Samsung Electronics has been ranked eighth in the 2019 Nikkei-Hitotsubashi University innovation index for the world’s top 200 companies.
The index was jointly published by the Nihon Keizai Newspaper of Japan and the Hitotsubashi University Innovation Research Center.
Amazon, the world's largest e-commerce company, ranked first with 196.7 points in total. Among the top five were Facebook, Alphabet, Apple, and Verizon. Microsoft (MS) and Intel nabbed sixth and seventh place, respectively.
Samsung Electronics was given the highest ranking when U.S. companies were excluded. The Korean tech giant received a total of 181.8 points with 74.4 points in growth potential, 43.8 points in organizational power and 63.6 points in value creation ability. China Mobile came in ninth and U.S. Wal-Mart stood 10th.
Major companies around the world were evaluated based on three criteria — organizational power, value creation and growth potential. Organizational power is an index reflecting the diversity of top executives, with the evaluation criteria including outside directors, female executives, and average ages of executives. In value creation assessment, the newspaper and the research center analyzed current market caps and their changes, operating margin, and the proportions of overseas sales. The growth potential area includes R&D investment ratios and facility investment.
Samsung Electronics scored third highest after Amazon (65.1 points) and Facebook (63.8 points) with 63.6 points in the value creation section where judges evaluated the market value of companies such as market capitalization and operating profit. In the growth potential section, the company received 74.4 points, placing third after Alphabet (74.8 points) and Verizon (74.5 points). In the organizational power section, it recorded 43.8 points, lower than the average score of the top 10 companies (54.4 points).
Among Korean companies other than Samsung Electronics, SK Hynix placed 56th with an innovation score of 166.5 points and SK Group claimed 67th place with 164.8. By country, 72 of the top 200 companies were American. The top 200 list included 32 Chinese, 13 U.K., 11 French, eight German, and seven Japanese companies.