Most Innovative Companies 2023

Reaching New Heights

in Uncertain Times
May 2023
Contents

01 The Formula for Innovation from 14 How Early Winners Are

Leading Companies Unlocking AI’s Potential
• What Winners Are Doing • From Implementation to Impact

• Bosch: A Culture of Innovation • H&M: Leveraging AI and Human Input

for Amplified Intelligence
• The 50 Most Innovative Companies
of 2023 • Four Impact Success Factors

• Innovation and Performance • Moderna: Pioneering AI-Driven

Innovation in the Fight Against Cancer
• Samsung: Leading the
Commercialization of Consumer Tech

19 Methodology
07 A Downturn Ups the Stakes in
Innovation
24 About the Authors
• A New Outlook?

• Investing with Focus

• McDonald’s: Driving Growth with 25 Acknowledgments

Digital Innovation

• Good Advice (Updated) Stands

the Test of Time
The Formula for Innovation from
Leading Companies
By Justin Manly, Michael Ringel, Amy MacDougall, Will Cornock, Johann Harnoss, Konstantinos Apostolatos,
Ramón Baeza, Ryoji Kimura, Michael Ward, Beth Viner, and Jean-Manuel Izaret

F
or the third straight year, the evidence is mounting: In this year’s Most Innovative Companies report, we
companies that both prioritize innovation and make examine what innovation-ready leaders (those that are ready
sure that they are ready to act are widening the gap to develop product, process, and business model innovations
over less capable competitors. The leaders at these firms that can deliver sustainable impact) are doing to pull ahead
are consistently delivering new products, entering new and how innovation is building their resilience to economic
markets, and establishing new revenue streams. The uncertainty and fueling their pursuit of lower emissions. In
laggards struggle to make headway beyond incremental “A Downturn Ups the Stakes in Innovation,” we explore how a
improvements. potential downturn in 2023 is evoking a much different
response than did the 2009 financial crisis, especially among
This year, the findings from our global innovation survey leading firms. In “How Early Winners Are Unlocking AI’s
dovetail with other new BCG research showing that compa- Potential,” we dig into the critical role of artificial intelligence
nies built for the future share a common set of attributes (AI) in innovation as in many other areas of business today.
that enable them to exhibit superior performance, be more
resilient to shocks and disruptions, and exploit innovation
faster for value-creating growth. In addition to people and
technology capabilities (including, importantly, AI), one of
these attributes is an innovation-driven culture.

BOSTON CONSULTING GROUP 1

What Winners Are Doing ambitions. Last year, we examined companies’ readiness in the
context of climate and sustainability (C&S), which two-thirds of
Despite global economic uncertainty, innovation rose as a top companies ranked as a top corporate priority. Only about one
corporate priority in 2023, with 79% of companies ranking it in five companies was ready to take effective action.
among their top three goals. (See Exhibit 1.) This is up from
75% in 2022 and close to 2019’s high of 82%. The top areas of This year, two out of three ready companies rank innovation as
innovation emphasis are new products and exploring adja- their top priority, and 90% expect to increase spending—
cent business models. Cost is a key driver for 62% of respon- almost all by more than 10%. (See Exhibit 2.) Moreover, while
dents and a top reason for innovation. Companies remain all companies on average expect to allocate more money
bullish on their innovation prospects: 42% expect to signifi- toward incremental innovations close to the core (an under-
cantly increase spending this year, a jump of 16 percentage standably conservative approach in uncertain times), ready
points over the last economic downturn in 2009. companies are allocating fully one-third of spending toward
developing breakthrough innovations. Expanding into adjacent
These are impressive figures, especially in the current macroeco- business models is also a priority in 2023. And 89% of ready
nomic and geopolitical environment. But there is also an emerg- companies prioritize C&S compared with 58% of all companies.
ing group of companies that is going much further and putting
innovation front and center in their future growth strategies. Ready companies use a wide array of strategic tools to
strengthen their innovation platforms and practices. They
Two years ago, as the world began to emerge from the access capabilities and expertise from outside their own walls,
pandemic, we observed that successful innovation takes three and they have systems in place to leverage these tools for
things: making innovation a priority, committing investment value. These companies are much more aggressive in their
and talent to it, and being ready to transform investment into use of M&A, for example, targeting innovative technologies or
results. We found that only about one company in four was processes or acquiring leaders and employees with a demon-
“innovation ready”—that is, it met all three criteria, particu- strated ability to innovate. They are also more likely to involve
larly possessing the elements of leadership and teaming that innovation experts in target analysis and selection.
enable effective execution of a company’s innovation

Exhibit 1 - Nearly 80% of Respondents Named Innovation as a the Top-Three

Priority, While Two-Thirds of Ready Companies Ranked It as Top Priority

Where does innovation, R&D, and product development rank among your Respondents who cite innovation,
company’s priorities? (%) R&D, and product development as
their company’s top priority (%)

35
82
77 79 77 79
76 75 76 75 75
72 71
66 66 66 64 65

32 47 46
47 42 42
45 52 53 53 57 53
47 43 43 39 42
65

40 35 30
30 33 33 33
23 23 25 26 24 24 22 22 23 23
19

2005 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2018 2019 2020 2021 2022 2023 Unready Ready

Top 3 Priority Top Priority

Sources: BCG Global Innovation Survey 2023; BCG analysis.

Note: n = 1,023 for global respondents. No data for 2011 and 2017 available. Totals may not sum due to rounding. “Ready” companies are those that
are ready to develop product, process, and business model innovations that can deliver sustainable impact.

2 MOST INNOVATIVE COMPANIES 2023

Exhibit 2 - Nearly 90% of Ready Companies Plan to Increase Innovation
Spending

How will your company's innovation, R&D, and product development spending change this year in response to
macroeconomic factors? (%)

32
30
26
23 22

16 15
10 11
7
6
3

Increase Increase by Increase by Increase slightly No change Decrease

by >30% 21% to 30% 11% to 20% (5% to 10%) (<5% change)

Increase No Change Decrease

Ready Unready

Sources: BCG Global Innovation Survey 2023; BCG analysis.

Note: n = 1,023 for global respondents. Totals may not sum due to rounding. “Ready” companies are those that are ready to develop product,
process, and business model innovations that can deliver sustainable impact.

