How R&D Spending Correlates to Innovation

From 2015 to 2016 North America increased R&D spending by 8% rising close to $300 Billion as Europe, Japan and the Rest of the World fell by 9%, 8% and 3% respectively and China rose by 19%. Many of  2016’s Most Innovative Companies invested over $8 billion in R&D (research and development) this year as calculated by Strategy & Business.

Apple and Alphabet, formerly known as Google, have maintained first and second in innovation since 2010 increasing R&D spending from $1.3 and $2.8 billion in 2010 to $8.1 and $12.3 billion in 2016.


2016 Top 10 Innovative Companies – Strategy & Business

Company Geography 2016 Innovation Rank 2016 R&D Spending Rank 2016 R&D Spend ($Bn)
Apple United States 1 11 8.1
Alphabet United States 2 4 12.3
3M United States 3 1.8
Tesla Motors United States 4 0.7
Amazon United States 5 3 12.5
Samsung South Korea 6 2 12.7
Facebook United States 7 4.8
Microsoft United States 8 6 12
General Electric United States 9 4.2
IBM United States 10 5.2

* Unfilled Spending Rank signifies company ranked lower than 20th

* R&D spend data is based on most recent full year figures reported prior to July 1st – Strategy&


As displayed by the recorded spending not all Top 10 Innovative Companies of 2016 were ranked in the Top 20 for R&D Spending in 2016, however, each company did perform R&D.

Innovation is supported within the cultures of these leading companies in part by the support of the United States. The research and development tax incentive seeks to foster innovation and growth making R&D possible for SMEs as well as large corporations.

Read about eligibility to find out if you qualify for the R&D Tax Incentive.

If  you would like to discuss the R&D Tax Incentive further, please do not hesitate to contact one of Swanson Reed’s offices today.

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