OREANDA-NEWS. July 28, 2011. Bharat Heavy Electricals Limited (BHEL) has been ranked the Ninth Most Innovative Company in the world by the renowned US business magazine Forbes. Significantly, BHEL is the only Indian engineering company on the list, and is ranked much higher than similar multinational companies in the power equipment field.

Not only does the ranking reflect the innovativeness of the companies, it also recognises the role of the innovative CEOs that have woven the code for innovation into their companies. The list uses the ‘innovation premium’ to rank the world’s most innovative companies. It is the premium the market gives a company because investors expect it to generate even bigger income streams in future.

Embedded in each of these companies is a code for innovation, discernible in their people, processes and philosophies, what is referred to as a ‘3P’ framework for understanding the DNA of innovative organisations. The study also recognises the CEO that fully grasps how to embed the 3Ps deeply into a company’s culture to create a powerful, positive innovation premium, setting him apart from other CEOs.

The list is based on an eight-year study by Harvard Business School Professor and master of disruptive innovation, Mr. Clayton M. Christensen, along with Mr. Jeff Dyer, a professor at Brigham Young University, and Mr. Hal B. Gregersen, a professor of leadership at INSEAD.

Notably, the recognition comes close on the heels of BHEL being presented the ‘SCOPE Meritorious Award for R&D, Technology Development and Innovation’ by the Hon’ble President of India.

Significantly, BHEL’s innovativeness and thrust on enhancing intellectual capital has seen the company getting commendations and recognition by the world’s most respected and credible institutions. In fact, BHEL is one of the only four Indian companies and the only Indian Public Sector Enterprise figuring in ‘The Global Innovation 1000’ of Booz & Co., a list of 1,000 publicly-traded companies which are the biggest spenders on R&D in the world.

BHEL has also won the coveted CII-Thompson Reuters Innovation Award 2010 in the ‘Hi-tech Corporate’ category. The award recognises BHEL’s innovation and entrepreneurship based on number of patents and efficiency and impact of innovation as measured by patent citations. In addition, BHEL has been ranked number one in terms of filing patents in India by the Economic Times Intelligence Group.

R&D and technology development are of strategic importance to the company as it operates in a competitive environment where technology is a major factor. As a result of constant thrust on developing new technologies and products, BHEL has recorded a 31% growth in its intellectual capital in FY 2010-11. During the year, 303 patents and copyrights were filed by the company, translating into filing of over one patent / copyright every working day. With this, the company’s intellectual capital has gone up to 1,438 patents and copyrights filed, which are in productive use in the company’s business.

During fiscal 2010-11, BHEL invested an all-time high Rs.10,050 Million on R&D efforts - 21% higher than the previous year. With an R&D spend at over 2.3 per cent of its turnover; BHEL is the highest spender on R&D in India for its kind of industry. Commercialisation of products and systems developed by way of in-house R&D contributed around 18% to the company’s total turnover of Rs.433,370 Million in 2010-11.