Einsteinian Innovation as Forrester Changes the Past

Technology analyst Forrester Research Inc. will rewrite its old accounts, as it continues to put its own house in order following its discovery of financial irregularities in December. This week, it also released results of a study of innovation round the world, listing Switzerland among five leaders in the field.

Forrester's recent internal probe found that option grants, mainly made between 1998 and 2004, had exercise prices lower than the fair value of the common stock on the appropriate dates. The firm therefore says it will restate its historical financial statements to record additional non-cash charges for compensation expense relating to past stock-option grants and related tax impacts.

Precise dates and figures are yet to be determined, but the company said its financial results for the years 1998 through 2006 'should no longer be relied upon', and that it does not expect to file this year's annual report by its March 16 due date.


The innovation survey gave high rankings to usual suspects Sweden, Finland, Ireland and the US itself in addition to Switzerland, which despite the revolutionary intellect of the clerks third class in its patent office, is perhaps more traditionally thought of as – well – traditional?

The report says international cooperation and partnering are key, as 'no country can be the leader in all fields of innovation and research'. However, it says politicians waste large sums of taxpayers' money by failing to understand the true nature of innovation, often confusing it with invention. Developed nations spend around $1,270 per capita each year on research and development.

Forrester suggests that this money could be spent in better ways. In particular, it says governments would do well to give up on being jacks of all trades in the innovation sphere – 'nations often are seen as closed systems that necessarily have to be in control of all of their innovation capabilities. No country can, by itself, invent, commercialize, finance, deploy and operate their innovations.' Each country should try to specialize in what it does best and leave areas where they lack expertise.

The report says Switzerland excels at academic and financial achievement, but lags in 'inventor strategy'. Countries like the US and Finland are good inventors, but not so good in attracting foreign research and development to come to their shores, while Ireland excels at the latter. It suggests the formation of 'Innovation Networks' among countries and companies, to fuel cross-border collaborative innovation.

The company is online at www.forrester.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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