Innovation Index gains 12.23% in April and May 2008, beats major U.S. indices

	Apr-08	May-08	Total*	YTD
Innovation Index Fund	6.30%	5.58%	12.23%	8%
S&P 500	4.75%	1.07%	5.87%	-6%
Dow Jones	4.54%	-1.42%	3.06%	-7%
Nasdaq	5.87%	4.55%	10.69%	-6%

*Compounded for April and May

Innovation Index Fund had a solid performance jump in April and May 2008. Innovation Index Fund delivered 12.23% compounded return in two months, and handily beat S&P 500 and Dow Jones indices. Overall, the Innovation Index Fund is up 8% in 2008 as of May 31, 2008, whereas the major U.S. indices have lost 6% or 7% in 2008.

Innovation Index Group remains bullish for the 4th quarter of 2008; however, our understanding of the current market conditions lead us to believe that there will be some road bumps along the way. Particularly, during the summer months, the market may tread sideways or even course correct in the interim.

Three factors are critical for a second half turnaround in U.S. economy and its positive impact on the stock markets:

1. Inflation - Gross inflation that includes gas, utilities and food needs to come under control. The consumer will feel the pinch of $4 or higher price per gallon of gas in the interim (yesterday, I filled up at the cost of $4.25 a gallon for gas) and higher cost of basic groceries such as bread, milk and fresh vegetables. Either the consumer will adapt to the higher price of gasoline, or react by reducing gas consumption and thereby decreasing travel. Reducing consumption and decreasing travel will negatively impact the economy. Adaptation to a higher fuel price will either result in replacement of current automobiles to higher mileage hybrids, decrease in discretionary spending elsewhere, utilization of public transport or carpools. This will take time, and neither of these alternatives appear to create a net positive impact on the economy. Finally, higher food prices would not deter the monthly consumption of groceries; however, the consumer will likely spend less money for other necessities or luxuries.

U.S. Federal Reserve Chairman Ben Bernanke said rising long-term inflation expectations were a "significant concern" for policy-makers but dismissed worry a wage-price inflation spiral was developing. "Some indicators of longer-term inflation expectations have risen in recent months, which is a significant concern for the Federal Reserve," Bernanke told graduating students at Harvard University. "We will need to monitor that situation closely."

He described overall inflation as "significantly higher than we would like," the second straight day in which he sounded a warning on inflation, which financial markets took as a firm signal that interest rates are likely on hold for some time.

2. Recession - U.S. employers shed 63,000 jobs in February 2008, the most in five years, 81,000 jobs in March and 20,000 jobs in April. How long will it take for the economy to turnaround and produce meaningful job growth? Would corporations go back to hiring mode in summer months or earlier? Which jobs will be in demand? So far, there are mixed signals on whether the economy is in recession or not, because the US economy actually grew in the first quarter by 0.6%.

Construction lost 61,000 jobs in April, and manufacturing shed 46,000 jobs. Retailers also trimmed payrolls by 27,000 in the face of a pullback in spending by consumers - CNN Money.

But some other sectors that had posted job losses in previous reports rebounded, such as business and professional services, which grew by 39,000 jobs after a loss of 44,000 the previous month. The financial sector, which has lost jobs each of the previous 8 months due to problems in the credit markets, ended that streak with a narrow 3,000 job gain. Unemployment rate actually improved to 5% in April 2008.

3. Housing and Financials - Some analysts call this period the "biggest slump in US housing".

Economist Glen Langan points out, "the unusual focus on subprime has caused the nation to overlook a broader trend regarding the housing sector -- namely, the psychology of the housing market."

"What we're not grasping yet, as a nation, is that even with programs to help people stay in their homes and avoid foreclosure, the public's stance toward the housing market has changed," Langan said. "The psychology of the housing market has changed. And this has little to do with at-risk mortgages. This a psychological shift among middle-income and upper-middle-income homeowners and taxpayers. It looks like they'll be sitting on the fence for a long period of time, and this will delay the housing recovery, hurting the economy in the process."

What's at the root of the psychological shift? Langan said factors that clearly indicate that tougher economic times are here and up ahead (higher oil prices, food prices, job lay-offs and little or no U.S. economic growth) combined with high home inventory levels -- about a 9.5- to 10-month supply at current sales rates -- telegraph to Americans that, unless you live in an oil boom town, median home prices are not going to recover any time soon, "not this year, and probably not in 2009."

According to this Bloomberg story, the number of Americans in danger of losing their homes to foreclosure rose to the highest in almost three decades during the first quarter as borrowers who fell behind on payments were unable to sell their homes.

New foreclosures rose to a seasonally adjusted 0.99 percent of all U.S. home loans, up from 0.83 percent in the fourth quarter, the Mortgage Bankers Association said in a report today. The total inventory of homes in foreclosure increased to 2.47 percent and the delinquency rate, loans with one or more payments overdue, grew to 6.35 percent. All were the highest since 1979, the Washington-based trade group said.

Falling home prices have stalled U.S. real estate sales, making it difficult for people who can't pay their mortgages to sell the properties. The increase in foreclosures was led by states with the biggest price declines over the past two years, said Jay Brinkmann, MBA's vice president of research and economics. California, Florida, Nevada and Arizona accounted for 89 percent of the gain in new foreclosures, he said.

