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.

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 […]

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