For similar reasons, they also are more likely to orchestrate or strategy is its centralized Bosch Research unit. With 1,800
participate in ecosystems, engaging with external partners, highly specialized employees, this unit generates about a
even competitors, on innovations. They determine what they quarter of all Bosch patents. Bosch Research focuses on
need, whether it’s technology, data, or something else, and enabling technologies that can be applied across The Bosch
then work out the most effective way to access it. Group, such as AIoT, which combines AI and the Internet of
Things, to move from fundamental research to actual
They drive digital innovation with a clear bias towards new product innovation and large-scale commercialization.
digital products, agile teaming, and improving customer and Bosch builds on a broad ecosystem of internal business
marketing insights. They regularly review the performance of units and external partners to generate innovation ideas.
innovation units or vehicles (such as venture capital funds,
accelerators, incubators, and R&D) and shift resources toward While three-quarters of R&D spending has been devoted to
centers of success. And they understand that effective portfolio the company’s Mobility Solutions business and topics such
governance and management, especially with respect to data as electrification, driver assistance systems, semiconductors,
transparency, are key to driving impact. and sensors, Bosch supplements internal R&D investments
with targeted acquisitions to support high-priority areas, such
as its automated driving product portfolio.
Bosch: A Culture of Innovation
In 2022 alone, the company made three investments to
The Bosch Group (number 37 on the 2023 Most Innovative acquire IP for the next generation of mobility, consistent
Companies list) states in its annual report that “the basis with its goal of making Bosch a one-stop shop for “all the
for the company’s future growth is its innovative strength.” necessary building blocks of automated driving—from
While Bosch has a special ownership structure that actuators and sensors to software and maps,” according to
facilitates long-term planning and up-front investments, Mathias Pillin, president of the Cross-Domain Computing
it is a strong culture of innovation that underpins. Solutions division.

Bosch has a global R&D organization of about 84,800 For example, Bosch’s Semiconductor Ideas to the Market
employees, 44,000 of whom are software developers, in 130 team specializes in high-frequency-processing “System-on-
locations. From 2018 through 2021, the company has Chips” used in control units for the automotive industry. Its
maintained steady R&D spending as share of sales at FiveAI unit provides a modular cloud platform designed for
between 7.6% and 8.2%. A core pillar of Bosch’s innovation building software components and development platforms

BOSTON CONSULTING GROUP 3

for safe automated driving systems, particularly supporting These new bases of advantage are rooted in superior capa-
solutions used in complex urban environments. “We want bilities, especially those related to digital, AI, and innovation.
Five to give an extra boost to our work in software develop- These capabilities are more difficult to establish but much
ment for safe automated driving,” said Markus Heyn, more enduring for two reasons. First, technology is evolving
member of the Bosch board of management and chair- rapidly, and proficiency in a technology today, such as
man of the Mobility Solutions business. Bosch’s Atlatec AI, means that as the technology grows more powerful,
team, meanwhile, creates high-resolution digital maps that a company can be faster at deploying it. Second, compa-
are critical to automated driving functionality. nies that have these capabilities benefit from a flywheel
effect: they can invent, deploy, adapt, and reinvent more
The 50 Most Innovative Companies of 2023 quickly and with greater impact than their competitors
can. They also get better at co-creating with customers
The 50 most innovative companies for 2023 are a and ecosystem partners and at democratizing the use of
geographically diverse group, roughly evenly split between data throughout their organization.
North America and the rest of the world. Europe and Asia
are well represented, and the Middle East joins the list for Samsung: Leading the Commercialization of
the first time with Saudi Aramco at number 41. (See Exhibit 3.) Consumer Tech
Auto companies held multiple positions in the 2022 list;
international energy companies hold five spots this year. Consumer electronics giant Samsung is an example of a
This may be a sign of respondents’ concerns over climate company that uses all the tools available to drive perfor-
change and the fact that they are looking to the energy indus- mance by innovating at multiple stages of the value chain.
try to be a large and creative part of the solution. In spite of the Samsung regularly brings new technology to the mass
market headwinds that they experienced in 2022, tech compa- market through a focus on component-level technology
nies continue to dominate the top 50, including the top ten. innovations and advances in scaled manufacturing. Over the
years, as its core products and markets (such as smart-
The big story, though—this year and for most of the past phones and TVs) have matured, Samsung, known for its
decade—is the ability of innovation to drive performance. dizzying array of products, has proved adept at pushing into
Since 2005, our portfolio of the 50 most innovative adjacent markets and developing new business models.
companies has outpaced the broader market in sharehold-
er returns by a significant margin—an average of 3.3 Samsung innovates along two dimensions: component-
percentage points per year. (See Exhibit 4.) level advances (improving existing technologies with inno-
vations, such as foldable phones), and adoption (increasing
Innovation and Performance accessibility to products through mass production, lower
costs, and technological advancements). The company is a
The consistent outperformance of BCG’s most innovative global innovation leader across R&D, patents, and innova-
companies compared with the broader market is one tion vehicles such as labs and incubators. It invests heavily
indication of the correlation between superior innovation in R&D, spending more than $17 billion (9% of sales) in
capabilities and performance. There are others. 2021 alone, making it the largest non-US R&D spender.
Boasting about 10,000 researchers and developers dedicat-
New BCG research into the shifting drivers of performance ed to the development of future tech, the company has
and sustainable competitive advantage show that the developed a robust patent portfolio: it was granted 6,300
ability to innovate consistently over time is fast rising in patents in 2022, the most in the US.
importance. Traditional markets have plateaued, and
growth, which accounts for 60% to 70% of shareholder As Samsung has developed new products and sought out
returns in the medium term, is found primarily in new new markets, it has moved from displays and electronic
markets, including those created by technology disruption, components into robotics, smart home products, connected
such as e-commerce, streaming media, cloud-based inter- cars, medical equipment, virtual assistants, and 5G
actions, mobility solutions, and smart energy solutions. A connectivity. The company has captured significant shares
small number of companies that have embedded the of the global market for smartphones, QLED TVs, and
capabilities that enable them to exploit innovation for IoT products.
value-creating growth are widening the performance gap
with their competitors and generating shareholder returns
almost three times greater than those of the S&P 1200. T he connection between innovation and both growth
and advantage is becoming stronger than ever. Winners
understand this and invest in their innovation engines
accordingly. They will continue to widen their lead over
others until the laggards reset their own priorities and
investments for the future.