Bottomline:

Inflation needs to be stalled, and then reversed. Recession may last another couple of quarters or more, or may show modest turnaround within the next year. Housing industry may take the longest to recover. The Fed and the government are busy trying to help in all these areas by increasing liquidity in the financial markets, lowering the interest rates, providing rebate checks to consumers and families, and also beginning the work towards strengthening the dollar. The sooner these three elements improve for the American consumer, the better the chances of an economic rebound in the fourth quarter of 2008, and a resulting growth in the stock market.

Innovation Index Group believes that the U.S. economy will recover in the 2nd half of 2008, and the Top Innovators of The Innovation Index will reward the patient, long-term investor. So far, most of the top innovators have delivered solid earnings during the first quarter of 2008 owing to the strengths and growth in their global business, new innovations spurring new business growth, maintenance of US earnings, and benefits from the currency fluctuations. It would be great to witness a spiraling growth of their US earnings in the 2nd half 2008.

Innovation Index Group has long-term BUY recommendations on the Top 20 Innovators of The Innovation Index.

About Innovation Index Group:

Innovation Index Group, Inc. is a new investment management company focused on systematically identifying, tracking and investing in the most innovative publicly traded companies in North America – collectively called the Innovation Index. We have developed the Innovation Index Fund, LLC as our first vehicle to invest in the Innovation Index. Over the past six years, the Innovation Index would have generated a gross average annual return of 40% based on historical model.* The Innovation Index returned 66% in 2007, and the Innovation Index Fund Manager is up 10% in 2008.*

Innovation Index Group, Inc. and Innovation Index Fund LLC are registered California Corporations, and member of the Irvine Chamber of Commerce in Orange County. Further, Innovation Index Fund LLC is an investment management company organized under the California state regulation, and is registered with Department of Corporations and SEC Regulation D.

The Innovation Index Reports:

Invest in The Innovation Index - Innovation Index Fund tracks The Innovation Index
The Innovation Index closes 2007 at 66% - 2007 Annual Report on the Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Innovative Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index returned 66% in 2007 based on performance model, and would have returned 174% over the previous five years (2002-2006) based on historical model*. This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.*

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NASDAQ: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.
*Past Performance Does Not Guarantee Future Results

Innovation Index Fund closes at 116.40, Up 8% in 2008

	3-Jun-08	Change		YTD
The Innovation Index
Fund Manager	116.40	-1.07	-0.91%	8%
S&P 500	1,377.65	-8.02	-0.58%	-6%
Nasdaq	2,480.48	-11.05	-0.44%	-6%
Dow Jones	12,402.85	-100.97	-0.81%	-6%

Innovation Index Fund closed today at 116.40, up 8% year to date.

Innovation Index Group has BUY recommendations on the Top 20 Innovators of The Innovation Index.

About Innovation Index Group:

Innovation Index Group, Inc. is a new investment management company focused on systematically identifying, tracking and investing in the most innovative publicly traded companies in North America – collectively called the Innovation Index. We have developed the Innovation Index Fund, LLC as our first vehicle to invest in the Innovation Index. Over the past six years, the Innovation Index would have generated a gross average annual return of 40% based on historical model.* The Innovation Index returned 66% in 2007, and the Innovation Index Fund Manager is up 10% in 2008.*

Innovation Index Group, Inc. and Innovation Index Fund LLC are registered California Corporations, and member of the Irvine Chamber of Commerce in Orange County. Further, Innovation Index Fund LLC is an investment management company organized under the California state regulation, and is registered with Department of Corporations and SEC Regulation D.

The Innovation Index Reports:

Invest in The Innovation Index - Innovation Index Fund tracks The Innovation Index
The Innovation Index closes 2007 at 66% - 2007 Annual Report on the Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Innovative Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index returned 66% in 2007 based on performance model, and would have returned 174% over the previous five years (2002-2006) based on historical model*. This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.*

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NASDAQ: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.
*Past Performance Does Not Guarantee Future Results

Innovation Index Fund Manager Up 10% in 2008

The Innovation Index Fund Manager is up 10% in 2008. The Top 20 Innovators of The Innovation Index have rebounded well in the 2nd quarter of 2008 to cause The Innovation Index Fund Manager to have double-digit gain for the year.

