Analysis

February 2, 2021

Innovation results in a higher stock market valuation

Research shows that companies that diversify revenue streams are rewarded with higher stock market valuations — quickly.


Maija Palmer

4 min read

Photo by Hans Eiskonen on Unsplash

There is a persistent myth that innovation projects and stock market-listed companies don’t mix well.

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Chart showing percentage of companies innovating between 2010 and 2019
Read the full study here
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Total shareholder return stock market-listed companies that diversified to varying degrees
Read the full study here.
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