2015 Global Innovation 1000 Fact Pack

October 2015
Webinar
2015 Global
Innovation 1000
Innovations New World
Order
Introduction
R&D spending and trends
Globalization of R&D
Strategy& | PwC
October 2015
Study authors
Barry Jaruzelski
Volker Staack
Kevin Schwartz
barry.jaruzelski@pwc.com
volker.staack@pwc.com
kevin.j.schwartz@pwc.com
is a principal with Strategy&, PwCs

strategy consulting business, and
with PwC US. Based in Florham
Park, N.J., he works with high-tech
and industrial clients on corporate
and product strategy and the
transformation of core innovation
processes. He created the Global
Innovation 1000 study in 2005, and
in 2013 was named one of the Top
25 Consultants by Consulting
magazine.
is a principal with Strategy&, PwCs

strategy consulting business, and
with PwC US. He focuses on
engineered products and services,
particularly in the automotive and
heavy equipment industries, and
specializes in strategic product
value management, turnarounds,
and implementation of global M&A.
is a principal with PwC US, and

leads the firms innovation and
development consulting services.
Based in San Francisco, he focuses
on driving enterprise-wide
innovation and enabling growth
through new products, services,
and business model innovations.
Strategy& | PwC
October 2015
For the 11th year Strategy&, PwCs strategy consulting

business, studied innovation trends at the worlds 1,000
largest publicly listed corporate R&D spenders
2005:
Money Isn't
Everything
2006:
Smart Spenders
2011:
Why Culture
Is Key
Strategy& | PwC
2007:
The Customer
Connection
2012:
Making Ideas
Work
2008:
Beyond Borders
2013:
Navigating the
Digital Future
2009:
Profits Down,
Spending Steady
2014:
Proven Paths to
Innovation
Success
October 2015
2010:
How Top
Innovators Keep
Winning
2015:
Innovations New
World Order
The study has become a recognized contributor in better

understanding what drives success in R&D and innovation
The Global Innovation 1000 study has
received significant media and academic
recognition over past decade:
Global Innovation 1000:

Selected Press Coverage
Called the most comprehensive

assessment of the relationship between
R&D investment and corporate
performance by The Economist in 2009
Awards:
Silver (2011) and Gold Medals (2014)
for original research by the American
Society of Business Press Editors
Best of Visions award from PDMA in
2009
Special Achievement Award for
advancing innovation dialog from the
Innovate Forum in 2006
Cited in more than 180 publications
spanning 27 countries & 6 continents
Strategy& | PwC
October 2015
In addition to performing our annual R&D spending

analysis, we examined the globalization of R&D
R&D Spending and Trends
Analysis of R&D Spending and Trends
The Globalization of R&D

Understanding Global R&D Flows
Annual R&D spending across the 1,000 largest R&D

spenders globally (publicly-traded firms)
How much and where in the world are companies

choosing to spend their R&D
R&D spending by region and industry (absolute

spending, growth, and proportion of total)
How regional spending has changed since we last

looked at this topic in 2008, Beyond Borders
R&D intensity (spending as a percent of revenue)

Top 20 R&D spenders globally
10 Most Innovative Companies
Methodology
Spending determined on the basis of companies
annual reports from their most recent fiscal year, as
of June 30, 2015
Most Innovative Companies determined based on a
web survey of 369 senior R&D executives and
Innovation leaders
Strategy& | PwC
Methodology
We researched the global R&D footprint of:
Top 100 companies from the Global Innovation
1000
Top 50 companies in the largest three
industries: auto, healthcare, and computing &
electronics
Top 20 companies in industrials, and software
& Internet
This resulted in 207 companies reflecting overlap
which are headquartered in 23 countries,
conducting R&D activities at 2,041 R&D sites in
more than 60 countries, and represent 71% of the
total Global Innovation 1000 R&D spend.
October 2015
Introduction
Strategy& | PwC
October 2015
Executive Summary
In 2015, R&D spending by the Global Innovation 1000 increased 5.1% to $680 billion,
the largest year-over-year increase since 2012. R&D spending is now in line with the
long-term trend of R&D spending growth of 5.4% over the last 10 years.
R&D intensity spending as a percent of revenue - also spiked to 3.7% from 3.5% in
2014, which is the result of falling revenues experienced by the Global Innovation 1000.
Similar to what happened in 2010 after the Great Recession, companies tend to stick
with their innovation program despite cyclical revenue fluctuations.
Software & Internet had the highest year-over-year growth rate (27%) of all the
industries, which propelled it past the industrials sector to become the fourth-largest
industry by R&D spend.
Apple made its first-ever appearance in the Top 20 R&D Spenders list and has an
intensity of 3.3%, compared to an average of 12.5% for the other 19 companies on the
list.
Apple and Google remain the two most innovative companies, according to our survey
respondents, while Tesla jumps to third place, pushing Amazon down to fifth. Toyota
rejoins the ranking at number 10 after a two-year hiatus.
Strategy& | PwC
October 2015
Higher R&D spend doesnt ensure performance
The Performance Disconnect

