Page 1


)\LMFMX  8LI 1SWX-QTSVXERX-RRSZEXMSR'ETEFMPMXMIW -RRSZEXMSRI\IGYXMZIWWYVZI]IHXLMW]IEV[IVIEWOIHXSVEROXLIGETEFMPMXMIWXLI]GSRWMHIVIHQSWXMQTSVXERXJSVMRRSZEXMSRWYGGIWWSREWGEPISJXS

PIEWXXSQSWXMQTSVXERX %XIEGLSJXLIJSYVWXEKIWSJXLIMRRSZEXMSRTVSGIWWEJI[GVMXMGEPGETEFMPMXMIWIQIVKIH¨JVSQXLIEFMPMX]XSKEMRGYWXSQIV MRWMKLX ERH EREP]XMGWEXXLIMHIEXMSRWXEKIXSI\TIVXMWIMRTMPSXYWIVWIPIGXMSRERHGSRXVSPPIHVSPPSYXWEXXLIGSQQIVGMEPM^EXMSRWXEKI

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§TEVXRIV IRKEKIQIRXMRTVSHYGXHIZIPSTQIRX (IWMKR JSVWTIGMJMGKSEPW 4VSHYGXTPEXJSVQQEREKIQIRX )RKEKIQIRX [MXL GYWXSQIVWXSTVSZIVIEP[SVPHJIEWMFMPMX] '311)6'-%0->%8-32 (MZIVWIYWIVKVSYTQEREKIQIRX 4VSHYGXMSRVEQTYT 6IKYPEXSV]KSZIVRQIRXVIPEXMSRWLMTQEREKIQIRX +PSFEPIRXIVTVMWI[MHITVSHYGXPEYRGL 4VSHYGXPMJIG]GPIQEREKIQIRX 4MPSXYWIVWIPIGXMSRGSRXVSPPIHVSPPSYXW %ZIVEKIVEROMRK 7SYVGI&SS^ 'SQTER]


















)\LMFMX  'VMXMGEP ERH 7TIGMJMG 'ETEFMPMXMIWF]7XVEXIK] 8LI XSTTIVJSVQMRKGSQTERMIWMRIEGLSJXLIMRRSZEXMSRWXVEXIKMIW[LIXLIVXLI][IVIGPEWWMJMIHEW2IIH7IIOIVW1EVOIX6IEHIVWSV8IGLRSPSK] (VMZIVWEPPEKVIIHSREWLEVIHWIXSJGVMXMGEPMRRSZEXMSRGETEFMPMXMIWFYXJSVIEGLSJXLIXLVIIWXVEXIKMIWEHMWXMRGXWIXSJGETEFMPMXMIW¨WYGLEW VIWSYVGIVIUYMVIQIRXQEREKIQIRXERHWYTTPMIV§TEVXRIVIRKEKIQIRXJSV1EVOIX6IEHIVW¨VEROIHEQSRKXLIQSWXGVMXMGEP

'%8)+36=3* '6-8-'%0'%4%&-0-8= -()%8-32 463.)'87)0)'8-32 463(9'8():)0341)28 '311)6'-%0->%8-32

1%6/)8 6)%()67 6IWSYVGIVIUYMVIQIRX QEREKIQIRX 7YTTPMIV§TEVXRIV IRKEKIQIRX

1EVOIXTSXIRXMEP EWWIWWQIRX

%PP 8LVII +IRIVEPYRHIVWXERHMRKSJIQIVKMRK XIGLRSPSKMIW

2))( 7))/)67

&VSEHGSRWYQIVERHGYWXSQIVMRWMKLXW

(MVIGXP]KIRIVEXIHHIIT GSRWYQIVGYWXSQIV MRWMKLXW

6MKSVSYW HIGMWMSR QEOMRK

)RKEKIQIRX[MXLGYWXSQIVW

)RXIVTVMWI[MHI PEYRGL

4VSHYGXTPEXJSVQQEREKIQIRX 3TIR MRRSZEXMSR 8IGLRMGEPVMWO EWWIWWQIRX

4MPSXYWIVWIPIGXMSR GSRXVSPPIHVSPPSYXW

8)',2303+=(6-:)67 (IXEMPIHYRHIVWXERHMRKSJ IQIVKMRKXIGLRSPSKMIW ERHXVIRHW 4VSHYGXPMJIG]GPI QEREKIQIRX

7SYVGI&SS^ 'SQTER]