4 MOST INNOVATIVE COMPANIES 2023

Exhibit 3

The 50 Most Innovative Companies of 2023

Ranking

1–10 1 Apple 2 Tesla (+3) 3 Amazon 4 Alphabet 5 Microsoft 6 Moderna 7 Samsung

(-3) (+1) (-1)
8 Huawei 9 BYD
Company
10 Siemens
(+10)

11–20 Pfizer (+7) J&J (+15) SpaceX Nvidia (+1) ExxonMobil Meta (-5) Nike (-5) IBM (-8) 3M (+18) Tata Group

Schneider General
21–30 Roche Oracle (-3) BioNTech Shell
Electric
P&G (+8) Nestlé (+22)
Electric (+1)
Xiaomi (+2) Honeywell

31–40 Sony (-22) Sinopec Hitachi (+6) McDonald's Merck ByteDance Bosch (-11) Dell (-24) Glencore Stripe

Saudi Coca-Cola Mercedes- Alibaba Walmart

41–50 Aramco (-6) Benz Group1 (-22) (-32)
PetroChina NTT Lenovo (-24) BMW Unilever

xxx - Returnee xxx - New entrant

Sources: BCG Global Innovation Survey 2023; BCG analysis.

Note: +/- indicates change from 2022 MIC ranking.
Mercedes-Benz Group was previously identified as Daimler.
1

BOSTON CONSULTING GROUP 5

Exhibit 4

Innovators Create Value

Total shareholder return

2005 = index 100

482

+3.3%
Annual TSR

287

100

2004 2007 2010 2013 2016 2019 2022

BCG MIC 50 MSCI World Index

Sources: BCG Innovation Journey Analytics Database; CapitalIQ.

Note: Total shareholder return (TSR) performance of publicly listed MIC top 50 companies. Chart compares their one-year TSR performance for
that year against global performance index (MSCI World). We reweight the MIC 50 basket annually to reflect changes to the list. BCG MIC 50 has
outperformed the index in 12 of 17 years.

6 MOST INNOVATIVE COMPANIES 2023

A Downturn Ups the Stakes in
Innovation
By Justin Manly, Michael Ringel, Amy MacDougall, Will Cornock, Johann Harnoss, Konstantinos Apostolatos,
Ramón Baeza, Ryoji Kimura, Michael Ward, Beth Viner, and Jean-Manuel Izaret

F
rom an innovation perspective, this downturn (if it A New Outlook?
occurs) looks to be very different from others. During
the last recession, in 2009, companies reined in What’s going on in 2023? For one thing, as growth has
spending. The innovation plans we reported on in that slowed in core markets, the importance of being able to
year’s Most Innovative Companies report reflected that innovate new products and services that carry companies
belt tightening. Less than two-thirds of companies ranked into new markets with new business models has increased.
innovation as a top-three priority that year, and only 58% We reported in 2021 that most companies are at least
planned to increase spending. Nearly 15% expected to cut gradually or partially altering their core business models,
innovation investment. This year, by contrast, 79% of com- with digital opportunities and the sustainability imperative
panies see innovation as a top-three priority—15 points as two key forces driving the change. This dynamic
more than in 2009—and 66% plan to increase spending, continues today.
42% by more than 10%. (See Exhibit 5.)
More companies are building adjacent and new-
frontier business models to serve as growth engines. Many
firms are also planning to increase their spending on such
tools as M&A, innovation labs, and open innovation ecosys-
tems, despite the possible downturn. (See Exhibit 6.)

BOSTON CONSULTING GROUP 7

Exhibit 5 - Innovation Priority and Spending Plans Are Much Stronger in
2023 Than They Were in 2009

Where does innovation, R&D, and product development rank How will your company's innovation, R&D, and product
among your company’s priorities? (%) development spending change this year in response to
macroeconomic factors? (%)

100 3 100 5
10 6
18 9 7
80 80
26 20
28
60 +15pp 60
46 24
39 32
40 40

20 +8pp 20 +16pp 42
33
25 26

0 0
2009 2023 2009 2023
Increase significantly (>10%) Decrease slightly (-1% to -10%)
Top priority Top 3 Top 10 Not on the list
Increase slightly (1% to 10%) Decrease significantly (> -10%)

Stay roughly the same

Sources: BCG Global Innovation Survey 2023; BCG analysis.

Note: n = 1,023 for global respondents. pp = percentage points.

Companies are raising their commitment to innovation, In addition, the old adage about downturns separating
although many are not improving their capabilities as fast as winners and losers may be gaining real traction this time
they would like. Last year, for example, nearly 80% (39) of around. Top performers realize that playing a game of wait
BCG’s 50 most innovative companies ranked among the top and see can easily backfire in unstable times, as it gives
climate and sustainability (C&S) innovators, according to forward-looking competitors more time to position them-
global peer votes. Fully 60% of high-emitting companies were selves to win. For example, leaders know that building
targeting deep-tech innovation, and deep tech was the medium- to long-term resilience requires ongoing focus on
number one or number two innovation focus for those firms. C&S: 89% of innovation leaders cite it as a top-three priori-
In addition, many more committed C&S innovators are ty, and 49% of all companies have confidence in their C&S
leveraging external innovation vehicles that are typically used investment decisions (up from just 23% last year). Among
for longer term or more technologically advanced solutions. those prioritizing C&S, average “C&S readiness” increased
to 37% in 2023 from 28% in 2022, based on BCG’s innova-
Separate BCG research has shown that a group of companies tion to impact (i2i) parameters.
representing about 25% of the S&P 1200 have put in place
the capabilities that enable them to pivot from shoring up the
digital basics of their value chains to focusing on growth from
innovation. Some are on the leading edge of disruption in
their sectors and demonstrating considerable resilience in the
face of uncertainty. These companies are delivering impres-
sive results, far outpacing their peers on such key metrics as
shareholder returns and revenue and earnings growth.

8 MOST INNOVATIVE COMPANIES 2023

Exhibit 6

Companies Expect to Increase Spending On Key

Innovation Enablers, Even in the Face of a Downturn

How do you anticipate the use of innovation vehicles to change in response to macroeconomic factors such as a potential
downturn, inflation, or uncertainty? (%)

19 14 13 15 15 18
22

46 53 55 52
58
55 60

35 33 32 33 26 23 22

M&A Digital and Open innovation R&D Accelerator CVC fund Incubator
innovation lab ecosystem labs

Increase spending Maintain spending Decrease spending

Sources: BCG Global Innovation Survey 2023; BCG analysis.

Note: n = 1,023 for global respondents.

