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Ranked: The 50 Most Innovative Companies

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Ranked: the Top 50 Most Innovative Companies in 2020

Corporate longevity is on the decline. In the 1960s, a typical S&P 500 company was estimated to last more than 60 years—these days, the average lifespan is just 18 years.

In today’s fast-paced world, companies need to stay relevant in order to survive. Because of this, it’s become increasingly more important for businesses to prioritize innovation.

This chart looks at the top 50 most innovative companies in 2020, based on a survey by Boston Consulting Group (BCG). The companies have been ranked based on four variables:

  • Global “Mindshare”: The number of votes from all innovation executives.
  • Industry Peer Review: The number of votes from executives in a company’s industry.
  • Industry Disruption: A diversity index to measure votes across industries.
  • Value Creation: Total share return.

Breakdown of the Leaderboard

BCG has been ranking the most innovative companies since 2005. Here’s a look at the top 50 most innovative companies in 2020:

RankCompanyIndustryHQChange from 2019
1AppleTechnologyU.S.2
2AlphabetTechnologyU.S.-1
3AmazonConsumer GoodsU.S.-1
4MicrosoftTechnologyU.S.-
5SamsungTechnologySouth Korea-
6HuaweiTechnologyChina42
7AlibabaConsumer GoodsChina16
8IBMTechnologyU.S.-1
9SonyConsumer GoodsJapanreturn
10FacebookTechnologyU.S.-2
11TeslaTransportation & EnergyU.S.-2
12Cisco SystemsTechnologyU.S.5
13WalmartConsumer GoodsU.S.29
14TencentOtherChinareturn
15HP Inc.TechnologyU.S.29
16NikeConsumer GoodsU.S.return
17NetflixOtherU.S.-11
18LG ElectronicsConsumer GoodsSouth Korea-
19IntelTechnologyU.S.return
20DellTechnologyU.S.21
21SiemensOtherGermany-5
22TargetConsumer GoodsU.S.return
23PhilipsPharmaceuticals & MedtechNetherlands6
24XiaomiTechnologyChinareturn
25OracleTechnologyU.S.return
26Johnson & JohnsonPharmaceuticals & MedtechU.S.-12
27SAPTechnologyGermany1
28AdidasConsumer GoodsGermany-18
29HitachiTechnologyJapanreturn
30CostcoConsumer GoodsU.S.return
31JD.comConsumer GoodsChinanew
32VolkswagenTransportation & EnergyGermany6
33BoschTransportation & EnergyGermanynew
34AirbusTransportation & EnergyNetherlandsreturn
35SalesforceTechnologyU.S.-2
36JPMorgan ChaseOtherU.S.-16
37UberTechnologyU.S.return
38BayerPharmaceuticals & MedtechGermany-14
39Procter & GambleConsumer GoodsU.S.return
40Royal Dutch ShellTransportation & EnergyNetherlands-10
41ToyotaTransportation & EnergyJapan-4
42NestleConsumer GoodsSwitzerlandreturn
43ABBOtherSwitzerlandnew
443MOtherU.S.-5
45UnileverConsumer GoodsU.K.-13
46FCATransportation & EnergyU.K.new
47NovartisPharmaceuticals & MedtechSwitzerlandnew
48Coca-ColaConsumer GoodsU.S.return
49VolvoTransportation & EnergySwedennew
50McDonald’sConsumer GoodsU.S.-29

When you think about innovative companies, Walmart might not be top of mind. However, the retail giant has moved up to the 13th spot on the list, an increase of 29 places since 2019.

Walmart has put significant efforts into its e-commerce and omnichannel offerings. For instance, the company launched NextDay Delivery in 2020, and now offers one-day delivery to a majority of the U.S. population. The company also has a stake in the Chinese e-commerce platform JD.com, which has grown from 5% to 12%.

Costco makes it to 30th place this year, and the company is known for its effective use of data. Thanks to the company’s members-only model, it has been able to compile a ton of information on its customers. It uses this data not only for marketing purposes, but to help streamline processes like recall notices. Costco also uses data monitoring sensors in its warehouses to save money on water usage and to spot any potential leaks before they happen.

Another company worth touching on is Huawei—the Chinese tech company has taken the 6th spot, a 42 rank increase since 2019. This rise in the ranks is likely due to the company’s significant $19 billion investment in research and development (R&D) in 2019. These types of investments seem to be paying off, as Huawei sold more smartphones in 2019 than Apple.

Innovation Leaders Come in All Sizes

While people may picture startups when they think of innovation and adaptability, big firms aren’t lagging far behind when it comes to innovation output.

In this context, firms with new product sales above their industry median are considered “innovation leaders.” Although 52% of small firms are considered innovation leaders, 43% of large firms still find themselves in the same boat.

