(from tradingmarket.com)
Total R&D spending among the world’s top spenders on innovation dropped in 2009 for the first time in the 13 years studied, according to the 2010 Global Innovation 1000, the sixth annual study of corporate innovation spending, released recently by global management consulting firm Booz & Company.
According to the study, the 1,000 companies that spent the most on research and development decreased their total R&D spending by 3.5 percent to $503 billion in 2009. This followed a relatively strong 2008 during which R&D spending continued to grow despite the recession.
At the same time, revenues for the Innovation 1000 plunged 11 percent from $15.1 trillion in 2008 to $13.4 trillion in 2009 – nearly three times the rate of decline in R&D spending. As a result, R&D intensity, or R&D spending as a percentage of revenue, actually increased – from 3.46 percent in 2008 to 3.75 percent in 2009. Compared to the 3.5 percent reduction in R&D spending, the 1,000 top R&D spenders cut much more deeply into both sales, general and administrative expenses (a 5.4 percent reduction), and capital expenditures (a 17.5 percent drop). Continue reading “Booz & Company Study: R&D Spending on the Decline” »