The Top 20 Innovators	Ticker	Dec 31, 2007	May 13, 2008	Quarterly	2008 %	2007 %
APPLE INC	AAPL	198.08	189.96	32%	-4%	133%
AMERICA MOVIL	AMX	61.39	56.90	-11%	-7%	36%
AMAZON INC	AMZN	92.64	74.56	5%	-20%	135%
BEST BUY INC	BBY	52.51	43.63	5%	-17%	6%
COSTCO WHSL CORP	COST	69.60	73.98	14%	6%	33%
CISCO SYS INC	CSCO	27.07	25.89	7%	-4%	-1%
EBAY INC	EBAY	33.19	31.41	5%	-5%	10%
GENERAL ELECTRIC CO	GE	36.74	32.33	-13%	-12%	0%
GOOGLE INC	GOOG	691.48	583.00	32%	-16%	50%
HEWLETT PACKARD CO	HPQ	50.48	44.27	-3%	-12%	23%
IBM	IBM	107.69	126.58	10%	18%	12%
INTEL CORP	INTC	26.50	23.76	12%	-10%	32%
MCDONALDS CORP	MCD	58.51	61.17	10%	5%	34%
3M CO	MMM	84.32	77.18	-2%	-8%	9%
MERCK & CO INC	MRK	57.61	39.17	3%	-32%	35%
MICROSOFT CORP	MSFT	35.46	29.78	5%	-16%	20%
NIKE INC	NKE	64.00	65.66	-3%	3%	30%
PROCTER & GAMBLE CO	PG	73.05	65.73	-6%	-10%	15%
RESEARCH IN MOTION LTD	RIMM	113.40	140.84	25%	24%	166%
AT&T INC	T	41.16	39.26	3%	-5%	19%
Innovation Index Fund Manager		108.27	118.56		10%	66%
S & P 500	^GSPC	1,468.36	1,403.04	6.07%	-4%	3.5%
NASDAQ	^IXIC	2,652.28	2,495.12	9.48%	-6%	9.8%
Dow Jones	^DJI	13,264.82	12,832.18	4.64%	-3%	6.4%
© Innovation Index Group, Inc. http://www.InnovationIndexGroup.com

The Innovation Index Fund Manager is up 10% in 2008. The Top 20 Innovators of The Innovation Index have rebounded well in the 2nd quarter of 2008 to cause The Innovation Index Fund Manager to have double-digit gain for the year. The Fund Manager increased positions in some of these innovators in March 2008, and it is this increase in net positions that created the double-digit performance jump. Apple, Google, RIM, Costco, IBM, Intel and McDonald's have each delivered 10% or higher return this quarter. Apple and Google lead all innovators with 32% appreciation in the 2nd quarter. Overall, five innovators are in the green for all of 2008 - Costco, IBM, McDonalds, Nike and RIM. The major U.S. indices are down anywhere from 3% to 6% in 2008.

Innovation Index Group believes that the U.S. economy will recover significantly in the 2nd half of 2008, and the Top Innovators of The Innovation Index will reward the patient, long-term investor.

Innovation Index Group has BUY recommendations on the Top 20 Innovators of The Innovation Index.

About Innovation Index Group:

Innovation Index Group, Inc. is a new investment management company focused on systematically identifying, tracking and investing in the most innovative publicly traded companies in North America – collectively called the Innovation Index. We have developed the Innovation Index Fund, LLC as our first vehicle to invest in the Innovation Index. Over the past six years, the Innovation Index would have generated a gross average annual return of 40% based on historical model.* The Innovation Index returned 66% in 2007, and the Innovation Index Fund Manager is up 10% in 2008.*

Innovation Index Group, Inc. and Innovation Index Fund LLC are registered California Corporations, and member of the Irvine Chamber of Commerce in Orange County. Further, Innovation Index Fund LLC is a private placement investment partnership organized under the California state regulations.

The Innovation Index Reports:

Invest in The Innovation Index - Innovation Index Fund tracks The Innovation Index
The Innovation Index closes 2007 at 66% - 2007 Annual Report on the Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Innovative Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index returned 66% in 2007 based on performance model, and would have returned 174% over the previous five years (2002-2006) based on historical model*. This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.*

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NASDAQ: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.
*Past Performance Does Not Guarantee Future Results

The Innovation Index edges up to 17%, maintains lead over major U.S. indices - Weekly Report 05-18-07

The Innovation Index four-peats – four week of back-to-back gains. The Innovation Index added 1% last week, and is now up 17% for the year. The Innovation Index has already surpassed the 2006 performance of 13.2%, and we are only in May 2007. The Innovation Index easily crushes the major U.S. indices including the S & P 500, NASDAQ and Dow Jones. S & P 500 added 1% point, and is now up 7% for the year; NASDAQ was unchanged, and is up 6% for the year; the Dow Jones Index gained 2% points, and is now up 9% for the year. This is the fourth week in 2007 where The Innovation Index is having double-digit gains.

The Innovation Index closed at 81.00 on May 18, 2007, up 17% from the closing price of 69.31 on December 29, 2006.

What caused The Innovation Index to add another 1% in one week? Three innovators caused the jump, the largest increase coming from America Movil (NYSE: AMX) that went up 7% in just one week on strong economic reports from Mexico and Brazil.

10 of the Top 20 Innovators showed positive gains (compared to 9 in the previous week), 7 of the Top 20 Innovators showed negative gains (compared to 9 in the previous week), and 3 Innovators were unchanged last week (compared to 1 in the previous week).

Can The Innovation Index five-peat, and have another week of gains? We will find out next week.

Weekly Advances

The news of the week was Microsoft’s (NASDAQ: MSFT) acquisition of AQuantive (NASDAQ: AQNT). Microsoft shares were unchanged last week, and are up 4% for the year. Microsoft hits a walk-off home run with Aquantive acquisition.

Besides America Movil, Amazon.com, Inc. (NASDAQ: AMZN) went up 3% last week, and is now up 60% for the year.

