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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

spent the most on research and development in 2007 (companies for which public data on R&D spending was available). Subsidiaries that were more than 50% owned by a single corporate parent were excluded because their financial results were included in the parent company's reporting.

Booz & Company analyzed key financial metrics for each of the top 1,000 companies for 2001 through 2007 — sales, gross profit, operating profit, net profit, R&D expenditures and market capitalization. All expenditure figures were translated into U.S. dollars according to the average exchange rate for the year. In addition, total shareholder return was gathered and adjusted for each company's corresponding local market total shareholder return.

Each company was coded into one of nine industry sectors (or "other") according to Bloomberg's industry designations, and into one of five regional designations according to reported headquarters locations for each company. To enable meaningful comparisons across industries on R&D spending levels, Booz & Company indexed the R&D spending level and financial performance metrics for each company against the median R&D spending level for that industry.

To understand the global distribution of R&D spend, the factors that drive it and the affect on performance, Booz & Company researched a subset of companies on this year's Global Innovation 1000 list that spent a total of $351 billion on R&D in 2007, and represent 71% of the Innovation 1000 and 57% of all global private sector R&D activity. Supplemental interviews were conducted with a select group of leaders.

The Global Innovation 1000 study is available online at www.booz.com.

About Booz & Company

Booz & Company is a leading global management consulting firm, helping the world's top busin
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