The Impact of Business Innovations on Brand Value

Abstract

This article deals with interaction between business innovations and brand value. Innovation and brand equity are two important dimensions that drive businesses today; innovation in particular is a primary determinant of brand equity. Innovations and brand value are two key strategic assets that play important role in company growth and success. The aim of the research is demonstrating a statistically siginificant dependence between the brand value and innovations, which in our research are represented by R&D expenditures. Expenditure on research and development is taken in absolute terms, but also in relative terms as a percentage of revenue. Article contains basic theoretical background of this topic and results of research focused on confirming the dependence between these two parameters. The research is carried out on a sample of fourteen global brands (Google, Apple, Amazon, Microsoft, Samsung, Shell, IBM, Mercedes-Benz, Oracle, Siemens, Honda, Cisco, Intel, Nestlé) with application of mathematical-statistical apparatus. The analysis is carried out by comparison of selected brand values provided by consultative company Brand Finance with innovations represented by R&D expenditure (USD, percentage of sales).