Booz Allen Global Innovation study shows rising R&D investments
The global innovation report is a yearly report showing R&D spendings and Innovation Investments across different industries. For reference, I have included the 2009 results by industry and the 2011 version below. The sectors which invest in R&D do not differ much from one year to another.
Although the report states that R&D investments doesn’t always mean that innovation is produced, or that this innovation is performing better than other products investments diluted across other budgets, there a precious few metrics that make it possible for us to measure how innovation is faring. So we’ll have to make do with this.
What the report shows as well is that rising investments mostly happe in America, whereas Europe was already deep in recession at that time. I can’t wait to see what the 2013 report will show.
At last, the report shows a strong correllation between sales and R&D investments. One could read this either of two ways: when sales are good, R&D investments grow, or … when R&D investments grow sales are better.
An interesting question would also be to wonder what is actually meant by R&D spending and whether all product development efforts are measured under that umbrella. I have seen a lot of companies in which R&D is kept as a separate effort and doesn’t represent the main area for product design and development ; this is significant in a world in which innovation is driven by vendors’ offerings, mostly in the Computing & Electronics world, the first sector for innovation in that study.s
R&D Spending Returns to Pre-Recession Levels, Finds Booz & Company Global Innovation 1000 Study | Innovation Management
key findings from this year’s Global Innovation 1000 study:
- The three industries with the greatest R&D investment were computing and electronics, health, and automotive (28 percent, 21 percent, and 16 percent of the total Global Innovation 1000 spend, respectively).
- Two-thirds of the $53 billion increase in R&D spending between 2010 and 2011 came from the computing and electronics, automotive, and industrials sectors.
- 75 percent of companies increased their R&D spending from the previous year in 2011, up from 68 percent in 2010.
- This year Amazon joined the top 10 “Most Innovative” companies pushing out Facebook. For the third straight year Samsung rose in rank on the list (to fourth place, up from seventh place last year), and Apple, Google, and 3M took the top three positions, respectively, also for the third consecutive year.
- Regionally, companies based in North America grew their R&D spending by 9.7 percent—just above the global average of 9.6 percent—while Europe and Japan grew theirs at below-average rates of 5.4 percent and 2.4 percent, respectively.
- India- and China-based firms again increased R&D investment at the highest rate overall across regions (27 percent on average), although from a small R&D spending base.
via R&D Spending Returns to Pre-Recession Levels, Finds Booz & Company Global Innovation 1000 Study | Innovation Management.