This made me think of an earlier study performed by PriceWaterhouseCoopers. Strategy&, a business unit within PriceWaterhouseCoopers, has been publishing an an

This made me think of an earlier study performed by PriceWaterhouseCoopers. Strategy&, a business unit within PriceWaterhouseCoopers, has been publishing an annual report of the top 1000 most innovative companies in the world for over 12 years. In that time, they have found that there is no statistically significant relationship between R&D spending and sustained financial performance[0]. This finding applies to total R&D spend, as well as R&D spending as a percent of revenues.[1] Spending on R&D is not related to growth in sales or profits, increases in market capitalization or shareholder returns.[2] In every annual report that Strategy& have published, the top 10 most innovative companies are often not the top 10 spenders on R&D. [0] AlisonSmith(2014 ). R &Dspendingunlinkedtofinancialperformance,studyshows. T heFinancialTimes. https://www.ft.com/content/cdfe1b2c-5abf-11e4-b449-00144feab7de#axzz3I5ez9PAL https://www.ft.com/content/cdfe1b2c-5abf-11e4-b449-00144feab... [1] BarryJaruzelski,JohnLoehr,andRichardHolman(2014). T heGlobalInnovation1000:ProvenPathstoInnovationSuccess. http://www.strategy-business.com/article/00295 http://www.strategy-business.com/article/00295 [2] BarryJaruzelski,JohnLoehr,andRichardHolman(2012). T heGlobalInnovation1000:MakingIdeasWork http://www.strategy-business.com/article/00140 http://www.strategy-business.com/article/00140