Each year, Booz & Company analyzes R&D spending and determines the top 1000 spenders who are named their “Global Innovation 1000.”
This year’s analysis takes a different look at the R&D spending and reveals that 91 percent of those top 1000 spend that money in countries other than where their headquarters are located.
As interesting as that number is, the following is more revealing: “As in previous years, we identified the 1,000 public corporations worldwide that spend the most on researching and developing products and services for their marketplaces. Those 1,000 companies spent a total of $492 billion in 2007 on R&D, a 10 percent increase over the prior year, and, once again, we found no statistically significant evidence that higher levels of spending guarantee better results (my emphasis).”
In a failing economy (at least in the U.S.), it is important to see that efforts at increasing R&D spending may not improve a company’s bottom line. Rather than simply throwing more money at R&D, it’s time to address the fact that the real problem hasn’t been identified – innovation can be systematic. Growth can happen by using proven methodologies and tools, rather than hoping that more funding will stumble across the answer.
To download the report as a PDF, click here: http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42809114KB