The World's Most Respected Companies - Apple is #1

Show a Little Respect, Please...

"In our (Barron's) sixth annual survey, money managers indicated the degree to which they respect—or don’t—the world’s 100 largest companies (by total market value as of Dec. 31, 2009). The most-respected companies tend to retain that distinction, though some of the least-respected names might surprise you."

Top 10 Most Respected companies in the world, according to Barron's, include:
Apple (NASDAQ: AAPL), Johnson & Johnson (NYSE: JNJ), Procter & Gamble (NYSE: PG), IBM (NYSE: IBM), Berkshire Hathaway, Toyota Motor (Japan), McDonald’s (NYSE: MCD), Google (NASDAQ: GOOG), Cisco Systems (NASDAQ: CSCO) and Amazon.com (NASDAQ: AMZN).

There were more than 50 global companies that are highly respected (outside the U.S.A.). These include:
Toyota Motor, Honda Motor, Nestlé, Novartis, Bayer, GlaxoSmithKline, InBev, Roche Holding, BHP Billiton, Siemens, BASF, SAP, Samsung Electronics, Unilever, BP, Daimler, Sanofi-Aventis, LVMH Moet Hennessy LV, Royal Dutch Shell, L’Oréal, Banco Santander, Suncor Energy, Statoil, Petroleo Brasileiro, Commonwealth Bank of Australia, AstraZeneca, Telefonica, Westpac Banking, Vodafone Group, Credit Suisse, HSBC Holdings, Total, Rio Tinto, Deutsche Telekom, Vale S.A., Allianz, China Mobile, E.ON, NTT DoCoMo, BG Group, BNP Paribas, Anglo American, Electricite de France, ENI, Mitsubishi UFJ Financial, Banco Bilbao Vizcaya, GDF Suez, Reliance Industries, ArcelorMittal, France Telecom, Industrial & Commerce Bank of China, UniCredit, British American Tobacco, CNOOC, China Construction Bank, UBS, Sberbank Rossia, Rosneft and Gazprom.

The Complete List of Top 100 Most Respected Companies:

