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Katie Barry

Commentary by Katie Barry

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October 22, 2008
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Booz & Company's Global Innovation 1000

Booz & Company announced its new Global Innovation 1000 report today –"Beyond Borders." The report focuses on R&D expenses across the globe as a key innovation indicator. Their top 10 companies include: Toyota, General Motors, Pfizer, Nokia, Johnson & Johnson, Ford, Microsoft, Roche Holding, Samsung and GlaxoSmithKline. A few interesting findings:

  • "Fully 91 percent of the world’s 1,000 largest R&D spenders conduct innovation activities outside the countries in which they are headquartered."
  • "Even as the companies based in the U.S. performed $80.1 billion worth of R&D in other countries, companies headquartered elsewhere poured $42.6 billion into R&D conducted in the U.S."
  • Three industries make up 70 percent of the R&D - automotive, computing and electronics, and healthcare.

The report can be downloaded as a PDF here: http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42809114

What do you think? Do the results surprise you? Are those the companies that come to mind when thinking of innovation? Does R&D have a direct correlation to how innovative a company is? Is there too much outsourcing in innovation?


Comments [1] | Permalink
Categories: Buzz/Press, Companies

COMMENTARY COMMENT
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posted by  Carlos November 10, 2008 at 12:12 pm
I think an important poblem to peripheral countries like Brazil is the high Information Technology cost. These countries are fiefdoms of oligopoly of the IT industry, encouraged by the privileges of the financial sector. The banks managing very high budgets and and maintain the oligopoly preventing the cost of IT is reduced. In this scenario small companies have great difficulty of obtaining IT support to innovation. Only large organizations such Petrobras (117 ranking) can play this game.
 

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