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Friday, October 29, 2010

R and D investment by top 1400 firms

The EU report collected data (year 2009) from 1000 European firms and 1000 non-European firms. List includes 17 Indian firms with only 5 of them investing more than 100 million euro in R&D. Prithvi Information solutions top the Indian list with 228miliion euro investment in R&D followed by Tata Motors, Polaris Software, Mind Tree and BHEL. Software firms Prithvi, Polaris, Mid Tree spent 77.3%, 64.3% and 61.6% of their net sale on R&D whereas Infosys spent only 1.8% of their sales revenue on R&D.
The Pharmaceuticals & Biotechnology sector strengthens its top position in the R&D ranking with a share of 18.9% of the total R&D investment by the Scoreboard  companies. It is followed by the Technology Hardware & Equipment sector with a share of 17.2% and the Automobile & Parts sector with 15.6% (down from 17.1% last year). By region, companies changed their share of R&D investment in the top 6 sectors as follows: EU companies increased their share in Chemicals, Electronic & Electrical Equipment, Software & Computer Services, Automobiles & Parts and Pharmaceuticals & Biotechnology and decreased its share in Technology Hardware & Equipment; US companies decreased their share in the top 6 sectors; Japanese companies increased their share in Technology Hardware & Equipment, Pharmaceuticals & Biotechnology, Chemicals and Automobiles & Parts and decreased their share in Software & Computer Services and Electronic & Electrical Equipment. Companies from the OC group increased their share in Electronic & Electrical Equipment, Technology Hardware & Equipment, Pharmaceuticals & Biotechnology, Automobiles & Parts and Software & Computer Services.

1 comment:

George said...

I am not sure about the data on India. There is a difference in R&D spending in services companies and product companies and so I can understand why Tata Motors would have a high R&D investment as a percentage of sales. Is it possible that development has been clubbed under R&D? I am curious to read the definitions used to classify the data. The other point is that India's largest R&D spenders are in the public sector and many of the names I expected to be there were missing.