K68F-23 12 Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform INNOVATION INDEX ELEMENTS HORIZONTAL AXIS Innovation Index (II) is a measure of a company’s ability to develop products/services/solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets, and are aligned to customers’ changing needs. • II1: INNOVATION SCALABILITY This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals. • II2: RESEARCH AND DEVELOPMENT This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline. • II3: PRODUCT PORTFOLIO This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue. • II4: MEGA TRENDS LEVERAGE This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline. An explanation of Mega Trends can be found here . • II5: CUSTOMER ALIGNMENT This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.