’10 ’09 Company Mean-Score HighlyRespect Respect SomewhatRespect Don’tRespect
1 4 Apple 4.22 67% 26% 4% 1%
2 1 Johnson & Johnson 4.07 59% 34% 6% 0%
3 3 Procter & Gamble 3.82 46% 47% 3% 1%
4 14 IBM 3.7 49% 37% 11% 1%
5 2 Berkshire Hathaway 3.69 54% 30% 11% 4%
6 8 Toyota Motor (Japan) 3.67 47% 33% 13% 1%
7 7 McDonald’s 3.67 41% 43% 10% 0%
8 23 Google 3.66 50% 34% 14% 1%
9 10 Cisco Systems 3.65 43% 39% 10% 1%
10 NR Amazon.com 3.55 40% 43% 9% 3%
11 NR Honda Motor (Japan) 3.52 36% 39% 13% 0%
12 5 Wal-Mart Stores 3.49 41% 41% 17% 0%
13 9 Coca-Cola 3.48 31% 54% 9% 0%
14 16 Intel 3.48 31% 56% 9% 0%
15 13 3M 3.48 33% 54% 7% 1%
16 19 Nestlé (Switzerland) 3.44 29% 53% 9% 0%
17 12 PepsiCo 3.43 31% 50% 11% 0%
18 6 Exxon Mobil 3.43 37% 50% 10% 3%
19 11 United Parcel Service 3.39 31% 50% 13% 0%
20 20 Walt Disney 3.29 29% 56% 11% 1%
21 26 JPMorgan Chase 3.26 39% 36% 20% 3%
22 22 Microsoft 3.26 36% 44% 14% 4%
23 24 United Technologies 3.25 29% 46% 17% 0%
24 15 Abbott Laboratories 3.25 27% 50% 16% 0%
25 17 Hewlett-Packard 3.18 29% 46% 17% 1%
26 27 Schlumberger 3.09 29% 43% 21% 1%
27 30 Novartis (Switzerland) 2.9 20% 46% 19% 3%
28 53 Qualcomm 2.81 17% 46% 26% 0%
29 25 Amgen 2.78 20% 44% 24% 3%
30 NR Goldman Sachs 2.76 39% 24% 19% 16%
31 45 Bayer (Germany) 2.69 14% 44% 24% 1%
32 42 Visa 2.69 19% 44% 27% 3%
33 32 Merck 2.64 16% 50% 27% 3%
34 NR Royal Bank of Canada 2.58 14% 43% 30% 1%
35 31 Chevron 2.55 14% 49% 27% 4%
36 38 GlaxoSmithKline (U.K.) 2.53 6% 56% 23% 1%
37 NR Anheuser-Busch InBev (Belgium) 2.48 17% 29% 36% 1%
38 41 Roche Holding (Switzerland) 2.47 11% 43% 29% 3%
39 39 Oracle 2.39 11% 49% 29% 6%
40 51 BHP Billiton (Australia) 2.39 10% 37% 31% 1%
41 64 Siemens (Germany) 2.38 6% 50% 23% 4%
42 NR BASF (Germany) 2.36 6% 49% 27% 3%
43 54 SAP (Germany) 2.34 13% 34% 31% 4%
44 48 Samsung Electronics (S. Korea) 2.33 9% 44% 29% 4%
45 35 Unilever (Netherlands) 2.33 10% 37% 31% 3%
46 28 ConocoPhillips 2.32 10% 40% 37% 1%
47 62 BP (U.K.) 2.28 7% 46% 37% 1%
48 NR Daimler (Germany) 2.28 16% 26% 37% 4%
49 21 Wells Fargo 2.24 11% 43% 37% 6%
50 67 Sanofi-Aventis (France) 2.13 4% 44% 33% 4%
51 47 Verizon Communications 2.1 10% 43% 33% 10%
52 NR LVMH Moet Hennessy LV (France) 2.05 3% 41% 33% 4%
53 61 Royal Dutch Shell (U.K.) 2 6% 34% 43% 3%
54 55 Pfizer 1.99 9% 40% 37% 10%
55 75 L’Oréal (France) 1.98 7% 33% 39% 6%
56 77 Banco Santander (Spain) 1.97 9% 33% 40% 7%
57 NR Suncor Energy (Canada) 1.97 9% 26% 46% 3%
58 66 Statoil (Norway) 1.95 3% 36% 36% 4%
59 57 Petroleo Brasileiro (Brazil) 1.93 6% 34% 40% 6%
60 NR Commonwealth Bank of Aus. (Australia) 1.93 1% 39% 36% 4%
61 52 AstraZeneca (U.K.) 1.9 3% 37% 37% 6%
62 60 Occidental Petroleum 1.89 9% 29% 43% 7%
63 59 Telefonica (Spain) 1.85 3% 31% 49% 1%
64 NR Westpac Banking (Australia) 1.82 3% 31% 41% 4%
65 70 Vodafone Group (U.K.) 1.8 1% 36% 44% 4%
66 NR Credit Suisse (Switzerland) 1.77 7% 27% 47% 7%
67 63 HSBC Holdings (U.K.) 1.75 9% 24% 51% 7%
68 65 Total (France) 1.73 4% 30% 44% 7%
69 56 Philip Morris Intl. 1.72 11% 26% 33% 17%
70 NR Rio Tinto (U.K.) 1.71 3% 30% 46% 6%
71 78 Deutsche Telekom (Germany) 1.7 3% 30% 41% 7%
72 NR Vale S.A. (Brazil) 1.68 3% 24% 50% 3%
73 83 Allianz (Germany) 1.67 3% 27% 46% 6%
74 43 General Electric 1.64 11% 29% 39% 20%
75 68 China Mobile (China) 1.58 4% 27% 41% 11%
76 73 E.ON (Germany) 1.56 1% 23% 49% 4%
77 80 NTT DoCoMo (Japan) 1.55 1% 24% 47% 6%
78 NR BG Group (U.K.)* 1.54 3% 20% 46% 6%
79 NR BNP Paribas (France) 1.52 3% 24% 40% 10%
80 NR Anglo American (U.K.) 1.48 0% 21% 53% 3%
81 91 Electricite de France (France) 1.43 0% 20% 57% 3%
82 87 ENI (Italy) 1.41 0% 21% 50% 6%
83 82 Mitsubishi UFJ Financial (Japan) 1.39 0% 24% 49% 9%
84 58 AT&T 1.38 4% 26% 51% 16%
85 88 Banco Bilbao Vizcaya (Spain) 1.36 1% 19% 51% 7%
86 94 GDF Suez (France) 1.33 1% 21% 43% 11%
87 92 Reliance Inds. (India) 1.29 0% 20% 51% 9%
88 NR ArcelorMittal (France) 1.21 0% 20% 49% 11%
89 90 France Telecom (France) 1.18 1% 14% 56% 10%
90 96 Indust. & Commer. Bank of China (China) 1.11 0% 21% 37% 17%
91 NR UniCredit (Italy) 1.11 0% 11% 59% 7%
92 89 British Amer. Tobacco (U.K.) 1.11 3% 17% 41% 19%
93 98 Bank of America 1.06 6% 19% 44% 27%
94 93 CNOOC (China) 1.04 3% 14% 44% 19%
95 97 China Construction Bank (China) 1 0% 19% 44% 19%
96 99 UBS (Switzerland) 0.93 4% 16% 39% 27%
97 NR Sberbank Rossia (Russia) 0.4 0% 6% 41% 29%
98 NR Rosneft (Russia) 0.32 0% 7% 36% 33%
99 100 Gazprom (Russia) 0.07 0% 4% 36% 43%
100 NR Citigroup -0.21 0% 4% 30% 63%

NR=Not Ranked.
Source: Barron's

"John Cregan, veteran money manager at Hotchkiss Associates, a unit of United Capital Financial Advisers, says he admires Apple because the company "is at the top of the list of seeing around corners. They aren't out there trying to find out what their customers want, but saying rather, 'Look at this advancement in technology. It enables us to do this. You might not want it yet or know what to do with it, but you will want it and we are going to build it."

Learn about Apple's innovation strategy... How does Apple innovate, and what makes it the #1 innovative company in the world? Learn more...

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

References:
Barron's: http://online.barrons.com/article/SB126601896024845345.html

P&G - Procter & Gamble - Innovating & Growing with Business Model

Did you know that Procter and Gamble - P&G makes all these cool products below that you use everyday in your house?

You betcha... from Duracell and Gillette to Crest, Charmin to Tide, Bounty to Iams - P&G is the world's largest consumer goods company. As a matter of fact, "three billion times a day, P&G brands touch the lives of people around the world." P&G has a bigger mission that they are trying to fulfill: "Provide branded products and services of superior quality and value that improve the lives of the world's consumers, now and for generations to come."

P&G is one of the Top 20 innovators of the Innovation Index.

P&G stock is doing relatively well compared to the major indexes. Here is a snapshot of how well P&G is holding up since 2007, beating both S&P 500 and Dow Jones indices:

Why is P&G doing so well?

One answer: Innovation. Innovation driving new business, innovation driving growth, innovative leadership by past CEO of P&G A.G. Lafley, & current CEO Bob McDonald. Another fact that most investors may not know about: Barclays Global Investors and Berkshire Hathaway (Warren Buffett's company) are the top two institutional holders of P&G.

