Research and development companies are currently spending more than they ever have. Companies on the Global Innovation 1000, a list of the top R&D spenders, spent approximately $647 billion in 2014. That number is on an upward trend and is set to increase each year. Because of their rising influence as innovators, research and development companies are currently some of the best to invest in. If you are an investor or investment banker, you may be interested in investing in the world’s best research and development companies. Consider getting started with the ones listed below.
Volkswagen is one of the biggest R&D spenders worldwide, with $13.5 billion in spending in one year alone. This equates to over 5% of their yearly revenue! The company continually seeks to improve environmental and safety standards for their cars, causing them to put a considerable amount of money into research and development. Most of the money is currently going into developing and improving hybrid vehicles, including adding semi-autonomous features to those vehicles. CO2 reduction is also very important to the company. In a couple years, Volkswagen’s investment in R&D may help put them on top of the auto industry.
Microsoft is consistently among the top research and development companies in the world. It is also probably the most familiar to you. They, along with two other companies, accounted for 38% of the world’s R&D spending in 2014. Just last year, their spending topped $10 billion. This is due to the company’s involvement in nearly every corner of the tech market. They develop personal computing software, smartphones, video game consoles, hosted VoIP solutions and internet search websites. They are also set to enter the smartwatch race with the release of their “Microsoft Band” product. Microsoft will continue to have an enormous presence among R&D companies as they continue to improve existing products and introduce new ones. They are an incredibly safe bet to invest in at this time.
Intel is another one of the world’s top R&D spenders. Like Microsoft, they topped 10 billion in research and development expenditures in 2014. Though, unlike Microsoft, they spent over 20% of their revenue on R&D as opposed to Microsoft’s 13%. Intel has been dedicated to developing new processors in order to keep up with Moore’s Law. This law states that computing power doubles every 2 years. Growth is difficult in this field, stemming from the increased complexity of advanced computer parts. However, Intel has done admirably in introducing new products each year. They recently introduced the Intel Core M Processor. This hardware is half the size of the previous generation of processors. It also has 20% more battery life and 60% less energy expenditure. Intel’s value will stay consistently high as long as it continues to pour a large chunk of its revenue on R&D spending. Therefore, they are a good company for long term investments.
Samsung is a major conglomerate with control over several areas of the tech business. They are a leading developer in smartphones, televisions, computers and digital music distribution. The company is also one of the biggest research and development spenders in the world. Samsung has spent over $13 billion spent in the past year alone. This research and development company is always counted among the leaders in tech innovation. They are set to release a smart TV monitor and smart TV service that can change the way people stream media. Additionally, they have been successful in competing with Apple’s iPhone with their Galaxy line of smartphones. Samsung has its own educational organization dedicated to research and development. The company consistently sets 3 to 5 year goals on future development. With the current cycle nearing an end, they are set for an enormous product spike. This makes them an exciting research and development company to invest in, according to most financial advisors.
Google has been known to spend a lot of their research and development dollars on outlandish projects. Some of which are self-driving cars, virtual-reality headsets and balloon-based wifi. However, they are adamant about their approach for project deliverables. Google dedicates a majority of R&D funds toward research personnel who are responsible for developing new ideas. They believe that the key to innovation is running with ideas early. Making sure to leave plenty of time for improvement and perfection. Their current projects, which include a new “smart speaker”, are highly developed. They are very likely to succeed based on Google’s recent history. Therefore, they are an intriguing investment option for those of you who are comfortable with taking risks.
Companies that spend a lot on research and development lead the world in innovation. This is due to their focus on introducing new products. These practices open up a lot of opportunities for research and development companies in terms of fiscal gains. They are constantly coming up with new ideas. Therefore, they are also very likely to have consistent spikes in revenue. The research and development companies listed in this post are some of the best in the world. As an investor, you may want to consider giving them some consideration.
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