In this article, we will take a look at the most innovative companies in America. If you want to explore similar companies, you can go to 5 Most Innovative Companies in America.
Innovation and American Companies
Innovation comes with new and creative ideas that bring a healthy change in society. Innovation in business and technology is graded with the development of new business strategies, new business ideas, and new products and services. Technological change is a significant part of economic change and growth.
American companies have been at the forefront of innovation, taking on the global economy with massive contributions. American companies such as Apple Inc. (NASDAQ:AAPL), Microsoft Inc. (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), Meta Platforms, Inc. (NASDAQ:META), Amazon.com, Inc. (NASDAQ:AMZN), and NVIDIA Corp. (NASDAQ:NVDA) are some of the most influential and biggest public companies in the world.
Innovation like the iPhone from Apple Inc. (NASDAQ:AAPL) is a prime example of how American companies have created new markets around the world. According to the latest statistics by Statcounter Global Stats, Apple Inc. (NASDAQ:AAPL) leads the global smartphone market with a market share of 28.52%, as of August 2023. This means that every third user among 10 smartphone users worldwide uses Apple Inc.’s (NASDAQ:AAPL) iPhone. Samsung Electronics Co Ltd (KRX:005930) follows Apple Inc. (NASDAQ:AAPL) with a global smartphone market share of 24.15%, and both tech giants own a combined 52.67% of the world’s smartphone market share. Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co Ltd (KRX:005930) have led the market since 2013. Both the tech conglomerates surpassed Nokia Oyj (HEL:NOKIA) that year, one the most famous mobile manufacturers of that time.
Dominance of American Companies Among Global Companies
The U.S. companies have been dominating the global markets with their remarkable technology and products. Companies such as Amazon.com, Inc. (NASDAQ:AMZN) have a global presence. Among the top 10 companies in the Fortune Global 500 list for 2023, five of them are U.S. companies including Walmart Inc. (NYSE:WMT), Amazon.com, Inc. (NASDAQ:AMZN), Exxon Mobil Corp (NYSE:XOM), Apple Inc. (NASDAQ:AAPL), and UnitedHealth Group Inc (NYSE:UNH). Walmart Inc. (NYSE:WMT) remains first among the Fortune Global 500 for the 10th consecutive year.
As per the Forbes list of the Global 2000, the U.S. leads the race with 611 companies on the list, while China ranks second with a total of 246 Global 2000 companies. Thanks to American tech companies, the U.S. is one of the most innovative countries in the world.
Contribution of U.S. Tech Companies to the U.S. Economy
American multinationals from different sectors have dominated the U.S. economy and have far-reaching economic impacts globally. As per Fortune, the Fortune 500 companies represent two-thirds of the U.S. GDP with a revenue of $18 trillion in 2023. Technology has been the key to the success of American companies. Among the Fortune 500 companies list of 2023, 117 companies belong to the technology sector including Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOG), Microsoft Corp (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:META), and Dell Technologies Inc. (NYSE:DELL). Among these companies, most of them are also part of the most innovative companies of all time, thanks to their contribution to both local and global markets over the years.
Tech companies are exploring new segments to enhance their penetration in more unique markets. According to Deloitte 2023 Technology Industry Outlook, tech giants are investing massively in the healthcare sector. Tech companies are adding efficient and innovative technologies to the healthcare sector that are ready to bring digital transformation to healthcare. The global digital health market is projected to reach $1.5 trillion by 2030 from an estimated $211 billion in 2022. That reflects a massive potential for tech companies to explore this growth opportunity in health care. Let’s discuss two tech giants that are innovating in the healthcare space.
Deloitte’s report on the tech industry outlook highlights that the Big Five invested more than $3 billion into health care in 2021, in disclosed venture capital investments. Leading technologies such as virtual health care, augmented reality, cloud, predictive analytics, remote patient monitoring, and wearable devices have a growing impact on transforming health and well-being.
In the last few years, Amazon.com, Inc. (NASDAQ:AMZN) has been penetrating the healthcare sector. On February 22, Amazon.com, Inc. (NASDAQ:AMZN) announced that it closed a deal with primary care provider One Medical for $3.9 billion. With the acquisition of One Medical, Amazon.com, Inc. (NASDAQ:AMZN) expanded its footprint in the healthcare industry. Through One Medical, Amazon.com, Inc. (NASDAQ:AMZN) will reach a wider audience to offer better healthcare experience and services. Amazon.com, Inc.’s (NASDAQ:AMZN) senior vice president of Amazon Health Services, Neil Lindsay, on the acquisition of One Medical said:
“We’re on a mission to make it dramatically easier for people to find, choose, afford, and engage with the services, products, and professionals they need to get and stay healthy, and coming together with One Medical is a big step on that journey. One Medical has set the bar for what a quality, convenient, and affordable primary care experience should be like. We’re inspired by their human-centered, technology-forward approach and excited to help them continue to grow and serve more patients.”
