November 21, 2024

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[THE INVESTOR] Samsung Electronics came third in terms of research and development spending in 2017, according to a report released by consultancy firm Ernst & Young.

US tech giants Amazon and Alphabet, which invested 20.1 billion euros (US$ billion) and 14.8 euros, respectively, were the only companies that had more R&D expenditure last year.

The Korean company poured 13.1 billion euros into R&D projects while US chipmaker Intel took fourth place spending 11.6 billion euros.

‘Around the world, investments in R&D are rising, as rapid technological progress, ever-shorter product cycles and rapidly changing consumer demands increase the pressure on companies to innovate,” said Marcel Stalder, CEO of EY, in a press release.

The report of the world’s 500 largest investors in R&D showed global corporations increased their expenditure by 6 percent on-year to 532 billion euros. A total of 127 US companies made the ranking and seven of the top 10 R&D investors are based in the US.

In terms of “R&D intensity,” an average ratio of R&D spending to total revenue, Switzerland came first, followed by the US, Sweden, Germany, UK, Taiwan, Japan, France, China and Korea.

Some of the Swiss companies which made the list include pharmaceutical companies Roche and Norvatis, which spent 10.2 billion euros and 8 billion euros, respectively.

The report also pointed out global companies, including those from Switzerland, are currently facing significant challenges posed by fast-rising Chinese power in the global R&D markets.

By Kim Young-won (wone0102@heraldcorp.com)