Korean firms lag far behind in innovation; Three Korean firms have been included in a list of the world’s 100 most innovative companies: Samsung, LG Electronics, LG Industrial Systems)

2013-10-08 18:20

Korean firms lag far behind in innovation

By Kim Tae-jong
Three Korean firms have been included in a list of the world’s 100 most innovative companies. But Korea still lags far behind Japan in terms of patent-based metrics, as a total of 28 Japanese companies made the list. The three local firms appearing in Thomson Reuters’ Top 100 Global Innovators report were LG Electronics, LSIS and Samsung Electronics
This list shows patent activity as a proxy for innovation and honors the 100 corporations that are at the heart of pushing patents, and selects those that secure global patent protection for their intellectual property, continue to push the envelope with new technologies and invest more in R&D.Thomson Reuters said the semiconductors and electronic components sector prevailed in its presence on the list this year again.
“There are 23 such companies this year, up 28 percent over last year when there were 18 semiconductor organizations. Of the full group, Samsung Electronics takes the lead in overall patent volume,” it said.
It also said the intense competition in the smartphone space is on clear display in this year’s list, with the presence of major players in the smartphone patent wars such as Apple, Microsoft, Samsung, Google and BlackBerry.
Overall, U.S. companies took the most spots with 45 companies on the list, including four of the top five. The top innovator was 3M. Japan is the next biggest innovator with 28 entries ㅡ more than Europe’s total of 22.
Thomson Reuters also said the 100 organizations in the 2013 study outperformed the S&P 500 for the third consecutive year by 4 percent in annual stock price growth and 2 percent in market cap weighted revenue growth.
Collectively, they generated $4.5 trillion in revenue, nearly twice the GDP of the United Kingdom. The Top Innovators also added 266,152 new jobs over the last year, a rate that was 0.81 percent higher than the new job creation rate among constituents of the S&P 500.
This year’s winners also outspent the S&P 500 by 8.8 percent on R&D; collectively they invested $223 billion in their research and development efforts.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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