FX.co ★ Leaders in R&D spending according to 2018 Global Innovation 1000 Study

The 14th edition of PwC’s Strategy& Global Innovation 1000 Study shows the largest investments in R&D made by global public companies. Such investments are important for the development of both companies and countries’ economies.

Moreover, in some countries, including the US, the R&D spending is free from income tax. That is why it is not included in the tax return, which gives companies more freedom to conduct various research and develop new technologies. Thus, their core business performance does not fall.

Amazon.com, Inc. – $22.6 bln

Industry: Internet and retail business

Amazon retains top spot as the world’s largest corporate spender on research and development. In 2017, the company spent 41% more than in the previous year.

Most money was invested in AWS (Cloud Computing Services), Alexa, and technologies.

Alphabet Inc. – $16.20 bln

Industry: Software and services

Alphabet/Google, one of the US technological giants, is the second in the list. In 2017, it increased the R&D spending to $16.20 bln from $13.95 bln.

Volkswagen Aktiengesellschaft – $15.80 bln

Industry: Car industry

Volkswagen CEO Matthias Mueller said that the company would become “a world-leading provider of sustainable mobility” by 2025. In 2017, the carmaker allocated $2 bln more than in the previous year. That is why it took the third place.

Samsung Electronics Co., Ltd. – $15.30 bln

Industry: Hardware technologies and equipment

In 2017, Samsung Electronics made a total investment of more than 16.8 trillion won ($15.3 bln). The sum grew by $1 bln compared to 2016.

Intel Corp. – $13.10 bln

Industry: Semiconductor industry

The fifth place is occupied by Intel, the US chipmaker. In 2017, Intel invested $13.1 bln in research and development that significantly exceeded investments made by other leaders in the semiconductor industry.

The company’s specialists mentioned that higher R&D spending should match the development of new technologies and the implementation of ready-made technical processes. Otherwise, the company’s income can be significantly lower compared to its rivals’ earnings.

Microsoft Corp. – $12.30 bln

Industry: Software and services

Microsoft is the sixth among leaders of the R&D spending. The company continues opening research and development centers all over the world. Besides, it is attracting more and more IT specialists and scientists thus boosting the global innovation ecosystem.

At the same time, in 2017, the company reduced its R&D spending to $12.3 bln from $13 bln in 2016.

Apple Inc. – $11.60 bln

Industry: Hardware technologies and equipment

Apple’s investment in research and development did not exceed 5% for a long period of time. However, recent reports showed that the spending grew for the first time since the first iPhone was developed. Thus, in 2016, investment in research and development totaled $10 bln whereas, in 2017, the company spent $11.6 bln. That is why the seventh place goes to Apple.

Moreover, Apple has invited new employers who specialize in research and development. In the near future, the company is planning to focus on entirely new projects, including autonomous driving systems and augmented reality devices.

Roche Holding AG – $10.80 bln

Industry: Pharmaceuticals/Biotechnologies

Roche, a Swiss holding, is a good example showing that by 2020, more and more companies will invest in research and development of the healthcare industry. The company’s income dropped by $1 bln. However, it allocated money for research and development and took the eighth place in the list.

Johnson&Johnson – $10.60 bln

Industry: Pharmaceuticals/Biotechnologies

Johnson&Johnson is one of the largest producers of medications, body care products, and medical equipment. In 2017, the US company expanded its spending on research and development to $10.36 bln from $9.1 bln. Johnson&Johnson moved into the ninth place of the rating.

Merck & Co., Inc. – $10.20 bln

Industry: Pharmaceuticals/Biotechnologies

Merck&Co. finishes the list of the top 10 spenders on research and development. It is one of the largest companies in the pharmaceutical industry. It has been conducting its own pharmaceutical researches for almost 90 years. Being one of the leaders in the healthcare industry, Merck&Co. spent $10.2 bln on research and development in 2017. In the previous year, the company allocated $10.10 bln.