Using annual reports to predict innovation outcomes

Science Daily regularly comes through with some fascinating — if more than occasionally debatable — research results.  Here’s one from researchers at the University of Minnesota’s Carlson School of Management that highlights clues to innovation speed and effectiveness buried in annual reports (here).  From the story:

…CEOs who focus their attention on future events, as well as external activities, lead their firms to earlier adoption and invention of new technologies and greater and faster development of innovations. In contrast, more attention to internal operations leads to slower detection, adoption and implementation of new technologies.

Apparently it is this simple to see who is focused inward vs. outward:

By counting the number of future oriented words and phrases in letters to shareholders over this time span, they were able to predict the level of innovation by the firm up to five years later.

Advertisements

One Response

  1. […] Paul Ritchie While I had my doubts about the innovation and annual reports study — my post here, the study summary here – an off-line commenter pointed out some big cracks in the […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: