2019 R&D Spending Increases Especially Within Digital Economy

LIBERTYVILLE, Ill. - July 9, 2018 - PRLog -- According to a newly released study from Schonfeld & Associates, Inc., R&D Ratios & Budgets, now in its 42nd annual edition, the pharmaceutical industry continues to be the biggest R&D investor with drug companies increasing their budgets over 6% to spend over $121 billion. Automotive companies will continue to contribute a total of over $72 billion to this investment pool.

Software companies are projected to increase R&D spending by 6.5%. Of the major software companies, Microsoft leads with a budget of over $13 billion, an increase of 2.9%.  Oracle will invest over $7.3 billion and SAP over $4.7 billion in 2019.

The biggest single R&D investor in 2019 will be Amazon at over $31.1 billion, followed by Alphabet at $21 billion, Apple at $15.8 billion, and then Intel at $14.2 billion. Firms involved with digital content are investing much more heavily than those in more traditional arenas.

Pharmaceutical firms will continue significant R&D spending in 2019. Roche, the top spender at $12.9 billion, is followed by Merck, Johnson & Johnson, Novartis, Celgene, Pfizer, Bristol-Myers Squibb and Eli Lilly, each projected to spend over $7 billion. The biotech industry, led by AbbVie, is growing R&D by almost 8% to over $27 billion. Electromedical apparatus makers, led by Medtronic, will be spending a total of over $8.1 billion, a boost of 5 percent.

R&D budgets of semiconductor makers will grow to over $54 billion, an increase of 6.9%. Intel will have the largest R&D budget, $14.2 billion, up over 4 percent. R&D budgets of the industries that are major suppliers to the infrastructure of the Internet cloud are also expected to increase R&D spending.

The automotive industry is increasing its total R&D spending to over $72 billion. The spending of major players varies from a 19% increase by Tesla to a 5.9% decrease by Volkswagen. However, the majority are increasing spending on R&D modestly.

About the Study

R&D Ratios & Budgets
, containing historical R&D spending for 2017, an estimate of R&D budgets for 2018, and a forecast of 2019 R&D spending for over 3,600 firms, is used for budget planning, monitoring competition, identifying joint venture partners, and spotting acquisition candidates.

The study reports R&D-to-gross profits ratios, R&D-to-sales ratios plus R&D and sales growth rates. In addition, for each company and industry, the study contains a low and high range for each ratio over the last six years to indicate stability of R&D spending. Over 260 industry summaries are provided.

The 2018 edition of the report in either print or PDF format is $ 395 and the report along with Excel datafiles is $ 495. Contact Schonfeld & Associates, Inc., 1931 Lynn Circle, Libertyville, Illinois 60048. Call for more information: 800-205-0030 or visit the company's web site at www.saiBooks.com under Area of Expertise: Research & Development Spending.

Carol J Greenhut

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