innovation Tag

Has Innovation Bottomed? Is It Cheap Yet?

20 Sep, by Steven Vannelli, CFA in Knowledge Leaders, Markets

Innovation was the market darling thematic for many years leading up to COVID. The pandemic turbo-charged returns for innovation as the stay-at-home beneficiaries did phenomenally well. However, since the first quarter of 2021 innovation has struggled as a thematic strategy. It appears to us that...

Spotlight Pirelli: Driving the Future of Intelligent Tires

26 Feb, by Knowledge Leaders Team in Knowledge Leaders

Italy’s Pirelli is the only tire producer that sells exclusively to consumers. Today with more than 3,000 different models in stores, one area of breakthrough innovation is what Pirelli calls connected tires. The firm’s “cyber” technology strategy involves building sensors into the tire to collect...

Two Desirable Characteristics Of Innovative Industries

06 May, by Knowledge Leaders Team in Knowledge Leaders

The most innovative companies in the world tend to exhibit two highly desirable characteristics: high return on invested capital (ROIC) and low long-term debt as a percentage of total capital. There are fundamental reasons for these characteristics. First, innovative companies are very profitable because they...

Innovation Boom, R&D Spillovers and Stock Performance

17 Mar, by Knowledge Leaders Team in Knowledge Leaders

There is a new innovation boom playing out in the United States that has many positive implications for US equities.  In July 2013, the BEA began including investment in intellectual property in National Income and Product Accounts.  As part of this benchmark revision, the BEA...