- The companies on this list are set for huge growth in the coming 5 years and should be on investors’ radar, Morgan Stanley said.
- The bank uses patents, R&D, company transcripts and Google Trends to explain and track evolving themes and technologies.
- European firms are leaders in electric vehicles, drones, 3D printing, genomic innovations and sustainable technologies, the bank said.
- See more stories on Insider’s business page.
Six of Europe’s technology leaders are among the world’s most innovative companies, and are expected to grow in many multiples in the next three to five years, according to Morgan Stanley’s first thematic research franchise in Europe.
The inaugural series highlights six of what they call the top Innovation Stacks. The idea sprung from NASA flying a helicopter called Ingenuity on Mars for 30 seconds.
“This brief and eye-wateringly expensive flight epitomized the complexities and opportunities of thematic investing,” the bank’s analysts wrote in a recent research note. “Both helicopter and rover used Qualcomm’s Snapdragon chip – the same semiconductor that powers 40% of the world’s smartphones (and nearly all Androids).”
The flight succeeded by relying on a stack of inter-disciplinary innovations, including chips, batter tech, robotics, renewables, 3D printing, AI, drones, cloud, nanotechology, quantum computing and autonomous flight algorithms.
Morgan Stanley applied this same interdisciplinary approach to create its list of Innovation Stacks, used to assess companies in Europe, which the bank said are “rife with innovation.” The cross-sector analysis reviewed patents, R&D, company transcripts and Google Trends to come up with the list of six exceptional businesses.