Nasdaq GlobeNewswire

Corporate R&D spending hits record highs for the Top 1000, despite concerns of economic protectionism

Del
  • Annual worldwide R&D spending breaks through $700bn for the top 1000 corporate R&D spenders for first time
  • 25% of executives surveyed reported having already experienced some pressure to change how or where they conduct innovation
  • Amazon is the world's largest corporate spender on R&D at over $16bn
  • Alphabet surpasses Apple, according to a global survey of R&D executives, as the Most Innovative Company and for the first time a Chinese company, Alibaba joins the Top 10 Most Innovative Companies list

NEW YORK, Oct. 24, 2017 (GLOBE NEWSWIRE) -- Annual worldwide corporate R&D spending broke through $700bn in annual investment, according to an annual analysis of R&D spending across 1000 global public companies by PwC's Strategy&.

It shows corporate R&D spending increased a steady 3% in the past year, bouncing back from less than 1% increase previously.

However, in a global survey with 562 executive participants, R&D leaders expressed concerns about the growing heat of rhetoric about economic nationalism - and its potential impact on where companies invest in R&D how they conduct innovation.

Overall, 52% of respondents say that a general move toward economic nationalism will have a moderate or significant impact on their companies' R&D efforts.

Major companies have been conducting some R&D outside their headquarters countries for decades. In 2015 it was determined that 94% of major corporations conduct their R&D in multiple countries.  But increasing attention on regulations and policies for visas, labor movement, and the regulations governing the sharing of knowledge and technology are causing some companies to question how sustainable their integrated global innovation networks are.

Nearly 33% of R&D executives surveyed, report that they have already felt the effects of economic nationalism on their R&D talent acquisition or retention because of visa or work restrictions - either losing employees, seeing less talent available, or in hiring more local talent.

  • Although nearly 66% of all participants surveyed say they have not experienced pressure to change their approach to innovation in their headquarters country to date, 23% say they have already experienced such pressure in another country.
  • Almost 50% of the companies in North America plan to make changes to their R&D programs over the next two years in response to the changing political environment.
  • Survey participants believed US, UK, and China could be most at risk from potential changes in policy that could impact R&D investment. Both the US and UK's talent flow could be at risk of potential disruption while China's decline in corporate R&D spending and reliance on R&D investment from abroad could be at risk.   
  • Canada, Germany, and France are likely to gain if protectionist policies broadly become a reality.

"It's been a year of highs and lows for R&D. Record levels of investment, next to unprecedented drops in alignment between innovation and business strategies. There's no doubt that uncertainty is causing concern for medium and long term plans, irrespective of whether policy realities actually  follow political rhetoric," comments Barry Jaruzelski, Principal, PwC US, Strategy& 

"Although the goals and levels of investment in corporate innovation will likely not change if economic nationalism continues to develop, the global innovation model would need to evolve. At many companies, what is now a nimble, interdependent network may become a group of more autonomous hubs, hiring specialist technical talent in local regional markets and opening future R&D centers in regional markets. It could mean companies losing efficiency and taking on higher costs if it is not managed effectively," Commented Jaruzelski.

Global Innovation 1000
The Strategy& Global Innovation 1000 study analyses spending at the world's 1000 largest publicly listed corporate R&D spenders and is now in its 13th year

  • Amazon is the largest spender on R&D in the Global Innovation 1000 study, the first time the top spender is a high tech firm. All top four spenders are high tech companies.
  • Overall, Software & Internet industry companies continue to increase their year-on-year R&D spending, and the analysis shows that by 2018, Healthcare companies will surpass Computing & Electronics to become the largest industry in terms of R&D spending - the first time in 12 years of analysis.
  • Overall, Computing & Electronics, Healthcare, and Automotive are the top three industry sectors and represented 61.3% of global R&D spending in 2017.
  • Alphabet, Amazon, GE, IBM and Microsoft all increased their ranking in the 10 Most Innovative Companies list, according to a global survey of R&D executives
  • R&D spending by companies based in China declined for the first time in the study, it increased in Japan for first time in 4 years, and continued to grow moderately in North America.

