The Lux Innovation Grid

Lux Research collects information and provides analysis on top innovators in emerging technology areas through company briefings. Our analysts have developed a tool called the Lux Innovation Grid that uses data and insights from these profiles to compare companies. From seeing how companies are positioned on this tool, clients can:

• Quickly spot the top companies in a technology area – identifying current leaders as well as up-and-comers
• See which technologies or market segments are hottest by noting where the most promising companies lie – are there more top firms in algae-based biofuels, or in cellulosic ethanol?
• Assess which factors lead to success for firms in a given field
• Be aware of areas of white space, where no leading companies have yet staked a claim

Lux Innovation Grid Components

The Lux Innovation Grid assesses companies on four distinct metrics:

• The strength and value of a company's technology determines its "Technical Value" score: Companies with the most powerful and promising technologies rate higher on the vertical axis
• A company's ability to perform and achieve success determines its "Business Execution" score: Our assessment of the company's ability to run a viable organization, growing sales, managing costs, and making customers and investors happy determines its position on the horizontal axis
• The completeness of a company's development reflects its "Maturity." Company size, stage of development, annual revenues, and age determine maturity, shown by the size of the circle representing that company
• A company's success is measured holistically by the "Lux Take." This overall ranking mechanism is based on the considerations of Technical Value, Business Execution, and Maturity, placing companies into five categories – "Strong Caution," "Caution," "Wait and See," "Positive," and "Strong Positive" – depicted by the color of the circle for that company