TSG Global Innovation Report 2023: The Highlights
Over the past months, we asked nearly 1'700 executives of listed companies across industries and regions about their innovation challenges and enablers. We enriched the findings with our proprietary Innovation Scoring data and added commentaries from our Singularity Think Tank experts.
The result: The TSG Global Innovation Report 2023. 52 pages of analyses and expert commentaries on the state of applied innovation and technology.
Available here: https://singularity-group.com/insights/tsg-global-innovation-report-2023/ .
Some of the highlights:
The 2023 TSG World Innovation Ranking identifies (1) Switzerland, (2) Taiwan, (3) UnitedStates, (4) Finland, and (5) The Netherlands as the most innovative countries in the world by innovation revenues per capita.
Debunking myths: Company age, size, and market cap are weak predictors of innovation revenues. The image of young and nimble companies driving the world’s innovation output is lopsided.
Leaders in applied innovation show higher resilience to rising inflation, energy prices, demand fluctuations, interest rates, and international conflicts. Intuitive? Maybe. But debates over whether to focus on efficiency or renewal during tough times run long and deep.
During the turbulent post-covid period, leaders in applied innovation separated from the pack by giving less importance to cost reduction and operational efficiency and focusing instead on new product offerings and geographical expansion.
Digital and physical worlds are becoming more tightly linked in the next digitalization wave. In the face of the global reshoring megatrend, we identify a convergence of Robotics, Advanced Materials, New Energy, Big Data, and Compute Power technologies that drive a revival in Industrials value creation.
Applied innovation is critical for achieving sustainability goals. Sustainability leaders give higher importance to innovations in
BigData, AI, IoT, and Compute Power than sustainability laggards.
Stay tuned for some deeper dives into our findings.
About The Singularity Group
The Singularity Group (TSG) makes applied innovation investable in listed equities. TSG is the initiator of the Singularity Index™ (Bloomberg ticker: NQ2045), a global, all-sector benchmark and gold standard for applied innovation. The Singularity Strategies include The Singularity Fund (UCITS Lux), Singularity Reshoring, and the Singularity Small&Mid (UBS AMC). The Swiss investment advisory boutique works closely with the Singularity Think Tank, a network of entrepreneurs and academics with deep insights into innovation value chains. Their input forms the foundation of TSG’s proprietary innovation scoring system that quantifies the engagement of companies within a set of curated Singularity Sectors worldwide across all market capitalizations and industries. The Singularity Innovation Score (see below) defines how much value listed companies are generating through applied innovation.
The Singularity Innovation Score (SI-Score): A company’s SI-Score represents the percentage of its revenues associated with innovation. It reflects a company’s ability to create innovation versus commoditized business and cash flows, and its ability to participate in technological evolution. Changes in the SI-Score are just as important as the absolute value. A company’s SI-Score relative to its overall GICS sector can say a lot about the competitive standing and ability to gain and maintain market share. Regional SI-Scores can be used to evaluate the innovation power of markets as well as to gage companies’ standing in different regions.
Innovation Revenues: 4% of a 74 trillion USD global market: In 2022, the total revenues generated by the World’s listed equities amounted to USD 74 Trillion. TSG’s unique expert-led innovation screening and scoring methodology allows us to divide that amount into innovation revenues and non-innovation revenues. In 2022, roughly 4% (USD 3 Trillion) of global revenues qualified as innovation revenues.
For more information visit: www.singularity-group.com