P&G has been making or handily beating the earnings estimates for the past 4 quarters (despite the Great Recession):

Earnings History	Dec-08	Mar-09	Jun-09	Sep-09
EPS Est	1.58	0.80	0.79	0.99
EPS Actual	1.58	0.84	0.80	1.06
Difference	0.00	0.04	0.01	0.07
Surprise %	0.0%	5.0%	1.3%	7.1%

(Courtesy - Yahoo Finance)

P&G Revenue & Gross Profit are beginning to climb back (check earnings results below), after divesting major businesses such as the prescription business in 2009 (courtesy - Yahoo Finance). Sales fell in 2008-2009 (yearly sales for June 2009) owing to the recession, divesting of businesses, and P&G's ill-timed strategy of raising prices for its products in the midst of the Great Recession that backfired. The price increases initially helped buoy sales, but eventually sales suffered. P&G is correcting the price increase strategy of 2008 beginning in Q3 of 2009.

PERIOD ENDING		30-Jun-09	30-Jun-08	30-Jun-07
Total Revenue		79,029,000	83,503,000	76,476,000
Cost of Revenue		38,898,000	40,695,000	36,686,000
Gross Profit		40,131,000	42,808,000	39,790,000

P&G Global Business Unit Organization

Courtesy: P&G Quarterly News. PG.com

24 of P&G's brands have more than a billion dollars in net annual sales,^[15] and another 18 have sales between $500 million and $1 billion. (Courtesy - Wikipedia). These P&G brands are run as business units, with brand heads managing the operations, products & profits.

Billion dollar brands

• Ariel is a brand of laundry detergent/liquid available in numerous forms and scents.
• Actonel is a brand of the osteoporosis drug risedronate co-marketed by Sanofi-Aventis.
• Bounty is a brand of paper towel sold in the United States, Canada, and the United Kingdom (rebranded to "Plenty" in the UK after being sold to SCA Svenska Cellulosa Aktiebolaget).
• Braun is a small-appliances manufacturer specializing in electric razors, coffeemakers, toasters, and blenders.
• Crest is a brand of toothpaste.
• Dawn is a brand of dishwashing detergent.
• Downy/Lenor is a brand of fabric softener.
• Duracell is a brand of batteries and flashlights.
• Fusion is a brand of men's wet shave razors and is the quickest P&G brand to have reached $1 billion in annual sales.
• Gain is a brand of laundry detergent and fabric softeners.
• Gillette is a safety razor manufacturer.
• Head & Shoulders is a brand of shampoo body wash, and deodorant.
• Old Spice is a brand of aftershave and shaving cream.
• Ivory is a soap.
• Nice 'n Easy is a hair coloring product.
• Olay is a brand of women's skin care products.
• Oral-B is a brand of toothbrush.
• Pampers is a brand of disposable diaper.
• Pantene is a brand of hair care products (conditioners/styling aids).
• Prilosec OTC is a brand of heartburn medicine co-marketed by AstraZeneca.
• Pringles is a brand of potato chips.
• Puffs is a brand of facial tissue.
• Secret is a brand of antiperspirant and deodorant.
• TAG is a deodorant and body spray.
• Tide is a brand of laundry detergent.
• Vicks is a brand name of over-the-counter medicines (Formula 44, Sinex, NyQuil/DayQuil)
• Wella is a brand name of hair care products (shampoo, conditioner, styling, and hair color).
• Whisper is a brand of pantyliners sold primarily in Asian markets.

Global Products A to Z

Most of these brands, including Bounty, Crest, Pringles, Puffs, and Tide, are global products available in several continents. Procter & Gamble products are available in North America, Latin America, Europe, the Middle East, Africa, and Asia.

How did P&G do in the latest quarter?

"The Procter & Gamble Company (NYSE:PG) reported net sales of $19.8 billion for the July - September quarter which exceeded the Company's guidance. Organic sales growth was up two percent versus a guidance range of flat to minus three percent on better than expected results across most business segments. Diluted net earnings per share increased three percent to $1.06, above the Company's guidance range of $0.95 to $1.00. The Company raised its outlook for the October - December quarter and fiscal 2010 organic sales growth citing modestly higher expectation for market growth. The Company also increased the low end of its fiscal year guidance range by $0.03 per share to reflect the higher top-line growth projection." - Courtesy PG.com Quarterly Press Release.

"Our September quarter results give us encouragement we are making the right choices to grow market share profitably," said President and Chief Executive Officer Bob McDonald. "We are investing in innovation, expanding our portfolio and improving consumer value to serve more consumers, in more parts of the world, more completely. We are driving simplification and improving execution while leveraging scale to create cost efficiencies that help fund these investments and accelerate growth."

What is sexy, new and exciting that P&G is innovating?

P&G recently introduced Cascade Complete All-in-1 ActionPacs.

Cascade Complete All-in-1 ActionPacs "give you the confidence of a job done right. It breaks down, dissolves, and rinses away tough food particles without the need to pre-wash."

