R&D

For the one thousand public companies that spend the most on R&D, R&D spending increased 5.8% in fiscal 2013 (the fiscal year ending prior to June 30) to $638 billion, down from 9.6% last year. The total share of revenues spent on R&D increased from 3.43% to 3.60%. Computing and electronics, health care, automotive, industrials, and chemicals and energy firms accounted for 27%, 22%, 16%, 10% and 8% of total R&D spending. Spending by software and internet, health care, automotive and health care companies grew the fastest at 22.1%, 21.1%, 7.8% and 7.1%, respectively. Spending by the chemical and energy industry fell 4.8%. Spending by Chinese firms grew 35.8% to make up 3.2% of the total, compared to 2.5% in fiscal 2012. Spending by Rest of World, North American and European firms grew 35.8%, 17.5%, 8.6% and 4.5% to account for 3%, 7%, 21% and 30%, respectively. Japanese firms’ R&D spending declined 3.6%.

Source: Booz & Company

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