Notes to Editors

  1. In 2016, worldwide R&D spending among the world's 1000 largest corporate R&D spenders increased 0.04% in 2016 to $680 billion.
  2. R&D intensity - the measure of R&D spending relative to sales - hit an all-time study high of 4.5%: a rise of 6% year on year amongst the world's top 1000 R&D spenders.
  3. Companies that deployed 60% or more of their R&D spending outside their headquarters country earned a premium of 30% on operating margin and return on assets, and 20% on growth in operating income over their more domestically focused competitors.
  4. Uncertainty in economic policy may also be contributing to an unprecedented 19% drop in high alignment between innovation and business strategies within companies, making companies cautious about how to plan for their innovation strategy in the short and medium term.
  5. The study finds that companies ranked in the list of top ten most innovative companies outperform the top ten R&D spenders on financial metrics including growth, EBITDA, and market capitalisation.
  6. China's corporate R&D spending had experienced double-digit growth rates for many years, but in 2017 the country saw a 3.3% decline in corporate R&D spending for the first time in the study. 80% of China's R&D spend in 2015 was performed by companies headquartered in other countries. The combination of these trends for China makes the country vulnerable to potential disruptions of R&D investment coming from abroad.

About Strategy&
Strategy& is a global team of practical strategists committed to helping you seize essential advantage. We do that by working alongside you to solve your toughest problems and helping you capture your greatest opportunities. We bring 100 years of strategy consulting experience and the unrivaled industry and functional capabilities of the PwC network to the task. We are part of the PwC network of firms in 157 countries with more than 223,000 people committed to delivering quality in assurance, tax, and advisory services.

© 2017 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

Follow us on Twitter , LinkedIn, and YouTube

Contact:

Rowena Mearley, PwC Global Media Relations
Tel: + 1 646 313 0937
E-mail: rowena.j.mearley@pwc.com




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: PwC via Globenewswire

Om Nasdaq GlobeNewswire

Nasdaq GlobeNewswire
Nasdaq GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

+1 212 401 8700http://www.nasdaqomx.com

NASDAQ (NASDAQ: NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents.

Følg saker fra Nasdaq GlobeNewswire

Registrer deg med din epostadresse under for å få de nyeste sakene fra Nasdaq GlobeNewswire på epost fortløpende. Du kan melde deg av når som helst.

Siste saker fra Nasdaq GlobeNewswire

Valero to Purchase SemLogistics Milford Haven Fuel Storage Facility23.2.2018 22:15Pressemelding

LONDON, Feb. 23, 2018 (GLOBE NEWSWIRE) -- Valero Logistics UK Ltd, a subsidiary of Valero Energy Corporation (NYSE:VLO), and SemGroup Europe Holding L.L.C., a SemGroup Corporation company, have today signed an agreement for the purchase of SemLogistics Milford Haven fuel storage facility on the west coast of Wales. Situated across the Haven from Valero's refinery at Pembroke, the facility is one of the largest petroleum products storage facility in the United Kingdom (UK) with 8.5 million barrels of capacity for storing gasoline, gasoline blendstocks, naphtha, jet fuel, gas oil, diesel, and crude oil. Over 67 percent of the storage capacity is multiproduct or dual purpose, giving Valero the flexibility to meet customers' demands in the UK and throughout Northwest Europe. Additionally, Milford Haven will continue to operate as a third-party storage facility, offering storage options for third party customers across the European petroleum markets. "This facility complements our Pembroke

Vricon launches Telco Suite at Mobile World Congress23.2.2018 19:20Pressemelding

Visit us at MWC Booth 6L8 to learn about our 3D geodata solution McLean, Virginia, Feb. 23, 2018 (GLOBE NEWSWIRE) -- Vricon is pleased to announce that it is launching its Telco Suite at this year's Mobile World Congress (MWC) in Barcelona. MWC participants can see a demonstration of the Telco Suite in Vricon's booth, located at #6L8. The Vricon Telco Suite is designed to help telecommunications companies navigate the rapid changes happening throughout the industry. With an increasing number of connected devices, high-definition content, and new services, the demands on networks are accelerating and growing exponentially. The Vricon Telco Suite is a cost-effective, next-generation solution that helps companies design networks for optimal performance, whether it's to densify existing 4G LTE networks, prep for 5G to empower smart homes and the Internet of Things, or work a more complex HetNet. "Mobile World Congress 2018 is the best place to see first-hand new technologies, to include Vr