Amazon.com, Inc. (NASDAQ:AMZN) has planned for a long time to expand its network in the healthcare sector. Today, the e-commerce giant has a healthcare subsidiary, Amazon Clinic, which offers 24/7 virtual healthcare service through video calls and messaging. After the launch of Amazon Clinic in November 2022, the virtual care network has received a 96% customer satisfaction rating. On August 1, Amazon.com, Inc. (NASDAQ:AMZN) announced that they are expanding Amazon Clinic’s services all over the U.S. At the moment, Amazon Clinic does not offer insurance, but patients can use insurance to pay for medications prescribed through Amazon Clinic. Amazon.com, Inc. (NASDAQ:AMZN) is also offering its online pharmacy through Amazon Pharmacy, which handles fulfillment and delivery of prescriptions.
Another tech giant, Apple Inc. (NASDAQ:AAPL) is creating partnerships with payers, clinical researchers, and healthcare systems through its products like Apple Watch and iPhone. Moreover, Apple Inc.’s (NASDAQ:AAPL) wearable technology in its Apple Watch has healthcare apps that allow its users to create a healthy life. Apple Watch also supports its users with other aspects of health including heart health, activity, medications, and mobility, among others. As we mentioned earlier, Apple Inc. (NASDAQ:AAPL) in this year’s launch event unveiled the Apple Watch Series 9, which has a powerful new S9 SiP chip with enhanced performance and capabilities, providing access to health data.
Our Methodology
To find the 20 most innovative companies in America, we followed a consensus approach. We reviewed the most innovative companies lists published by BCG, PwC, CEOWorld Magazine, and Fortune. We shortlisted the companies that appeared in at least two sources.
After narrowing down on companies, we calculated the stock returns of each company over the last 10 years, as of September 15. Our hypothesis was that a company that has higher stock returns has been at the forefront of innovation. We narrowed down our selection to companies that had the highest stock returns and ranked them in ascending order of this metric.
An important note: Dell Technologies Inc’s (NYSE: DELL) data was available from August 2016, therefore its stock returns are from the last seven years.
Here is the list of the 20 most innovative companies in America.
20 Most Innovative Companies in America
20. Intel Corporation (NASDAQ:INTC)
Stock Returns: 60.30%
Founded in 1968, Intel Corporation (NASDAQ:INTC) has revolutionized the semiconductor industry. Considered the pioneer of metal-oxide semiconductors, Intel Corporation (NASDAQ:INTC) launched its first commercial chip, the 1101 static random-access memory, which came with metal oxide semiconductors and silicon gates. Intel Corporation’s (NASDAQ:INTC) first product was its 3101 Schottky random-access memory. Ranked 20th on our list, Intel Corporation (NASDAQ:INTC) is one of the most innovative companies in America.
America has some of the most advanced and innovative companies in the world that include Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT).
19. Johnson & Johnson (NYSE:JNJ)
Stock Returns: 80.53%
Johnson & Johnson (NYSE:JNJ) was founded in 1886 by Robert Wood Johnson along with his brothers Edward Mead and James Wood. The American multinational corporation has built its empire in the medical, pharmaceutical, and consumer goods industries. The first mass-produced sterile surgical supplies were manufactured by Johnson & Johnson (NYSE:JNJ). Johnson & Johnson (NYSE:JNJ) ranks among the most innovative companies in America.
18. The Boeing Company (NYSE:BA)
Stock Returns: 82.98%
The Boeing Company (NYSE:BA) is the leader in the aerospace industry that has changed the dynamics of modern-day commercial planes. Founded in 1916, the company’s first product was a single-engine, two-seat seaplane, the B&W. Since then, The Boeing Company (NYSE:BA) has innovated the aerospace industry with several planes and other aerospace products. The Boeing Company (NYSE:BA) is ranked 18th on our list of the most innovative companies in America.
17. Procter & Gamble Company (NYSE:PG)
Stock Returns: 92.51%
Procter & Gamble Company (NYSE:PG) is a multinational consumer giant that was founded in 1837 by William Procter and James Gamble. One of the oldest companies operating today, Procter & Gamble Company (NYSE:PG) innovated a single bar of soap that could be used for both bathing and laundry. Procter & Gamble Company (NYSE:PG) ranks among the most innovative companies in America.
16. Bank of America Corporation (NYSE:BAC)
Stock Returns: 97.39%
Established in 1988, Bank of America Corporation (NYSE:BAC) has been playing a vital role in America’s financial ecosystem. Bank of America Corporation (NYSE:BAC) is one of the leading American banks that offer top financial services to their consumers. In today’s time, Bank of America Corporation (NYSE:BAC) is evolving to high-end technology such as using AI to enhance its financial services. Placed at the 16th spot, Bank of America Corporation (NYSE:BAC) is one of the most innovative companies in America.