“Amazon.com (NASDAQ:AMZN) announced it will launch a digital music store later this year offering millions of songs in the DRM-free MP3 format from more than 12,000 record labels. EMI Music's digital catalog is the latest addition to the store. Every song and album in the Amazon.com digital music store will be available exclusively in the MP3 format without digital rights management (DRM) software. Amazon's DRM-free MP3s will free customers to play their music on virtually any of their personal devices -- including PCs, Macs(TM), iPods(TM), Zunes(TM), Zens(TM) -- and to burn songs to CDs for personal use.” – This will be in direct competition to the market leading iTunes music store. Several analysts and investors believe that Amazon will be successful in this endeavor based on its market leading online music sales (CD) and customer base.

Amazon.com (NASDAQ:AMZN) also announced “it has acquired www.dpreview.com, the web's most comprehensive site for digital camera information and reviews. Founded in 1998 by Phil Askey, dpreview.com provides unbiased reviews and original content regarding the latest in digital cameras, and offers a host of features and forums designed to make it easy for consumers to find the camera that's right for them. With its unique voice and in-depth technical reviews, dpreview.com draws millions of unique visitors each month.” – This acquisition will allow Amazon to lure more digital camera buyers to the electronics store, and will ultimately provide Amazon valuable reviews of digital cameras. This is a great example of marriage between online content and catalog. Expect Amazon to create more acquisitions along these lines.

The Board of Directors of The Procter & Gamble Company (NYSE: PG) announced “some business unit realignments and associated changes to its executive management structure effective July 1, 2007. The company's three global business units will be: Beauty Care, Global Health & Well Being, and Household Care.

"We are making these moves to realign our business units and top leadership structure to meet the changing needs of our larger, more diverse, faster-paced global business," said Mr. Lafley – Chairman and CEO of P&G. "These changes are designed to help P&G's businesses consistently win at both the first (in-store) and second (at-home) moments of truth with consumers.

"Our business has nearly doubled since 2000. We've had three major acquisitions including Clairol, Wella and Gillette. And, we have tripled the pace of our business initiatives over this same period," said Lafley.

P&G also announced full conversion of Liquid Laundry Detergent Portfolio to New 2X-Concentrated Formulation in North America in 2007-2008.

"Concentrated laundry products represent another example of how the cleaning product industry, through groundbreaking research, collaboration with ingredient and packaging suppliers, and innovative manufacturing practices, is living out its commitment to deliver valuable products to consumers while reducing their environmental impact," according to The Soap and Detergent Association (SDA).

P&G shares were up 3% last week, and are only down 1% for the year.

Weekly Declines

eBay India launched eBay Blogs and My World for the Indian market. These two new services would allow India users to express their personality and increase their engagement with each other according to TechWhack, India. eBay Inc. (NASDAQ: EBAY) was down 4% last week, and is now up 9% for the year. I attended TiEcon 2007 over the weekend, and was inspired by Meg Whitman’s keynote presentation, President and CEO of eBay. Check out: Innovation and Leadership lessons from Meg Whitman, eBay CEO and President, and top Innovator
Cisco Systems Inc. (NASDAQ: CSCO) declined 2% last week. Cisco announced that it has received foreign regulatory approvals for the WebEx acquisition (NASDAQ: WEBX).

Yearly Leaders and Laggards

Who sits on the top of The Innovation Index? Amazon.com, Inc. (NASDAQ: AMZN) gained 3% last week and leads all innovators with 60% gains for the year. Apple Inc. (NASDAQ: AAPL) is next with 30% appreciation for the year. America Movil (NYSE: AMX) notched 7% points to rise to 30% gains for the year. There are five other innovators with double-digit gains for the year, including: 3M Company (NYSE: MMM) at 10%, Intel Corporation (NYSE: INTC) at 13%, IBM (NYSE: IBM) at 11%, RIM (NASDAQ: RIMM) at 19% and Yahoo Inc. (NASDAQ: YHOO) at 16%.

Starbucks Corporation (NASDAQ: SBUX) is down 18% for the year.

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index has returned 119% over the last five years. This assumes an investment in each stock of The Innovation Index (buying each stock). An average of $100 invested in The Innovation Index on December 31, 2001 returned $219 as of December 29, 2006. By comparison, $100 invested in each of S & P 500, NASDAQ and Dow Jones Index returned $124. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by 77% over the last five years.

The Normalized Innovation Index has returned an impressive 174% over the last five years. This assumes equal investment in each stock of The Innovation Index as of December 31, 2001.

Alphabetical list of the top 20 Innovators of The Innovation Index and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple 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)
Yahoo! Inc. - (NASDAQ: YHOO)

The Innovation Index will analyze the positions and standings of the top 20 Innovators at the end of each year. For 2007, there will be no further changes in The Innovation Index.

Disclaimer: I invest in the stocks comprising The Innovation Index.

The Innovation Index surges to 7%, beats major U.S. indices

The Innovation Index surged in the first week of April, and is now up 7% through April 5, 2007. The Innovation Index leads the major U.S. indices. S & P 500 also gained ground last week and is now up 2% for the year; NASDAQ rebounded as well and is now up 2% for the year; the Dow Jones Index gained 2% for the week, and is now up 1% for the year.



The Innovation Index closed at 74.10 on April 5, 2007, up 7% from the closing price of 69.31 on December 29, 2006.

The first week of April 2007 was phenomenal for the Top 20 Innovators: 16 of the Top 20 Innovators showed positive gains, only 1 of the Top 20 Innovators was in the negative territory, and 3 Innovators were unchanged last week.

