As an industry, high tech spent an average of 8.3% of revenue on R&D over the four year period from 2008 - 2011. This compares to a spend rate of only 4.8% in a diversified set of other product-driven industries. Meaning that on average high tech spent 73% more on R&D as a percent of revenue than other industries.
I spoke at a conference last week on the challenges of delivering organic growth through innovation in the high tech industry. The talk was more than just a good excuse to go to Las Vegas. We covered some serious issues. My team analyzed investment in R&D and rates of revenue growth for the industry for the four year period of 2008 - 2011. We found an R&D effectiveness ratio of less than 50%.