5 Indian Firms Among World's Most Innovative Companies

Bangalore: Five Indian companies have appeared in Forbes Magazine’s list of ‘The World’s Most Innovative Companies’, which is topped by four U.S. companies: Salesforce.com, Alexion Pharmaceuticals, Amazon.com and Red Hat.

The magazine has enlisted the companies by projecting their income (cash flows) from existing businesses; anticipating growth from those businesses, and looking at the Net Present Value (NPV) of those cash flows. It compared the NPV with a current market capitalization; companies with a current market cap value above the NPV of cash flows have an Innovation Premium built into their stock. Forbes used this Innovation Premium to compile the list of world’s most innovative companies.

The Innovation Premium measures the difference between the value of the company's existing businesses and its expected future innovations. Companies must also have $10 billion in market capitalization and they must have spent at least one percent of their asset base on research and development.

Forbes said that it had found out how successful leaders have personally understood innovation and they try to imprint their behaviors as processes and philosophies within their organization. It also featured S D Shibulal, co-founder and CEO of Infosys, calling him “both observer and experimenter.” 

Here are the 5 Indian Companies in the List of World’s Most Innovative Companies