R&D intensity is on the increase, survey shows

11/11/2010 | CFO.com

Companies' "R&D intensity" -- a measure of R&D spending versus total sales -- is on the increase, according to a Booz & Co. survey. The trend is a sign of managers' reluctance to slash innovation budgets despite falling sales, and serves as a reminder that R&D is largely recession-proof, says Booz partner Barry Jaruzelski. "They cut R&D last; that's the future revenue stream that these companies are protecting," he notes.

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