Post by account_disabled on Mar 6, 2024 1:45:56 GMT -5
More from this series Subscribe Share What to read next Five key trends in artificial intelligence and data science in 2020 Thomas Davenport and Randy Bean How developers can reduce AI’s impact on climate Eight essential leadership skills to improve in 2020 Five Tips for One-on-One Meetings to Guide R&D Investments Strategy&'s annual Global Innovation Power study is always insightful. The study looks at the top public companies that spend the most on R&D, and their combined share of total global R&D spending.
The most disheartening finding is that in each of the past years the study found no statistically significant relationship between the financial performance of innovative companies and their R&D spending. Assuming this fact doesn't lead you to throw up your hands and use your company's R&D budget for a massive beer binge, research published this year in the Spain Mobile Number List Journal of Strategic Business provides another insight well worth considering as the shift in R&D spending is taking place. R&D is increasingly turning to developing software and services of enabling product differentiation and adaptability and enhancing customer experiences and outcomes.
Services offered alongside physical products or separately are now more focused on new customer needs offering higher value and greater availability. The authors explain that this shift is driven by increasing software capabilities, the embedding of software and sensors in products, the ability to connect products through the Internet of Things and the cloud, and continued customer demand. It is embodied in various smart products and services. Since 2006, the R&D expenditures of global innovative companies on software products have increased by US$100 million. Additionally the authors report that companies that currently allocate or more of their R&D budgets to software products report that their revenues are growing significantly faster than major competitors with lower allocations.
The most disheartening finding is that in each of the past years the study found no statistically significant relationship between the financial performance of innovative companies and their R&D spending. Assuming this fact doesn't lead you to throw up your hands and use your company's R&D budget for a massive beer binge, research published this year in the Spain Mobile Number List Journal of Strategic Business provides another insight well worth considering as the shift in R&D spending is taking place. R&D is increasingly turning to developing software and services of enabling product differentiation and adaptability and enhancing customer experiences and outcomes.
Services offered alongside physical products or separately are now more focused on new customer needs offering higher value and greater availability. The authors explain that this shift is driven by increasing software capabilities, the embedding of software and sensors in products, the ability to connect products through the Internet of Things and the cloud, and continued customer demand. It is embodied in various smart products and services. Since 2006, the R&D expenditures of global innovative companies on software products have increased by US$100 million. Additionally the authors report that companies that currently allocate or more of their R&D budgets to software products report that their revenues are growing significantly faster than major competitors with lower allocations.