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Samsung Bets A Billion On Innovation And Investment

Samsung is investing a hug pot of money to develop innovative tech in and invest in third party firms.

Samsung Bets A Billion On Innovation And Investment

Samsung has announced its new Samsung Strategy and Innovation Center (SSIC), based in Silicon Valley. The goal for the SSIC is to help double revenues and grow to a $400 billion valuation by 2020. In addition to the SSIC Samsung has contributed $100 million to a new Samsung Catalyst Fund, which TechCrunch says is to fund investments in components and subsystems. This adds to Samsung's $1 billion investment in the Ventures Americas Fund for strategic investment in third parties, and in its numerous research centers.

Samsung's evidently making a big play to tap into Silicon Valley's pool of sharp thinkers. It's also perhaps a strategic move to shift some R&D efforts outside its main home in Korea. To give some scale to this investment, Samsung just reported $6.6 billion profits for the last quarter of 2012, and achieved a market capitalization of $200 billion in the same period. Arch rival Apple reported a net profit of $13 billion for the same quarter, and has a market cap that's currently about $420 billion.

Can Samsung really reach this goal? Or do you think its star will burn brightly but briefly? Sound off in the comments...

[Image: Flickr user aresauburnphotos]