Example analysis showing relation between R&D & financial performance
Indexed
Sales Growth
~10,000 analyses found
NO statistical relationship
between R&D spend and:
y = 0.032x + 1.2914
R = 0.0114
Sales growth
Gross profit growth
Operating profit growth
Operating margin
Net profit growth

Net margin
Market cap growth
Total shareholder return
-5
Source: Strategy& 2015 Global Innovation 1000 analysis, Bloomberg data, Capital IQ data
Strategy& | PwC
October 2015
however, there is a minimum threshold you can be Too

Rich or Too Thin
The Performance Disadvantage of the Bottom 10% of Spenders
1.9
1.9
Indexed Performance
1.7
Spending much
less than industry
median does lead
to consistently
lower performance
1.7
1.0
1.0
Spending much
more than industry
median does not
drive consistently
better performance
Operating Profit Growth Index
Indexed Bottom 10%
Regionally Adjusted
Shareholder Return Index
Indexed Middle 80%
Indexed Top 10%
Strategy& | PwC
October 2015
In 2015, R&D spending by the Global Innovation 1000 saw the

return to the long-term growth trend
Global Innovation 1000 R&D Spending
$US Billions
10-year CAGR
=5.44%
5.4%
+70%
$400
$409
2005
2006
Y-o-Y
Growth
2.2%
$447
2007
9.3%
$501
2008
12.2%
$538
2009
7.3%
$508
2010
-5.6%
$560
2011
10.3%
$638
$647
$680
$614
2012
2013
2014
2015
9.7%
3.8%
1.4%
5.1%
Strategy& | PwC
October 2015
10
Innovation 1000 firm revenue fell 1%, reversing the longterm trend of decreasing R&D intensity
Global Innovation 1000 R&D Intensity (Spending as a Percent of Revenue)
10-year CAGR
=-1.24%
-1.2%
-11.7%
4.2%
3.9%
2006
2005
Y-o-Y
Growth
-8.5%
3.8%
3.8%
3.6%
3.8%
3.6%
3.5%
3.6%
3.5%
3.7%
2007
2008
2009
2010
2011
2012
2013
2014
2015
-2.0%
-0.8%
-4.5%
5.3%
-5.5%
-2.0%
2.5%
-2.2%
10-year
Average
3.7%
6.1%
Strategy& | PwC
October 2015
11
Computing & electronics, healthcare, and auto continue to be

the three largest industries in terms of total R&D spend
2015 R&D Spending by Industry
Total = $680 Billion
Telecom
Other
Consumer
2%
Aerospace and Defense
3% 3%
Chemicals and Energy
2%
6%
Computing and Electronics

24%
Industrials 11%
11%
Software and Internet
21%
Healthcare
16%
Auto
Strategy& | PwC
October 2015
12
Software & Internet passed industrials and healthcare is

closing in on C&E as the largest industry by R&D spend
R&D Spending by Industry
$US Billions
$180
$166
$160
$145
Healthcare
$140
$120
$109
Auto
$100
$76
$75
$80
Software and Internet

Industrials
Chemicals and Energy
$60
$40
$20
$0
05
06
07
08
09
10
11
12
13
14
$42
Aerospace and Defense
$22
$20
$12
$10
Consumer
Telecom
Other
15
Strategy& | PwC
October 2015
13
Software & internet grew at over 27%, far greater than the
growth of all other industries from 2014 to 2015
% Change in R&D Spending by Industry
2014-2015
30
27.4%
25
20
15
8.9%
10
6.0%
5.0%
4.5%
-0.1%
-5
-0.7%
-2.8%
-4.3%
-10
-10.0%
Software Industrials
and Internet
Healthcare
Aerospace
and Defense
Auto
Chemicals Computing
and Energy
and
Electronics
Other
Consumer
Telecom
Strategy& | PwC
October 2015
14
Apple made its first-ever appearance in the Top 20 R&D

