Global R&D spending, after witnessing a decline in fiscal 2010, has grown by 8.2 per cent in FY2011, according to a Zinnov study.
India’s prominence as an R&D hub is growing with the likes of IBM, SAP, Oracle and others setting up R&D centres and currently, 30 per cent of the top 1000 R&D spenders across verticals have a presence here. This growth has been primarily driven by organisations in the semiconductor, industrial and consumer hardware and electrical and electronic sectors.
Talent pool
A key fact highlighted by the report is the total installed talent pool of 2.2 lakh people in MNC subsidiaries in India and these MNCs have spent $7-7.5 billion on the headcount in India in FY2011 alone.
The study also found that the opportunity areas for India to attract R&D investment span over 13 sectors with software being the most invested in sector. Mr Sidhant Rastogi, Director - Globalisation Advisory, Zinnov, said: “The sentiment on the role of R&D in driving the future continues to remain positive across geographies, supported by the significant increase in R&D spending in FY2011. Global R&D investments have grown by 8.2 per cent as compared to the previous fiscal.”
R&D spenders
Of the top 1,000 R&D spenders globally, the industrial sector led with 14.6 per cent of the total R&D spend. software/Internet and automotive constituted 9.4 per cent each, while semiconductor and electrical/electronic equipment contributed 8.6 per cent and 8.3 per cent of R&D spends.
Small and medium companies are investing in R&D and while EU leads with a 44 per cent contribution, APAC and Japan together contribute 34 per cent, the study said.
venkatesh.ganesh@thehindu.co.in
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.