Successful innovation investing

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    Successful innovation investing
    Successful innovation investing
    27 August 2021

    Key Highlights

    • Innovation extends beyond technology alone
    • Disruptive ideas that prevail may come at the expense of an older idea or industry that is unable to adapt to changes
    • Demographic changes, shift in global powers and climate change are some megatrends that could underpin innovation opportunities in the long run

    The buzzword ‘Innovation’, often associated with technology, was explored in an article published and moderated by The Business Times on 18 August 2021, Dharmo Soejanto (Head of Investment Partnerships & Solutions, UOB Asset Management) alongside roundtable panellists Michael Masdea (Head of Investment Science and Portfolio Manager, Wellington Management) and Donald Rice (Head of Funds Specialists Asia, Julius Baer).

    In the article, the panellists shared their thoughts about investable opportunities sparked by innovation that extended beyond technology alone and how to identify disruptive opportunities.

    Dharmo shared that “many people think innovation is coming up with new technology. But, innovation is often more about applying existing technology to develop new business models, reach new customers or address new markets.”

    On the topic of identifying truly disruptive opportunities, he shared that one would have to consider who would be at the losing end if an idea prevails. Understanding an industry, a company, its competitive edge and the size of its addressable market would help investors gather a sense of what the company may be worth.

    Investors also have to discern whether a company has a strong moat by analysing their resilience against the risk of new competition or technology and observe the quality of management in their capabilities of execution and growing the company.

    Concluding the discussion, Dharmo also identified social, economic and geo-political factors with long term trajectories such as demographic changes, a shift in global powers and climate change as some of the megatrends that could underpin innovation opportunities in the long run.

    Click here to read the full article on The Business Times

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