Forbes publishes Worlds Most Innovative Companies list

Forbes has produced its second

World’s Most Innovative Companies list.

"We set out to create something very different than other innovation rankings, which mostly end up becoming popularity contests based on past performance or editorial whims," Forbes noted, adding "our method relies on investors, who vote with their wallets, to identify the companies they expect to be innovative today and in the future."

"We use something called the Innovation Premium to compile our list. It is calculated first by projecting a company’s income (cash flows, in this case) from existing businesses, plus anticipated growth from those businesses, and look at the net present value (NPV) of those cash flows. We compare the NPV of cash flows from existing businesses with a current market capitalization: Companies with a current market cap above the NPV of cash flows have an innovation premium built into their stock. You can read a more detailed explanation of our work around innovative companies and leaders in our book The Innovators DNA (Harvard Business Press, 2011), written with Harvard Business School professor Clayton Christensen."

>>Forbes list here