INNOVATION INVESTMENT

ALPORA’s funds follow the Invest in Innovation principle. Why does this concept work? It is based on two main findings:

  • Innovation efficiency positively influences company performance.
  • Innovation-efficient companies are identified using specially developed and scientifically proven methods, according to objectively measurable criteria; regardless of industry, company size or location.

How innovation and performance interact

Innovation efficiency describes a company’s ability to introduce innovations in a controlled manner – for example, in production processes, business model innovations, market segments or product improvements.

Scientific Studies have repeatedly shown that there is a direct link between the innovation efficiency of companies and their success on the stock market. Harvard University pointed out this connection as early as 2012 and our studies back this up in the Innovation and Firm Performance study.

Companies that innovate successfully regularly benefit through sales growth, higher profits and a faster, more rapid presence on the market. That the share prices of companies with such successes rise seems obvious.

How can innovation be measured?

ALPORA takes the next, decisive step: not recognizing innovation by its success, but measuring innovation efficiency, the driver for success, in companies.

This is measured using various indicators that relate to the input and output parameters of innovation. On the input side, this information can be divided into the areas of research & development, collaborations, innovation culture and investment in company-wide learning. Regarding output, parameters include patent successes, the commercialization of developments and measurable process improvements.

Simply, a company is innovation-efficient if it makes as much “innovation” as possible from each input investment. In reality, many parameters and relationships enter into the assessment.

How are Companies selected?

ALPORA uses a mathematical optimization process to calculate an Efficiency Frontier of Innovation, taking into consideration the defined input and output indicators. Companies that on this Efficiency Frontier receive a specific innovation score. The result is the innovation score of a company – measured against the market in which it operates, be it global or local, limited to companies in one industry or universe. This multi-stage approach allows all parameters to be assessed not simply, but rather in dynamic dependence on the comparison group, the spanned universe.

Thus, ALPORA’s selection process enables Investing in Innovation based on scientific knowledge, through the collection and preparation of data for each evaluated company, objective procedures for analysis and the selection of the best among the best.

 

 

MAKE YOUR INNOVATION CAPABILITY MEASURABLE!

The online questionnaire collects various measurable innovation indicators. You can assess and optimize your company’s innovation capability using the ALPORA method. Subsequently, ALPORA creates an individual innovation report  on the innovation efficiency for your company.

Please answer all questions based on data from the last completed fiscal year and provide data consistently for a business unit or the company as a whole. If no exact values are available, please provide a qualified estimate. Feedback or additional information can be provided in the comments field at the end of the questionnaire.

Your data will, of course, be treated confidentially.