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The document summarizes key findings from the 2017 Global Innovation 1000 study on trends in research and development spending and innovation among the world's largest publicly listed companies. Some of the main points include: - The US, China, and UK are seen as having the greatest movement toward economic nationalism policies that could impact corporate R&D. These countries are also considered most at risk, while Canada, Germany, and France may benefit. - Over half of companies expect at least a moderate impact on their R&D from economic nationalism and nearly half plan changes to their R&D programs in the next two years. - High-performing companies are more likely to anticipate needing changes and take action, while middling
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- 1. Will Stronger Borders Weaken Innovation? 2017 Global Innovation 1000 October 2017
- 2. Strategy& | PwC Confidential property 1 Introduction Will Stronger Borders Weaken Innovation? Innovation 1000 update
- 3. Strategy& | PwC For the 13th year, Strategy& studied innovation trends and spending at the world’s 1000 largest publicly listed corporate R&D spenders 2 2009: Profits down, spending steady 2005: Money isn't everything 2006: Smart spenders 2007: The customer connection 2008: Beyond borders 2010: How top innovators keep winning 2011: Why culture is key 2012: Making ideas work 2013: Navigating the digital future 2014: Proven paths to innovation success 2015: Innovation’s new world order 2016: Software as a catalyst 2017: Will Stronger Borders Weaken Innovation?
- 4. Strategy& | PwC The study has become a recognized contributor in better understanding what drives success in R&D and innovation 3 • The Global Innovation 1000 study has received significant media and academic attention: – Called “the most comprehensive assessment of the relationship between R&D investment and corporate performance” by the The Economist in 2009 – Given “2006 Special Achievement Award for Advancing Innovation” by Innovate Forum – Awarded Best of Visions award from PDMA in 2009 – In 2011 and 2014, awarded Silver and Gold, respectively, for original research by the American Society of Business Press Editors (“the Azbee”) – Cited in more than 180 publications in 27 countries Global Innovation 1000: Selected press coverage
- 5. Strategy& | PwC Confidential property 4 Introduction Will Stronger Borders Weaken Innovation? Innovation 1000 update
- 6. Strategy& | PwC Executive Summary – Will Stronger Borders Weaken Innovation? 5 • Companies are concerned about the effects of economic nationalism and some are already seeing the effects on their businesses • The US, China, and the UK are viewed as having the greatest movement to economic nationalism and are the same countries whose R&D programs are most at risk. Canada, Germany, and France will most likely gain from broad economic nationalism in R&D – US’s talent flow is most at risk for disruption if policy in granting student and work visas becomes restrictive. Immigrants in the US hold a large share of jobs in the high-tech, science and engineering sectors as well as making up a large share of enrollment in engineering programs – UK’s talent flow is also at risk in the same way the US’s is. Weaker R&D programs in the UK could also have a ripple effect across the region – China’s corporate R&D spending had experienced double-digit growth rates for many years, but in 2017 the country saw a 3.3% decline in corporate R&D spending for the first time. 81% of China’s R&D spend in 2015 was performed by companies headquartered in other countries. The combination of these trends for China makes the country vulnerable to potential disruptions of R&D investment coming from abroad • A little over one half of companies expect a moderate to significant impact to their R&D and innovation efforts and almost half of the companies in North America and the rest of the world plan to make changes to their R&D programs over the next two years • High performers are more likely to anticipate changes, and they are also more likely to take action. Middling and under performers were the most doubtful that economic nationalism would require changes in their R&D efforts. Interestingly, under performers were most likely to take action that could be harmful to their overall R&D efforts • Economic nationalism would result in the replacement of today’s integrated and interdependent network with more self-sufficient, fully-functioning R&D nodes. Companies will need to look for ways to manage the higher costs they will incur with this model
