ESMT publishes Innovation Index for the Electricity Supply Industry
- RWE and EDF rank highest among the 15 indexed companies
- ESMT Innovation Index 2010 examines R&D budget, productivity, and sustainability
The ESMT Innovation Index 2010 analyzes the innovation of 15 major European energy suppliers. The index consists of three differently weighted sub-indices, which take into account research, productivity, and sustainability. RWE and Electricité de France (EDF) top the ESMT Innovation Index 2010 because of their large investments in research and development. They are followed by Iberdrola, GDF-Suez, and Energias de Portugal (EDP), companies that additionally performed well in the sustainability sub-index.
The independent academic study by Christoph Burger and Dr. Jens Weinmann of ESMT European School of Management and Technology shows that innovation activities increased substantially between 2007 and 2010.
“Over the last four years the combined R&D budgets of the companies have grown by 40 percent to more than 1.5 billion euros,” comments Christoph Burger, energy expert and managing director of ESMT Customized Solutions. According to the study, renewable energy supplies such as wind, biomass, and solar power have more than doubled during the period examined.
The research sub-index, based upon the most important component of a successful innovation strategy, accounts for 50 percent of the overall index. It combines the relative and absolute R&D importance, research diversity, and the number of new patents. Productivity and sustainability each have a weight of 25 percent in the ESMT Innovation Index 2010. The productivity sub-index contains the earnings from electricity generation and per employee, while the sustainability sub-index concentrates on the share of renewable energies and the electricity output per ton of carbon dioxide emissions. RWE’s leading position in the research sub-index pushed the company to the top of the entire ranking, with 70.6 out of 100 total points. EDF follows with a score of 57.7 and compensates for its poor showing in the productivity sub-index through a high ranking in the research sub-index.
You may download the study on the right-hand side of this page.
ESMT European School of Management and Technology was founded in October 2002 by 25 leading global companies and institutions. The international business school offers a full-time MBA, an executive MBA, and open enrollment and customized executive education programs. ESMT focuses on three main topics: leadership and social responsibility, European competitiveness, and the management of technology. Additionally the business school provides an interdisciplinary platform for discourse between politics, business, and academia. ESMT is based in Berlin, Germany, with an additional campus in Schloss Gracht near Cologne, where USW Netzwerk runs the German-speaking executive education programs of the business school. ESMT is a private business school, accredited by the German state, AACSB, AMBA, and FIBAA.