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1000 companies spent $384 bln on research and development in 2004

Analysis of the top 1,000 global innovation spenders finds accelerated investment in research and development - $384 bln in 2004. While companies headquartered in North America, Europe, and Japan account for 96.

Analysis of the top 1,000 global innovation spenders finds accelerated investment in research and development - $384 bln in 2004. While companies headquartered in North America, Europe, and Japan account for 96.8% of R&D spending, and are likely to remain dominant players for the foreseeable future, companies with headquarters in China, India, and the rest of the world are turning up the volume on R&D investment. The annual growth rate for R&D spending from 1999 to 2004 in China and India was 21.1%, significantly higher than in North America (6.6%), Europe (6.2%), and Japan (4.8%). However, the developed economies show a higher ratio of R&D spending to sales. Here China and India lag, spending only 1% of revenue on R&D, compared with 4.9% for firms in North America, 4% in Europe, and 3.8% in Japan. The differences among the three main spend regions are partially explained by differences in industry mix.