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Why Facebook and Google are not in CNBC’s new stock index

I’m sure you’re familiar with the CNBC Disruptor 50, which features private companies whose innovations are revolutionizing the business landscape. What about firms that are not leaders in disruptive technologies but are consistently innovative in their space? Intellectual capital and intangible assets are critical to a company’s growth prospects, yet it turns out to be tough to report on the value of innovation. The stuff that matters the intellectual property and other intangible assets are compared qualitatively to the similar rights held by other firms; then the economic consequence of these assets on the underlying business is characterized.

Key Takeaways:

  • The index chooses 100 of those companies that are consistently innovative, updated on a quarterly basis.
  • Traditionally, this means patents, trademarks and copyrights, but it can also mean trade-secret rights or even more hard-to-measure concepts, like water rights or pollution rights.
  • It continually develops new products and reinvents existing ones and derives increasing revenue from those innovations.

“Traditionally, this means patents, trademarks and copyrights, but it can also mean trade-secret rights or even more hard-to-measure concepts, like water rights or pollution rights.”

http://www.cnbc.com/2016/10/25/why-facebook-and-google-are-not-on-the-cnbc-innovation-stock-index.html

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