Weekly Advances

Research In Motion Limited (NASDAQ: RIMM) (RIM) led all innovators with 7% gain for the week. RIM is now up 14% for the year, and importantly having a double-digit gain for the year. Can RIM come close to the 94% runaway performance of 2006?

Amazon.com, Inc. (NASDAQ: AMZN) had a solid first week in April, and gained 5%. Amazon.com is looking good at 6% gains for the year, and is poised to post double-digit gains for 2007 barring any revenue and profit setbacks. This would be a welcome change for Amazon.com investors.

Hewlett-Packard Co. (NYSE: HPQ) gained 4% last week, and is now up 1% for the year. HP's first quarter stock performance was up, down and sideways; however, HP is a tech bellweather, and a top innovator. Expect double-digit gains for the year.

America Movil (NYSE: AMX) tagged another 4% and is now up 10% for the year; the Mexican company is doing well by acquiring or obtaining stakes of overseas Wireless and Telco operators, and gaining subscribers.

Google Inc. (NASDAQ: GOOG), Southwest Airlines Co. (NYSE: LUV), Target Corp. (NYSE: TGT) and Wal-Mart Stores, Inc. (NYSE: WMT) each gained 3% last week.

Weekly Declines

General Electric Co. (NYSE: GE) was the lone decliner last week by a mere 1%. GE is down 6% for the year. Is GE undervalued despite all the innovations and revenue gains?

Yearly Leaders and Laggards

Yahoo! Inc. (NASDAQ: YHOO) leads all innovators with 25% gains for the year, and we are only in April. At this rate, can Yahoo gain 50% in 2007? It is quite possible. RIM is up 14% in 2007. eBay Inc. (NASDAQ: EBAY) and Apple Inc. (NASDAQ: AAPL) are each tied with 12% gains. Considering that we are only in April, it is possible that these innovators can have breakthrough performance in 2007. Starbucks Corporation (NASDAQ: SBUX) is down 11% for the year.

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index has returned 119% over the last five years. This assumes an investment in each stock of The Innovation Index (buying each stock). An average of $100 invested in The Innovation Index on December 31, 2001 returned $219 as of December 29, 2006. By comparison, $100 invested in each of S & P 500, NASDAQ and Dow Jones Index returned $124. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by 77% over the last five years.

The Normalized Innovation Index has returned an impressive 174% over the last five years. This assumes equal investment in each stock of The Innovation Index as of 2001.

Alphabetical list of the top 20 Innovators of The Innovation Index and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple 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)
Yahoo! Inc. - (NASDAQ: YHOO)

The Innovation Index will analyze the positions and standings of the top 20 Innovators at the end of each year. For 2007, there will be no further changes in The Innovation Index.

Disclaimer: I invest in the stocks comprising The Innovation Index.

The Innovation Index gains 3% during the first quarter, beats U.S. major indices – Quarterly Report 03-30-07

The Innovation Index gained 3% during the first quarter of 2007 despite a broader market weakness. The Innovation Index leads the major U.S. indices owing to the combined strength of the Top 20 Innovators. S & P 500 and NASDAQ finished the quarter unchanged – 0%; the Dow Jones Index is down 1% for the quarter.

The Innovation Index closed at 71.72 on March 30, 2007, up 3% from the closing price of 69.31 on December 29, 2006.

How solid was the first quarter for the Top 20 Innovators? 8 of the Top 20 Innovators showed positive gains during the first quarter, while 12 of the Top 20 Innovators had negative returns, and no Innovators were unchanged.

Quarterly Leaders

Yahoo! Inc. (NASDAQ: YHOO) is leading the top 20 innovators with 23% gain for the first quarter. What’s remarkable is that Yahoo was down 35% in 2006; 2007 is a whole new ball game for Yahoo! in large part owing to the new Panama search, and a host of new innovations from Yahoo! Can Yahoo! catch Google? Apple Inc. (NASDAQ: AAPL) and eBay Inc. (NASDAQ: EBAY) are tied at 11% gains during the first quarter. Apple had a solid 2006 at 18% return; however, 2007 performance can easily eclipse the 2006 stock gains due to the introduction of AppleTV and the upcoming launch of iPhone. eBay is another Innovator who was down 30% in 2006, and is rebounding well in 2007. The pipeline of innovations and growth in core auction business is paying off for eBay.

2006’s top innovator with regards to stock performance is having a good 2007 as well: Research in Motion Limited (NASDAQ: RIMM) (RIM) is having a go again, thanks in large part due to the new Blackberry and Pearl, and the global network expansion of Blackberry. RIM is up 7% in 2007, and was up 94% in 2006.

