Author Barry Jaruzelski discusses where corporate R&D spending shifts have occurred and why.
According to Barry Jaruzelski, Kevin Schwartz and Volker Staack having researched where companies spend their R&D money, contest thta innovation spending in the U.S. has held relatively steady as a share of global innovation spending, being due in part to companies from other countries increasing their R&D activity in the United States; Silicon Valley, in particular.
Innovation spending in Europe, in contrast, grew more modestly and unevenly, with some countries, such as France and the U.K., showing net decreases in domestic R&D spending from 2007 to 2015. More European companies are choosing to expand their R&D operations elsewhere, in both low-cost countries in Asia and high-cost countries such as the United States.
Worldwide, R&D spending by the Global Innovation 1000 companies — the 1,000 public corporations worldwide that spent the most on researching and developing products and services for their markets — rose 5.1 percent to $680 billion in 2015, the strongest increase in the last three years. Companies headquartered in the U.S., Europe, and Japan continued to account for a large majority of innovation spending: 86 percent in 2015.
Corporate R&D has become overwhelmingly global. According to the 2015 Global Innovation 1000 study, 94 percent of the world’s biggest innovators now conduct parts of their R&D programs abroad. But where they spend their R&D money has changed dramatically. Asia is now the top destination for corporate R&D spending, followed by North America and Europe.
Examination of R&D spending by the Global Innovation 1000 and the 10 Most Innovative Companies in 2015.
This interactive graphic shows the 20 publicly-traded companies worldwide that spent the most on R&D in each of the past eleven years.
This interactive graphic compares region and industry R&D spending by all Global Innovation 1000 companies over the past eleven years.