Research and development investment continues during recession
Mon, 02 Nov 2009
Innovation is considered a critical aspect of preparing for economic recovery in nine out of ten of the 1,000 biggest research and development (R&D) spenders, it has been claimed.
Research conducted by Booz & Company indicates that such spending was up by more than four per cent in the computing and electronics industry last year.
Investment for these companies rose by 5.7 per cent to £322 billion, despite sales only rising by 6.5 per cent, the firm's fifth annual analysis of global innovation spending found.
Overall, more than two thirds of companies maintained or increased their R&D spending in 2008, despite one third seeing reduced revenues as the global economic downturn took hold.
And while 90 per cent of those surveyed said innovation was a vital aspect of their recovery efforts, 70 per cent said their firms were either maintaining or increasing spending this year.
Barry Jaruzelski, a partner at Booz & Company, said reducing efforts on innovation would be "similar to unilateral disarmament in wartime".
"Now is an opportune time to build advantage over competitors, especially weaker ones that may have to skimp on R&D for financial reasons," he added.
"Overall, the study demonstrates an optimistic outlook on the part of the companies in the Innovation 1,000."
Carrie Hartnell, head of industry strategy at the IT association Intellect, claimed that support is needed for UK technology firms to encourage them to keep innovating.
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