Quarterly Laggards

Which Innovators are behind in stock performance at this stage of the game? Answer: Many. 12 of the Top 20 Innovators are showing negative returns for the first quarter. An overall majority. However, only one Innovator is showing double-digit negative returns, and has catching up to do - Starbucks Corporation (NASDAQ: SBUX) is down 11% during the first quarter of 2007. Starbucks performed remarkably well in 2006 at 18% stock gain. Can Starbucks rebound in the second quarter? Last year’s runner up in stock performance gains at 60%, and one of the top five innovators Cisco Systems, Inc. (NASDAQ: CSCO) is down 7% in 2007. Why is Cisco down? Cisco made some big acquisitions in the first quarter including that of WebEx. However, the investors are skittish on Cisco’s ability to digest these acquisitions and execute well on the core business. Another bell-weather is weathering a storm, and is down at 7% in 2007: Dell Inc. - (NASDAQ: DELL). However, Dell is up from the lowest point of the year, and is poised to rebound in the second half as Michael Dell begins the turnaround. Microsoft Corporation (NASDAQ: MSFT) had the biggest launch in the history, Windows Vista. However, the stock is still down 6% for the year. Can Microsoft reverse this slide and end the year in the positive territory? Bullish results from Vista, and the revenue impact from recent innovations can help.

Second Quarter Projections

What innovations and related stock gains can be expected in the second quarter? All Innovators would have announced their quarterly results, which most analysts believe to be in the positive. If the Innovators easily beat these estimates, project a good outlook, and announce brand new Innovations, The Innovation Index will runaway to double-digit gains. If the market takes another downturn, and the overall economy cools, the second quarter could be trying and will test The Innovation Index.

I posted the Top 10 Innovations from the Top 20 Innovators last week that summarizes the past week’s key innovations.

The Innovation Index Annual Report

I posted The Innovation Index Annual Report earlier in the year that included three Chapters:

Chapter One - Total Innovation Activity at the Top 20 Innovators
Chapter Two - The Top Innovator - The Innovator of Innovators
Chapter Three - The Innovation Insights and Roundup

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index has returned 119% over the last five years. This assumes an investment in each stock of The Innovation Index (buying each stock). An average of $100 invested in The Innovation Index on December 31, 2001 returned $219 as of December 29, 2006. By comparison, $100 invested in each of S & P 500, NASDAQ and Dow Jones Index returned $124. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by 77% over the last five years.

The Normalized Innovation Index has returned an impressive 174% over the last five years. This assumes equal investment in each stock of The Innovation Index.

Alphabetical list of the top 20 Innovators of The Innovation Index and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple 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)
Yahoo! Inc. - (NASDAQ: YHOO)

The Innovation Index will analyze the positions and standings of the top 20 Innovators at the end of each year. For 2007, there will be no further changes in The Innovation Index.

Disclaimer: I invest in the stocks comprising The Innovation Index.

The Innovation Index roars back, gains 4%, beats U.S. major indices – Weekly Report 03-21-07

The Innovation Index notched solid gains last week, and is now up 4% for the year. The Innovation Index leads the major U.S. indices. S & P 500 also gained some ground last week and is now up 1% for the year; NASDAQ made up for last week’s loss and is back in the positive territory at 2% for the year; the Dow Jones Index gained 3% for the week, and is unchanged for the year.

The Innovation Index closed at 71.91 on March 21, 2007, up 4% from the closing price of 69.31 on December 29, 2006.

How great was last week for the Top 20 Innovators? 19 of the Top 20 Innovators showed positive gains (compared to 4 the previous week), only 1 of the Top 20 Innovators dipped in the red (compared to 9 the previous week), and no Innovators were unchanged last week (compared to 7).

Weekly Advances

Starbucks Corporation (NASDAQ: SBUX) was the largest weekly gainer among the Top 20 Innovators at 10%. Starbucks is now only down 9% for the year. America Movil (NYSE: AMX) added another 7% to the previous week’s gains, and is now up 5% for the year. Amazon.com, Inc. (NASDAQ: AMZN) added 5% last week, its largest weekly gain of the year, and is back in the black at 1%.

Starbucks and Concord Music Group announced the formation of a new record label, Hear Music, which will forge relationships directly with artists and distribute recordings at Starbucks locations as well as through traditional music channels. This agreement gives Hear Music a greater hand in developing music that fits within the profile of the Starbucks Experience. Starbucks showed great success with Ray Charles' "Genius Loves Company" and Sergio Mendes' "Timeless." Starbucks also announced that music legend Paul McCartney would launch the Hear Music's inaugural CD release in early summer. – Starbucks press releases

Amazon.com announced the launch of its Classical Music Blowout Store that offers customers a hand-picked selection of more than 2,000 classical music titles across genres including instrumental classical, opera and vocal classical. Citing significant growth of classical music at both Amazon.com and industry wide, the world's largest online retailer created the Classical Music Blowout store to meet the increasing demand for affordable but high-quality classical music. CustomFlix Labs, Inc., a wholly owned subsidiary of Amazon.com, Inc., also announced that CustomFlix videos are now available through the recently launched Amazon Unbox on TiVo service, greatly expanding the selection of independent videos and other content from independent producers available to TiVo's 1.5 million broadband-ready TiVo Series2(TM) and Series3(TM) subscribers. This unique Amazon Unbox on TiVo service allows TiVo subscribers to rent or purchase movies, TV shows, and now independent content available through Amazon Unbox and watch them directly on their television sets. – Amazon.com press releases

America Movil is planning to participate in the recently announced auction for 3G spectrum by Chile.

Weekly Declines

Blackberry maker Research In Motion Limited (NASDAQ: RIMM) was the only Innovator that was down last week; RIMM was down 1% last week, although it is doing well at 6% gain for the year.

