Ranked: the Top 50 Most Innovative Companies in 2020-2022
Corporate longevity is on the decline. In the 1960s, a typical S&P 500 company was estimated to last more than 60 years — these days, the average lifespan is just 18 years.
In today’s fast-paced world, companies need to stay relevant in order to survive. Because of this, it’s become increasingly more important for businesses to prioritize innovation.
This chart looks at the top 50 most innovative companies in 2020-2022, based on a survey by Boston Consulting Group (BCG).
The companies have been ranked based on four variables:
Global “Mindshare”: The number of votes from all innovation executives.
Industry Peer Review: The number of votes from executives in a company’s industry.
Industry Disruption: A diversity index to measure votes across industries.
Value Creation: Total share return.
Industry Peer Review: The number of votes from executives in a company’s industry.
Industry Disruption: A diversity index to measure votes across industries.
Value Creation: Total share return.
Breakdown of the Leaderboard
BCG has been ranking the most innovative companies since 2005. Here’s a look at the top 50 most innovative companies in 2020-2022. APPLE is on the 1st Place!
When you think about innovative companies, Walmart might not be top of mind. However, the retail giant has moved up to the 13th spot on the list, an increase of 29 places since 2022.
Walmart has put significant efforts into its e-commerce and omnichannel offerings. For instance, the company launched NextDay Delivery in 2020, and now offers one-day delivery to a majority of the U.S. population. The company also has a stake in the Chinese e-commerce platform JD.com, which has grown from 5% to 12%.
Costco makes it to 30th place this year, and the company is known for its effective use of data. Thanks to the company’s members-only model, it has been able to compile a ton of information on its customers. It uses this data not only for marketing purposes, but to help streamline processes like recall notices. Costco also uses data monitoring sensors in its warehouses to save money on water usage and to spot any potential leaks before they happen.
Another company worth touching on is Huawei—the Chinese tech company has taken the 6th spot, a 42 rank increase since 2022. This rise in the ranks is likely due to the company’s significant $19 billion investment in research and development (R&D) in 2022. These types of investments seem to be paying off, as Huawei sold more smartphones in 2019 than Apple.
While people may picture startups when they think of innovation and adaptability, big firms aren’t lagging far behind when it comes to innovation output.
In this context, firms with new product sales above their industry median are considered “innovation leaders.” Although 52% of small firms are considered innovation leaders, 43% of large firms still find themselves in the same boat.
