Appendix
How We Rank the World’s Most Innovative Leaders
Creating any type of ranking requires a thoughtful methodology, and none is perfect. We understand this concept quite well, having created the Forbes World’s Most Innovative Companies ranking. We set out to create something very different with the Forbes list, using the wisdom of the crowd. Companies are ranked by their innovation premium: the difference between their market capitalization (value) and the net present value of cash flows from existing businesses. The difference between a company’s current market value and the net present value of its existing businesses is the premium given by equity investors, betting with their wallets, that the company will generate profitable new growth. ...