BOSTON CONSULTING GROUP 9

Investing with Focus Microsoft (which has ranked among the top five innovative
companies since the first edition of this report in 2005) is famous
This year’s survey found a significant percentage of companies for using M&A as well as partnerships and alliances to fill strate-
that are not only prioritizing innovation but investing in it. They gic needs that further its innovation agenda. The most recent
are also focusing their investments for greater impact and example is the company’s investments in OpenAI and the
managing their portfolios for improved results, perhaps directly integration of ChatGPT into multiple Microsoft product offerings.
in response to economic uncertainty or the prospect of turmoil.
They understand that innovation leads to advantage, or as Eric Another example is Siemens (number 10 this year and in the top
Schmidt, former chairman and CEO of Google, recently 50 for 13 of the previous 16 years), which uses M&A in various
observed in Foreign Affairs, “The main reason innovation now ways. In 2018, it spun off 25% of its Siemens Healthineers medi-
lends such a massive advantage is that it begets more innovation.” cal device business to spur entrepreneurial independence.
Siemens Healthineers has taken advantage of the flexibility to
Innovating through uncertainty requires tough prioritization pursue big bets in health care, continuing through the pandemic.
around portfolio management, rigorous governance, investment In August 2020, it announced the acquisition of longtime partner
in M&A opportunities, and the continuous building of talent and Varian Medical Systems for $16.4 billion. The Varian acquisition
internal capabilities. In practice, this means companies should positioned Siemens Healthineers as the player with the most
focus on five things. comprehensive integrated cancer care portfolio, across screening,
diagnostics, and treatment. It has allowed the company to
M&A. Leaders look to acquire missing technologies, capabilities, realize innovation synergies, combining Siemens’ imaging tech-
and talent. Our research found that innovation-ready companies nology with Varian’s therapeutic technology and AI to enhance
(those that are ready to develop product, process, and business existing products and create new ones. For example, Siemens
model innovations that can deliver sustainable impact) use a Healthineers’ new radiotherapy product combines imaging
wide array of strategic tools to strengthen their platforms and capability with AI to do rapid assessments and real-time optimi-
practices. They are much more aggressive in their use of M&A to zation of treatment while patients are receiving therapy.
further objectives by accessing new technologies and processes
or acquiring leaders and employees with a demonstrated ability
to innovate. (See Exhibit 7.) They are also more likely to involve
innovation experts in target analysis and selection.

Exhibit 7 - Companies Use M&A to Access Innovative Technologies and

Processes, and They Involve Innovation Experts in Target Selection
What role do M&As play in your company's innovation strategy during times of downturn,
inflation, or uncertainty (select one)? (%)

+3
+23

-20
-14
+7
33 36
32
26
22
17
9 10 8 6
Acquire innovative Include innovation Acquire leaders M&A does not Access to new markets
technologies or experts in our target and employees with play a significant role
processes screening and due demonstrated ability
diligence process to innovate

All companies Ready companies

Sources: BCG Global Innovation Survey 2023; BCG analysis.

Note: n = 1,023 for global respondents. ”Ready” companies are those that are ready to develop product, process, and business model innovations
that can deliver sustainable impact.

10 MOST INNOVATIVE COMPANIES 2023

Exhibit 8 - Ready Companies Lean Away from the Core Toward
Breakthrough Innovations

All companies Ready companies

100%

41 38 33 35 33
47 49 45

32 31 31
32 32
30 29 29

23 28 30 35 34 36
22 26

Past year (2022) Expected allocation in Past year (2022) Expected allocation in
uncertainty/downturn uncertainty/downturn

Distance from core: Near-in/extension New to company (adjacencies) New to world (breakthrough)
Level of advantage: Near-in/sustaining Incremental Distruptive

Source: BCG Global Innovation Survey 2023; BCG analysis.

Note: n = 1,023 for global respondents. Totals may not sum due to rounding. “Ready” companies are those that are ready to develop product,
process, and business model innovations that can deliver sustainable impact.

Portfolio Prioritization. Innovation-ready companies Portfolio Management. Embedding effective portfolio

emphasize breakthrough or disruptive innovations, while less- management and governance helps ensure ROI. The availabili-
sophisticated innovators allocate resources more heavily to ty of end-to-end tracking tools for innovation portfolios actually
“near-in” or sustaining innovation. Significant percentages of declined from 2022 to 2023, and only 38% of companies
all the companies in our 2023 survey are increasing their report a strong reliance on metrics to inform decision making
focus on digital product innovation (34%), adjacent new and governance. Less than a quarter of survey respondents
business models (30%), lowering costs (23%), and new ways of said they have successfully implemented clear KPI and deci-
working (30%). Innovation-ready companies are shifting their sion-making criteria to make portfolio decisions, and only 23%
allocation of resources away from incremental innovations use stage-gate processes with clearly defined decision criteria,
that sustain current positions or advantages toward break- reporting requirements, and performance metrics. By
through or disruptive innovations that create new markets or contrast, almost all innovation-ready companies employ
revenue streams. (See Exhibit 8.) In the event of a downturn, end-to-end tracking to assess progress and make informed
ready companies expect to allocate 50% more investment decisions about an initiative’s value. (See Exhibit 9.)
toward breakthrough innovations (34% versus 22% for other
companies) and almost that much more toward disruptive Overall revenue growth and customer satisfaction remain
innovations (36% versus 26%). Ready companies are planning the top metrics for innovation success, used by 41% and
to increase downturn spending in both areas while others 35% of companies, respectively. These are the same met-
tread water or retrench. rics, used by roughly similar percentage of companies, as
we recorded during the last recession in 2009. Impact on
environmental, social, and governance goals jumped into
the top-five success metrics tracked this year and is the
most common among ready companies.

BOSTON CONSULTING GROUP 11

Exhibit 9 - Nearly All Ready Companies Have Implemented End-to-End
Portfolio Tracking

Have you implemented a holistic view of the portfolio What metrics does your company use in innovation, R&D,
with end-to-end tracking available centrally as a source and product development (select up to three)? (%)
of truth to guide portfolio decisions? (%)

41
Overall revenue growth
33

35
Customer satisfaction
38
94
26
Impact on ESG goals
43
42 43
26
14 Return on innovation spending
23
Implemented Implemented 22
with impact1 Margin accretion
25

All companies Ready companies

Sources: BCG Global Innovation Survey 2023; BCG analysis.

Note: n = 1,023 for global respondents. “Ready” companies are those that are ready to develop product, process, and business model innovations
that can deliver sustainable impact.
1
“Implemented with impact” includes the subset of companies implementing portfolio transparency that also saw impact from those efforts.