)\LMFMX  6 ( ERH 7EPIW )\LMFMX  'SWX6IHYGXMSRW 6 ( WTIRHMRK JIPP MR  FYX WEPIW JIPP QSVI WLEVTP] ERH EW E VIWYPX 6 ( MRXIRWMX] ยจ XLI HSXXIH PMRI ยจ VSWI F] E JVEGXMSR  FEWI ]IEV !  

'SQTERMIWGYXSXLIVHMWGVIXMSREV] WTIRHMRKGEXIKSVMIWWYGLEWWEPIW KIRIVEPERHEHQMRMWXVEXMZII\TIRWIW

7+ %  QSVIWLEVTP]XLER6 ( WTIRHMRK8LMW[EWIWTIGMEPP]XVYIJSV GETMXEPI\TIRHMXYVIW  ZW



7EPIW 6 (

'ETMXEP 7+ % )\TIRHMXYVIW



6 ( 7TIRHMRK 

ยง ยง



6 ( 7TIRHMRK EW E SJ 7EPIW



ยฌ



ยฌ

ยฌ

ยง 7SYVGI&SS^ 'SQTER]

7SYVGI&SS^ 'SQTER]


)\LMFMX  'LERKI MR 6 ( 7TIRHMRK F] -RHYWXV]ยง 6 ( GYXFEGOW [IVIGSRGIRXVEXIHMRXLVII WIGXSVWEYXSGSQTYXMRKERHIPIGXVSRMGWERH MRHYWXVMEPW7TIRHMRK[EWYTSREZIVEKIMR EPP SXLIV WIGXSVW 97 QMPPMSRW

,IEPXLGEVI 

-2'6)%7)( 74)2(-2+

7SJX[EVI -RXIVRIX

()'6)%7)( 74)2(-2+

3XLIV



8IPIGSQ





'LIQMGEPW  )RIVK] 2)8 ',%2+) -2 74)2(-2+

%IVSWTEGI (IJIRWI



'SRWYQIV



-RHYWXVMEPW ยง

)\LMFMX   7TIRHMRK F] -RHYWXV] 'SQTYXMRK ยง )PIGXVSRMGW

%YXS GSQTYXMRK ERH IPIGXVSRMGW ERH LIEPXLGEVI VIQEMRIH XLI XLVII FMKKIWX MRHYWXVMIW JSV 6 ( WTIRHMRK

97 QMPPMSRW

%YXS

ยง

7SYVGI&SS^ 'SQTER]

ยง

3XLIV



8IPIGSQ



'SRWYQIV



%IVSWTEGI(IJIRWI



7SJX[EVI-RXIVRIX



'LIQMGEPW)RIVK]



-RHYWXVMEPW



%YXS



7SYVGI &SS^ 'SQTER]

'SQTYXMRK )PIGXVSRMGW 

,IEPXLGEVI 


)\LMFMX  6 ( 7TIRHMRK +VS[XL6EXIWF]6IKMSR 6 ( HIGVIEWIH MR 2SVXL %QIVMGE ERH .ETER ERH JPEXPMRIH MR )YVSTIXLIVEXI SJ WTIRHMRK KVS[XLHIGIPIVEXIHMRXLIVIWXSJ XLI [SVPH 'LMRE ERH -RHME [IVIXLISYXPMIVW [LIVIWTIRHMRKKVS[XLEGGIPIVEXIH ]V '%+6 

%VIE SJ GMVGPI VITVIWIRXW  WTIRHMRK



-RHME'LMRE

!  97 QMPPMSRW



%'')0)6%8)( +63;8, 6%8)



()')0)6%8)( +63;8, 6%8)