Here is what one highly satisfied P&G customer had to say about All-in-1 ActionPacs:

OMG this is the most amazing product

"I have an older dishwasher that came with the apartment I live in. You had to completely wash the dishes before putting them in the dishwasher. I was basically using it to drain the dishes. I saw this on T.V. and went to walmart and got it. All I can say is it is almost magical the way it cleans. I tested it on several hard to wash dishes, dried oatmeal, dried rice krispy cereal and my stainless steel pots and everything came out clean, no stuck on food, no hard water residue. thank you! thank you! thank you! what a time saver. I am disabled and one of the hardest things to do is standing over the sink washing dishes."
By beadjeannie. Reviewer from Fresno, CA August 14, 2008

Marketing Machine

According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than any other company; the $2.62 billion spent by P&G is almost twice as much as that spent by General Motors, the next company on the Nielsen list.^[5] P&G was named 2008 Advertiser of the Year by Cannes International Advertising Festival.^[6]

Bottomline:

P&G is a great company with great leadership and employees, and highly satisfied customers. P&G will be around for the next 100 years. P&G will continue to grow high single digits even in this economy because of the breadth of its products, creativity and innovation, global market share, and delighted repeat customers who will not buy another brand. When P&G made increases in product prices to bolster revenue & profits - as high as 16 percent because of higher costs for plastic, energy, and paper in 2008 - consumers reacted and bought less of P&G products, and sales fell. P&G changed strategies in Q3 2009 to react to the price-conscious buyers & accommodate frugal shoppers: "Company leaders say they are cutting prices about 10 percent of their global product line, stepping up promotions such as coupons and other discounts, and making more “value” pitches to consumers." P&G also announced a new plan for its laundry business, slashing the price of Cheer detergent by 13 percent and promoting it as a bargain brand. In CEO McDonald's words: "the focus on innovation, expanding our portfolio and improving consumer value" are keys to P&G's continued growth.

Download my Creativity and Innovation eBook. 212-page collection of over 55 best practices, case studies, and insights on the current state of Creativity and Innovation in Business at Top Innovators including Apple, Google, Netflix, 3M, Frito Lay, Johnson & Johnson, Proctor & Gamble, Toyota, GE, BMW, Deloitte, Southwest, Nike, IBM, Dell and more. "Your report from the eBook and definitive guide was the primary reference that we used." Used by over 500 leading organizations including HP, Pepsi, EDS, J&J, Nokia ... Learn more
Download Now

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

Innovation Index Reports

Introducing The Innovation Index
Annual Report 2007 - The Innovation Index gains 66%
Measuring Business Innovation Success
Q1 2008 Report - Innovation Index ahead of S&P 500
Q2 2008 Report - Top Innovators Deliver
Top 50 Innovative Companies in the world
Annual Report - Chapter One - Total Innovation Activity
Annual Report - Chapter Two - The Top Innovator
Annual Report - Chapter Three - The Innovation Insights
Innovation and Stock Performance Correlation
Future earnings guidance, A leading indicator
Smart Investing In Tough Economic Times
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies

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.

Originally published in 2008; republished in with major revisions in 2009.

The Innovation Index 2008 Performance

The Innovation Index 2008 Performance
Top 20 Innovators	Ticker	31-Dec-07	31-Dec-08	% Change
3M Company	MMM	84.32	57.54	-31.76%
Amazon.com	AMZN	92.64	51.28	-44.65%
America Movil	AMX	61.39	30.99	-49.52%
Apple	AAPL	198.08	85.35	-56.91%
AT&T	T	41.16	28.50	-30.76%
Best Buy	BBY	52.51	28.11	-46.47%
Cisco Systems	CSCO	27.07	16.30	-39.79%
Costco Wholesale	COST	69.60	52.50	-24.57%
eBay	EBAY	33.19	13.96	-57.94%
General Electric	GE	36.74	16.20	-55.91%
Google	GOOG	691.48	307.65	-55.51%
Hewlett-Packard	HPQ	50.48	36.29	-28.11%
Intel	INTC	26.50	14.66	-44.68%
IBM	IBM	107.69	84.16	-21.85%
Merck	MRK	57.61	30.40	-47.23%
McDonald's	MCD	58.51	62.19	6.29%
Microsoft	MSFT	35.46	19.44	-45.18%
NIKE	NKE	64.00	51.00	-20.31%
Research In Motion	RIMM	113.40	40.58	-64.22%
Proctor & Gamble	PG	73.05	61.82	-15.37%
The Innovation Index		108.27	66.35	-38.72%
S&P 500	^GSPC	1,468.36	903.25	-38.49%
Dow Jones	^DJI	13,264.82	8,776.39	-33.84%
NASDAQ	^IXIC	2,652.28	1,577.03	-40.54%
McDonald's Corporation is the only innovator out of the top 20 innovators that had a positive stock performance in an otherwise tough 2008. McDonald's has achieved an amazing feat that will be cherished for a long time. 8 out of the Top 20 Innovators finished averaging better performance than the S&P 500. Assumptions and Disclosures: *Assumes equal investment in each Innovator of the Innovation Index
*Innovation Index Fund is closed and ended much lower than the Innovation Index
*2009 Innovation Index will be announced the week of Jan 12, 2009
*Innovation Index Group will relaunch in 2009, without management of any fund, as an investment research and analysis company.

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

Proctor and Gamble - P&G Innovating and Growing Strong in a Tough Economy

Did you know that Proctor and Gamble - P&G makes all these cool products below that you use everyday in your house?

You betcha... from Duracell and Gillette to Crest, Charmin to Tide, Bounty to Iams - P&G is the world's largest consumer goods company. As a matter of fact, "three billion times a day, P&G brands touch the lives of people around the world." P&G has a bigger mission that they are trying to fulfill: "Provide branded products and services of superior quality and value that improve the lives of the world's consumers, now and for generations to come."

P&G is one of the Top 20 innovators of the Innovation Index.

P&G stock is doing relatively well compared to its peers and the major indexes. Here is a snapshot of how well P&G is holding up - only down a few percentage points in 1 year, whereas the markets are down more than 30 points:

Why is P&G doing so well?

One answer: Innovation. Innovation driving new business, innovation driving growth, innovative leadership by the CEO of P&G A.G. Lafley. Back in February 2008, I had talked about how P&G is a Smart Long Term Buy in a Turbulent Market. IIG has stayed long with P&G througout the year, and has been opportunistically adding positions in P&G as well. Another fact that most investors may not know about: Barclays Global Investors and Berkshire Hathaway (Warren Buffett's company) are the top two institutional holders of P&G.

