Siemens said it is investing $1 billion annually in research and development in the U.S. to drive digital transformation.
With around $10 billion in investments in U.S. software companies since 2007, Siemens has made a significant push into the software space with acquisitions including: UGS, eMeter, Camstar, Polarion, and CD-adapco.
The company’s most recent investment is the acquisition of Oregon-based Mentor Graphics for around $4.5 billion.
Once the acquisition is completed, Siemens will be the first and only player to combine mechanical, thermal, electronic and software design and simulation capabilities on a single integrated platform.
Taken together, Siemens expects these software acquisitions and technology integrations to lead to double-digit revenue growth in its digital business through 2020.
In fiscal 2016, Siemens’ businesses with software and digital services generated around $4.6 billion, some 12 percent more than in the prior year.
MindSphere, the Siemens cloud-based open operating system for the Internet of Things, will be a key component to achieving these growth targets, as it will enable customers across all industries to digitize their enterprises.
Siemens already established an ecosystem of global partners including IBM, Atos, Microsoft, SAP, Accenture and many others.
Siemens has announced an increase in global investments in research and development in fiscal 2017 of more than $300 million to around $5.4 billion.
Over the last two years – from fiscal 2014 to fiscal 2016 – R&D spending in the U.S. has increased by more than 30 percent and a significant portion of these funds are earmarked for automation, digitalization, and decentralized energy systems.
Siemens employs more than 7,500 software engineers in the U.S. and as of September, 30, 2016, the company held more than 15,000 patents and about 900 invention disclosures in the U.S.