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 GlobeNewswire

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

https://globenewswire.com

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Følg saker fra GlobeNewswire

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

Siste saker fra GlobeNewswire

GSA Europe’s Managing Director Elected Co-lead of CEN’s TC456 Committee15.1.2019 21:12Pressemelding

SAN GWANN, Malta, Jan. 15, 2019 (GLOBE NEWSWIRE) -- GSA Europe’s Managing Director Mark Pace has been elected by the Comité Européen de Normalisation (CEN) to lead the creation of a European Union online gaming reporting standard. CEN has established Technical Committee 456 to create this standard in support of online gambling supervision. GSA Europe joined Technical Committee 456 as a Liaison Organization in 2017. The Technical Committee’s mandate from the European Commission is directly aligned with work that GSA Europe has already started, namely, to create a single standard set of data elements and single standard way in which data is provided by online gambling providers to EU Member State regulatory authorities. In addition to joining and now leading the Technical Committee’s work, GSA Europe also donated their draft Regulatory Data Set and Regulatory Reporting Interface to CEN seeking to help jump-start the Committee’s work. “Joining CEN’s TC456 as a Liaison Organization, and no

Orion Biotechnology Reports Positive Results for Colorectal Cancer in Preclinical Study15.1.2019 15:00Pressemelding

OTTAWA, Jan. 15, 2019 (GLOBE NEWSWIRE) -- Orion Biotechnology Canada Ltd., a developer of novel medical treatments, today announced preclinical data produced in collaboration with Charles River Laboratories, evaluating the efficacy of OB-002O (5P12-RANTES) in colorectal cancer. BALB/c mice were inoculated subcutaneously with the CT-26 colorectal cancer cell line. Three days after inoculation intraperitoneal treatment was started with OB-002O, a murine anti-PD-1 antibody, OB-002 + anti-PD-1, or saline placebo. Treatment was given daily or every third day. Treatment with OB-0020 alone led to statistically significant delayed tumor growth at multiple time-points. An even more profound effect on the decrease in mean tumor volume was observed in combination cohort where animals received both, OB-0020 and the anti-PD-1 antibody (p>0.05). “There is growing awareness of the role of CCR5 antagonism as an important component of cancer immunotherapy. OB-002O is an extremely potent CCR5 antagonist

Credit Suisse Partners with CGAP on Digital Finance to Catalyze Delivery of Energy, Water and other Services to Low Income People15.1.2019 14:08Pressemelding

Washington/Zurich, Jan. 15, 2019 (GLOBE NEWSWIRE) -- Credit Suisse, one of the world's leading financial services providers, is partnering with the Consultative Group to Assist the Poor (CGAP) to support its work in building inclusive and responsible financial systems that help people move out of poverty, protect their economic gains and advance the broader global development agenda. CGAP is a global partnership of more than 30 leading development agencies, private foundations and national governments committed to financial inclusion as a means toward expanding opportunities for poor people. Through their engagement, CGAP and Credit Suisse will capitalize upon and leverage each other’s knowledge to further financial inclusion and its contribution toward achieving the United Nations’ Sustainable Development Goals (SDGs). Among the projects that align well with Credit Suisse’s expertise are CGAP’s work on sustainable business models that use digital finance technologies to lower the cost

TrueCommerce Recognized as a Leader in IDC MarketScape for Worldwide Multi-Enterprise Supply Chain Commerce Network15.1.2019 14:00Pressemelding

-- “The vendor offers a true partnership for their customers and has become an extension of their internal staff and resources to manage their supply chains,” says the report -- PITTSBURGH, Jan. 15, 2019 (GLOBE NEWSWIRE) -- TrueCommerce, a global provider of trading partner connectivity, integration and unified commerce solutions , has announced today it was positioned in the Leaders category of the IDC MarketScape for Worldwide Multi-Enterprise Supply Chain Commerce Network report. The research states that TrueCommerce offers a broad set of supply chain applications that extend far beyond traditional data transportation. “Our investments into the cutting-edge unified commerce technology and customer care allowed the company to make this qualitative leap, and we are proud to be recognized by such a reputable global research firm as IDC,” said TrueCommerce president Ross Elliott. “The report advises companies to engage with a network vendor that is at least thinking about what tomorrow

UnionBank Launches First Fully Digital Branch in the Philippines15.1.2019 13:30Pressemelding

Appian Cloud Platform Enables Low-Code Rapid Application Development for Powerful Process Automation RESTON, Va. and SYDNEY, Australia , Jan. 15, 2019 (GLOBE NEWSWIRE) -- Appian (NASDAQ: APPN) announces that UnionBank of the Philippines used the Appian Platform to launch its first fully digital branch. The branch, called The Ark, completely transforms the customer experience, making that experience entirely digital, including internet-connected self-service kiosks and virtual reality boxes. Unlike traditional bank branches, The Ark has done away with rows of tellers and long queues, and gone completely paperless. Customers now go to one of the self-service iPad stands stationed around the bank, where they can type in their request, significantly reducing time previously spent waiting in queues for service. “The Ark is an award-winning digital branch that provides a modern experience for our clients within a traditional brick and mortar store,” said Anna Maria Aboitiz Delgado, Head for

Magna Announces Outlook15.1.2019 11:00Pressemelding

Sales growth and increased EBIT Margin1 over outlook period Higher free cash flow2 in 2019-2021 period, compared to 2018-2020 AURORA, Ontario, Jan. 15, 2019 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX: MG; NYSE: MGA) today announced its financial outlook for 2019 and 2021. Our outlook to 2021 anticipates continued growth in total sales and improvement in our EBIT Margin compared to 2018 despite our expectation of relatively level light vehicle production across our major end markets of North America and Europe during this same outlook period. Free cash flow is expected to increase to a cumulative total of more than $6.5 billion in the 2019-2021 timeframe as compared to over $6 billion in the 2018-2020 period, reflecting an anticipated increase in earnings and relatively level capital spending. For 2019, our sales are expected to be negatively impacted by the announced disposition of our Fluid Pressure & Controls business, net of acquisitions, and by foreign currency translation,