How did P&G do in the latest quarter?

P&G announced net sales growth of nine percent for the July - September quarter to $22.0 billion. Organic sales were up five percent, delivering at the mid-point of the Company's four to six percent target range. Sales growth was led by strong growth in the Beauty, Fabric Care & Home Care and Baby Care & Family Care segments. Diluted net earnings per share increased 12 percent to $1.03 for the quarter.

"This quarter was yet another example of the strength of P&G's balanced brand and geographic portfolio," said Chairman of the Board and Chief Executive Officer A.G. Lafley. "We continue focusing on leading innovation and improving productivity to deliver superior consumer and shareholder value. This focus on delighting consumers with trusted household and personal care products that consumers purchase weekly and use daily gives me continuing confidence P&G will deliver target growth over the long term, even in a challenging economic environment."

What is sexy, new and exciting that P&G is innovating?

P&G recently introduced Cascade Complete All-in-1 ActionPacs.

Cascade Complete All-in-1 ActionPacs "give you the confidence of a job done right. It breaks down, dissolves, and rinses away tough food particles without the need to pre-wash."

Here is what one highly satisfied P&G customer had to say about All-in-1 ActionPacs:

OMG this is the most amazing product

"I have an older dishwasher that came with the apartment I live in. You had to completely wash the dishes before putting them in the dishwasher. I was basically using it to drain the dishes. I saw this on T.V. and went to walmart and got it. All I can say is it is almost magical the way it cleans. I tested it on several hard to wash dishes, dried oatmeal, dried rice krispy cereal and my stainless steel pots and everything came out clean, no stuck on food, no hard water residue. thank you! thank you! thank you! what a time saver. I am disabled and one of the hardest things to do is standing over the sink washing dishes."
By beadjeannie. Reviewer from Fresno, CA August 14, 2008

Bottomline:

P&G is a great company with great leadership and employees, and highly satisfied customers. P&G will be around for the next 100 years. IIG - Innovation Index Group is long on P&G, and believes that P&G provides attractive buying opportunity at current price points. We believe that P&G will continue to grow another 10% to 15% even in this economy because of the breadth of its products, creativity and innovation, global marketshare, and delighted customers who will not buy another brand.

Innovation Index Reports

Introducing The Innovation Index
Annual Report 2007 - The Innovation Index gains 66%
Measuring Business Innovation Success
Innovation Index Group BUY Recommendations
Q1 2008 Report - Innovation Index ahead of S&P 500
Q2 2008 Report - Top Innovators Deliver
The Innovation Index Fund FAQ
Top 50 Innovative Companies in the world
Annual Report - Chapter One - Total Innovation Activity
Annual Report - Chapter Two - The Top Innovator
Annual Report - Chapter Three - The Innovation Insights
Innovation and Stock Performance Correlation
Future earnings guidance, A leading indicator
Smart Investing In Tough Economic Times
To Sell Or Not To Sell - You Decide
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies

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

Top Innovators Weathering the Financial Storm

HEWLETT-PACKARD

only FOR WOMEN: Fashion designer Vivienne Tam flanked by President (PSG), Hewlett-Packard India, Ravi Swaminathan (left), and Senior Vice-President Global Marketing, Hewlett Packard, Satjiv S. Chahil

Hewlett-Packard unveiled four new laptops, including a special edition stylish notebook PC designed by U.S.-based renowned fashion designer Vivienne Tam. HP has about 33 percent market share in India's laptop segment.

Addressing a press conference here, HP's Senior Vice-President (Global Marketing) of Personal Systems Group (PSG) Satjiv S. Chahil said: "We continuously work to ensure that our HP Pavilion line appeals to new markets and segments. Vivienne's fresh and authentic design speaks to an intrinsic part of a digital lifestyle-personal expression." According to HP India's President (PSG) Ravi Swaminathan, the company plans to strengthen its market leadership position with an aggressive 'go-to-market' strategy by increasing its retail footprint across 650 cities and expanding retail partner network to over 10,000 by this year-end.

HP Vice President in an interview today on CNBC indicated that HP PC business remains robust, and touted Gartner report that shows growth of at least 15%.

HP shares are down 23.5% year to date. Innovation Index Group has a BUY recommendation on HP with a 12 month price target of $50 to $60.

PROCTOR & GAMBLE

Mr. A.G. Lafley, CEO of P&G, said: "The reason P&G has grown so consistently for so long is that we're a company that sticks to the fundamentals. We build brands that improve consumers' lives. We deliver superior value day in and day out. We manage cash and costs with unrelenting discipline. And we invest in innovation as the primary driver of profitable organic sales growth.

"While the economic environment remains volatile and uncertain, I am confident that P&G can and will continue to prosper over the long term. We are committed to ensuring P&G will continue to be a company you can count on."

P&G's net sales for the fiscal year ended June 30, 2008 increased nine percent to $83.5 billion, with organic sales up five percent - in the middle of the Company's four to six percent target range. Diluted earnings per share were $3.64, up 20 percent - or double the Company's ten percent target. P&G's free cash flow was $13.0 billion for the fiscal year, or 106 percent of net earnings - well above the Company's 90 percent goal.

P&G sales have nearly doubled for each of the past three decades - from $10 billion in 1980 to more than $80 billion today with earnings growth increasing from $640 million to $12 billion over the same period. Over the past five years, P&G has delivered 11 percent compound annual total return to shareholders, nine percent over the past ten years, and 16 percent over the past 20 years. The Company's dividends have also increased every year - more than nine percent a year, on average - over the past fifty-two years, and have been paid without interruption since the Company was incorporated 118 years ago. P&G recently announced a 40 cents dividend.

