“With Eye on Competition, Firms Keep Spending on R&D”
In a November 30, 2009 article in The Wall Street Journal, Booz & Company Partner Barry Jaruzelski (North America) said a shift away from basic research and toward applying existing technology to new products is a longstanding trend in corporate labs that has accelerated during the recession. His comments were in response to the release of Booz & Company’s fifth-annual Global Innovation 1000 Study, which found that in the wake of a global recession and counter to predictions, the world’s 1,000 largest publicly traded corporate research and development spenders stuck with R&D spending in 2008. Some companies are placing research bets on health care, especially in information technology, said Jaruzelski. One such example is Intel, which in early 2009 introduced the Intel Reader, a handheld device that reads to people with dyslexia and other learning disabilities. The Booz & Company study, which earned headlines around the world, found that R&D outlays for the companies surveyed rose 5.7 percent to (U.S.) $532 billion, though sales were up only 6.5 percent.