Data, Targets, and Collaboration. Ready companies The war for talent is a perennial issue. The job market is
emphasize use of fundamental tools and ensure greater still strong, but it has softened in many parts of the world,
data transparency, clearer portfolio targets, and more meaning it may be easier now to build or strengthen
collaboration. Three-quarters have full data transparency internal teams. The same conditions that provide
to support decision making, compared with only 35% of opportunities for M&A also offer the opportunity to
not-ready companies. Almost 60% have clear portfolio acquire qualified, innovation-focused talent.
targets, and more than half use regular portfolio meetings
to assess process. (See Exhibit 10.)
McDonald’s: Driving Growth with Digital
Innovation-Focused Talent and Culture. For many Innovation
“almost ready” companies, talent and culture is the dimen-
sion holding them back from realizing the full potential of Consider the case of McDonald’s (number 34 on the 2023
their innovation function. In fact, companies that are top 50 list), a restaurant industry frontrunner in technology
almost ready (according to BCG’s i2i assessment) lag ready innovation and investment, which has combined many of
companies more on talent and culture than on any other these practices to bolster its leading position in the indus-
dimension. Ready companies focus on an innovation- try. McDonald’s spends heavily on innovation through
focused culture and talent pipeline. They are three to four partnerships, labs, digital tools, and acquisitions. It was
times as likely as their almost-ready counterparts to have investing in AI (through M&A) as early as 2019 when it
successfully implemented a strong innovation-focused acquired Apprente, which develops voice-based, conversa-
recruiting and talent acquisition foundation across all tional technology, and personalization startup Dynamic
stages of the talent pipeline. And, as we will see in “How Yield to better customize the drive-through experience.
Early Winners Are Unlocking AI’s Potential,” the third
article in this year’s report, companies that realize impact
from AI have more than three times as many people
dedicated to innovation as those who don’t.

12 MOST INNOVATIVE COMPANIES 2023

Exhibit 10 - Ready Companies Rely on Full Data Transparency, Clear
Portfolio Targets, and Regular Portfolio Meetings
How do you support effective decision making on your innovation portfolio? (%)

+37 +20 +13

72 58 51
35 38 38

Full data transparency Clear portfolio targets Regular portfolio meetings

Ready companies Unready companies

Sources: BCG Global Innovation Survey 2023; BCG analysis.

Note: n = 1,023 for global respondents. “Ready” companies are those that are ready to develop product, process, and business model innovations
that can deliver sustainable impact.

When the onset of the pandemic threated its in-restaurant • Go bargain hunting. Find attractive acquisitions and
business, McDonald’s launched the “Accelerating the build innovation into the M&A process by including
Arches” growth strategy, doubling down on digital, drive- innovation expertise on M&A teams and targeting new
through, and delivery. Digital innovations cut 30 seconds technologies and talent.
off drive-through ordering times during the pandemic,
enabling the restaurant chain to move more cars through • Acquire intellectual property (IP) on the cheap. Go
its windows when indoor dining was limited. McDonald’s after complementary ideas or capabilities and monetize
also has created a customer experience team to improve off-strategy IP assets. For example, investors are already
diner engagement on the premises and digitally by rewarding smart climate moves in their valuations.
combining data analytics and global marketing insights.
The company has similarly been using AI-driven • Raid competitors’ talent pools. Don’t be afraid to find
prediction and recommendation algorithms to decide talent wherever it may be—and locate talent pools in
what customers are most likely to want to buy and other industries—to build your own capabilities.
displaying it prominently on digital menus.
• Stage a network invasion. Intervene in ecosystems to
Good Advice (Updated) Stands the Test of Time expand access to external capabilities and talent.

Successful companies make a commitment to long-term • Use innovation to attack competitors’ profit
innovation while also taking advantage of near-term oppor- strongholds. Your innovation investments can disrupt
tunities, such as weakened competitors, to improve their the strongholds of others (as well as your own) by
positions. In our 2009 report, we offered “seven aggressive entering new markets with new models.
innovations strategies,” both long term and short term, for
leading out of the downturn. Nearly a decade and a half Some companies already have the tools to execute these
later, those approaches are still valid, although they could recommendations and to do so with speed. Catching up
be updated to add the following strategies to reflect today’s with the leaders is much more challenging than it used to
more technology- and data-intensive environment: be, because moving fast requires sophisticated capabilities
that are neither easy nor quick to acquire. If downturns do in
• Stay aggressively invested. Maximize the impact of your fact separate winners and losers, then winners are sitting
investments by optimizing the innovation pipeline and funnel. pretty—and that could make their competitors sitting ducks.

• Alter your business model in strategic, game-

changing ways. Choose game-changing technology, or com-
binations of technologies, that secure sustainable advantage.

BOSTON CONSULTING GROUP 13

How Early Winners Are Unlocking
AI’s Potentials
By Justin Manly, Michael Ringel, Amy MacDougall, Will Cornock, Johann Harnoss, Konstantinos Apostolatos, Ramón Baeza,
Ryoji Kimura, Michael Ward, Beth Viner, Jean-Manuel Izaret, Wendi Backler, Vlad Lukic, Sylvain Duranton, and Romain de Laubiert

A
rtificial intelligence (AI) is having a big impact on The varying results that companies are achieving so far with
how companies approach innovation, but are AI further increases the distance between organizations that
companies achieving big innovation impact from AI? have well-functioning innovation engines and those that do
The evidence is mixed. not (See “The Formula for Innovation from Leading Com-
panies” in this report). Indeed, given AI’s transformational
The question isn’t whether AI can have an impact. While potential (which anyone can experience by taking ChatGPT
technical challenges that may prevent achieving full value for a spin), failing to master the technology could ultimate-
persist, many companies have realized some benefit— ly prove fatal to a firm’s innovation program. Widening the
and often with minimal investment. It’s more a matter of divide further, we are now entering a new world of AI that
whether companies are using AI properly and for use cases is rapidly expanding the possibilities for how users engage
with the potential to drive real business value. and experiment with technology. Whereas “old” AI relied
heavily on databases and supervised learning models, the
emerging “new” AI is more accessible and offers the
potential to unlock broader insights. (See the sidebar
“Defining AI in Innovation.”)

14 MOST INNOVATIVE COMPANIES 2023

Defining AI in Innovation

Artificial intelligence (AI) is at its core a set of algorithms

that classify, process, and manipulate data. “Random
forests,” “neural networks,” and “generative AI” are all
examples of the algorithms on which AI use cases are
built. While AI is continually evolving, the taxonomy is
subject to change. BCG categorizes AI use cases into five
broad domains:

Computer Vision and Hearing. These capabilities in-

volve identifying objects and individuals and extracting text
from images, speech, and handwriting (finding a specific
element in an image, for instance).

Natural Language Processing (NLP). This domain

involves translating human (or “natural”) language into
machine-understandable inputs—and vice-versa—and un-
derstanding and extracting meaning from natural language
(such as identifying positive or negative sentiments in user
product reviews). Combining capabilities across multiple
domains unlocks additional use cases. For example, apps that
allow users to point their camera at a street sign in a foreign
language and translate it into their own utilize both
computer vision and NLP capabilities.

