Credit: Image by jplenio from Pixabay (cc)
A large-scale study of the link between innovation and financial performance in Australian companies has found more innovative companies post higher future profits and stock returns.
The findings highlight the significant financial benefits of innovation for companies, which in turn supports job creation and economic growth.
The study, conducted by Dr Anna Bedford, Dr Le Ma, Dr Nelson Ma and Kristina Vojvoda from the University of Technology Sydney, examined patent registrations from 1296 ASX-listed companies between 1997 and 2018.
They matched patent data with financial and market information and found the most innovative firms experienced 1.95% higher yearly growth in profitability compared to non-innovative firms.