Innovation Not Highly Correlated with R&D Spending

InnovationAndRandDGraph2011-11-11.jpg

Source of graph: online version of the WSJ article quoted and cited below.

(p. B9) Many companies say innovation is a top priority, but even those who spend the most on research and development can have little to show for it, a new study says.

A report expected to be released Monday by consulting firm Booz & Co., says that few of the biggest R&D spenders crack the top 10 in terms of being considered “innovative” by their peers.
Booz identified 1,000 companies with the biggest 2010 research-and-development budgets and invited 600 executives from those companies to rate which ones they deemed most innovative. The most frequent pick was Apple Inc.–the 70th biggest research-and-development spender–followed by Google Inc. and 3M Co., also not among the top-20 spenders.

For the full story, see:
MELISSA KORN. “Top ‘Innovators’ Rank Low in R&D Spending.” The Wall Street Journal (Mon., OCTOBER 24, 2011): B9.

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