The RQ50 is a ranking of the most innovative companies in the market. From old-guard sectors, including industrials, oil and gas, and defense to toy makers and some of Silicon Valley's elite, the R&D cultures within the RQ50 companies prove that innovation isn't just about spending big, it's about a relentless long-term focus on R&D that optimizes return on innovation to shareholders.
2017 RQ50 Rankings
The RQ50 are the publicly traded companies spending over $100 million in R&D, whose R&D investment creates the greatest value for their shareholders. This ranking is not a beauty contest based on surveyed opinion. Rather, it utilizes the RQ measure of R&D productivity in economic models linking R&D investment to revenue growth and market value.
The RQ50 ranking is the first of its kind. Companies are ranked based on their demonstrated actual ability to increase revenue from R&D, not the value of projected revenue increases. RQ calculates the percentage increase in revenues associated with a 1 percent increase in R&D. What the list reveals is that spending more on R&D does not necessarily generate higher returns.
The proof is in the numbers: The RQ50 index portfolio has outperformed the S&P 500 by over 900% during the last 40 years. Of course, history is no guarantee of future performance, and in fact, unless companies reverse the continued erosion in RQ, returns will decline with RQ.