This study mainly used O `Byrne (2000)'s theoretical basis, which is the company's economic value added is divided into two parts, Current operating value and future growth value , Use LED industry Epistar as the object of study, with factors which are the growth rate of net operating profit after-tax , competitive rates, long-term equity , and growth rate of enterprise investment in the company's future growth rate and the value of relationships, the study found out the stock market has significant influences for Taiwan's LED industry, the value of the company's future growth closely related. There are two results for the research towards the relationship between innovative products and future growth value , as follow: (1) Companies with innovative products ,share better performance on growth rate of net operating profit after-tax, competitive rates, long-term equity ,then those who do not. (2) Epistar put its innovative products into the market in 2009 and come out that both growth rate of net operating profit after-tax and competitive rates grow significantly.

Nowadays, an enterprise is facing more and more pressure, which leads to its concentration on creation or keeping the shareholder value. However, the disadvantage of traditional financial statements makes an enterprise unable to communicate in a effective way to let investors fully understand the real value of an enterprise. The purposes of reducing the distortion of GAAP accounting system, converting the accounting value into economic value, and becoming the investors¡¦ evaluation index are the attentions of this article in the study based on the EVA¡]Economics Value Added¡^foundation. This research is attempting to understand the real economic status hidden under the volatility of an enterprise value. Making the related research on evaluating the MVA on external managing effects, judging the company value according to current EVA (which is so-called COV ) and predicting the FGV with the growth of a company, is to find out the factors forming the trace of volatility itself. The actual evidence tells that the electronics categorized stocks are in the status of positive relation instead of negative relation. It just shows the transition from PC to communication network, the eventual phenomena of pricking the bubbles of net work in the field of electronic industry, the transfer of overall market trend, and the market performance of losing the favors of investors in non-electronics industry. As for FGV and MVA, it shows the positive relation between different categorized stocks, and it also outstands the situation of inflation and deflation in Taiwan stock market. In the analysis of the research mentioned above, we identify the value volatility traces of an enterprise. As for the key factor which effects the volatility, this research is attempting to explain the key influence on the value volatility of COV, FGV and MVA from the view points on the aspects of macroeconomic, industry information, market static data. The outcome of actual evidence also reveals that explaining capability on COV, FGV, and MVA from the views on macroeconomic aspect can truly reflect the situation of the volatility, and can be very helpful to realize the change trend of an enterprise.

S. David Young and F. O¡¦Byren (2000) divided the economic value added (EVA) into two parts, current operating value (COV) and future growth value (FGV). From financial markets, it was found out that the fluctuations of stock prices of businesses were mainly based on the expectation of the investors to the operation performance and future growth of the businesses. Hence, the businesses can create higher market value only their substantial growth rate exceeds expected growth rate from the market. This study adopts O¡¦Byren¡¦s theory (2000) to do the empirical case study of IC design industry in Taiwan. Firstly, the relationship between future growth value of business and their long term equity input rate (LTEI/IC), net operating profit after tax (NOPAT(G)%), Gross Profit/OE were examined. Secondly, by paradigm empirical case study, this study tries to find out the relationship between the factors that affect future growth value of business and the innovation strategy. Thirdly, this study tries to figure out recommendations for the business to enhance its future growth value. This study finds out the factors that affect the future growth value (FGV), in stock market, of business of IC design industry in Taiwan. The investors focus on NOPAT(G)% for on-growing businesses; they focus on continuous growth of Gross Profit/OE for expanding businesses; and they focus on higher expectation of investment performance from LTEI/IC for mature business sectors. In addition, the results of this empirical study of investors¡¦ expectation on the growth of MediaTek Inc. are as follows: 1. Its Gross Profit/OE and NOPAT(G)% are obviously superior to the other sample business sectors. 2. There is positive correlation between Gross Profit/OE and NOPAT(G)% for killer applications (high market-share products) resulted from applying disruptive innovation strategy. In conclusion, this study provides some recommendations for the businesses pursuing incremental growth or constant growth, as below: 1. Competition strategy decision: To take the innovation strategy in accordance with the performance and specification of the products, target customers and business models. 2. Effective cost control: Continuous improvements by innovative concepts and managements to reduce the costs in marketing, R&D, management, risk from material acquiring, yield rate and operation costs, etc. 3. Profit maximization: It is the key for business success and profit to apply correct innovation strategy as well as effective cost management.

none