Despite a global market volatility, innovative companies around the world demonstrate excellent performance in the stock market shows the “Innovation a,” a global index that tracks innovative businesses. While innovative companies in the United States and global stock markets feel the brunt of ongoing trade disputes between the U.S and China, global companies are exceeding expectations.
Slowing global trade has less impact on data management and communications companies that are more active domestically, such as Software as a Service, data analytics, and transmissions companies. By contrast, electronic technology manufacturers face greater volatility in revenue growth, shows the Innovation Index, as they continue to be heavily impacted by global trade wars.
So far, the U.S has imposed tariffs on more than $360 billion worth of Chinese goods while China has retaliated with tariffs on more than $110 billion worth of U.S goods. While the trade war continues to be ongoing, innovative companies shows resilience to the market as they prove to be valuable and necessary to consumers.
“Looking ahead, the indexes suggest companies in communications and data management sectors have an advantage deriving from their innovation investments, especially those that are investing in proprietary innovations, as well as those serving consumer markets, both in durable and non-durable goods,” said Ataman Ozyildirim, Senior Director, Economic Research at The Conference Board.