P&G shares are down 15.8% year to date. Innovation Index Group has a BUY recommendation on P&G with a 12 month price target of $75 to $85

APPLE

JP Morgan is upgrading Apple to Overweight from Neutral. Apple's model is far more diverse than previous vintages, and they think the staying power has been underappreciated. With its market share momentum likely intact, Apple in firm's view offers strong relative downside protection to the looming earnings reset that they expect to impact IT Hardware companies in coming weeks and again early next year.

- Diverse model provides staying power. There has been considerable investor concern lately over the Apple model losing steam, particularly if the consumer vertical rolls over. JPM estimates that the company's total model exposure is about 70-75% consumer, but they think that Apple's brand and market share momentum offer meaningful buffers to potential macro-driven pressures on the consumer.

- Retail expansion could sustain share gains and international momentum. JPM thinks a major force behind Apple's growth story will be its diversifying revenue streams. They expect Apple's penetration of the international markets to be measured in years and supported by the increasing build-out of the retail stores overseas.

- iPhone could lead to the enterprise or other content-rich devices. Firm thinks the iPhone could be a stepping stone to penetrating the enterprise. Also, they could envision the iPhone pushing Apple deeper into the set-top box market as the convergence of voice, web, data, and content continues.

- Expect numbers to come down across the sector, but Apple likely has a backstop beyond the first round. For Apple, they are revising their below-consensus revenue and EPS estimates. Looking to fiscal 2009, revenue and EPS estimates are $36.98 billion and $5.27, versus the Street consensus of $40.26 billion and $6.02.

- Apple trades at 18.8x JPM's calendar 2009 EPS estimate, versus the peer group average of 11.1x. With macro pressures showing no signs of dissipating, they believe it is time to play defense, and they think Apple can avoid having a major problem with the "E" in the price-to-earnings multiple moving through the coming year. Firm expects the company's model to limit a series of major earnings cuts from unfolding in coming quarters, and they think this should support a valuation gap in Apple's favor.

Apple announced new aluminum shell, more powerful laptops on October 14, and reduced the price on updated laptops to under $1,000. Apple is poised to see a robust growth in its sale of notebooks during the holiday season owing to competitive pricing and better features.

Apple shares are down 48.6% year to date. Innovation Index Group has a BUY rating on Apple, and is now updating the 12 month price target in the range of $160 to $190.

IBM

JPMorgan upgrades IBM as a stock that is a 'sturdy ship' in rough economic waters

A JPMorgan analyst upgraded International Business Machines Corp. saying the company's diverse and steady revenue streams make the stock a "sturdy ship" in the worsening economic environment, the firm said Wednesday.

Mark Moskowitz raised his rating to "Overweight" from "Neutral" because IBM has diverse revenue sources that offer relative stability. He also said at least half of the company's revenue comes from annual payments on long-term services and software contracts.

IBM represents a "flight to quality" for investors" due to its broad services, hardware and software reach," the analyst wrote. IBM 3Q profits jumped 20% from last year in large part due to services contracts.

IBM shares are down 15.3% year to date. Innovation Index Group has a BUY recommendation on IBM with a 12 month price target of $125 to $150.

These four innovators present attractive buying opportunity at the current price points.

Innovation Index Reports

• Introducing The Innovation Index
• Annual Report 2007 - The Innovation Index gains 66%
• Measuring Business Innovation Success
• Innovation Index Group BUY Recommendations
• Q1 2008 Report - Innovation Index ahead of S&P 500
• Q2 2008 Report - Top Innovators Deliver
• The Innovation Index Fund FAQ
• Top 50 Innovative Companies in the world
• Annual Report - Chapter One - Total Innovation Activity
• Annual Report - Chapter Two - The Top Innovator
• Annual Report - Chapter Three - The Innovation Insights
• Innovation and Stock Performance Correlation
• Future earnings guidance, A leading indicator
• Smart Investing In Tough Economic Times
• To Sell Or Not To Sell - You Decide
• Creativity and Innovation Best Practices
• Creativity and Innovation Case Studies

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 Top 50 Innovative Companies in the World - Apple is #1 4th year in a row

