What Baseball Can Teach Us About Investing in Innovation

This post is by Aran Ali from Visual Capitalist

The following content is sponsored by Guinness Atkinson Funds
How different hits in baseball like home runs compare to different types of innovation investing

What Baseball Teaches Us About Innovation Investing

Innovation investing is a popular investment theme due to its return potential.

However, not all innovation investing is the same, and too many approaches today focus on home-run-style disruptive innovation, Llaving the other forms relatively unnoticed and underrated.

In this sponsored post by Guinness Atkinson Funds, we explore innovation investing through the lens of baseball by comparing types of hits at base to forms of innovation. 

Types of Innovation

There are three common types of innovation that various business strategies fall under.

Persistent InnovationDisruptive InnovationEfficiency Innovation
Exploring new opportunities to build on top of services/products within a market a business already competes in.Meant to reinvent the wheel through technology or a business model.Seeks to optimize operational parts of a business through small incremental changes.
Nike making clothes out of recyclable material to improve carbon footprint and brand value.

Starbucks introducing mobile orders while driving sales growth through higher add on.

Amazon adding new perks to the overall Amazon Prime membership subscription bundle.

Netflix disrupting the market by changing the way people consume media.

Airbnb entering and then dominating the short term rental and vacation market through shared homes.

Uber disrupting the taxi industry with mobile ride hailing.
Walmart constantly optimizing their supply chain and investor (Read more...)