World‐wide R&D: Widening recognition of R&D importance

Abstract

Purpose

To explain how R&D is becoming a globally popular business function.

Design/methodology/approach

This briefing is prepared by an independent writer.

Findings

The R&D Scoreboard 2005 has recorded an overall annual rise of 5 percent in R&D investment by world's top 1,000 organisations, whose R&D budgets total £220bn. This recent analysis of R&D investment has also revealed that the business climate for R&D‐active companies has continued to improve. The top 1,000 companies across the world saw increases in overall sales growth, profitability and R&D levels, with growth in all three measures stronger in the Americas than in the Asia‐Pacific region or Europe.

Practical implications

Despite the importance of R&D investment, and its link with company performance, the report also cautions that company success depends not only on wise and balanced investment in R&D and other factors (capital investment, brands, skills, market development) but also on good strategic choices and operational excellence.

Originality/value

Gives a good overview of how R&D is used across the world and how it is benefiting global business.

Citation

(2006), "World‐wide R&D: Widening recognition of R&D importance", Strategic Direction, Vol. 22 No. 3, pp. 30-32. https://doi.org/10.1108/02580540610654707