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Research & Development Expense

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DISYS Announces Launch of New Research & Development Arm, DISYS Labs
Cloud Computing  Nov 1  Comment 
Digital Intelligence Systems, LLC (DISYS), a leading global IT staffing and consulting firm, has announced the launch of its innovative research and development division, DISYS Labs. This initiative represents the next ...
IAOP Recognizes Persistent Systems as One of the Best Leaders in Research & Development Services
Cloud Computing  Jul 11  Comment 
Persistent Systems (BOMBAY: PERSISTENT) (NSE: PERSISTENT), the leader in outsourced software product development (OPD) services, today announced that it has been named by the IAOP® (International Association of Outsourcing Professionals), as one...
Supply & Demand Chain Executive Selects Kinaxis Vice President of Research & Development as "Pro to Know"
Cloud Computing  Feb 23  Comment 
OTTAWA, Ontario , Feb. 23, 2012 /PRNewswire/ -- Kinaxis, provider of RapidResponse Control Tower, a multi-enterprise planning and "what-if" simulation solution, today announced that Mark Mototsune, vice president of research and development,...
Pluristem to Expand Research & Development of Radiation Exposure Treatment
Benzinga  Feb 7  Comment 
Pluristem Therapeutics, Inc. (Nasdaq: PSTI) today announced that following preliminary discussions with several governmental authorities, it will expand its research and development efforts on an acute radiation exposure treatment. The...
Billion Dollar Quarterly Research & Development Club: Who Turns R&D Into Stockholder Gains?
Forbes  Jan 19  Comment 
Looking for stocks with long-term growth potential? Theoretically, at least, companies pouring money into researching new products should offer great shareholder returns, as laboratories churn out patentable and marketable inventions.
World's First 'Breakthrough' Stem Cell Vitamin Formula Becomes Available to World Public Health Organizations and Global Populations After Years of Research & Development
Red Orbit  Jul 21  Comment 
With the mass production and worldwide distribution of the World's First "Breakthrough" Stem Cell Vitamin Formula now available to world public health organizations and national governments-sponsored public health departments and agencies, it is...
World's First 'Breakthrough' Stem Cell Vitamin Formula Becomes Available to World Public Health Organizations and Global Populations After Years of Research & Development
Red Orbit  Jul 20  Comment 
With the mass production and worldwide distribution of the World's First "Breakthrough" Stem Cell Vitamin Formula now available to world public health organizations and national governments-sponsored public health departments and agencies, it is...
OHM Appoints Dr. Michael Frenkel as V.P. of Research & Development
OilVoice  Jan 17  Comment 
Offshore Hydrocarbon Mapping plc announces today the appointment of Dr. Michael Frenkel as V.P. of Research and Development based in Houston Texas. Previously Dr. Frenkel was V.P. of Geoscience
Research & Development Synergy
Jutia Group  Jul 2  Comment 
It is imperative that the United States continue to invest in research and development, especially in bio and nano technology. They are industries of the future that can broaden our intellectual and competitive advantages. As technology shrinks...




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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.

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