6IWX SJ ;SVPH )YVSTI



2SVXL %QIVMGE ยง

.ETER ยง 











]V '%+6

7SYVGI&PSSQFIVKHEXE  &SS^ 'SQTER] EREP]WMW

)\LMFMX  7TIRHMRK F] 6IKMSR 8LI ZEWXFYPOSJ6 (WTIRHMRKVIQEMRW GSRGIRXVEXIHEQSRKGSQTERMIWLIEHUYEVXIVIH MR 2SVXL %QIVMGE)YVSTIERH.ETER 97 QMPPMSRW  -RHME'LMRE  6IWXSJ;SVPH 

.ETER 

2SVXL %QIVMGE 

)YVSTI 

7SYVGI&PSSQFIVKHEXE  &SS^ 'SQTER] EREP]WMW


)\LMFMX  8LI -RRSZEXMSR8ST 8LI VIGIWWMSRWLSSOYTXLIVEROMRKSJXLI8STWTIRHIVW8S]SXEHVSTTIHJVSQMXWRYQFIVSRIWTSXXSRYQFIVJSYVERH+IRIVEP1SXSVWJIPPJVSQ JMZIXS4LEVQEGIYXMGEPKMERX6SGLI,SPHMRKVSWIJVSQRYQFIVXLVIIXSXLIXSTWTSX

6ERO

'SQTER]

6 ( 7TIRHMRK

 

97 1MPPMSRW

'LERKI JVSQ

%W E SJ 7EPIW

,IEHUYEVXIVW 0SGEXMSR

-RHYWXV]





6SGLI ,SPHMRK







)YVSTI

,IEPXLGEVI





1MGVSWSJX







2SVXL %QIVMGE

7SJX[EVIERH-RXIVRIX





2SOME



ยง



)YVSTI

'SQTYXMRKERH)PIGXVSRMGW





8S]SXE



ยง



.ETER

%YXS





4JM^IV



ยง



2SVXL %QIVMGE

,IEPXLGEVI





2SZEVXMW







)YVSTI

,IEPXLGEVI





.SLRWSR .SLRWSR



ยง



2SVXL %QIVMGE

,IEPXLGEVI





7ERSJM%ZIRXMW







)YVSTI

,IEPXLGEVI





+PE\S7QMXL/PMRI







)YVSTI

,IEPXLGEVI





7EQWYRK







7SYXL /SVIE

'SQTYXMRKERH)PIGXVSRMGW





+IRIVEP1SXSVW



ยง



2SVXL %QIVMGE

%YXS





-&1



ยง



2SVXL %QIVMGE

'SQTYXMRKERH)PIGXVSRMGW





-RXIP



ยง



2SVXL %QIVMGE

'SQTYXMRKERH)PIGXVSRMGW





1IVGO







2SVXL %QIVMGE

,IEPXLGEVI





:SPOW[EKIR







)YVSTI

%YXS





7MIQIRW







)YVSTI

-RHYWXVMEPW





'MWGS7]WXIQW







2SVXL %QIVMGE

'SQTYXMRKERH)PIGXVSRMGW





4EREWSRMG



ยง



.ETER

'SQTYXMRKERH)PIGXVSRMGW





,SRHE



ยง



.ETER

%YXS





*SVH



ยง



2SVXL %QIVMGE

%YXS



ยง



834838%0 7SYVGI&SS^ 'SQTER]


)\LMFMX  -RRSZEXSVW¬4IVJSVQERGISR'VMXMGEP'ETEFMPMXMIW 6IWTSRHIRXW [IVIEWOIHXSVEXIXLIMVGSQTERMIW¬TIVJSVQERGISRGVMXMGEPGETEFMPMXMIWSREWGEPISJXS%XXLIMHIEXMSRTVSNIGXWIPIGXMSRERHTVSHYGX HIZIPSTQIRXWXEKIWSJXLIMRRSZEXMSRTVSGIWWGSQTERMIWKEZIXLIQWIPZIWKIRIVEPP]KSSHQEVOW8LIWYVZI]LS[IZIVVIZIEPIHEKIRIVEPWLSVXGSQMRK EX XLI GSQQIVGMEPM^EXMSRWXEKI[LIVIGSQTERMIWEKVIIHXLEXXLIMVIJJSVXW[IVIJEPPMRKWLSVX

