In this article, we will take a look at the most innovative companies in the world in 2023. If you want to explore similar companies, you can go to 5 Most Innovative Companies in the World in 2023.

Innovation doesn’t arrive straight away. Governments and organizations invest heavily in research and development, scientific publications, and other areas of research to drive innovation each year.

According to WIPO’s Global Innovation Index 2023, investments in innovation showed a mixed performance in 2022, compared to the boom in 2021. Despite moderate growth compared to 2021, scientific publications, research and development, venture capital deals, and patents continued to increase higher than ever in 2022. Scientific publications grew moderately by 1.5% to around 2 million in 2022. Worldwide research and development expenditure by the world’s leading R&D spending corporations crossed $1.1 trillion, a record high in 2022. This research spending in 2022 is a key driver for innovation for companies in 2023. Tech giants including Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG) have been making ample developments in AI. Thanks to their investment in AI over the past few years. 

Most Innovative Economies in 2023

The Global Innovation Index 2023 ranks Switzerland as the most innovative economy for the 13th year now. Sweden is the second most innovative country followed by the United States at third. The Swiss government spends a huge amount on innovation. However, it is no surprise that the United States is way ahead when it comes to innovation as it has bigger corporations and they invest heavily in innovative technologies. As we mentioned earlier, 10 out of the 15 most innovative companies are based in the United States. For instance, the American tech giant Meta Platforms, Inc. (NASDAQ:META) spent around $35 billion on research and development in 2022, compared to Switzerland’s $33 billion in research and development in 2022. The United States continues to lead the Global Innovation Index’s innovation indicators. Out of 80 indicators, the United States tops in 13 indicators among all the other countries in the world. 

Apart from the United States, several developing economies are outperforming in innovation relative to their level of economic development. A total of 21 economies have exceeded innovation compared to their development level, and most of the economies are located in Sub-Saharan Africa and South East Asia, East Asia, and Oceania. For the 13th straight year, India, the Republic of Moldova, and Vietnam have been the outperforming economies in innovation.

Technology and Innovation in 2023

There are many exciting and scalable innovative technologies under development that are making a swift global impact. Generative AI is the most hyped technology of 2023 so far. Regardless of the industry, AI is being used in various capacities to enhance productivity and output. Today, AI is widely utilized in sectors such as healthcare, tech, retail, banking, entertainment, and manufacturing, among others. 

Technological revolutionization is taking place with the transition to green energy technologies. As per the United Nations Technology and Innovation Report 2023, the 15 leading technologies including AI, Internet of Things (IoT), and green hydrogen, among others, represent a $1.5 trillion market, which is expected to reach a whopping $9.5 trillion by 2030. Green technologies’ exports from developed countries soared from $60 billion in 2018 to $156 billion in 2021. Whereas, the developing economies’ exports for green technologies jumped from around $57 billion to about $75 billion, in the same period. 

Companies Delivering in AI in 2023

Companies are speeding up in adapting generative AI and other in-demand technologies. American companies lead when it comes to the adoption of a new technology. The reason for that is the huge amount of investment in research and development from big American companies. Meta Platforms, Inc. (NASDAQ:META) just announced some new exciting features embedding AI during Meta Connect 2023. During the event held between September 27-28, Meta Platforms, Inc. (NASDAQ:META) announced the launch of its AI stickers on its apps. Instagram users will be able to edit images and co-create them with their friends through Meta Platforms, Inc.’s (NASDAQ:META) new AI editing tools. Meta Platforms, Inc. (NASDAQ:META) has also launched AI Studio to allow businesses to create AI chatbots for their company’s messaging services. Meta Platforms, Inc. (NASDAQ:META) says:

“Businesses will also be able to create AIs that reflect their brand’s values and improve customer service experiences. From small businesses looking to scale to large brands wanting to enhance communications, AIs can help businesses engage with their customers across our apps. We’re launching this in alpha and will scale it further next year.”

AI tools such as ChatGPT and Bard have really driven companies to accelerate their development in AI tools. Alphabet Inc. (NASDAQ:GOOG) is making big moves in AI. As we mentioned earlier, Alphabet Inc. (NASDAQ:GOOG) during the Google Cloud Next 2023 updated on its progress in generative AI. Alphabet Inc. (NASDAQ:GOOG) highlighted that generative AI is its big focus, especially Vertex AI and Duet AI which are now offering new features in the cloud segment.

The healthcare mammoth, UnitedHealth Group Incorporated (NYSE:UNH) announced its United AI Studio, earlier in 2023. UnitedHealth Group Incorporated’s (NYSE:UNH) AI Studio is a one-stop-shop AI platform that will help healthcare teams and partners utilize data in the best possible way. UnitedHealth Group Incorporated’s (NYSE:UNH) Chief Digital & Technology Officer, Sandeep Dadlani said that United AI Studio will accelerate machine learning 100x times to transform healthcare. Dadlani posted on LinkedIn regarding their major upgrade in AI and said:

“With thousands of use cases leveraging AI across UHG this is our moment to make it millions of use cases at scale in a responsible way. This is our moment to go 100X with our mission in mind – leveraging the best of AI.”

