“R&D Spending Drops at Major Firms”
In the November 3, 2010 issue of The Wall Street Journal, Booz & Company Partner Barry Jaruzelski (North America) said that “the world-wide recession finally caught up with the world's top innovation spenders in 2009, adding that that “the most forward-looking companies will likely move quickly to restore the R&D cuts they made in 2009.” He was referring to Booz & Company’s 2010 Global Innovation 1000 Study, which found that total R&D spending among the world’s top spenders on innovation dropped in 2009 for the first time in the 13 years studied. At the same time, revenues for the Innovation 1000 plunged 11 percent from $15.1 trillion in 2008 to $13.4 trillion in 2009 – nearly three times the rate of decline in R&D spending. As a result, R&D intensity, or R&D spending as a percentage of revenue, actually increased – from 3.46 percent in 2008 to 3.75 percent in 2009. The study also found that the auto industry accounted for two-thirds of the overall spending decline, with computing and electronics industry maintaining the top spot as biggest total spender on R&D.