Spenders in 2015 despite having a low intensity
Top 20 R&D Spenders
Rank
Company
Region
Industry
2015 R&D Spending ($B)
Intensity
(%)
Volkswagen
Europe
Auto
15.3
5.7%
Samsung
Asia
14.1
7.2%
Intel
North America
11.5
20.6%
Microsoft
North America
Software/Internet
11.4
13.1%
Roche
Europe
Healthcare
10.8
20.8%
Google
North America
Software/Internet
9.8
14.9%
Amazon
North America
Software/Internet
9.3
10.4%
Toyota
Asia
Auto
9.2
3.7%
Novartis
Europe
Healthcare
9.1
17.3%
10
Johnson & Johnson
North America
Healthcare
8.5
11.4%
11
Pfizer
North America
Healthcare
8.4
16.9%
12
Daimler
Europe
Auto
7.6
4.4%
13
General Motors
North America
Auto
7.4
4.7%
14
Merck
North America
Healthcare
7.2
17.0%
15
Ford
North America
Auto
6.9
4.8%
16
Sanofi
Europe
Healthcare
6.4
14.1%
17
Cisco
North America
6.3
13.4%
18
20
Apple
North America
6.0
3.3%
GlaxoSmithKline
Europe
Healthcare
5.7
15.0%
AstraZeneca
Europe
Healthcare
5.6
21.4%
NEW
19
NEW
Honda fell to #21, IBM fell to #26,

Increase or decrease within Top 20 ranking compared with 2014
Total
$176.5
Companies that have been among the Top 20 R&D Spenders since 2005
Strategy& | PwC
October 2015
15
Apple & Google continue to lead the Most Innovative list,

while Tesla has moved up to third
Rank
2010
2011
2012
2013
2014
2015
Apple
Apple
Apple
Apple
Apple
Apple
Google
Google
Google
Google
Google
Google
3M
3M
3M
Samsung
Amazon
Tesla
General Electric
General Electric
Samsung
Amazon
Samsung
Samsung
Toyota
Microsoft
General Electric
3M
Tesla
Amazon
Microsoft
IBM
Microsoft
General Electric
3M
3M
Procter & Gamble
Samsung
Toyota
Microsoft
General Electric
General Electric
IBM
IBM
Microsoft
Microsoft
Samsung
Toyota
IBM
Tesla
IBM
IBM
10
Intel
Facebook
Amazon
Facebook
Procter & Gamble
Toyota
Procter & Gamble Procter & Gamble
Source: Strategy& 2015 Global Innovation 1000 survey data and analysis
Strategy& | PwC
October 2015
16
As in previous years, the 10 Most Innovative Companies

outperform the top 10 R&D spenders
2015 10 Most Innovative Companies* vs. 2015 Top 10 R&D Spenders
Financial performance normalized by indexing values within each industry
Highest
Possible
Score:
100%

Top 10 R&D Spenders
65%
63%
Normalized
Performance of
Industry Peers:
Lowest
Possible
Score:
63%
55%
53%
50%
46%
0%
5Y Revenue
Growth CAGR
5Y EBITDA as a
% of Revenue Avg
5Y Market-Cap
Growth CAGR
*Only 9 of the 10 Most Innovative Companies were included in Market-Cap Growth. Tesla was removed as it does not have Market-Cap data spanning back five years.
Strategy& | PwC
October 2015
17
Introduction
Strategy& | PwC
October 2015
18
Executive Summary
R&D is now a global activity for the vast majority of major corporations, as 94% conduct
R&D in countries beyond their home country.
Asia has become the number one region for corporate R&D spending, Europe has fallen
to number three, and North America remains in second place. In our 2008 study, this
order was reversed.
Asias rise was driven by strong imports and domestic R&D spending. Most notably,
China increased in-country R&D spending by 79% and is closing in on the U.S. as the
largest country destination for imported R&D.
The U.S. is still the largest in-country (domestic and imported) R&D spender. However,
its overall lead is shrinking against most Asian countries, but expanded over most
Western European countries.
Europes fall to third-largest region for R&D spending was the result of low growth in
domestic and imported R&D, and high growth in exported R&D; most noticeably in
France and Germany.
Surveyed R&D professionals ranked access to talent and proximity to customers higher
than tax advantages in choosing where to conduct R&D.
Strategy& | PwC
October 2015
19
The largest spenders by region have remained the same, but

where they spend their R&D has changed
Corporate R&D by Companies
Headquartered Region
Corporate In-Region (Domestic &

