Re: research and development spending

Date: Wed Jan 10 2001 - 17:04:16 EET

In a message dated 01-01-10 08:52:19 EST, writes:

<< ok, fellow product development people, i have a question:
 does anyone have figures- as a percentage of gross revenue- for how much
 companies typically spend on r & d?

Dear Will:

That's a complicated question and there is no "ballpark" answer. The percent
depends on: 1) the particular industry in question 2) the maturity of the
industry; 3) the particular product area; 4) level of competition, etc. Very
mature industries typically spend in the single low percent numbers and
highly technical, but on-going industries might spend 20% or even more, but
usually not across the board. A new industry might even spend more than its
entire gross revenue (e.g., the e-commerce crowd).

You can get some idea of particular cases for comparison purposes by looking
at public company data in a particular industry, and also by looking at
government and market research (often listed by SIC codes) in a good business
library. There's tons of data out there.

Hope this helps!


Ed Grenda
Castle Island Co.
19 Pondview Road
Arlington, MA 02474 USA
781-646-6280 (voice or fax) (email)

Worldwide Guide to Rapid Prototyping

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