Innovation Spending by Top Historical R&D Spenders Down for First Time in 13 Years

Booz & Co. - 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, a study of corporate innovation spending conducted by Booz & Company. The study found that 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 where R&D spending continued to grow despite the recession. More than half of all companies tracked cut their R&D spending in 2009 and nearly all the cuts came in just three industries: Auto, computing and electronics, and industrials. The other industries examined all increased spending to some degree. 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. But the study also found no statistically significant relationship between financial performance and the amount spent on innovation. What really matters are the particular combinations of talent, knowledge, team structures, tools, and processes that successful companies put together to enable their innovation efforts. And innovators that achieve this state of 'corporate coherence' consistently outperform their rivals on several financial measures. (1,300 words) . . . (to read the remainder of this article, please log in below.)