How R&D Spending Correlates to Innovation

November 23rd, 2016

Innovation Innovate Invention Development Design Concept






From 2015 to 2016 North America increased R&D spending by 8% rising close to $300 Billion as Europe, Japan and the Rest of the World including Australia fell by 9%, 8% and 3% respectively and China rose by 19%. Many of 2016’s Most Innovative Companies invested over $8 billion in R&D (research and development) this year as calculated by Strategy & Business.

Apple and Alphabet, formerly known as Google, have maintained first and second in innovation since 2010 increasing R&D spending from $1.3 and $2.8 billion in 2010 to $8.1 and $12.3 billion in 2016.

2016 Top 10 Innovative Companies – Strategy & Business

Company Geography 2016 Innovation Rank 2016 R&D Spending Rank 2016 R&D Spend ($Bn)
Apple United States 1 11 8.1
Alphabet United States 2 4 12.3
3M United States 3 1.8
Tesla Motors United States 4 0.7
Amazon United States 5 3 12.5
Samsung South Korea 6 2 12.7
Facebook United States 7 4.8
Microsoft United States 8 6 12
General Electric United States 9 4.2
IBM United States 10 5.2

* Unfilled Spending Rank signifies company ranked lower than 20th

* R&D spend data is based on most recent full year figures reported prior to July 1st – Strategy&

As displayed by the recorded spending not all Top 10 Innovative Companies of 2016 were ranked in the Top 20 for R&D Spending in 2016, however, each company did perform R&D.

Innovation is supported within the cultures of these leading companies in part by the support of the R&D tax incentive. The research and development tax incentive seeks to foster innovation and growth making R&D possible for SMEs as well as large corporations.

Read about eligibility to find out if you qualify for the R&D Tax Incentive.

If  you would like to discuss the R&D Tax Incentive further, please do not hesitate to contact one of Swanson Reed’s offices today.