- 7. Strategy& | PwC Executive Summary – Update on Top 1000 companies 6 • In 2017 total R&D spending by the Global Innovation 1000 increased 3.2% to $701.6B, exceeding $700B for the first time • R&D intensity spiked to its all-time study high of 4.5%, with revenue for the 1000 companies falling by 2.5% - driven by the 14.5% decline in Chemicals & Energy revenue • Software and internet industry continues to experience high year-over-year growth, up 16.1% this year while Healthcare, the second fastest growth industry for R&D spending grew 5.9% • Healthcare companies are on track to become the biggest R&D spenders by 2018 • Computing and electronics, Healthcare, and Auto contributed 61.3% of R&D spending in 2017, almost the same as in 2016 • Regionally, Japanese firms grew R&D spend for the first time in 5 years, US continued its upward growth and China, who enjoyed years of double-digit R&D growth, saw a 3.3% decline in R&D spending for the first time in the study* • Amazon moved from number 3 in 2016 to become the largest R&D spender in 2017. It is one of nine high-tech companies on the top 20 list, and one of 13 companies headquartered in the United States • For the first time, Alphabet surpassed Apple as the Most Innovative company and Alibaba joins the ranking for the first time • Companies selected by survey respondents as the most innovative companies continue to outperform the top 20 R&D spenders *Use of local currency would result in different YoY changes
- 8. Strategy& | PwC Companies viewed the US, China, and the UK as having the greatest movement towards economic nationalism-related policies that will affect R&D 7 RussiaUnited Kingdom 34% 63% France 44% Germany 15% 8% CanadaChina 8% BrazilIndia Turkey 10% United States 5% 4% 4% Q21. Which three countries do you expect to have the greatest movement toward more economic nationalism–related policies that would affect corporate R&D activities? N=562, N= total number of survey respondents *China includes Hong Kong for all China data points Countries with greatest expectation of movement towards economic nationalism-related policies that would affect R&D activities
- 9. Strategy& | PwC The US, UK, and China are most at risk while Canada, Germany, and France will most likely gain from broad economic nationalism in R&D 8 Q22. Which three countries do you believe will be the most put at economic risk if more economic nationalism-related policies affecting R&D efforts are widely adopted? Q22a Which three countries do you believe will be the most helped economically if more economic nationalism-related policies affecting R&D efforts are widely adopted? N=562 Source: 2017 and 2015 Global Innovation 1000 study -5 5 -30 -35 -25 -10 -20 -15 0 0 The Net Risk Index Risk Gain Bar width = total corporate R&D imported into country $US billions Bar height = country’s net risk/gain if economic nationalism affects R&D efforts Risk/Gain Index: Imported corporate R&D (2015) in $US billions: US -31.7 UK -20.8 China -17.4 Mexico -5.0 India -3.2 Japan -2.3 Russia -1.4 Singapore -1.3 South Korea -1.3 Brazil -0.5 Aus. 1.6 France 1.8 Germany 2.0 Canada 2.7 $52.5 $19.5 $44.2 $1.5 $28.1 $16.0 $5.9 $5.7 $5.1 $3.9 $7.9 $15.9 $9.8$7.1 Imported corporate R&D as a % of in- country corporate R&D spending (2015) Key 61-80% 41-60% 21-40% 0-20% 81-100%
- 10. Strategy& | PwC • Canada is looking to attract international innovation talent to its university system as the US tightens visa and immigration programs • Is an attractive alternative for multinationals like Microsoft who opened a new R&D center in downtown Vancouver in 2016 with 750 R&D positions • Germany has repeatedly reiterated its pro- globalization policy stance • The country was ranked as the second country that is most likely to gain from a move towards economic nationalism by survey respondents • Newly elected president Emmanuel Macron ran on a platform stressing the importance of innovation for the French economy • France was ranked as the third country mostly likely to gain from broad economic nationalism by survey respondents US, UK, and China are most at risk while Canada, Germany, and France will most likely gain (…continued) 