How technical innovation can be measured and managed with rankings and awards

One might assume that a company like Apple owes its image as a technically innovative brand to targeted product marketing. But that is not the case, as shown by a 2018 study from the Universities of Mannheim and Passau. The study examined the influence of various signals of technical innovation capacity for consumers and concluded that actual innovative strength, measured by the number of patents, contributes more to perceptions of innovativeness than high investments in marketing. 

For communications professionals, it is therefore important to understand that marketing and advertising are not enough to build a corporate brand with a positive image of technical innovation. 

The goal of being perceived as technically innovative has gained strong importance in recent years due to the central role of intangible assets in capital markets communication. This also brings advantages in recruiting, as graduates and job seekers increasingly perceive companies as attractive employers when they are (seen as) innovative. In a recent survey by the market research institute Universum, graduates—particularly from engineering fields—indicated that perceived innovation capability is a key criterion for employer attractiveness. 

Important measurement and management tools for a reputation as technologically innovative are rankings and awards. Rankings simplify complex aspects such as innovation, and awards, through their diversity, can be well aligned with the strategic goals of corporate communications. Examples include the "Top 100 Global Innovators" ranking by private US research institute Derwent and the innovation award "World Changing Ideas" by US business magazine Fast Company. Despite their very different approaches, both offer a creative entry point to innovation communication and provide above-average knowledge value along with strong media reach. 

Patents – More than just an Innovation Metric 

Rankings make it possible to clearly position a company in comparison to competitors. They can also serve as an important basis for company evaluation by investors. 

The Top 100 Global Innovators ranking by Derwent identifies the 100 most innovative firms worldwide, based on over 3.5 million patent applications. In addition to the Top 100 selection, further ranking lists are published. In the current year, six firms were included as newcomers, while 94 companies had already appeared at least once in previous editions. 

Methodologically, the ranking is based on quantification of patents registered per firm over the past five years. This includes the total number of all registered patents, the relative share of successful applications, and globally registered patents. The influence of individual patents is also measured by subsequent citations. 

Awards – Innovation as Story 

Awards allow companies to highlight innovation through technical inventions, products, and services, and achieve differentiated positioning. They can also score points with projects, initiatives, and collaborations. 

Thanks to the wide range of international, national, and regional awards—and the breadth of categories—corporate brands can be charged with themes that fit very precisely with strategic communication goals. 

For example, the World Changing Ideas award from Fast Company honors innovations with social impact. These may involve consumer products, initiatives, apps, or other solutions. The digital agency MRM Frankfurt, for instance, received an "honorable mention" in the category AI and Data. Together with the association of young people with hearing impairments, the agency developed a sensor-based motion control for voice assistants like Alexa and Cortana. Any company can apply for this award, and winners are selected by a jury of editors and industry experts.