Inspiration Provides Update23.2.2018 17:12Pressemelding

TORONTO, Feb. 23, 2018 (GLOBE NEWSWIRE) -- Inspiration Mining Corporation (CSE:ISM) - Pursuant to its previous news release Feb 14, 2018 Inspiration Mining Corp. is pleased to announce that the ongoing due diligence and negotiations with Compassion Cannabis is ahead of schedule and on track. Both parties are looking forward to positive conclusion. For further information, please contact Randy Miller, Chief Executive Officer of the Corporation, at tel: 416-842-9000, www.inspirationmining.com The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed

Three Elemica Executives Named Supply Chain Pros to Know23.2.2018 15:22Pressemelding

Leading Clients on Their Digital Transformation Journey to Operational Excellence WAYNE, Pa., Feb. 23, 2018 (GLOBE NEWSWIRE) -- Elemica, the leading Digital Business Network for process manufacturing industries, announces that three company executives have been selected as 2018 Supply Chain Provider Pros to Know by Supply & Demand Chain Executive magazine. Armand Castro, Vice President, Application Engineering; Mark Walsh, Vice President, Global Customer Support; and Steve Troncelliti, Vice President, Global Professional Services and IT Security are this year's honored Pros to Know from Elemica. They were chosen for helping clients resolve their most significant supply chain challenges through innovative digital transformation solutions and a next-generation digital platform that lowers working capital costs, streamlines operations and drives efficiencies. "Supply chain executives want to increase their digital transformation efforts across their supply chains to gain intelligent visib

CP Kelco Appoints Jennifer Aspen Mason as Sr. Vice President, Global Innovation22.2.2018 20:00Pressemelding

ATLANTA, Feb. 22, 2018 (GLOBE NEWSWIRE) -- CP Kelco, a leading global producer of specialty hydrocolloid solutions, announced today that Jennifer Aspen Mason has joined its Executive Leadership Team as Senior Vice President, Global Innovation, reporting directly to CP Kelco President Didier Viala. A global executive with more than 20 years of industry experience, Mason has an extensive background leading science organizations with Fortune 100 companies. Most recently, she spent more than five years with Mars, Incorporated, where she served as Technology and Science Strategy Officer for all Mars segments. In her new role, Mason is responsible for leading CP Kelco's global research and development (R&D) function, including strategic innovation imperatives to drive the company's long-term growth, as well as oversight of technical teams focused on new product innovation, process R&D and research. "We are truly delighted to welcome Jennifer to our team, and will surely benefit from her glob

Leading the industry: Excel Dryer is the first hand dryer manufacturer to publish third-party, verified Environmental Product Declarations (EPDs)22.2.2018 16:00Pressemelding

High-speed, energy-efficient XLERATOR®, XLERATOReco® and ThinAir® Hand Dryers evaluated and proven to be sustainable EAST LONGMEADOW, Mass., Feb. 22, 2018 (GLOBE NEWSWIRE) -- Excel Dryer, Inc., today announced that three of their hand dryers, the original, patented, high-speed, energy-efficient XLERATOR® Hand Dryer, the XLERATOReco® Hand Dryer and the ThinAir® Hand Dryer, were evaluated, and their environmental claims, substantiated with the publication of the hand dryer industry's first Environmental Product Declarations (EPDs) by UL Environment, a business division of Underwriters' Laboratories. An Environmental Product Declaration is a standardized way of quantifying the environmental impact of a product by studying the raw materials and energy consumption during its production, use and disposal. For buyers and specifiers, the EPDs are a disclosure tool that helps purchasers better understand a product's sustainable qualities and environmental repercussions so they can make more inf

I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.

Besøk vårt presserom