9 Source: 2017 Global Innovation 1000 study, National Foundation for American Policy Top 3 countries to gain Canada Germany France • Corporate R&D spending in China experienced double digit growth rates for many years, but in 2017 the country saw a 3.3% decline in R&D spending for the first time in the study • 80% of R&D spending in China in 2015 was done by companies headquartered in other countries (mainly from the US) • These trends for China makes the country vulnerable to potential disruptions of R&D investment coming from abroad • Like the US, the UK’s flows in talent is also vulnerable if there are barriers to recruiting engineers from other EU countries • Britain is already experiencing an existing shortage of skilled workers • Weaker R&D programs in the UK could have a ripple effect across the region • The US’s talent flow will be disrupted if there is a move towards restrictive policy in granting student and work visas • Immigrants in the US hold a large share of jobs in the high-tech, science, and engineering sectors • Enrollment in US engineering programs are predominantly made up of immigrants (81% electronical engineering and 79% computer science)* United States United Kingdom China
- 11. Strategy& | PwC 10 Economic nationalism-related policy risk score vs. corporate R&D import ratio 100%100% 87% 81% 36% 7% 17% 43% 51% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% Which three countries do you believe will be the most put at economic risk if more economic nationalism-related policies affecting R&D efforts are widely adopted? (2017) 1) 31% ChinaUnited States Corporate R&D imported as a % of all corporate R&D performed in country (2015) IndiaUnited Kingdom Mexico Corporate R&D import ratio (2015)Economic nationalism-related policy risk score (2017) Executives may not be considering R&D flows in assessing who is most at risk from economic nationalism-related policies Source: 2015 and 2017 Global Innovation 1000 Studies 1) N=562
- 12. Strategy& | PwC North America and the rest of the world companies believe their companies will make changes to R&D over the next two years 11 26% 33% 15% 25% 40% 28% 41% 25% 33% 39% 44% 50% 100% North America 100% Europe In 5 or more years Within next 3-5 years Over next two years ROW 100% 100% Japan Q18. What changes would your company likely consider making to its R&D/innovation efforts if there is a move toward greater economic nationalism? And when? N=379 ( China region and Respondents with “No opinion” are not included) Note: Due to rounding, not all columns will add up to 100% When companies are likely to changes its R&D efforts if there is a move towards economic nationalism
- 13. Strategy& | PwC One-fourth of companies have already experienced some pressure to change how or where they conduct innovation 12 Q17. Has your company experienced pressure to change any element of its approach to innovation/R&D work as a result of economic nationalism in Your company’s headquarters: and Any other country? N=562 25% Yes, pressure to change where and how we conduct innovation work Don’t know No 21% 54% Pressure to change approach to innovation/R&D
- 14. Strategy& | PwC Japanese and North American companies are experiencing hiring challenges as a result of economic nationalism… 13 76% 66% 66% 63% 7% 25% 8% 17% 13% 20% 10% 5% 10%7% ROW 100% North America 100% Japan 100% 3% Europe 100% 4% NoYes, we are hiring more local talentYes, less talent is available as a result of visa restrictionsYes Q20. As a consequence of economic nationalism, has your company experienced any new or greater visa restrictions or work limitations on R&D employees? N=557 ( China region is not considered) Effects of economic nationalism on visas/work initiatives on R&D employees (by region)
- 15. Strategy& | PwC Uncertainty in economic policy could be the reason companies’ high alignment between innovation strategy and business strategy dipped this year 14 Highly aligned companies -19% 31.8% 2017 25.8% 2015 29.0% 2016 27.7% 2014 Q10. How closely aligned is your company’s innovation strategy (or approach to innovation) with its overall business strategy? N=562 Alignment of innovation strategy with business strategy (2014-2017)
