY DATA
11.1% Revenue Growth
60.9% Gross Margin
5.1% Net Income Growth

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Three Key Trends

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Across the leaders for 2016/17 we can see three notable trends
US Dominance
§ 20 of the 25 leaders are US based organisaCons
§ This is the highest single country concentraCon since the research began
§ European presence, down 50%, should be raising some hard quesCons
Partnerships at the Fore
§ CollaboraCon has been a key component for some sectors for some Cme
§ Today it is increasingly influenCal across the board
§ Delivering high impact change requires new alliances
Big Bets
§ Radical approaches are core to several organisaCons’ growth strategies
§ Alphabet, Amazon, Apple, Tesla being joined by Bank of America, LEGO, Nvidia
§ More established companies making major future growth investment bets

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Innovators to Watch

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We idenCfy upcoming leaders – start-ups and companies having
impact but yet to achieve full scale: Future catalysts for change

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24M
Re-invenCng lithium-ion bajeries
http://24-m.com @24M_Tech

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Oxford Nanopore
DNA/RNA sequencing in real-Cme with no capital cost
https://nanoporetech.com @nanopore

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Soul Machines
InteracCve, animated, virtual psychobiological simulaCon
http://soulmachines.com @MachinesSoul

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World View
Radically rethinking access to space
http://www.worldview.space @WorldViewSpace

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Zipline
Drone based medical supply delivery in remote areas
http://flyzipline.com @zipline

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InnovaCve CiCes

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We have been asked to adapt our approach to now bejer
analyse and share which are the worlds most innovaCve ciCes

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More InformaCon

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For more informaCon please see the InnovaCon Leaders website
To discuss please contact research@innovaConleaders.org

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2016/17 Analysis
Insights from the Leaders
9 March 2017