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Booz & Company Study Finds Top Corporate Spenders on R&D Boosted Investments to Nearly Half a Trillion Dollars in 2007
Date:10/21/2008

any analyzed the world's top 1,000 public corporate research and development spenders – the Booz & Company Global Innovation 1000 – in what continues to be the most comprehensive effort to assess the influence of R&D on corporate performance. The study looked at R&D spending and its link to corporate performance, and uncovered insights into how organizations can get the greatest return on their innovation investment. New to the study this year is an in-depth examination of the geographic distribution of R&D dollars of a subset of 184 of the top spenders among the Global Innovation 1000 companies, a group that represents $351 billion in 2007 R&D spending, a total that amounts to 71% of the total Innovation 1000 and 57% of all private sector R&D spending in the world. This sample covered the R&D activities conducted by these companies at over 3,400 engineering and research facilities, spanning 47 countries.

Key findings of the study include:

For many countries, the flow of innovation monies goes two ways. The analysis of the 184 company subset found that even though those companies based in the U.S. perform $80.1 billion worth of R&D in other countries, the companies headquartered elsewhere poured $42.6 billion into R&D conducted in the U.S. In other words, 40% of the money spent on R&D in the U.S. is spent by companies headquartered elsewhere. Other countries with significant two-way movement of R&D dollars include Germany, the U.K., France and Japan.

The U.S. received the largest amount of R&D dollars from foreign companies for product development activities. As a result of these substantial inflows, the U.S. is the largest country in terms of where corporate R&D is actually conducted—by a factor of 2.7 times over the second-largest Japan. However, China and India were the top net "importers" of R&D spending, receiving $24.7 billion and $13 billion, r
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 Booz & Company Study Finds Top Corporate Spenders on R&D Boosted Investments to Nearly Half a Trillion Dollars in 2007 
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