AI has been the most innovative technology in 2023 and companies are taking advantage of AI and scaling it to end users. Now, let’s take a look at the 25 most innovative companies in the world in 2023.

Our Methodology

To find the 25 most innovative companies in the world in 2023, we followed a consensus approach. We took data from different publications including 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 October 6. We hypothesized 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: We did not include companies with stock returns below 25% in the last 10 years. 

Here is the list of the 25 most innovative companies in the world in 2023.

25 Most Innovative Companies in the World in 2023

25. Exxon Mobil Corporation (NYSE:XOM)

Stock Returns (As of October 6): 25.24%

Exxon and Mobil merged to form Exxon Mobil Corporation (NYSE:XOM) on November 30, 1999. Since then, the oil company has made major oil explorations. With its operations in different countries, Exxon Mobil Corporation (NYSE:XOM) is innovating new ways to hydrogen highways to reach net zero emissions. Ranked 25th on our list, Exxon Mobil Corporation (NYSE:XOM) is one of the most innovative companies in the world in 2023.

Some of the top companies that are leading global innovation include Meta Platforms, Inc. (NASDAQ:META), Alphabet Inc. (NASDAQ:GOOG) and UnitedHealth Group Incorporated (NYSE:UNH).

24. Shell plc (LON:SHEL)

Stock Returns (As of October 6): 27.41%

Shell plc (LON:SHEL) became a notable oil company with its historic red-painted cans, making it a dominant force in the market. Shell plc (LON:SHEL) continues to adapt to the ongoing challenges in the global markets and remain innovative. The oil company ranks among the most innovative companies in the world in 2023.

23. Glencore plc (LON:GLEN)

Stock Returns (As of October 6): 34.44%

With a diversified portfolio in the minerals and metals sector, Glencore plc (LON:GLEN) remains an innovative force in the industry. In 2011, Glencore plc (LON:GLEN) went public on the London and Hong Kong stock exchanges. One of the advanced natural resources corporations, Glencore plc (LON:GLEN) makes it to our list of the most innovative companies in the world in 2023.

22. Chevron Corporation (NYSE:CVX)

Stock Returns (As of October 6): 38.15%

Chevron Corporation (NYSE:CVX) is a leading American multinational energy firm predominantly specializing in oil and gas. The company is working to produce cleaner energy through its offerings in the oil and gas sector. Chevron Corporation (NYSE:CVX) makes it to our list of the most innovative companies in the world in 2023.

21. Hon Hai Precision Industry Co., Ltd. (TPE:2317)

Stock Returns (As of October 6): 43.85%

Hon Hai Precision Industry Co., Ltd. (TPE:2317) is a leading multinational electronics contract manufacturer. The Taiwanese company continues to make new ventures in various electronics products including EV components and mobile components. Hon Hai Precision Industry Co., Ltd. (TPE:2317) is one of the most innovative companies in the world in 2023.

20. Siemens Aktiengesellschaft (ETR:SIE)

Stock Returns (As of October 6): 49.58%

Founded in 1847, Siemens Aktiengesellschaft (ETR:SIE) has launched revolutionary products. The company pioneered the modern way of communication through its pointer telegraph. Being at the center of innovation, Siemens Aktiengesellschaft (ETR:SIE) ranks among the most innovative companies in the world in 2023.

19. Cardinal Health, Inc. (NYSE:CAH)

Stock Returns (As of October 6): 67.65%

Cardinal Health, Inc. (NYSE:CAH) is one of the leading multinational healthcare services companies. Cardinal Health, Inc. (NYSE:CAH) has high-end tools that are enhancing the efficiency and productivity in the healthcare sector such as VitalSource™ GPO. Ranked 19th on our list, Cardinal Health, Inc. (NYSE:CAH) is one of the most innovative companies in the world in 2023.

18. Johnson & Johnson (NYSE:JNJ)

Stock Returns (As of October 6): 81.82%

Johnson & Johnson (NYSE:JNJ) is a leading multinational corporation that has innovated its product line in the medical, pharmaceutical, and consumer goods industries. Johnson & Johnson (NYSE:JNJ) was the first company to mass-produce sterile surgical supplies. Johnson & Johnson (NYSE:JNJ) ranks 18th on our list of the most innovative companies in the world in 2023.

17. Phillips 66 (NYSE:PSX)

Stock Returns (As of October 6): 85.82%

One of the top American multinational energy companies, Phillips 66 (NYSE:PSX) is working on different methods to accelerate cleaner production in the energy sector. Phillips 66 (NYSE:PSX is one of the most innovative companies in the world in 2023.

