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The Positive Impact of Innovation on Stock Market Value

The United States is now forced to compete on a global scale where new products and services will make a significant determination of long-term sustainable growth. Some business leaders have raised concerns that the United States is losing its competitive edge due to declining research and development investments when compared to other nations (Hall, 1993). Market leadership is seen as requiring higher levels of innovative engagement in order to continue to create strong international market presence. Customers can raise the market value of an organization based upon a perception of organizations value. Innovative orientated firms are often seen as having superior quality products and this drives up demand for newer innovative products (John et. Al, 1999). The public good will from providing new customer solutions cannot be underestimated in the perception of customer value and is often rewarded with additional sales. In addition, having an innovative reputation also improv