Large multinationals will this year yet again spend more money on innovation, highlighting the increasing role R&D is playing in boardrooms. A new study from Booz & Company show that this year the 1.000 most innovative companies across the globe will spend $638 billion on R&D, 5.8% more than previous year, reaching the highest level ever.
Between 2002 and now, innovation expenses have grown every single year with 2010 as the only exception. The largest growth rate was recorded in 2007, when expenditures grew by 10%. In 2012 total innovation spend was just over $600 billion, it has now grown to $638 billion.
From a sector perspective, three sectors – Computers & Electronics, healthcare and the automotive – make up for 65% of the total money amount spent (left). Volkswagen is the company having the highest amount in expenses on innovation, namely $11.4 billion. On the list of the 10 biggest spenders, 5 of those are active in health care, 2 in automotive, 2 in Computers & Electronics and 1 in Software & Internet (right)
Looking at the change in R&D spending by industry, again the same three industries are responsible for the largest boost in spending. Together they represent 74% of the growth rate. Only one sector shows a decrease in innovation expenditure – Chemicals & Energy.