15. Comcast Corporation (NASDAQ:CMCSA)
Stock Returns: 103.31%
America’s largest multinational telecommunications and media company, Comcast Corporation (NASDAQ:CMCSA) was founded in 1963. Comcast Corporation (NASDAQ:CMCSA) began as a single-system cable operator in Tupelo, Mississippi, and now it is one of the most innovative and advanced media companies. Comcast Corporation (NASDAQ:CMCSA) makes it to our list of the most innovative companies in America.
14. Cisco Systems, Inc. (NASDAQ:CSCO)
Stock Returns: 129.38%
Incorporated in 1984, Cisco Systems, Inc. (NASDAQ:CSCO) first developed the groundbreaking IP technology, the basic mode to communicate over the internet. Today, one of Cisco Systems, Inc.’s (NASDAQ:CSCO) fastest-growing business is its cybersecurity unit. Ranked 14th on our list, Cisco Systems, Inc. (NASDAQ:CSCO) is one of the most innovative companies in America.
13. Merck & Co., Inc. (NYSE:MRK)
Stock Returns: 133.53%
Merck & Co., Inc. (NYSE:MRK) was founded in 1891 before the pharmaceutical company published its first Merck Manual in 1899. Merck Manual had treatments including bloodletting for acute bronchitis, almond bread for diabetes, and arsenic for impotence. Later, it became one of the widely used references in the medical world. Merck & Co., Inc. (NYSE:MRK) ranks among the most innovative companies in America.
12. NIKE, Inc. (NYSE:NKE)
Stock Returns: 179.98%
NIKE, Inc.’s (NYSE:NKE) inspirational story began with its founder, Phil Knight’s vision of designing running shoes. Today, NIKE, Inc. (NYSE:NKE) is one of the most famous athletic footwear and apparel brands around the world. NIKE, Inc. (NYSE:NKE) makes it to our list of the most innovative companies in America.
11. Morgan Stanley (NYSE:MS)
Stock Returns: 210.42%
One of America’s most decorated investment banks and financial services providers, Morgan Stanley (NYSE:MS) has revolutionized commercial investment banking. One week after its launch in 1935, Morgan Stanley (NYSE:MS) entered the bond market with a $19 million offering for Consumers Power Company. Since then, it has been a leader in the investment banking segment. Morgan Stanley (NYSE:MS) ranks 11th on our list of the most innovative companies in America.
10. AbbVie Inc. (NYSE:ABBV)
Stock Returns: 235.65%
AbbVie Inc. (NYSE:ABBV) is one of the largest pharmaceutical companies by revenue. In 2013, the company released its first groundbreaking product, Humira, which is used for various inflammatory conditions in adults. AbbVie Inc. (NYSE:ABBV) is one of the most innovative companies in America.
9. Oracle Corporation (NYSE:ORCL)
Stock Returns: 246.86%
Founded in 1977, Oracle Corporation (NYSE:ORCL) is one of the biggest tech companies in the world. In 1978, Oracle Corporation (NYSE:ORCL) launched a software, Oracle Version 1, which helped in license compliance issues and avoiding unbudgeted costs. The company released its first commercial project in 1979, the Oracle Version 2. Oracle Corporation (NYSE:ORCL) is one of the leading tech companies and makes it to our list of the most innovative companies in America.
8. Dell Technologies Inc. (NYSE:DELL)
Stock Returns (From August 18, 2016 to September 15, 2023): 461.75%
Dell Technologies Inc. (NYSE:DELL) was founded in 1984 and the very next year the company built its first computer, the Turbo PC, featuring an Intel® 8088 processor running at 8MHz, a 5.25-inch floppy drive, and a 10MB hard drive. Since then, Dell Technologies Inc. (NYSE:DELL) has taken the computer market by storm. Dell Technologies Inc. (NYSE:DELL) is ranked eighth on our list of the most innovative companies in America.
7. Alphabet Inc. (NASDAQ:GOOG)
Stock Returns: 519.62%
After operating as Google for 17 years, the tech giant changed its name to Alphabet Inc. (NASDAQ:GOOG) in 2015. Larry Page and Sergey Brin released a search engine named Backrub, which was later named Google as it became a global phenomenon on the internet. Alphabet Inc. (NASDAQ:GOOG) is a prime company that has infused innovation through technology. Alphabet Inc. (NASDAQ:GOOG) is one of the most innovative companies in America.
6. UnitedHealth Group Inc. (NYSE:UNH)
Stock Returns: 548.15%
In 1988, UnitedHealth Group Inc. (NYSE:UNH) through its subsidiary initiated its first pharmacy benefit management, which was managed and delivered through retail pharmacies and mail. UnitedHealth Group Inc. (NYSE:UNH) is America’s leading multinational managed healthcare and insurance company. The company ranks among the most innovative companies in America.
American companies that are at the forefront of innovation include Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT).
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Disclosure: None. 20 Most Innovative Companies in America is originally published on Insider Monkey.