According to a list put forth by the prestigious and revered Forbes magazine, tabulating the most popular brands based on their innovation levels, Microsoft comes in at number 86. The list put together some 100 brands, known globally and based on parameters like 5-year average sales growth (%), 5-year average net income growth (%), Enterprise value ($ bill), calculated each brand’s Innovation Premium. This way, the higher the brand’s Innovation Premium, the higher it is placed in the list. According to Forbes, “The Innovation Premium is a measure of how much investors have bid up the stock price of a company above the value of its existing business based on expectations of future innovative results (new products, services and markets)” For e.g. The Innovation Premium of Microsoft, as per Forbes is 18.0, whereas that of Google and Apple is 44.9 and 48.2, respectively. This translates to the fact that on the list Apple (5th rank) has been listed two notches higher than Google (7th rank). 

The Forbes list

The Forbes list

As seen in the image, the growth rate of Microsoft hasn't been quite good, as opposed to a better looking value price. However, one should note that the above statistics provided, in addition to the labeling seems purely from a business perspective, and innovative ideas, a lot of times only remain on paper. It could also be recalled that, Eric Schmidt, former CEO of Google stated that Microsoft wasn't that high on innovation, and that it didn't deserve to be a part of the Big 4. This surely isn't some sweet news for those at Microsoft, especially since this list comes after the market shares for its Windows Mobile/ Phone platform dipped. 

The Forbes list includes other names, such as Salesforce.com (1st), Amazon (2nd), Infosys (15th), Nintendo (20th), Adobe Systems (54th), HTC Corp. (56th), Qualcomm (61st), Oracle (77th), among others.

Publish date: August 8, 2011 6:51 pm| Modified date: December 18, 2013 8:18 pm

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