For value investors, finding a predictive tool that can help locate stocks that offer long-term opportunity based on their proprietary growth strategy is sacrosanct. That's because few exist.
Recognizing the problem, CNBC partnered with Washington University in St. Louis business school professor Anne Marie Knott, who specializes in innovation, to develop a list of publicly-held U.S. companies investing $100 million or more in R&D. We then ranked their research quotient (RQ): the measure of R&D productivity that links R&D spending to corporate revenue growth and market value. Companies are ranked based on ability to increase revenue from R&D, not the absolute dollar value of projected revenue increase.
The R&D All-Stars: CNBC RQ 50 is the first of its kind. It calculates the percentage increase in revenues associated with a 1 percent increase in R&D.