{"id":7543,"date":"2017-07-27T07:00:03","date_gmt":"2017-07-27T15:00:03","guid":{"rendered":"http:\/\/formtek.com\/blog\/?p=7543"},"modified":"2017-06-06T08:26:59","modified_gmt":"2017-06-06T16:26:59","slug":"innovation-rd-spending-helps-but-doesnt-guarantee-innovation","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/innovation-rd-spending-helps-but-doesnt-guarantee-innovation\/","title":{"rendered":"Innovation: R&#038;D Spending Helps but Doesn&#8217;t Guarantee Innovation"},"content":{"rendered":"<p>Many of the most innovative companies, like Apple and Alphabet have enormous R&amp;D budgets. \u00a0But, businesses are spending less on R&amp;D. PwC estimates that R&amp;D budgets in 2020 will be 19 percent lower than they were in 2010.\u00a0What does that mean for Innovation?<\/p>\n<p>Some of the findings from the <a href=\"https:\/\/www.strategyand.pwc.com\/innovation1000#\/tab-2015\">PwC Strategy&amp; report<\/a> are:<\/p>\n<ul>\n<li>R&amp;D spending among the top 1000 corporate R&amp;D spenders in 2016 was flat, totalling $680 billion<\/li>\n<li>Healthcare R&amp;D spending is growing most quickly and is expected to become the largest overall industry by 2018<\/li>\n<li>Businesses that invest more than a quarter of their R&amp;D dollars into software grow more quickly<\/li>\n<\/ul>\n<p>While there is a strong correlation between R&amp;D spending and innovation, there are notable exceptions. \u00a0Tesla for example, was ranked at number 4 in innovation, yet they spent only $700 million on R&amp;D in 2016, a tiny amount compared to other businesses, even among other automakers.<\/p>\n<p>What is\u00a0interesting is that some of the top R&amp;D spenders consistently fail to rank in the area of innovation. Volkswagen, for example, was the top R&amp;D spender for the last five years and also\u00a0a top spender in many years previous to that, yet they never ranked\u00a0in the area of innovation. In fact, many auto and healthcare businesses, like Ford, GM, Roche and Merck have high spending for R&amp;D but fail to\u00a0rank in the area of innovation.<\/p>\n<p>Perhaps more important than having a large R&amp;D budget,\u00a0the ability\u00a0to use the dollars that are allocated wisely is more important.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div class=\"lightsocial_container\"><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/digg.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Finnovation-rd-spending-helps-but-doesnt-guarantee-innovation%2F&amp;title=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/digg.png\" alt=\"Digg This\" title=\"Digg This\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" 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PwC estimates that R&amp;D budgets in 2020 will be 19 percent lower than they were in 2010.\u00a0What does that<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/formtek.com\/blog\/innovation-rd-spending-helps-but-doesnt-guarantee-innovation\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-7543","post","type-post","status-publish","format-standard","hentry","category-innovation"],"_links":{"self":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/7543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/comments?post=7543"}],"version-history":[{"count":2,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/7543\/revisions"}],"predecessor-version":[{"id":7545,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/7543\/revisions\/7545"}],"wp:attachment":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/media?parent=7543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/categories?post=7543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/tags?post=7543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}