Re: research and development spending

From: Doug Groh (douggroh@rapid.com)
Date: Tue Jan 09 2001 - 21:24:11 EET


If it is your typical company, the amount is "0".........

EdGrenda@aol.com wrote:

> In a message dated 01-01-10 08:52:19 EST, WPattison@Ignition.com writes:
>
> << ok, fellow product development people, i have a question:
>
> does anyone have figures- as a percentage of gross revenue- for how much
> companies typically spend on r & d?
> >>
>
> Dear Will:
>
> That's a complicated question and there is no "ballpark" answer. The percent
> depends on: 1) the particular industry in question 2) the maturity of the
> industry; 3) the particular product area; 4) level of competition, etc. Very
> mature industries typically spend in the single low percent numbers and
> highly technical, but on-going industries might spend 20% or even more, but
> usually not across the board. A new industry might even spend more than its
> entire gross revenue (e.g., the e-commerce crowd).
>
> You can get some idea of particular cases for comparison purposes by looking
> at public company data in a particular industry, and also by looking at
> government and market research (often listed by SIC codes) in a good business
> library. There's tons of data out there.
>
> Hope this helps!
>
> Ed
>
> Ed Grenda
> Castle Island Co.
> 19 Pondview Road
> Arlington, MA 02474 USA
> 781-646-6280 (voice or fax)
> EdGrenda@aol.com (email)
>
> Worldwide Guide to Rapid Prototyping
> http://home.att.net/~castleisland/
>
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