Research & Development

OilVoice  Oct 6  Comment 
Well returns specialist, TWMA, has been named as winner of the Northern Star Business Awards' “Commi ...
Automotive World  Mar 20  Comment 
Kal Mos, Vice President Connected Car, User Interaction & Telematics, Mercedes-Benz Research & Development North America has been confirmed as a keynote speaker at Connected Car California. In his role, Kal is responsible for innovations in areas...  Jan 18  Comment 
Summit Therapeutics plc ('Summit', 'Company' or the 'Group') SUMMIT APPOINTS DR DAVID ROBLIN AS CHIEF OPERATING OFFICER AND PRESIDENT OF RESEARCH & DEVELOPMENT Oxford, UK, 18 January 2017 - Summit Therapeutics plc...
Forbes  Dec 9  Comment 
An MIT economist's provocative new business model for research & development could bring more commercial success to producers... and more social good to consumers.
Automotive World  Dec 7  Comment 
Volvo Cars, the premium car maker, has announced that Henrik Green has been appointed Senior Vice President Research & Development. Mr Green, 43, currently Senior Vice President Sales and Production Planning & Customer Service, replaces Peter...
Biomass Magazine  May 16  Comment 
The U.S. Department of Energy has announced up to $10 million in funding for six projects representing innovative technologies and solutions to advance bioenergy development.
Mondo Visione  May 10  Comment 
According to the Law on Supporting Research and Development Activities numbered 5746; Borsa İstanbul applied to the Turkish Ministry of Science, Industry and Development on March 4, 2016, in order to be registered as a Research & Development...
Automotive World  Jan 25  Comment 
Michael Nash discusses the SPA and CMA platforms with Volvo’s Peter Mertens The post Interview: Peter Mertens, Senior Vice President, Research & Development, Volvo Car Group appeared first on Automotive World.
Automotive World  Sep 30  Comment 
Prof. Dr. Hans Georg Engel takes over as Head of Mercedes-Benz Research & Development China with a wider scope of responsibilities Over 500 staff at Mercedes-Benz Research & Development Center in Beijing by the end of 2015 – about 40% increase...


This is the cost of discovering and developing new products or services that fill market needs, including any labor, raw materials, clinical trials, and other costs incurred during the process.

Research and development (R&D) can be thought of as investments to fuel new products that provide higher margins or increased market share. Research and development expense is common throughout most companies that produce some product or service- companies like Nike (NKE), Procter & Gamble Company (PG), and Pfizer (PFE) all invest heavily in R&D. This metric is oftentimes expressed as a percentage of revenue (R&D/Sales Ratio, calculated by dividing research and development expense by total revenue. R&D as a percentage of revenue is useful to compare the effectiveness and efficiency of R&D expenditures between companies in the same industry.

R&D expenses differ greatly across different industries- the Drug Manufacturers generally have the one of the higher R&D/Sales ratios. For example, Pfizer (PFE)'s R&D totaled to 16.5% of its revenue in 2008. Computer Software and hardware companies like Microsoft (MSFT) and Cisco Systems (CSCO) also have similar R&D/Sales ratios.

There is not a precise metric for how many dollars should be spent on R&D. A general percentage is usually gauged by how fast the market is growing, the number of competitors and how much competitors are spending in relation to each other. [1]

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