Rank	Company	HQ Country	HQ Continent	Revenue Growth 2004-07* (in %)	Margin Growth 2004-07* (in %)	Stock Returns 2004-07** (in %)			Most Known for its Innovative... (% who think so)
1	APPLE	USA	North America	47	69	83			Products (52%)
2	GOOGLE	USA	North America	73	5	53			Customer Experience (26%)
3	TOYOTA MOTOR	Japan	Asia	12	1	15			Processes (36%)
4	GENERAL ELECTRIC	USA	North America	9	1	3			Processes (43%)
5	MICROSOFT	USA	North America	16	8	12			Products (26%)
6	TATA GROUP	India	Asia	Private	Private	Private			Products (58%)
7	NINTENDO	Japan	Asia	37	4	77			Products (63%)
8	PROCTER & GAMBLE	USA	North America	16	4	12			Processes (30%)
9	SONY	Japan	Asia	8	13	17			Products (56%)
10	NOKIA	Finland	Europe	20	2	35			Products (36%)
11	AMAZON.COM	USA	North America	29	-11	28			Customer Experience (33%)
12	IBM	USA	North America	1	11	4			Processes (31%)
13	RESEARCH IN MOTION	Canada	North America	56	-1	51			Products (37%)
14	BMW	Germany	Europe	6	-5	11			Customer Experience (40%)
15	HEWLETT-PACKARD	USA	North America	10	17	35			Processes, Business Models, and Customer Experience (27% each)
16	HONDA MOTOR	Japan	Asia	12	6	14			Products (40%)
17	WALT DISNEY	USA	North America	6	14	7			Customer Experience (63%)
18	GENERAL MOTORS	USA	North America	-2	NA***	-11			Products (55%)
19	RELIANCE INDUSTRIES	India	Asia	31	-7	94			Business Models (31%)
20	BOEING	USA	North America	9	32	21			Products (63%)
21	GOLDMAN SACHS GROUP	USA	North America	30	6	28			Processes and Business Models (33% each)
22	3M	USA	North America	7	5	3			Products (45%)
23	WAL-MART STORES	USA	North America	10	-2	-2			Processes (48%)
24	TARGET	USA	North America	11	3	0			Customer Experience (67%)
25	FACEBOOK	USA	North America	Private	Private	Private			Customer Experience (51%)
26	SAMSUNG ELECTRONICS	South Korea	Asia	2	-14	8			Products (42%)
27	AT&T	USA	North America	43	6	23			Customer Experience (33%)
28	VIRGIN GROUP	Britain	Europe	Private	Private	Private			Customer Experience (47%)
29	AUDI	Germany	Europe	11	11	41			Products (50%)
30	MCDONALD'S	USA	North America	7	-7	25			Customer Experience (42%)
31	DAIMLER	Germany	Europe	-11	37	28			Products (35%)
32	STARBUCKS	USA	North America	23	-2	-13			Customer Experience (60%)
33	EBAY	USA	North America	33	-37	-17			Business Models (28%)
34	VERIZON COMMUNICATIONS	USA	North America	12	0	9			Services (41%)
35	CISCO SYSTEMS	USA	North America	20	-5	12			Products (35%)
36	ING GROEP	Netherlands	Europe	7	4	11			Services (41%)
37	SINGAPORE AIRLINES	Singapore	Asia	9	5	20			Customer Experience (55%)
38	SIEMENS	Germany	Europe	1	21	22			Products (41%)
39	COSTCO WHOLESALE	USA	North America	11	-5	14			Customer Experience (46%)
40	HSBC	Britain	Europe	12	-1	4			Services (39%)
41	BANK OF AMERICA	USA	North America	12	0	0			Customer Experience and Services (23% each)
42	EXXON MOBIL	USA	North America	11	7	25			Processes (50%)
43	NEWS CORP.	USA	North America	4	4	4			Business Models (47%)
44	BP	Britain	Europe	14	-5	11			Processes (42%)
45	NIKE	USA	North America	8	-1	14			Customer Experience (43%)
46	DELL	USA	North America	7	-12	-17			Business Models (37%)
47	VODAFONE GROUP	Britain	Europe	7	-21	15			Business Models (33%)
48	INTEL	USA	North America	4	-10	6			Products (53%)
49	SOUTHWEST AIRLINES	USA	North America	15	9	-9			Customer Experience (50%)
50	AMERICAN EXPRESS	USA	North America	3	1	3			Customer Experience (35%)

2008 Report

BusinessWeek/Boston Consulting Group (BCG) recently announced the world's top 50 innovative companies for 2008.

17 of the Top 20 Innovators of The Innovation Index are included in the top 50 innovative companies of the world by BusinessWeek/BCG. This is a testament to the Innovation Index methodology and the process.

There are many new entrants in 2008. The top five innovators from last year have strengthened their positions further, and remain in the top five slots this year also. Apple is #1 for the fourth time in a row owing to another innovation milestone: Apple iPhone (check our sister blog: http://appleinnovation.blogspot.com ) Google is #2 again owing to the growth of the AdWords and AdSense businesses, and the phenomenal growth of YouTube videos post acquisition (although Google is still trying to find the appropriate business model towards making money from the millions of videos served daily). Toyota Motor remains at #3 in large part due to the dominance of hybrid cars - Toyota has expanded its position further by introducing hybrid cars in all the major car lines besides Prius, General Electric remains at #4 due to the emerging alternative energy innovations, and Microsoft rounds at #5, due to the growth of the XBox and new consumer innovations - can Microsoft retain its number 5 position in 2009?.

Tata Group - India vaults into the Top Ten innovative company list for the first time at #6. Tata was not in the top 50 innovative company list last year. Tata recently boldly acquired Jaguar and Land Rover from Ford. Although the big reason Tata is in the top ten is owing to the introduction of Tata Nano, a $2,500 new car that will revolutionize the car industry. Nintendo, at #7, is the top innovator out of Japan, thanks to the runaway success of Wii. Proctor & Gamble fell one notch to #8, but stayed in the Top Ten innovators list. P&G is a perennial innovator, and figures to be in Top Ten for the foreseeable future owing to hits such as Febreze and Mr. Clean. Another Top Ten innovator went up a notch to #9 - Sony. Sony's Blu-Ray and new product mix is causing a turnaround. Rounding out the Top Ten is Nokia out of Finland. Nokia went up 3 places and surged back in the Top Ten list. Nokia is the heavyweight in wireless, and the new Nokia models are doing rather well.

General Motors is on a comeback with exciting new electric concept cars, and remarkable new vehicles in the Buick, Hummer, Cadillac and Saturn lines. GM is on a rebound, and could have a solid 2008-2009 if it embraces the alternative energy engine technologies for the new cars. BMW, Honda Motor, Audi and Daimler are also in the top 50 innovator list on the strengths of new innovative cars that are customer friendly and in tune with the present environment. Reliance Industries, another Indian innovator, vaults into the Top Twenty list of innovators. Reliance is a household name in India - from wireless to telecommunications, technology to infrastructure - Reliance can be found in virtually every industry in India. There are key companies shining in this year's list out of England including Vodafone, BP, HSBC, and Virgin Group. Overall, 2008 list of innovators is very well-represented globally.

#25 on the list is Facebook - a new innovator who has the sixth highest trafficked website on social networking - who can one day challenge Google and MySpace.com. Although Facebook still has a long way to go.