- 16. Strategy& | PwC High performers are more likely to anticipate changes, and they are also more likely to take action while middling and low performers are more doubtful of changes 15 36%39% Open future R&D center locations in regional markets 25% 31% 41% -38% 14% 12% Hire specialized technical talent in local regional markets 34% 15% 18% 15% Move to a more autonomous regional divisional model 25% Move R&D locations away from current manufacturing / production centers 18% Reduce staff and replace with automation 11% 9% Likelihood of making a change in R&D/Innovation efforts if there is a move towards greater economic nationalism by perception of revenue growth Low performers Middling performers High performersQ18. What changes would your company likely consider making to its R&D/innovation efforts if there is a move toward greater economic nationalism? And when? Q11. How do you believe your company is performing relative to its key competitors? N=562 23% 35% 34% I do not believe there will be any changes as a result of economic nationalism High performers Middling performers Low performers
- 17. Strategy& | PwC As a result of economic nationalism, companies are going to be more digitally collaborative and protective of proprietary intelligence 12% 19% 12% 17% 14% 14% 7% 14% 19% 16% 16% 11% 14% 15% 15% 10% 30% 30% 44% 29% 36% 32% 50% 34% 25% 33% 43% 42% 42% 32% 28% 59% 41% 33% 39% 47% 33% 42% 39% 39% 41% 40% 37% 39% 37% 45% 26% 17% 17% 5% 7% 17% 13% 5% 12% 15% 12% 4% 8% 7% 8% 11% 6% Use of advanced innovation operating models 100% Proximity to customers 100% Protection of new innovations by your company from more dominant global competitors 100% Extent of engineering outsourcing 100% Extent of engineering offshoring 100% Cross- regional business or divisional sharing of technology intellectual property 100% Protection of proprietary intelligence 100% Centralization of R&D technology organization 100% Overall revenue 100% Wages paid to home country R&D workers 100% R&D costs to produce new products 100% Export sales 100% Time to get product/service to market 100% 100% No opinion Increase Stay the same Decrease Use of digital innovation collaboration tools 100% Share of break- through innovation within portfolio 100% 46% Share of incremental innovation within portfolio Q19. How do you expect the following aspects of your innovation program to change with increased economic nationalism ? N=562, For “Protection of proprietary intelligence”, N=412 (As the question was not asked in Japanese survey) Effects of economic nationalism on aspects of your innovation program 16
- 18. Strategy& | PwC Economic nationalism would result in the replacement of today’s integrated and interdependent network with more self-sufficient R&D nodes 17 • The global innovation model involves the free flow of information, money, and talent across borders • Today’s global innovation model would need to evolve if there is a move towards economic nationalism • In the 2015 Global Innovation 1000 study, we found that more and more companies look for talent outside their headquarters country and set up R&D centers close to their target markets • The distributed elements of the global innovation model are connected by a strong central R&D organization while maintaining fluidity throughout the network • It is likely that today’s global innovation model would be replaced with self-sufficient R&D nodes • Companies will need to look for ways to manage the higher costs that will incur with this model • Business leaders will need to consider these items in their contingency plans: − Potential realignment of business and innovation strategies and how a more autonomous and redundant R&D network would operate − How to staff and resource R&D centers − How to prepare R&D centers to be more self- sufficient − Consider whether or not there is access to the digital tools that are needed to maintain communication and efficiency Integrated and interdependent network Self-sufficient, fully-functioning R&D nodes Illustrative Illustrative
- 19. Strategy& | PwC Confidential property 18 Introduction Will Stronger Borders Weaken Innovation? Innovation 1000 update
- 20. Strategy& | PwC In 2017, R&D spending of the Top 1000 companies exceeded $700B for the first time Confidential property 19 20132012201120062005 2007 20092008 2010 12–year CAGR = 4.8% Global Innovation 1000 R&D Spending 2005–2017, $US Billion $702$680$680 $647$638$614 $560 $508 $538 $501 $447 $409$400 +1.4% +3.8% 201620152014 +2.2% 4.79% +75% +5.1% +3.2% -5.6%+7.3% +9.7% 2017 +12.2% +9.3% +0.04% +10.3% Source: Bloomberg data, Capital IQ data, 2017 Global Innovation 1000 Study
