Corporations Continue Investing in Innovation despite Recessionary Economy – Corporate R&D Spending on the Rise

Research and development budgets in US corporations rose 5.7 percent in 2008 even in light of economic challenges.  Booz & Company announced results of their annual study of corporate R&D spending showing that more than two-thirds of companies either maintained or increased their R&D spending.  Software and Internet companies showed strong growth with eight of the top ten R&D spenders in this sector increasing their spending.  Nine of the top ten R&D spenders in the auto industry, however, cut back. 

Seventy percent of companies surveyed say they plan to maintain or increase their R&D spending in 2009.  It appears that rather than curtail spending, the recession has prompted corporations to improve their approach to innovation.

For the full report, see the story in strategy+business magazine.