R&D Spending Patterns of Global Firms

OVERVIEW:R&D spending as a percentage of sales is highest in the biotechnology industry, followed by software and pharmaceuticals, according to this analysis of the spending and patenting behavior of 500 global firms. Moreover, even though R&D intensity has remained the same for most of the firms, there has been a surge in patenting as the firms strive to create market exclusivity. As the large global corporations dominate the global arena by improving their knowledge creation and accumulation strategies, all firms will need to manage research and technology more effectively by taking into account technology trajectory changes, market dynamics and shifting customer preferences.