Since Ed and I said about the same thing, I decided to look for some data
and came up with this, by Bowonder, Yadav, and Kumar, from the Centre for
Technology Management in the Administrative Staff College of India,
printed in the September-October issue of Research.Technology Management, which
is published by the Industrial Research Institute, a professional
organization for people involved in research and technology management. Their
Table 6 (by industry) and Table 1 (by company) show some of the following R&D
expenditures as a percentage of sales of global firms in 1998 to be:
12.64 percent for the Pharmaceuticals industry (up from 4.7 in 1977)
Bristol-Myers Squibb 8.63
Eli Lilly 18.8
6.46 Electronics
Tyco 0.79
General Electric 1.92
Philips 6.7
Texas Instruments 14.3
Cisco 19.1
Ascend Communication 32.7
4.22 Automobiles (up from 2.8)
Kia 0.11
GM 5.0
Denso 9.5
3.45 Aerospace (down from 3.5)
Bombardier 1.35
Boeing 3.37
British Aerospace 6.11
Aerospatiale 13.9
5.8 Computer
Dell 1.1
IBM 5.47
Hewlett-Packard 7.13
Sun 10.4
and so on:
4.12 Telecommunications
0.87 Petroleum (up from 0.5)
1.38 Food (up from 0.7)
0.74 Paper (down from 0.8)
1.39 Metal Products
3.99 Rubber and Plastic Products
46.51 Biotechnology
Alza 6.1
Gilead Sciences 234.38
Does this help?
Brock Hinzmann
EdGrenda 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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