Despite recession, world's leading innovators increased R&D spending in 2008|
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INTERNATIONAL. In the face of a severe global recession, the world’s 1,000 largest publicly traded corporate research and development spenders increased spending on R&D in 2008, affirming the critical importance of innovation to their corporate strategies, according to global management consulting firm Booz & Company’s fifth annual analysis of global innovation spending, released today.
R&D outlays for these companies rose by 5.7% to US$532 billion, even as sales were up only 6.5%. While the increase in 2008 R&D spend was less dramatic than 2007 ‘s gain of 10%, it was just slightly less than the 7.1% global five-year compound annual growth rate (CAGR) for R&D.
Overall, more than two thirds of companies maintained or increased their R&D spending in 2008, despite more than a third (34%) reporting that net income plummeted last year, according to the study. More than a quarter of companies decreased their R&D allocation in 2008.
Booz & Company analyzed the world’s top 1,000 public corporate research and development spenders – the Booz & Company Global Innovation 1000 – in what continues to be the most comprehensive effort to assess the link between R&D and corporate performance.
The study looked at R&D spending and its link to corporate performance, uncovering insights into how organisations can get the greatest return on their innovation investment.
New to the study this year is an in-depth survey of nearly 300 senior managers and R&D professionals from 250 companies around the globe that probes the impact of the downturn on innovation spending and strategy.


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