Machine Learning. Gartner describes machine learning,

the backbone of many companies’ applications, as a set of
algorithms and techniques that operate guided by lessons
from existing information. Commonly used techniques are
unsupervised, semi-supervised, and supervised learning.

Decision Making. This set of capabilities makes decisions

based on databases of similar cases or sets of human-defined
rules. Decision making can be combined with machine-
learning techniques to yield a self-learning expert system.

Responding and Generating. This domain includes,

among other techniques, the generative AI family of
algorithms (used by such systems as DALL-E and
ChatGPT). They are capable of generating seemingly
new, realistic content, including text, images, or audio, from
the vast quantity of unlabeled data they are trained to
interpret. They also use reinforcement learning techniques
(also used in machine learning), which are based on
“learning by doing,” as opposed to learning by observing.

BOSTON CONSULTING GROUP 15

In the third article of this year’s Most Innovative are therefore more likely to be better able to couple ad-
Companies report, we look at the current state of play of vanced digital capabilities with new product development.
AI in innovation and what early winners are doing right.
Companies’ ability to invest in other, related technologies is
another indicator of success. Those that invest in four or
From Implementation to Impact more advanced technologies in addition to AI are three
times more likely to see impact than those that invest only in
A majority of companies (61%) have invested in AI. In fact, AI is AI, and success rates climb with the number of technology
attracting investment from more companies than any other fields receiving funding. (See Exhibit 14.) “We use AI as a tool
technology. (See Exhibit 11.) While most of these firms have to enable such domains such as robotics, IoT, and communi-
systematically implemented AI in one or more use cases (83%), cations,” the R&D director at a European durable goods
far fewer (45%) have managed to translate this into business company told us. Chemicals and telecommunications (seventh
impact. (See the sidebar “Implementing AI with Impact.”) for impact) are heavy users of the Internet of Things (IoT).
Similarly, pharma, finance (sixth) and transportation (fifth)
The most common innovation-focused AI use cases (which invest quite heavily in robotics compared with other industries.
54% of respondents have implemented) are revealing Some chemicals and pharma companies are experimenting
market trends and competitor activities, but few companies with the combination of AI and quantum computing in the
use AI for just one thing. About 70% of those implementing hunt for new materials and medicines.
AI in innovation are experimenting across a range of use
cases. (See Exhibit 12.) The number achieving impact is Large gaps between use case implementation and impact
consistently much lower, indicating that, not surprisingly, indicate a use case without a strong value proposition, an
integrating the new technology into existing innovation industry unable to capitalize on AI, or both. The industries
processes is a challenge. Among the biggest hurdles we’ve with the biggest divide between implementation and impact
heard cited are leadership’s lack of willingness to invest, are the public sector, wholesale and retail, and media and
access to training data, the expense of data storage, and entertainment. Certain industry and use case combinations
regulatory complexities. are especially effective at driving greater rates of impact. For
example, 73% of medtech companies that implement AI to
The top three use cases with the most AI impact are reveal market trends realize impact, the highest rate of all
making portfolio prioritization decisions (40% of companies industry-use case combinations. Second place belongs to
implementing AI for that use case achieve impact), identifying pharma companies: 63% that use AI to identify players for
players with external innovation potential (38%), and revealing external innovation potential realize impact from its use,
market trends and competitor activities (37%). But success which perhaps isn’t surprising given the need to navigate
varies across sectors. (See Exhibit 13.) Companies in the the complex R&D ecosystems in this field.
medtech (51%), materials (48%), and chemicals (47%) industries
are the most successful at achieving impact from AI. A great deal of untapped potential exists for some indus-
These sectors show roughly a 1.5 times higher likelihood try-use case combinations, especially in sectors where a
of AI impact for innovation than the overall average across particular use case demonstrates outsized impact. For
all industries. Previous BCG research has shown that a example, only 30% of travel companies use AI to support the
strong digital foundation is key to being able to scale AI, idea creation process, even though travel companies that do
and medtech, chemicals, and pharma (which ranks fourth apply AI realize impact at the highest rate in the industry.
for impact) are all R&D-focused sectors. These companies Only 39% of telecom companies use AI to identify new

The question isn’t whether AI can

have an impact. It’s whether companies
are implementing AI for use cases with
the potential to drive business value.

16 MOST INNOVATIVE COMPANIES 2023

Exhibit 11

More Companies Are Investing in AI Than in Any Other

Technology

Which technology categories are you investing in this year? (%)

-15

61
46 44
29 29 27
16
10

AI (such as Robotics Internet of Blockchains, Human/machine Augmented, Nanotechnology, Quantum

machine and process Things (IoT) Web3, and augmentation virtual, and synthetic biology, computing
learning) automation and Edge DeFi and hybrids synthetic realities and biomimicry
Computing

Sources: BCG Global Innovation Survey 2023; BCG analysis.

Note: n = 1,023 for global respondents.

BOSTON CONSULTING GROUP 17

Implementing AI with Impact

In the 2023 innovation survey, we asked respondents to

rate their company’s use of AI across six use cases:

• Revealing market trends and competitor activities (such

as domains, topics, and technologies)

• Making portfolio prioritization decisions

• Identifying players with external innovation potential

(such as alliances, partnerships, venturing, and M&A)

• Informing innovation investment decisions (such as

starting an R&D project in a particular field)

• Identifying new innovation themes, domains,

adjacencies, and technologies

• Providing input to support idea creation (such as

surfacing or validating ideas)

We also asked respondents to rank their companies’ skill

at leveraging AI from one to five, with one meaning that
they hadn’t implemented that use case and five signifying
they had implemented the use case with impact.

Companies that implemented use cases with impact (level

five) believe that “the codified and implemented practice is
generally viewed within the company as a driver of innovation
impact,” consistent with the company’s innovation ambitions.

18 MOST INNOVATIVE COMPANIES 2023

Exhibit 12 - Many Companies Are Using AI to Support Innovation, but Few
Are Achieving Impact

How would you rate your company’s skill at leveraging big data, advanced analytics, and AI to help with innovation? (%)

-34 -30 -29

54 50 46
20 20 17

Revealing market trends and Making portfolio prioritization decisions Identifying players with external innovation
competitor activities (such as domains, potential (such as alliances, partnerships, and
topics, and technologies) venturing M&A)

-33 -32 -31

46 45 44
13 13 13

Informing innovation investment Identifying new innovation themes, Providing input to support the idea
decisions (such as starting an R&D project domains, adjacencies, technologies, and so on creation process (such as surfacing and
in any given field) validating ideas)

Implemented AI for this use case Realized impact from AI implementation

Sources: BCG Global Innovation Survey 2023; BCG analysis.

