The Global Innovation index is co-published by Cornell University, INSEAD, and the World Intellectual Property Organization(WIPO, an agency of the United Nations, UN).
The core of the GII Report consists of a ranking of world economies’ innovation capabilities and results. Over the last seven years, the GII has established itself as a leading reference on innovation. Understanding in more detail the human aspects behind innovation is essential for the design of policies that help promote economic development and richer innovation-prone environments locally. Recognizing the key role of innovation as a driver of economic growth and prosperity, and the need for a broad horizontal vision of innovation applicable to developed and emerging economies, the GII includes indicators that go beyond the traditional measures of innovation such as the level of research and development.
Morningstar shows the performance of the US stock indexes by sector, for the last 5 years. For Infocom Intelligence, three major sectors are more undervalued: technology, basic materials and energy (sectors in green). Since we are in the middle of the growth stage of the US economy, the technology sector will first benefits from expansion, followed by later stages’ growth, which are more cyclical (commodities, such as basic materials and energy). At the end of economic growth cycle, shorter supplies are pushing the price of commodities, and it boosts the profits of producers.
A new report by Booz & Co provides a ranking of the top ICT 50 global firms and the digitization ecosystems. It appears that IBM is at the top, followed by Oracle and Microsoft.
“Businesses around the world are looking to gain an edge in the race to digitize—to seamlessly incorporate new computing, communications, and collaboration technologies; to streamline their operations; and to connect more closely with customers, suppliers, and partners. To do so, they must look to the continually evolving ecosystem of hardware, software, IT services, and telecom companies. These sectors provide the products and services that make digitization possible.
Booz & Co looked at them across four critical criteria: financial performance, portfolio strength, go-to-market footprint, and innovation and branding.
“Every company in every industry has its own market value proposition: a way to play that represents the way it chooses to create value in the market, ideally matched with its strongest capabilities. Companies’ ways of playing can be grouped according to the basic foundational approach they take. By classifying each of the ICT 50 as one or more of these “puretones,” we were able to determine which value propositions seem most advantaged in the market—for now.
[published originally on TUESDAY, FEBRUARY 21, 2012]
For the first time since the tech bubble popped back in 2000, technology companies represent now a 20 percent weighting in the Standard & Poor’s 500 index. The peak was 34% in March 2000, before the crash. Since the current sector classification was introduced by S&P in 1989, only the financial and tech sectors have ever reached a 20 percent index weighting.
It also helps that the five highest-weighted tech stocks are all up double-digits since the S&P 500’s 52-week high. Notably, those five names make up 10 percent of the S&P 500 (or half of the tech sector’s 20 percent weighting):
The S&P 500 tech sector has been down just four times this year and is currently leading the gains in 2012, up 12 percent, followed by financials, up 11 percent.