Research and development (R&D) spend by global 500 organizations rose 1.5 percent to $621 billion.
The R&D spend by global top 500 R&D spenders (G500) is growing consistently at 1.5 percent over the last two years with focus on building digital first R&D organizations, a report from Zinnov said.
Companies from the Consumer / eWeb 2.0 & E-Commerce vertical have significantly increased their R&D spending.
The R&D spending by the billion dollar spenders was up to $471 billion, with five new companies entering the billion dollar R&D spender club this year. Increased demand for embedded and software content is driving the R&D spend.
“Our findings show that the overall R&D globalisation in emerging economies stand at $34 billion,” said Pari Natarajan, CEO of Zinnov.
R&D service providers are exploring engineering opportunities beyond Product Development Life Cycle (PDLC) activities. The industry is also noticing the emergence of full stack product engineering service providers and the global-shore model, etc.
India, Western Europe and North America capture ~75 percent of the Engineering R&D services market.
India’s Engineering R&D (ER&D) globalization and services market stands at $22.3 billion will areach $38 billion by 2020.
editor@infotechlead.com
