Our convictions change over time, thank you to verify that your preferences always match your expectations.

Pins are saved using cookies. Deleting them from your browser will delete your preferences.

delete all my pins


Alger on the Money - Reaping the Rewards of Innovation

05 May 2017

The most innovative companies grow their sales—and their stock prices—faster.

  • Academic studies1 and Alger’s research suggest that the most innovative companies, as indicated by R&D as a percentage of sales, often outperform. For example, the most innovative companies of the S&P 1500 a decade ago produced earnings per share growth that was several hundred basis points higher than the least innovative companies over the subsequent 10 years.
  • In addition, the most innovative companies in the S&P 1500 outperformed the least innovative companies over the past decade by a significant margin (see chart).
  • Companies that identify and act on opportunities for change through innovation will not only survive, they will flourish. As their stock prices grow, the benefits will accrue to investors.


Read Capital Markets: Observations and Insights—Earnings Resurgence

> Download Alger On the Money, A view on the U.S. Market



1 Baruch Lev and Suresh Radhakrishnan, “The Stock Market Valuation of R&D Leaders".

La Française Group provides access to the expertise of a number of asset management companies around the world. To provide you with the most relevant information, we have developed an interface to present the full range of products available for your investor profile and country of residence.

Present yourself


Your country of residence

Your language

Your profile

When navigating on our website, you agree to this policy and consent to our use of cookies in accordance with the terms of this policy. Find out more.