16. Toyota Motor Corporation (TYO:7203)

Stock Returns (As of October 6): 108.76%

Toyota Motor Corporation (TYO:7203) is one of the biggest and most innovative automobile companies in the world. Toyota Motor Corporation (TYO:7203) continues to innovate in the automotive sector with its latest technologies. On June 13, the company announced that it is changing the future of cars through new innovative technologies. Ranked 16th on our list, Toyota Motor Corporation (TYO:7203) is one of the most innovative companies in the world in 2023.

15. Walmart Inc. (NYSE:WMT)

Stock Returns (As of October 6): 115.95%

Walmart Inc. (NYSE:WMT) tops the Fortune Global 500 index for a 10th straight year. Since its inception, Walmart Inc. (NYSE:WMT) has upgraded its network and is one of the largest retailers in the world today. Walmart Inc. (NYSE:WMT) ranks among the most innovative companies in the world in 2023.

14. Merck & Co., Inc. (NYSE:MRK)

Stock Returns (As of October 6): 127.15%

Founded in 1891, Merck & Co., Inc. (NYSE:MRK) is a renowned pharmaceutical company. The company published its first Merck Manual in 1899, which became one of the widely used references in the medical world. A leading firm in the pharma industry, Merck & Co., Inc. (NYSE:MRK) ranks among the most innovative companies in the world in 2023.

13. Samsung Electronics Co., Ltd. (KRX:005930)

Stock Returns (As of October 6): 128.64%

Samsung Electronics Co., Ltd. (KRX:005930) is one of the biggest electronic firms in the world. It is famous for its electric appliances and smartphone series “Galaxy”. Samsung Electronics Co., Ltd. (KRX:005930) is also innovating in semiconductor technology and makes it to our list of the most innovative companies in the world in 2023.

12. Berkshire Hathaway Inc. (NYSE:BRK-B)

Stock Returns (As of October 6): 206.52%

Berkshire Hathaway Inc. (NYSE:BRK-B) is a holding firm owned by Warren Buffett. Buffett through his innovative investment strategies and policies has led Berkshire Hathaway Inc. (NYSE:BRK-B) to become one of the largest holding firms in the world. Ranked 10th on our list, Berkshire Hathaway Inc. (NYSE:BRK-B) is one of the most innovative companies in the world in 2023.

11. Oracle Corporation (NYSE:ORCL)

Stock Returns (As of October 6): 232.80%

One of the biggest tech firms, Oracle Corporation (NYSE:ORCL) has innovated different softwares. Oracle Corporation (NYSE:ORCL) launched its first commercial software in 1979 and since then it has been making innovations in online software and cloud segments. Oracle Corporation (NYSE:ORCL) ranks among the most innovative companies in the world in 2023.

10. McKesson Corporation (NYSE:MCK)

Stock Returns (As of October 6): 239.29%

Founded in 1833, McKesson Corporation (NYSE:MCK) is one of the oldest pharmaceuticals and medical supplies distributors. Innovating in the pharmaceuticals sector through its offerings and technology, McKesson Corporation (NYSE:MCK) makes it to our list of the most innovative companies in the world in 2023.

9. Stellantis N.V. (NYSE:STLA)

Stock Returns (As of October 6): 250%

Stellantis N.V. (BIT:STLAM) emerged after a cross-border merger between the French PSA Group and Italian–American giant Fiat Chrysler Automobiles in 2021. Stellantis N.V. (BIT:STLAM) innovates sustainable mobility technologies and ranks among the most innovative companies in the world in 2023.

8. The Home Depot, Inc. (NYSE:HD)

Stock Returns (As of October 6): 288.35%

7. Costco Wholesale Corporation (NASDAQ:COST)

Stock Returns (As of October 6): 389.87%

Costco Wholesale Corporation (NASDAQ:COST) is a leading company that operates an international chain of membership warehouses. Costco Wholesale Corporation’s (NASDAQ:COST) innovative and sustainable supply chain network makes it an innovative warehouse firm. Costco Wholesale Corporation (NASDAQ:COST) ranks seventh on our list of the most innovative companies in the world in 2023.

6. Meta Platforms, Inc. (NASDAQ:META)

Stock Returns (As of October 6): 521.78%

Founded by Mark Zuckerberg in 2004, Meta Platforms, Inc. (NASDAQ:META) is progressing in the most advanced technologies such as AI and metaverse. Meta Platforms, Inc. (NASDAQ:META) ranks among the most innovative companies in the world in 2023.

Some of the most widely held stocks by hedge funds include  Meta Platforms, Inc. (NASDAQ:META), Alphabet Inc. (NASDAQ:GOOG) and UnitedHealth Group Incorporated (NYSE:UNH) are two companies that are making major developments in AI.