Small vs. big firms innovation leaders

In fact, because larger firms generally have more access to resources and manpower than smaller firms, they often have an advantage when it comes to research and development and the creation of innovation-focused programs.

Investing in innovation shows a far greater payoff down the line—firms that invested 1.4x more in innovation input saw 4x the amount of new products sales.

Innovation investment pays off

Innovation as a Lifestyle

Unless you’re in a startup that’s hoping to get acquired by a larger firm, innovation can’t be a one-hit-wonder. Yet, despite its importance, innovation over the long term is hard to maintain.

There have only been 8 companies that have appeared on the list every year. Here’s a look at the companies that have consistently made the cut since 2005:

These companies are serial innovators, and have managed to create innovation systems to perpetually foster creativity and agility. It’s an intentional, laborious process—but when done right, the payoff can be huge.

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Leadership

The World’s Most Influential Values, In One Graphic

What values are the most influential in the world? Across 500,000 surveys in 152 languages, we visualize a rich dataset of human motivations.

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ValueGraphics

The World’s Most Influential Values, In One Graphic

Our basic values can inform ideals, interests, political preferences, environmental views, and even career choices.

With sweeping data covering half a million surveys in 152 languages, Valuegraphics identifies 56 values that influence human behavior. It uncovers what people care most about around the world, through a contextualized dataset.

The 10 Most Important Values

Individual motivations and values are universally organized. That said, research shows that the hierarchy of these values varies significantly.

According to Valuegraphics, here are the top 10 values we share across cultures.

RankValue
1Family
2Relationships
3Financial Security
4Belonging
5Community
6Personal Growth
7Loyalty
8Religion/Spirituality
9Employment Security
10Personal Responsibility

While it may not be surprising that family emerges as the most important value globally, it’s interesting to note that a number of other ‘connectedness’ values—such as relationships and belonging—emerged in the top 10. Values of loyalty, and religion/spirituality ranked #6, and #7, respectively.

At the same time, security-related values, including financial and employment security, score highly around the world.

From a business and leadership context, values are interesting in that they can guide how people and consumers make their decisions. As people interact with the world, different experiences can ‘engage’ their most closely-held values.

“If you can understand what your target audience cares about, what they spend their lives chasing, now you have an actual chance to use data to understand how to engage and influence and motivate them.”

-David Allison, Founder of Valuegraphics

The Full List of the 56 Most Influential Values

Covering 401 metrics and 370 questions, how did all 56 values break down within the extensive Valuegraphics database on a global level?

RankValue
1Family
2Relationships
3Financial Security
4Belonging
5Community
6Personal Growth
7Loyalty
8
Religion/Spirituality
9
Employment Security
10
Personal Responsibility
11Basic Needs
12Harmony
13Health/Well-being
14Experiences
15Respect
16Compassion
17Social Standing
18
Creativity & Imagination
19
Trustworthiness/Honesty
20Security
21Education
22Tradition
23Balance
24Love
25
Material Possessions
26Patience
27Morality
28Righteousness
29Friendships
30Authority
31
Positive Environments
32Happiness
33Ambition
34Self-Control
35Self-Expression
36
Environmentalism
37Independence
38Wealth
39Politeness
40Generosity
41Equality
42Service to others
43Dependability
44Courage
45Cooperation
46Tolerance
47Leisure
48Influence
49Intimacy
50Political Freedom
51Peace
52Money
53Unselfishness
54Confidence
55Freedom of Speech
56Determination

Across nine regions, the value of social standing stood at #17, while environmentalism came in at #36. Interestingly, both values of wealth (#38) and money (#52) ranked lower on the spectrum.

Meanwhile, respect (#15) and compassion (#16) values fell closer to the top.

Windows of Insight

While many similarities exist across cultures, a number of fascinating differences emerge.

Take morality, for example. Across all regions, it illustrated some of the widest variance—it was the second-most important value in the Middle East, whereas it came in near the bottom in Central and South America. Another notable outlier surrounds the value of patience. The African region placed the value within its top five. By contrast, it ranked globally about mid-way (#26) through the list.

Another fascinating discovery is how both North America and the Middle East ranked the value of authority—both ranked it equally (#17), significantly higher than the global average of #30. Meanwhile, the value of tradition saw the highest ranking in Central & South America, but the lowest in Europe.

As the world becomes increasingly complex, understanding how values impact our attitudes and behaviors can help us deepen our understanding across several avenues of life. Consumer research, marketing, leadership, psychology, and many other disciplines all fall within the broad spectrum of the influence of what humans value.

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Financing

The 25 Largest Private Equity Firms in One Chart

How big is private equity? We show funds raised by the largest 25 private equity firms over the last five years and their notable investments.

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PrivateEquityTop25-Infographic-Share1

The 25 Largest Private Equity Firms Since 2015

Frequent the business section of your favorite newspaper long enough, and you’ll see mentions of private equity (PE).