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§TEVXRIV IRKEKIQIRX MR TVSHYGXHIZIPSTQIRX (IWMKR JSVWTIGMJMGKSEPW 4VSHYGXTPEXJSVQQEREKIQIRX )RKEKIQIRX [MXL GYWXSQIVWXSTVSZIVIEP[SVPHJIEWMFMPMX] '311)6'-%0->%8-32 (MZIVWIYWIVKVSYTQEREKIQIRX 4VSHYGXMSRVEQTYT 6IKYPEXSV]KSZIVRQIRXVIPEXMSRWLMTQEREKIQIRX +PSFEPIRXIVTVMWI[MHITVSHYGXPEYRGL 4VSHYGXPMJIG]GPIQEREKIQIRX 4MPSXYWIVWIPIGXMSRGSRXVSPPIHVSPPSYXW 4IVGIRXEKISJ6IWTSRHIRXW6EXMRK4IVJSVQERGISV 7SYVGI&SS^ 'SQTER]
















)\LMFMX  8LI  1SWX -RRSZEXMZI 'SQTERMIW

)\LMFMX8ST-RRSZEXSVWZW8ST6 (7TIRHIVW

-RRSZEXMSRI\IGYXMZIW[I WYVZI]IHZSXIH SZIV[LIPQMRKP] JSV %TTPI +SSKPI ERH 1 EW XLI QSWX MRRSZEXMZI GSQTERMIW :SXIW JSV XLI RI\X WIZIR [IVIQYGL QSVI QSHIWX

8LI 8STMRRSZEXSVWWMKRMJMGERXP]SYXTIVJSVQIHXLIMVTIIVWSRXLI +PSFEP-RRSZEXMSRPMWXSRXLVIIOI]JMRERGMEPQIXVMGW

6 ( 7TIRHMRK  97 QMP 6ERO

7EPIW  97 QMP

-RXIRWMX]

7TIRHMRK EW SJ WEPIW



%TTPI











+SSKPI











1











+)











8S]SXE











1MGVSWSJX











4 +











-&1











7EQWYRK

















,MKLIWX4SWWMFPI 7GSVI 834 -223:%8367



834 74)2()67

 2SVQEPM^IH 4IVJSVQERGI SJ -RHYWXV] 4IIVW 



  

 -RXIP 7SYVGI&SS^ 'SQTER]

0S[IWX 4SWWMFPI 7GSVI

7SYVGI&SS^ 'SQTER]

6IZIRYI +VS[XL

)&-8(%EW SJ 6IZIRYI

1EVOIX'ET +VS[XL

]V'%+6

]V%:+

]V'%+6


)\LMFMX  8LI 'SLIVIRX-RRSZEXSV¬W4VIQMYQ 'SQTERMIWSRXLI+PSFEP-RRSZEXMSRPMWXXLEXWGSVIHMRXLIXSTXLMVH MR XIVQWSJSZIVEPPGSLIVIRGI¨XLSWIXLEXLEHJSGYWIHSREREVVS[WIX SJ MRRSZEXMSRGETEFMPMXMIWERHEPMKRIHXLIQ[MXLXLIMVMRRSZEXMSRERH GSVTSVEXIWXVEXIK]¨SYXTIVJSVQIHXLIMVPIWWGSLIVIRXMRHYWXV]TIIVW ,MKLIWX 4SWWMFPI 7GSVI ,-+,0='3,)6)28 '314%2-)7 03;8313()6%8)0= '3,)6)28 '314%2-)7

-RHYWXV] 4IIVW 2SVQEPM^IH 4IVJSVQERGI 





 

0S[IWX4SWWMFPI 7GSVI

7SYVGI&SS^ 'SQTER]

1EVOIX 'ETMXEPM^EXMSR

)&-8(%EW SJ 6IZIRYI

]V'%+6

]V%:+


How the Top Innovators  

Booz & Company's annual study of the world's biggest R&D spenders shows why highly innovative companies are able to consistently outperform....