Forbes’ annual list is a great reminder that innovation is a critical driver of value across all industries. Forbes uses a variety of different metrics in order to take the proper companies into consideration. For starters, companies need to have at least 7 years of public financial data and $10 billion in market cap. A company like Facebook would rank high on this list but unfortunately does not because they only have a few years of public financial data having gone public in May of 2012. You won’t find banks or financial services companies on this list either, as Forbes excludes companies that have no measurable investment in R&D, although I would argue that innovation can be a driver of value in any industry – and R&D investment is but one metric (and an imperfect one) to assess commitment to innovation. The Forbes picks are made primarily off the Innovation Premium, which is something you can read more about here.
You can read more on the list of innovative companies here.