Maybe it’s because a struggling company got bought out and taken private, just as Toys “R” Us did in 2005 for $6.6 billion.

Otherwise, it’s likely a mention of a major investment (or payout) that a PE firm scored through venture or growth capital. For example, after Airbnb had to postpone its original plans for a 2020 initial public offering (IPO) in light of the pandemic, the company raised more than $1 billion in PE funding to plan for a new listing later this year.

Yet many people don’t fully understand the size and scope of private equity. To demonstrate the impact of PE, we break down the funds raised by the top 25 firms over the last five years.

How Private Equity Firms Operate

First, we need to differentiate between private equity and other forms of investment.

A PE firm makes investments and provides financial backing to startups and non-public companies (or public companies that are being taken private).

Each firm raises a PE fund by pooling capital from investors, which it then uses to carry out transactions such as leveraged buyouts, venture and growth capital, distressed investments, and mezzanine capital.

Unlike other investment firms such as hedge funds, private equity firms take a direct role in managing their assets. In order to maximize value, that can mean asset stripping, lay-offs, and other significant restructuring.

Traditionally, PE investments are held on a longer-term basis, with the goal of maximizing the target company’s value through an IPO, merger, recapitalization, or sale.

The List: The Most PE Funds Raised in Five Years

So which names should you know in private equity?

Here are the largest 25 private equity firms by their five-year PE fundraising total over the last five years, with data on funds and investments from respective firms and Private Equity International.

They include well-known private equity houses like The Blackstone Group and KKR (Kohlberg Kravis Roberts), as well as investment managers with private equity divisions like BlackRock.

RankPrivate Equity Firm5-Year Funds Raised ($B)Notable Current Investments
1The Blackstone Group95.95Refinitiv, Merlin Entertainments
2The Carlyle Group61.72ZoomInfo, PPD
3Kohlberg Kravis Roberts & Co. 54.76Axel Springer SE, Epic Games
4TPG Capital38.68Cirque du Soleil, Cushman & Wakefield
5Warburg Pincus37.59Airtel, Sundyne
6Neuberger Berman36.51Marquee Brands, Telxius
7CVC Capital Partners35.88Petco, Premiership Rugby
8EQT Partners34.46Dunlop Protective Footwear, SUSE
9Advent International33.49Cobham, Serta Simmons Bedding,
10Vista Equity Partners32.1Finastra, Mindbody
11Leonard Green & Partners26.31Lucky Brand, Signet Jewelers
12Cinven26.15Kurt Geiger, Hotelbeds
13Bain Capital25.74Virgin Voyages, Canada Goose
14Apollo Global Management25.42ADT, Chuck E Cheese's
15Thoma Bravo25.29Dynatrace, McAfee
16Insight Partners22.74Monday.com, HelloFresh
17BlackRock22.46Authentic Brands Group, Qumulo
18General Atlantic22.42Airbnb, Vox Media
19Permira22.21Dr. Martens, Informatica
20Brookfield Asset Management21.69Multiplex, Westinghouse Electric
21EnCap Investments21.33Pegasus Resources, Lotus Midstream
22Francisco Partners19.13Verifone, GoodRx
23Platinum Equity18.00Livingston International, Palace Sports & Entertainment
24Hillhouse Capital Group17.89Miniso, Belle International
25Partners Group17.87Civica, KinderCare Education 

Most of the world’s top PE firms, including TPG Capital (which invested in Ducati Motorcycles, J. Crew, and Del Monte Foods) and Advent International (an early investor in Lululemon Athletica) are headquartered in the U.S.

In fact, of the largest 25 private equity firms in the last five years, just four are headquartered in Europe (CVC, EQT, Cinven, and Permira) and one in Asia (Hillhouse).

Another name that might be recognizable is Bain Capital, which was co-founded by Utah Senator and former Republican Presidential nominee Mitt Romney and found success with investments in AMC Theatres, Domino’s Pizza, and iHeartMedia.

Famous Private Equity Investments

One of the most surprising things investors discover about private equity is how many large organizations have been funded through the PE world.

More well-known investments include KKR’s $31.1 billion takeover of food and tobacco conglomerate RJR Nabisco in 1989, and Blackstone’s $26 billion buyout of Hilton Hotels Corporation in 2007.

But other well-known companies have been funded, saved, or restructured through private equity. That list includes grocery chain Safeway, fast food chain Burger King, international racing operator Formula One Group, and hotel and casino company Caesars Entertainment (then called Harrah’s Entertainment).

Many other notable investments could soon pay off for private equity. With IPOs back in season, tech companies like Airbnb and Epic Games are ripe for payouts. At the same time, restructuring companies like J. Crew and Chuck E Cheese’s always offers a chance to recapitalize.

With the COVID-19 economic downturn resulting in newly distressed companies and potential takeover targets, expect the private equity world to be very active in the foreseeable future.

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