Research In Motion (RIM) (TSX: RIM) launched the new red BlackBerry(R) Pearl(TM), featuring a stylish new color for the award-winning smartphone. The BlackBerry Pearl is now available from AT&T (NYSE: T) with a beautiful, dark red finish for the first time. The BlackBerry Pearl comes complete with a digital camera, multi-media player and an expandable memory slot. It also boasts an incredibly sleek design while continuing to provide the full BlackBerry functionality and renowned user experience that has made BlackBerry a global success. – Research In Motion press release

Yearly Leaders and Laggards

Yahoo! Inc. (NASDAQ: YHOO) is leading the top 20 innovators with 23% gain for the year. Yahoo! was up 5% last week. Apple Inc. - (NASDAQ: AAPL) is up to double-digit gains again for the year at 11% owing to 4% gains last week. eBay Inc. (NASDAQ: EBAY) reversed the recent slide, was up 3% last week, and now posts 7% gain for the year. Target Corp. - (NYSE: TGT) also performed well last week going up 4%, and is now up 8% for the year.

Yahoo! Inc. expanded the reach of the popular new Yahoo! oneSearch service to the Mobile Web in the United States. Yahoo! oneSearch reinvents search to give consumers exactly what they want on their mobile device - instant answers.” “Yahoo! launched Yahoo! Widgets 4, a new version of the industry leading desktop Widgets platform. Yahoo! Widgets give consumers a live, at-a-glance view of their favorite Internet information and services on the desktop, including a new Widget Dock, new and improved Widgets, dramatically improved performance, new and streamlined installation, improved authoring tools and automatic updates. – Yahoo! press releases

Apple Inc. began shipping AppleTV, a device that allows people to wirelessly stream and store digital content that is loaded on iTunes (PC or Mac) to their widescreen televisions. AppleTV comes with a 40-gigabyte hard drive that can store 50 hours worth of video, and costs $299. Elton John catalogue will be available exclusively from Apple Inc.'s iTunes service from March 26 until April 30 before being made available on other legal download services. – Apple press releases

Skype, an eBay business, announced Skype(TM) 3.1 for Windows, introducing SkypeFind(TM) and Skype Prime(TM) (Beta), giving people new ways to share knowledge with one another. These new additions take Skype beyond simple voice and video calls into new markets where access to expertise and knowledge are essential commodities. Skype is also relaunching its online Skype Shop (skype.com/shop) in the United States to offer Skype Certified(TM) devices and accessories that can be used to enhance consumers' Skype user experience. – eBay press releases

Starbucks Corporation (NASDAQ: SBUX) is now only down 9% this year. Dell Inc. (NASDAQ: DELL) went up 3% last week, and has managed to stop the slide. Dell is down 9% for the year.

Announced Key Innovations at The Top 20 Innovators:

News Corp. and NBC Universal say they plan to take on the phenomenally popular online video-sharing site YouTube of Google (NASDAQ: GOOG) with a video effort of their own that will launch this summer, featuring an array of full-length movies and television shows, as well as clips, from the studios' libraries. Viacom pursued one route by suing YouTube for copyright infringement earlier this month, but it had been assumed that Hollywood's content providers would ultimately respond to YouTube with sites of their own.

Tide, a division of P & G (NYSE: PG) announced the launch of its new compacted high efficiency (HE) liquid laundry detergents available in variants Tide(R) HE with Bleach Alternative and Tide(R) HE with Febreze Freshness.

Microsoft Corp. (NASDAQ: MSFT) unveiled a small-business Internet protocol (IP) phone system, code-named "Response Point," designed for ease of use and manageability. The new system comes in an easy-to-install box, supports both voice over IP (VoIP) and traditional phone lines, and includes a voice-activated user interface.

Digital asset cataloging pioneer iView Multimedia Ltd., a wholly-owned subsidiary of Microsoft Corp., announced the availability of The Getty Images iView Submission Utility. Getty Images is the world's leading provider of imagery, film and digital services.

Microsoft also made three significant announcements to grab Search market share. Is Microsoft innovating or buying Search market share? You decide.

Southwest Airlines (NYSE: LUV) announced the addition of several new flights to key destinations. The scheduled delivery of several new Boeing aircraft is allowing Southwest Airlines to add more nonstop flights to cities such as Denver, Oakland, Orlando, and Houston Hobby.

IBM (NYSE: IBM) unveiled a comprehensive strategy to enable dynamic warehousing, a new generation of business intelligence capabilities that enable organizations to gain real-time insight and value from their business information. IBM also announced a new emerging technology that helps blind and visually impaired people experience streaming video and animation on the Internet. Designed at IBM's Tokyo Research Laboratory, the new multimedia browsing accessibility tool potentially opens a world of rich content to visually impaired people around the world, who number more than 161 million. IBM and Cisco, a global leader in networking, today announced they will partner to provide emergency crisis response capabilities for the first time as an end-to-end managed service.

IBM and Idea Cellular Ltd. (Idea), a leading Indian GSM mobile services provider and an Aditya Birla Group company, today announced a 10-year business transformation pact to integrate, innovate and transform Idea's business processes and IT infrastructure.

Google Inc. (NASDAQ: GOOG) announced separate partnerships with the Rwandan Ministry of Infrastructure and the Kenya Education Network (KENET). As a result, Rwanda's educational institutions and government ministries, and Kenya's universities are starting to use Google Apps(TM) - Google's set of hosted and customizable communications services.

