Process Innovation as an Alternative Model to Factor Investing
Project Description
Organizations are increasingly confronted with the negative trends of deglobalization, decarbonization, and rising debt levels. These macroeconomic trends have a negative impact on economic growth and inflation. At the same time, investors are trying to identify investment products that are both sustainable and profitable despite these challenging conditions. The well-known factors from factor investing often fall short in this regard. While numerous studies show that companies can encounter stagnant economic growth and rising inflation through process innovation, there is still little consensus on how to design investment products that take process innovation into account.
Hence, the aim of this proposal is to develop and test alternative process innovation factors that play an essential role in creating superior social and economic value. In particular, novel quantitative and qualitative approaches will be used to develop process innovation-related efficiency factors, which the implementation partner will incorporate into new investment products. Through the developed efficiency factors, successful companies can be identified, thereby generating above-average social and financial performance.
The results of this project will make a valuable contribution at the interface between innovation and financial theory and will meet the demand for above-average performance products on the market. In addition, this project contributes in many ways to the added value of the university and the country by addressing the research priorities of the University of Liechtenstein and strengthening Liechtenstein and its dominant and innovative position as a financial hub.
Hence, the aim of this proposal is to develop and test alternative process innovation factors that play an essential role in creating superior social and economic value. In particular, novel quantitative and qualitative approaches will be used to develop process innovation-related efficiency factors, which the implementation partner will incorporate into new investment products. Through the developed efficiency factors, successful companies can be identified, thereby generating above-average social and financial performance.
The results of this project will make a valuable contribution at the interface between innovation and financial theory and will meet the demand for above-average performance products on the market. In addition, this project contributes in many ways to the added value of the university and the country by addressing the research priorities of the University of Liechtenstein and strengthening Liechtenstein and its dominant and innovative position as a financial hub.
