The Innovation Index gains 13.2% in 2006, beats NASDAQ

The Innovation Index gained 13.2% in 2006, beating NASDAQ by about 39%. NASDAQ returned 9.5% in 2006. By comparison, S & P 500 returned 13.6% and Dow Jones Index returned 16.3% in 2006 (click to see the entire index).



The Innovation Index is up 112% since 2002 over the last five years. By comparison, S & P 500, NASDAQ and Dow Jones Index have each returned 24%. $100 invested in The Innovation Index on December 31, 2001 returned $212. By comparison, the same $100 invested in either of S & P 500, NASDAQ or Dow Jones Index returned $124. Even in 2002, when most of the stock indices were down, The Innovation Index performed better than the S & P 500 and NASDAQ. The table below compares the returns of The Innovation Index to the major indices since 2002. Over the last five years, Apple (NASDAQ: AAPL), Amazon.com (NASDAQ: AMZN), Hewlett Packard (NYSE: HPQ), Research In Motion (NASDAQ: RIMM) and Starbucks (NASDAQ: SBUX) have each had gains over 100%. (click to see the entire five year table)





The Innovation Index 2006 Winners

Research In Motion (NASDAQ: RIMM), Cisco Systems (NASDAQ: CSCO) and Hewlett Packard (NYSE: HPQ) are the top three performers on The Innovation Index for 2006 gaining 94%, 60% and 45% respectively. Only five innovators were in the red in 2006, led by eBay (NASDAQ: EBAY), Intel (NYSE: INTC), Dell (NASDAQ: DELL), Amazon.com (NASDAQ: AMZN) and Southwest Airlines (NYSE: LUV).

Changes in The Innovation Index

For 2007, The Innovation Index is adding two more Innovators in the North America. Who would make The Innovation Index? The names of the top 20 Innovators, including the two new Innovators, will be revealed in The Innovation Index Annual Report in the second week of January, 2007.

The Innovation Index has been compiling and reporting the results so far from the first trading day in January of previous year through the first trading day of January of next year. However, since all the major indices summarize their results from the last trading day of December of previous year through the last trading day of December the next year, The Innovation Index also made this change so that there can be apple-to-apple comparison of The Innovation Index vis-à-vis the major indices. The Innovation Index will now use the stock market closing prices of December 29, 2006, the last trading day of 2006, as the baseline to measure and project performance for 2007. This is consistent with how the major indices measure their performance.

The Innovation Index Annual Report

I am planning to post an annual report of the top 18 Innovators plus the two new Innovators of The Innovation Index during the second week of January, 2007. The report will include insights gained from the top 18 Innovators, top Innovations introduced during 2006, lessons learned, 2007 projections, and observations on Disruptors challenging the top 20 Innovators.

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About The Innovation Index

The Innovation Index introduced in December, 2006 is a weighted stock price compilation index of the top 18 Innovators in North America (soon to be the top 20 Innovators).

The alphabetical list of the top 18 Innovators of The Innovation Index along with their stock ticker symbols are presented below:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
Apple Computer, Inc. - (NASDAQ: AAPL)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Dell Inc. - (NASDAQ: DELL)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Microsoft Corporation - (NASDAQ: MSFT)
Research In Motion Limited - (NASDAQ: RIMM)
Southwest Airlines Co. - (NYSE: LUV)
Starbucks Corporation - (NASDAQ: SBUX)
Target Corp. - (NYSE: TGT)
The Proctor & Gamble Company - (NYSE: PG)
Wal-Mart Stores, Inc. - (NYSE: WMT)

Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

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