Note: n = 1,023 for global respondents.

innovation themes, despite the fact that 50% of implementors quantification to pricing and personalization. The successful
realize impact from this use case. The use cases with the implementation across the organization has led to a reduction
most untapped potential across all industries include identify- in waste associated with raw materials and logistics, bringing
ing players with innovation potential, supporting the idea H&M closer to reaching its sustainability goals.
creation process, and identifying new innovation themes.
H&M combines AI and human input for amplified
H&M: Leveraging AI and Human Input for intelligence; the combination of data-driven AI and human
Amplified Intelligence intuition has proven to be more effective than either
capability on its own. One example is in end-of-season
Take the example of fashion retailer H&M, which leverages sales, where AI improved pricing and sales, but when it was
AI to optimize business processes, enhance personalization, combined with human input the results were twice as
and drive amplified intelligence with human collaboration. impressive as with AI alone. In implementing these AI
The company began exploring AI in 2016, using the vast solutions, H&M strongly emphasized ownership for
data it had available to enhance communication, personal- employees, trusting them to drive the execution by
ization, and offerings for customers. Management sought following an approach it calls “tight, loose, tight,” which
to embed the use of AI throughout the organization by has concrete strategies and metrics.
addressing various existing business challenges across the
entire value chain rather than focusing on a single use
case. Working with AI has helped H&M optimize various
aspects of its business, from fashion forecasting and

BOSTON CONSULTING GROUP 19

Exhibit 13 - AI’s Impact on Innovation Varies Significantly by Industry
and Use Case
AI use case implementation and impact by industry (%)

Making portfolio Revealing market Identifying players Identifying new Supporting the Informing
prioritization trends and with external innovation idea creation innovation
Overall
decisions competitor innovation potential themes process investment
activities decisions

Overall 32 37 36 35 29 29 26

Medtech 51

Materials 48

Chemicals 47

Pharma 39

Transportation 34

Finance 34

Telecom 34

Auto 33

Tech hardware 33

Travel 31

Energy 31

Manufacturing 30

Consumer 29

Software 27

Public sector 26

Media 24

Durable goods 21

Insurance 20

Retail 17

Frequency of use case Rate of achieving Largest gap between rates of

implementation impact to date implementation and impact

Quartiles

Sources: BCG Global Innovation Survey 2023; BCG analysis.

Note: n = 1,023 for global respondents.

20 MOST INNOVATIVE COMPANIES 2023

Exhibit 14 - Investing in Other Technologies Concurrently with AI Increases
the Rate of Achieving Impact
How would you rate your company’s skill at leveraging big data, advanced analytics, and AI to help with innovation
(out of respondents that invested in AI and in a number of other tech categories)? (%)

+53

-39 -15
-57 -40 -39

92 93
81 79 80 77
53
39 41
24
One active tech investment Two active tech Three active tech Four active tech Five or more active
(AI only) investments investments investments tech investments

Implemented AI Realized impact from AI implementation

Sources: BCG Global Innovation Survey 2023; BCG analysis.

Note: n = 1,023 for global respondents.

H&M adopts an agile approach, implementing AI in waves A Strong Digital Backbone and Data Pipeline. To
through iterative testing and learning cycles, a methodology enable AI, companies must have established digital and data
it describes as “dream big, start small, and scale fast.” capabilities. Leaders make data and technology accessible
H&M’s entrepreneurial culture helped employees adapt across the organization, avoiding siloed and incompatible
and take pride in their work alongside AI systems, empha- tech stacks and standalone databases that impede scaling.
sizing the importance of value over technology capabilities. Our research into AI scaling has shown that companies that
make more than 75% of technology and data widely available
have a 40% greater likelihood of realizing AI use cases at
Four Impact Success Factors scale than those that make 25% or less widely available.
The survey reveals that among companies that have
AI alone won’t supercharge an innovation program. invested in AI, those that have successfully implemented
Companies must have the right platforms and practices in AI in their innovation processes are 1.5 times as likely to
place. In our experience, companies that successfully scale prioritize full data transparency and effective digital tools
AI typically dedicate 10% of their investment to algorithms, for decision making. They are also twice as likely to have
20% to technology, and 70% to people and embedding AI an active digital innovation laboratory, and they invest in
into business processes. AI can also accelerate the ability an average of 2.5 times as many complementary
to access external sources of input, speed the generation technologies (such as IoT and augmented reality). These
and evaluation of ideas, and inform decision making. complementary technologies in turn generate data to
Through our research and case work, we have identified enhance AI algorithms, creating a positive feedback loop
four key factors to help companies successfully incorporate as algorithms learn from what they do.
AI into their innovation efforts.

BOSTON CONSULTING GROUP 21

Multiple Technology Initiatives. Companies that Successful RAI begins with a set of clearly articulated
achieve the most impact from AI also invest in other principles and is operationalized by translating principles
advanced technologies and combine these initiatives with into policies and training, establishing clear governance
AI. Since AI algorithms learn from what they do, uses cases mechanisms, building tools for end-to-end case reviews,
that require technologies such as robotics, automation, or and integrating RAI considerations into existing tools and
high-throughput sensors that facilitate data collection fuel methods. RAI is not just a risk mitigation tool but a mecha-
the AI learning and development process. The most nism to accelerate innovation. By providing a framework
common technologies to pair with AI investment are with clear guardrails, RAI allows innovators to experiment
robotics for process automation and IoT. The success rate with confidence and catch failures faster. In a joint BCG-
from investing in additional technologies rises fast: each MIT Sloan Management Review global survey in 2022, half of
additional technology increases the likelihood of realizing responsible AI leaders reported having developed better
impact from AI by 26%. products and services as a result of their RAI efforts
compared with only 19% of nonleaders. More than 40%
A Robust Innovation Funnel. The executives and experts of RAI leaders cited accelerated innovation as a benefit
that we interviewed for this report cited three questions compared with 17% of nonleaders.
they ask when prioritizing investments in AI:
Given the accelerating pace of advancement in AI, it is
• Is this technically feasible given our digital foundation? imperative for corporate leaders to establish mechanisms
to monitor these new capabilities, evaluate risks and
• What is the business value and how fast can we realize it? opportunities for their business, and ensure that they are
leveraging the technology in the most promising use cases.
• Will this investment develop a core capability that can
be leveraged for other use cases?
Moderna: Pioneering AI-Driven Innovation in
Companies that realize impact from AI become idea the Fight Against Cancer
generation powerhouses with robust innovation funnels
that both incubate new ideas and rigorously prioritize One of the most powerful examples of AI impact is Moder-
investment. (See Exhibit 15.) These firms generate more na’s use of the technology in the development of vaccines
than five times as many ideas than others and incubate and therapeutics. Moderna famously leveraged digital
more than twice as many minimum viable products. With technology and AI to accelerate the design of its mRNA
more than three times as many people working in innovation- vaccine against COVID-19, but the story goes much deeper.
related functions, these organizations apply demanding
feasibility criteria for new ideas and are twice as selective Moderna is applying its technology platform to open a new
as companies that don’t realize impact from AI. The best frontier in cancer treatment: individualized neoantigen
AI innovators develop a virtuous cycle or flywheel effect: therapies. In collaboration with Merck, Moderna has joined
more ideas mean greater likelihood of finding the best use the fight against skin cancer with an investigational
cases for AI, and implementing AI helps generate more mRNA-based therapy, which Phase 2b results suggest can
ideas. Some companies have begun incorporating reduce the risk of recurrence or death from melanoma by
generative AI into the idea creation phase, leveraging the 44%. Leveraging a proprietary algorithm, the manufacturing
technology to stimulate their teams’ creativity. process begins by analyzing the patient’s tumor to identify
the cancer-causing mutations and then crafts an individualized
Clear Articulation of Purpose and Responsibility. neoantigen therapy designed to maximize each patient’s
Visible leadership from the top matters. Our research immune response to their specific tumor mutation
shows that when the CEO personally articulates the signature. Taking this even further, Moderna recently
purpose of innovation for the organization, the likelihood announced a research partnership with IBM to leverage AI
of the company achieving impact from using AI nearly and quantum computing to advance and accelerate the
doubles. Driving impact from AI includes not only the development of breakthrough mRNA-based therapies.
immediate results, but also the downstream implications.
Companies need to factor into their decision making how
the use of AI will play out over time. Leaders are already
instilling the policies and practices of responsible AI (RAI).