- 21. Strategy& | PwC Total revenue for the Innovation 1000 fell by 2.5% from 2016 to 2017 Confidential property 20 20122011201020092008200720062005 2013 12–year CAGR = 4.3% Global Innovation 1000 Revenue 2005–2017, $US Trillion $16$16 $18$18$18$18 $16 $13 $15 $13 $12 $11 $9 4.28% -2.5% -1.0% +3.7%+1.3% -11.8%+12.0% +16.7%-10.4%+12.3% +13.1% +11.5% +11.7% +65% 2017201620152014 Source: Bloomberg data, Capital IQ data, 2017 Global Innovation 1000 Study
- 22. Strategy& | PwC This was primarily due to falling revenue from the Chemicals & Energy industry 21 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 $2.0 $0.0 $0.5 $1.0 $1.5 0.8 -14.5% Telecom Software and Internet Other Industrials Healthcare Consumer Computing and Electronics Chemicals and Energy Auto Aerospace and Defense 0.7 0.7 2.6 1.4 1.3 2.3 2.6 2.7 0.5 Revenue by Industry 2005–2017, $US Trillion Confidential property Source: Bloomberg data, Capital IQ data, 2017 Global Innovation 1000 Study
- 23. Strategy& | PwC R&D intensity sees year-over-year growth of 6%, reaching an all- time study high of 4.5% Confidential property 22 Global Innovation 1000 R&D Intensity 2005–2017 4.5% 4.2% 3.7% 3.5%3.6%3.5%3.6% 3.8% 3.6%3.8%3.8%3.9% 4.2% +6.0% +6.1% 0.50% +13.4% -2.2%+2.5%-2.0%-5.5%+5.3%-4.5% -0.8%-2.0%-8.5% +6% 2017201620152014201320122011201020092008200720062005 12–year CAGR = 0.50% Source: Bloomberg data, Capital IQ data, 2017 Global Innovation 1000 Study
- 24. Strategy& | PwC Software & Internet continues to experience significant year-over- year growth 23 7.5% -6.4% -2.9%-2.7% -1.0% 2.3%2.5%3.6% 5.9% 16.1% -10% -5% 0% 5% 10% 15% 20% Computing and Electronics Healthcare OtherSoftware and Internet Aerospace and Defense Auto Telecom Chemicals and Energy ConsumerIndustrials Change in R&D Spending by Industry 2016–2017 Confidential property Source: Bloomberg data, Capital IQ data, 2017 Global Innovation 1000 Study
- 25. Strategy& | PwC By 2018, Healthcare will surpass Computing & Electronics to become the top industry Confidential property 24 $180 $170 $160 $150 $140 $130 $120 $110 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Telecom Software and Internet Other Industrials Healthcare Consumer Computing and Electronics Chemicals and Energy Auto Aerospace and Defense 88 150 163 105 76 145 166 109 60 137 168 105 51 138 171 103 43 129 168 99 36 124 154 87 33 114 137 71 32 120 150 89 29 110 142 86 26 98 127 74 22 87 121 68 22 87 116 70 20162013 2018_Est 121 166 20172015 159 111 161 145 162 2012 102 2014 159 113 2006 2019_Est2007 2008 2009 2010 2011 109 173 2005 R&D Spending by Industry, estimates $US, Billion * CAGR Value is calculated for last 5 years span from 2012 to 2017 Source: Bloomberg data, Capital IQ data, 2017 Global Innovation 1000 Study
- 26. Strategy& | PwC Computing & Electronics, Healthcare, and Auto contributed 61.3% of R&D spending in 2017, almost the same as in 2016 Confidential property 25 Computing and Electronics 23.1% Healthcare 22.7% Auto 15.5% Software and Internet 14.5% Industrials 10.2% Chemicals and Energy 5.0% Telecom 1.6% Aerospace and Defense Consumer 1.6% Other 3.2% 2.9% 2017 R&D Spending by Industry Total = $701.6 Bn Source: Bloomberg data, Capital IQ data, 2017 Global Innovation 1000 Study
- 27. Strategy& | PwC Japan sees real growth for the first time while China sees a decline in spending for the first time and North America continues to grow Confidential property 26 2013 2014 2015 2016 2017 $120 $140 $160 $180 $200 $220 $280 $240 $320 $300 $260 $0 $40 $20 $100 $60 $80 107 54 308 China 117 257 50 39 201 109 194 44 21 Europe 136 30 +1.5% 189 248 188 45 53 297 101 +5.9% 47 -3.3% 54 275 +2.9% +3.8% -3%+10% +13% -6% 182 -9% +4% +2% +7% +3% +46% +32% +19% -8% +8% ROW North America Japan -14% R&D Spending by Region 2013–2017, $US Billion Notes: 1) Whenever China is called out in region data it always includes Hong Kong 2) *Use of local currency would result in different YoY changes Source: Bloomberg data, Capital IQ data, 2017 Global Innovation 1000 Study
- 28. Strategy& | PwC Europe and Japan increased the number of companies in the Top 1000 – for Japan, this is the first time in five years while China saw a decrease in number of companies for the first time 27 125130123114 75 5044 27 151410118 235 223 244242251 260 248 266 252247 222 202 191 171165 368 381 348351360368378 393 420 441 461468469 101101 0 50 100 150 200 250 300 350 400 450 500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 +3.6% 0.0% +5.4% -3.4% -3.8% ROW North America Japan Europe China Number of Companies in the Top 1000 by Region 2005–2017 Confidential property Source: Bloomberg data, Capital IQ data, 2017 Global Innovation 1000 Study