According to BusinessWeek, "2008 list of the World's Most Innovative Companies adds three financial measures to the mix to determine the rankings. For this year's list, votes cast in the proprietary BusinessWeek-BCG survey received 80% of the overall weighting, stock returns were weighted 10%, while three-year revenue and margin growth each got 5%. While these changes -- only votes from our survey counted in the past -- marked the biggest shift yet in our rankings of the World's Most Innovative Companies, there are some similarities to previous years."

2007 Report

BusinessWeek announced (external link) the top 50 innovative companies of the world, an annual ranking compiled along with Boston Consulting Group. Click here to view the Top 50 rankings. Listed below is the 2007 Top 50 Innovative companies in the world, along with their 2006 ranking comparison.

Apple Inc. (NASDAQ: AAPL) is #1 again, 3rd year in a row. Google Inc. (NASDAQ: GOOG) is #2 again. And climbing up one notch is Toyota at #3. General Electric (NYSE: GE) is #4, up 2 places; Microsoft (NASDAQ: MSFT) held steady at #5, Proctor & Gamble (NYSE: PG) went up 1 spot to #6, 3M (NYSE: MMM) went down 4 notches to #7, Walt Disney Co (NYSE: DIS) zoomed up a whopping 35 places to #8, IBM (NYSE: IBM) went up 1 place to #9, and Sony climbed 3 places to #10.

There are many new innovators in the BusinessWeek top 50. AT&T (NYSE: T), Citigroup (NYSE: C), Verizon (NYSE: VZ), Nintendo (Japan), Volkswagen (Germany), Best Buy (NYSE: BBY), Merck (NYSE: MRK) and News Corporation (NYSE: NWS) are your new companies. Besides, Royal Philips Electronics (Netherlands), Costco Wholesale (NASDAQ: COST), Pfizer (NYSE: PFE), Johnson & Johnson (NYSE: JNJ), Amgen (NASDAQ: AMGN), McDonald's Corporation (NYSE: MCD), and LG Electronics (South Korea) have vaulted into the top 50 rankings (in 2006, these companies were ranked in the top 100, outside the top 50). This means, a few innovators dropped out of the top 50.



Last year (December 2006), I started The Innovation Index of the top 20 innovators based on 2006 BusinessWeek rankings of North American companies and my own research. I had only included the top 25 publicly traded North American companies in The Innovation Index based on the BusinessWeek rankings so as to evaluate their innovation activity and stock performance on a weekly basis. I am now planning to revise The Innovation Index for 2008 based on this new ranking from BusinessWeek, and am considering including the global publicly traded Innovators - the likes of Toyota, Sony, Nokia, BMW, Samsung, Philips, Infosys (although Infosys was not included in the Top 50 this year), top innovator from China, and more - besides the North American Innovators. This would create the first global Innovation Index for 2008.

How did BusinessWeek come up with the Top 50 Innovative Companies ranking?

According to the BusinessWeek article:
"The BusinessWeek-Boston Consulting Group 2007 list of the World’s Most Innovative Companies is based on a senior management survey about innovation and was distributed electronically to executives worldwide in late 2006. In October, surveys were sent to the 1,500 largest global corporations, determined by market capitalization in U.S. dollars, with instructions to send the survey to their top 10 executives in charge of innovation. The survey was also distributed to senior management members of the BusinessWeek Market Advisory Board, an online panel consisting of BusinessWeek readers, and via the Knowledge@Wharton e-mail newsletter. Survey participation was voluntary and anonymous, and the survey closed in March, 2007. The survey consisted of 20 general questions on innovation and an optional 12 questions focused on innovation metrics.

A total of 2,468 executives answered the survey. Of those indicating their location, 77% were from North America, 12% were from Europe, and 9% were from Asia or the Pacific region. A larger share of North American voters this year may explain some movement in the rankings of some companies on our list."

Compare this to 2006 BusinessWeek rankings, wherein only 1,070 executives answered the survey, although the mix was globally representative - 46% were from North America, 30% from Eurpoe, and 16% from Asia and Pacific.

In 2007, out of the top 50 innovative companies, only 14 were outside North America; in 2006, 20 companies were outside North America. Perhaps this has to do with the executives answering the survey, and their representative global mix.

Regardless, the top 50 innovators in the world are world-class companies creating new innovations through unmatched creativity and driving profitable growth.

Creativity And Innovation in Business Definitive Guide is a 212-page collection of my handpicked 56 Creativity and Innovation best practices, case studies, articles, interviews, and insights on the current state of innovation in business. The Innovation eBook provides real-world examples on how the Top 50 Innovators including Apple, Google, GE, Proctor and Gamble, Yahoo, Toyota, Netflix, BMW, Deloitte, Timex, Frito Lays, Johnson & Johnson, Starbucks, Southwest Airlines, Microsoft, Intel and more innovate and grow their business successfully time and again, especially during trying times. Use this eBook as a guide and relevant resource to find and create game-changing innovations, unblock creativity, and make innovation successful at your business...Learn more

The Innovation Index Reports:
Introducing The Innovation Index Fund - The Innovation Index Fund introduction announcement
Top 50 Innovative Companies in the world - 2007 & 2008 Report on Top 50 Companies and Innovators
The Innovation Index closes 2007 with 66% gain, crushes major U.S. indices - 2007 Annual Report
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, and would have returned 174% over the previous five years (2002-2006). 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 - (NYSE: 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.

Additional Labels:
top 5 innovative companies
innovative companies
top innovative companies
top companies on innovation and creativity
innovation and creativity top 50
creativity and innovation in business
top 10 creative and innovative companies
top 10 innovator
top 100 innovative business
top 10 innovative companies
top 50 innovative companies

Originally published: May 11, 2007
Updated: April 22, 2008, May 21, 2009
*Past performance does not guarantee future returns