22 MOST INNOVATIVE COMPANIES 2023

Exhibit 15 - Companies That Successfully Implement AI Have Much More
Productive Innovation Funnels
Characterize your product development funnel, starting with launched projects and then working backwards to idea generation

Impact Implemented
Companies that see impact from Companies that implemented AI
implementing AI with no impact

Ideas generated
Average number of ideas
generated per year 451 5x 84
more ideas generated
Ideas validated
Average number of generated
ideas being validated 69 19
Ideas incubated
Average number of validated
26
2x 11
ideas being incubated more selective in incubation

Sources: BCG Global Innovation Survey 2023; BCG analysis.

Note: n = 1,023 for global respondents.

T
Moderna’s CEO, Stéphane Bancel, has publicly cited o achieve impact responsibly, AI needs leadership
“going digital” as a key reason for the biotech’s success. from the top, the right foundational capabilities, and
From its inception, Moderna built much of its drug discovery strong guardrails. These elements require time and
and manufacturing process in the cloud, incorporating AI investment. But given the technology’s transformational
throughout. By prioritizing a digitally enabled mRNA potential, especially for innovation, they are worth the effort. 
platform over any one particular product, Moderna has
been able to deliver rapid vaccine and drug development
that builds quickly on each consecutive success.

BOSTON CONSULTING GROUP 23

About the Authors
Justin Manly is a managing director and partner in Michael Ward is a senior advisor in BCG’s New York office.
the Chicago office of Boston Consulting Group. You may You may contact him at [email protected].
contact him by email at [email protected].

Beth Viner is a managing director and partner in the

Michael Ringel is a managing director and senior partner New York office of BCG X. You may contact her by email at
in the firm’s Boston office. You may contact him by email [email protected].
at [email protected].

Jean-Manuel Izaret is a managing director and senior

Amy MacDougall is a principal in BCG’s Los Angeles office. partner in BCG’s San Francisco office. You may contact
You may contact her by email at [email protected]. him by email at [email protected].

Will Cornock is a partner in the firm’s New York office. You Wendi Backler is a partner and director, innovation
may contact him by email at [email protected]. analytics and IP, in the firm’s Toronto office. You may
contact her by email at [email protected].

Johann Harnoss is a partner and associate director for

innovation in BCG’s Berlin office. You may contact him by Vlad Lukic is a managing director and senior partner
email at [email protected]. in BCG’s Boston office. You may contact him by email at
[email protected].

Konstantinos Apostolatos is a managing director and

senior partner in the firm’s Brussels office. You may contact Sylvain Duranton is managing director and senior partner
him by email at [email protected]. in BCG’s Paris office and global leader of BCG X. You may
contact him by email at [email protected].

Ramón Baeza is a managing director and senior partner

in BCG’s Madrid office. You may contact him by email at Romain de Laubier is managing director and partner in
[email protected]. BCG’s Tokyo office. You may contact him by email at
[email protected].

Ryoji Kimura is a managing director and senior partner

in the firm’s Tokyo office. You may contact him by email at
[email protected]

24 MOST INNOVATIVE COMPANIES 2023

Acknowledgments Methodology

The authors thank the following colleagues for their assistance BCG’s Most Innovative Companies ranking is based in
with the preparation of this report: Faisal Akkawi, Gabe large part on a survey of more than 1,000 global innovation
Bouslov, Jon Campos, Malvika Verma, Duc Anh Phi, Yohei executives who were polled in December 2022 and January
Shoji, Philipp Strack, Michael Wahlen, and Gabriel Wang. 2023. We assess a company’s performance on four
dimensions and then take an average of normalized scores to
calculate its overall ranking. These four dimensions are:

For Further Contact • Global Mindshare—the number of votes received

from all global innovation executives
If you would like to discuss this report, please contact
the authors. • Industry Peer View—the number of votes received
from executives in a company’s own industry

• Industry Disruption—the Diversity Index

(Herfindahl-Hirschman) of votes across industries

• Value Creation—total shareholder return, including

share buybacks, over the three-year period from
January 1, 2020, through December 31, 2022

Boston Consulting Group partners with leaders in business For information or permission to reprint, please contact
and society to tackle their most important challenges and BCG at [email protected]. To find the latest BCG
capture their greatest opportunities. BCG was the pioneer content and register to receive e-alerts on this topic or
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we work closely with clients to embrace a transformational Group on Facebook and Twitter.
approach aimed at benefiting all stakeholders—empowering
organizations to grow, build sustainable competitive © Boston Consulting Group 2023. All rights reserved. 5/23
advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional

expertise and a range of perspectives that question the
status quo and spark change. BCG delivers solutions
through leading-edge management consulting, technology
and design, and corporate and digital ventures. We work
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to make the world a better place.
bcg.com
26 MOST INNOVATIVE COMPANIES 2023