;#Faculty News;# | Harvard Business Review | 06
Wall Street Doesn't Understand Innovation
by Christopher Malloy
Chris Malloy and his colleagues mapped 30 years of U.S. corporations' R&D expenditures against their sales revenues, ability to generate patents, patent citations, and new product launches. They found a simple pattern: Companies that had large R&D budgets as well as a history of converting innovation into growth were likely to continue that strong performance.