It pays to be innovative

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Word on Wall Street is that the stock market doesn’t react to announcements regarding innovation, but research out of University of Southern California’s Marshall School of Business says that just isn’t so. The researchers found that when companies made an announcement of funding for a new-innovation project, the stock price rose 0.7 percent. When an alliance to develop a new project was announced, prices rose 0.5 percent.

After announcing the expansion of a current research project, there was a 0.4 percent hike. Announcing a prototype resulted in a 0.6 percent boost, receipt of a patent triggered a 1.4 percent jump, and an announcement of a launch on the horizon pushed up stock prices nearly 1 percent.