- Associated Press
- Jeff Bezos, founder and CEO of Amazon (No. 7) introduces new Kindle Fire tablets.
Tech firms are still tops when it comes to innovation, according to Boston Consulting Group’s 2013 “Most Innovative Companies” list. Apple Inc. held the No. 1 spot for the ninth consecutive year, followed by Samsung Electronics Co. and Google Inc.GOOG -0.20%
But auto makers are shifting into high gear. The current report includes 14 automotive companies in the top 50—and nine in the top 20. Back in 2010, there were just eight automotive firms in the mix.
Staring down tighter fuel efficiency standards, grappling with regular safety concerns and catering to discerning drivers, car makers have doubled down on innovation of late. (Don’t believe us? Check out these stories on Tesla’s bid to produce a self-driving electric car, BMWBMW.XE +0.48%’s light-weight assembly for electric cars and GMGM -1.57%’s electric-car aspirations.)
Toyota Motor Corp.7203.TO -1.08%, Ford Motor Co.F -1.27% and BMW AG were among the 10 most innovative companies, according to the BCG report. General Motors Co. jumped 16 spots this year, to No. 13, while Volkswagen AG rose 31 positions to No. 14. Audi AG, Honda Motor Co. and Daimler AG also had strong showings.
Meanwhile, Intel Corp.INTC -1.84%, Dell Inc.DELL 0.00% and Royal Philips NVPHG -1.06% all fell by at least 11 spots.
The results are determined in part by a survey of 1,500 senior executives who are asked to name the most innovative companies outside their industry, weighed alongside three-year shareholder returns, revenue growth and margin gains.
“The bar is continuing to rise for what it means to be a world-class innovator,” says Andrew Taylor, a BCG partner who works on innovation strategy. Innovation is no longer the buzzword of tech firms, but companies in all industries must be on top of their creative game to compete, he says.
Venkatesh Prasad, senior technical leader of open innovation at Ford, says the fact that his role even exists is evidence the company understands that “innovation plays a central role in our continuing transformation.”
Prasad helps run “ideation” sessions for long-term projects and new products, and the company hosts hackathons to find creative ways to tackle problems like fuel efficiency.
Companies talk plenty about the importance of innovation in maintaining a competitive edge in the marketplace, citing the value of new-product development, strategic planning and a committed leadership team.
About one-quarter of survey respondents say they see innovation as the top priority, and another 53% say it’s in the top three.
But measuring innovation remains difficult, and BCG doesn’t ask survey respondents to explain exactly how they’re defining it. (And don’t get us started on how to teach it.)
“There really is no one size fits all,” Taylor said, adding that one company in a given industry could focus on one or two blockbuster product innovations a year, while another in the same sector may opt for more incremental innovations, but both could be wildly successful.
Here’s a look at the top 20 most innovative companies:
- Apple
- Samsung
- Microsoft
- Toyota
- IBM
- Amazon
- Ford
- BMW
- General Electric
- Sony
- General Motors
- Volkswagen
- Coca-Cola
- Hewlett-Packard
- Hyundai
- Honda
- Audi
- Daimler