HP (NYSE: HPQ) announced it has signed a definitive agreement to acquire Tabblo Inc., a privately-held developer of web-based software located in Cambridge, Mass. HP plans to leverage Tabblo's technologies to make printing from the web easier and more convenient than it is today. Tabblo's technology allows people to simply and efficiently arrange and print text, graphics and photos from the web. This is made possible by Tabblo's custom template engine, using an AJAX-enriched interface.

GE Security, Inc., a wholly owned indirect subsidiary of the General Electric Co. (NYSE: GE), announced the availability of the DR2 and DM2, two analog, fixed-dome cameras that offer multiple features previously not available in single cameras. The DR2 and DM2 are the latest additions to GE Security's line of wide dynamic range cameras, joining the CamPlus 2 and UltraView XP3, introduced recently.

General Imaging today launched its highly anticipated line of GE-branded digital cameras at PMA 07, the Photo Marketing Association's annual international conference and the leading photo industry convention and trade show. The line of eight cameras represents the first time General Electric (NYSE: GE) has bestowed its highly regarded and trusted brand on a consumer camera line. General Imaging, led by Chairman & CEO Hiroshi "Hugh" Komiya, is the exclusive worldwide licensee for the GE cameras.

GE Capital Solutions, the business-to-business leasing, financing and asset management unit of General Electric Co. and The Blackstone Group, through its affiliates, agreed to acquire PHH Corporation (NYSE: PHH) in an all-cash transaction for $31.50 per share or approximately $1.8 billion. Headquartered in Mount Laurel, NJ, PHH Corporation comprises PHH Arval, a North American fleet management services provider, and PHH Mortgage, a retail originator and servicer of residential mortgages in the United States. PHH Corporation will be purchased by GE, which will retain PHH Arval and sell PHH Mortgage to Blackstone immediately after closing.

GE announced it is accelerating its solar energy research program with the help of an $8.1 million grant from the U.S. Department of Energy as part of President Bush's Solar America Initiative.

Dell (NASDAQ: DELL) and AAA announced a special agreement to put technology in the hands of tens of millions of new customers, AAA members at home and on the road. AAA members will receive 6-percent discounts on Dell systems beginning today. Through the agreement, members also can learn about various resources available from Dell to help make choosing the right mobile or home and office technology as easy as making travel arrangements.

Dell(TM) and Alienware(R) customers purchasing select XPS(TM), Aurora(TM) and Area 51(R) gaming desktop computers can super-size their storage space by adding the world's first consumer one terabyte (TB) hard drive from Hitachi Global Storage Technologies. The extra hard drive capacity provides enough space to store an incredible amount of data -- a million photos, 16 days of DVD quality video or even a million minutes of music.

Dell announced the launch of Direct2Dell Chinese (www.direct2dell.com/chinese), becoming the first computer systems company to open a corporate blog in Chinese. The new blog was announced on the eve of Michael Dell's latest visit to China.

IBM Corp. (IBM) and Cisco Systems Inc. (NASDAQ: CSCO) on Tuesday launched a new all-in-one service for governments and institutions to buy disaster communications services. The new product line combines hardware, software and support services into a single bundle. According to IBM, it will allow cities and small countries to rely on a backup communications network without having to build and maintain it themselves.

Linksys(R), a Division of Cisco Systems, Inc., announced the ADSL2+ Gateway with VoIP (AG310), its newest intelligent ADSL Gateway solution for internet connectivity and VoIP. Linksys(R) also announced the Linksys 8-Port Analog Telephone Adapter (SPA8000). This new ATA can be used in business and consumer environments where multiple phones require access to the Internet to use Voice-Over-IP (VOIP) service.

Is Cisco betting big with the $3.2 billion acquisition of WebEx? Find out here.

TiVo Inc. (NASDAQ: TIVO), the creator of and a leader in television services for digital video recorders (DVRs), together with Amazon.com, Inc. (NASDAQ: AMZN) announced that "Amazon Unbox on TiVo" is now available to more than 1.5 million broadband-ready TiVo subscribers.

The Innovation Index Annual Report

I posted The Innovation Index Annual Report earlier in the year that included three Chapters:

Chapter One - Total Innovation Activity at the Top 20 Innovators
Chapter Two - The Top Innovator - The Innovator of Innovators
Chapter Three - The Innovation Insights and Roundup

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index has returned 119% over the last five years. This assumes an investment in each stock of The Innovation Index (buying each stock). An average of $100 invested in The Innovation Index on December 31, 2001 returned $219 as of December 29, 2006. By comparison, $100 invested in each of S & P 500, NASDAQ and Dow Jones Index returned $124. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by 77% over the last five years.

The Normalized Innovation Index has returned an impressive 174% over the last five years. This assumes equal investment in each stock of The Innovation Index.

Alphabetical list of the top 20 Innovators of The Innovation Index and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple 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)
Yahoo! Inc. - (NASDAQ: YHOO)

The Innovation Index will analyze the positions and standings of the top 20 Innovators at the end of each year. For 2007, there will be no further changes in The Innovation Index.

Disclaimer: I invest in the stocks comprising The Innovation Index.