- 29. Strategy& | PwC This is the first time the top spender is a high tech firm; Honda and Facebook join the Top 20 Spender ranking Confidential property 28 Top 20 R&D Spenders Rank in 2017 Rank in 2016 Change Company Geography Industry R&D spending (US$ Billions) Revenue (US$ Billions) R&D Intensity 1 3 +2 Amazon.com, Inc. North America Software and Internet 16.1 136.0 11.8% 2 4 +2 Alphabet Inc. North America Software and Internet 13.9 90.3 15.5% 3 5 +2 Intel Corporation North America Computing and Electronics 12.7 59.4 21.5% 4 2 -2 Samsung Electronics Co., Ltd. South Korea Computing and Electronics 12.7 167.7 7.6% 5 1 -4 Volkswagen AG Europe Auto 12.1 229.4 5.3% 6 6 NA Microsoft Corporation North America Software and Internet 12.0 85.3 14.1% 7 7 NA Roche Holding AG Europe Health 11.4 51.8 21.9% 8 14 +6 Merck & Co., Inc. North America Health 10.1 39.8 25.4% 9 11 +2 Apple Inc. North America Computing and Electronics 10.0 215.6 4.7% 10 8 -2 Novartis AG Europe Health 9.6 49.4 19.4% 11 10 -1 Toyota Motor Corporation Japan Auto 9.3 247.5 3.8% 12 9 -3 Johnson & Johnson North America Health 9.1 71.9 12.7% 13 13 NA General Motors Company North America Auto 8.1 166.4 4.9% 14 12 -2 Pfizer Inc. North America Health 7.9 52.8 14.9% 15 15 NA Ford Motor Company North America Auto 7.3 151.8 4.8% 16 16 NA Daimler AG Europe Auto 6.9 161.8 4.2% 17 20 +3 Oracle Corporation North America Software and Internet 6.8 37.7 18.1% 18 17 -1 Cisco Systems, Inc. North America Computing and Electronics 6.3 49.2 12.8% 19 23 +4 Honda Motor Co., Ltd. Japan Auto 6.2 125.6 4.9% 20 27 +7 Facebook, Inc. North America Software and Internet 5.9 27.6 21.4% Total 194.5 2217.0 8.8% New New Companies in red have been among the top 20 R&D spenders every year since 2005 Source: Bloomberg data, Capital IQ data, 2017 Global Innovation 1000 study
- 30. Strategy& | PwC For the first time, Alphabet surpasses Apple as the Most Innovative Company; Alibaba joins the ranking 29 Source: Strategy& 2017 Global Innovation 1000 analysis Q23. In your opinion, what are the three most innovative companies in the world? Please choose from the drop-down menu or choose “Other” to write in your recommendation. N=562 *In 2015, Google announced a corporate restructuring forming an umbrella company called Alphabet 10 Most Innovative Companies
- 31. Strategy& | PwC 52% 69% 50% 39% 67% 39% Once again, the 10 Most Innovative Companies outperform the Top 10 R&D Spenders on financial metrics 30 10 Most Innovative Companies vs. Top 10 R&D Spenders* Highest Possible Score: Lowest Possible Score: Normalized Performance of Industry Peers: 48% 0% Revenue Growth (5-yr. CAGR) EBITDA as a % of Revenue (5-yr. Avg.) 100% Top 10 R&D Spenders 10 Most Innovative Companies Confidential property Rank 10 Most Innovative Companies 2017 R&D spend (US$ Bn) R&D intensity Top 10 R&D Spenders 2017 R&D spend (US$ Bn) R&D intensity 1 Alphabet Inc. 13.9 15.5% Amazon.com, Inc. 16.1 11.8% 2 Apple Inc. 10.0 4.7% Alphabet Inc. 13.9 15.5% 3 Amazon.com, Inc. 16.1 11.8% Intel Corporation 12.7 21.5% 4 Tesla, Inc. 0.8 11.9% Samsung Electronics Co., Ltd. 12.7 7.6% 5 Microsoft Corporation 12.0 14.1% Volkswagen Aktiengesellschaft 12.1 5.3% 6 Samsung Electronics Co., Ltd. 12.7 7.6% Microsoft Corporation 12.0 14.1% 7 General Electric Company 4.8 4.0% Roche Holding AG 11.4 21.9% 8 International Business Machines Corporation 5.8 7.2% Merck & Co., Inc. 10.1 25.4% 9 Facebook, Inc. 5.9 21.4% Apple Inc. 10.0 4.7% 10 Alibaba Group Holding Limited 2.5 10.8% Novartis AG 9.6 19.4% * Facebook and Alibaba do not have market cap data spanning back 5 yearsSource: Bloomberg data, Capital IQ data, 2017 Global Innovation 1000 Study Market Cap Growth (5-yr. CAGR)
- 32. Strategy& | PwC 31 For the complete study and more information on the annual Strategy& Global Innovation 1000 study Please visit: http://www.strategyand.pwc.com/innovation1000
- 33. Strategy& | PwC © 2017 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. This content is general information purposes only, and should not be used as a substitute for consultation with professional advisors