Quick Bite | Top 10 Global Spenders on R&D

The cost of innovation. The visual below illustrates which global companies have spent the most on research and development (R&D) over the last 12 months. It is no surprise that US big tech dominates this list. This tends to develop a competitive advantage and/or further strengthen an economic moat.

Reinvesting cash flows into new growth verticals has been a strength of US big tech since their early days. However, in an environment where the cost of capital looks like it will stay higher for longer, investors will need to place a greater emphasis on their ability to generate higher and sustainable returns on invested capital (ROIC).

As Bob Iger once famously said, “innovate or die, and there’s no innovation if you operate out of fear of the new or untested.”

Source: Quartr



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