Growth in R&D Investment Continues In 2020
Software companies are projected to increase R&D spending by 13.5%. Alphabet will invest over $27 billion and Microsoft over $17 billion in 2020.
The biggest single R&D investor in 2020 will be Amazon at over $39 billion, followed by Alphabet at $27 billion, Apple at $18.6 billion, and then Volkswagen at $17.2 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 2020. Roche, the top spender at $14.1 billion, is followed by Johnson & Johnson, Merck, Novartis, Eli Lilly and Pfizer, each projected to spend over $8 billion. The biotech industry, led by AbbVie, is growing R&D by over 8% to over $35 billion. Electromedical apparatus makers, led by Medtronic, will be spending a total of over $8.5 billion, a boost of over 4 percent.
R&D budgets of semiconductor makers will grow to over $59 billion, an increase of 7.5%. Intel will have the largest R&D budget, $14.5 billion, up over 3 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 $81 billion, close to a 6 percent increase. The spending of all major players is increasing with the exception of General Motors.
About the Study:
R&D Ratios & Budgets, containing historical R&D spending for 2018, an estimate of R&D budgets for 2019, and a forecast of 2020 R&D spending for over 3,800 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 2019 edition of the PDF report 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:
Carol J. Greenhut