Imported) R&D
2007 & 2015 $US Billions
+37%
+37%
$480
1%
$351
0%
24%
25%
30%
34%
45%
42%
2007
2015
$480
5%
Rest of World
35%
Asia
33%
North America
35%
28%
Europe
2007
2015
Rest of World
Asia
Europe
In 2015, almost half of

all R&D spend came
from North American
companies, but only
about a third of all R&D
was actually done in
North America.
$351
4%
27%
34%
North America
Asia is now the top regional destination for R&D spending, followed by
North America and Europe. In 2007, that order was reversed.
Source: Strategy& 2015 Global Innovation 1000 analysis
Strategy& | PwC
October 2015
20
Asias rise as the top region for R&D spending was driven by
both robust imports and domestic spending
Asia In-Country (Domestic & Imported) R&D
+120%
+24%
$55
$55
$50
$50
2007
2015
$45
$40
$40
+115%
$35
$30
$25
$28
$25
+98%
$20
$13
$13
$15
$10
+121%
+121%
$7
$6
$7
$3
$5
$3
+32%
$5
$7
$0
China
Japan
India
South Korea
Singapore
Taiwan
Rest of Asia
Strategy& | PwC
October 2015
21
Leading the way for Asia was China, which is closing in on

the U.S. as the largest country for imported R&D
Top Five Countries That China
Imported R&D from
Imported R&D by Country


$0
$10
$20
$30
$40
$50
$60
+79%
+23%
U.S.
$44
15%
Rest of World
6%
7%
South Korea
10%
Germany
Switzerland
$25
+79%
China
+116%
India
+12%
U.K.
+74%
Japan
22%
7%
9%
12%
21%
20%
41%
Japan
-7%
Germany
+64%
Israel
+141%
U.S.
+12%
Canada
-21%
France
31%
+121%
Singapore
2007
2007
2015
2015
Strategy& | PwC
October 2015
22
R&D professionals ranked strategic reasons higher than cost

advantages when moving R&D functions to China
What Are the Benefits of Moving R&D Functions to China?

n = 369
Top three responses
based on proximity
100%
90%
80%
71%
70%
59%
60%
54%
53%
50%
39%
40%
33%
30%
30%
26%
20%
10%
0%
Proximity to
High Growth
Market
Proximity to Key Proximity to

Manufacturing Key Suppliers
Sites
Easier Place
Lower
Access to
Development Technical Talent to Export to
the Rest of
Costs
the World
Experienced
Labor Market
Reliability
of Project
Execution
Strategy& | PwC
October 2015
23
The U.S. remains the largest in-country R&D spender...
In-Country (Domestic & Imported) R&D

+34%
$150
$145
2007
2015
$109
$100
+120%
+24%
$55
$50
$50
+15%
+115%
$40
$28 $32
$25
$28
-5%
$23 $22
$13
-21%
+98%
$20 $16
$7
$13
+69%
$7
$11
+41%
+12%
$8 $11
$9 $10
Italy
Canada
$0
U.S.
China
Japan
Germany
India
U.K.
France
South
Korea
Israel
Strategy& | PwC
October 2015
24
however, its lead against key Asian countries is eroding

% Change 2007-2015, In-Country (Domestic and Imported) R&D Relative to the U.S.
Height of bar = 2015 In-Country R&D Spend ($US Billions)
Lost Advantage
Gained Advantage
U.S. = 0
64%
$55
China
India
$28
South Korea
Israel
Eastern Europe*
Italy
61%
48%
$13
$11
$14
15%
$11 5%
26%
-7% $50
Japan
Asia
Europe
Germany
Canada
U.K.
France
-29%
-40%
North America
Rest of World
$16
-41%
-50%
-14%
$32
-16%
$10
$22
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%

*Eastern Europe Includes: Russia, Poland, Romania, Czech Republic, Slovakia, Croatia, Hungary, Bulgaria, Estonia, Latvia, Serbia, Turkey, and Slovenia
Strategy& | PwC
October 2015
25
U.S. firms significantly increased R&D performed in low-cost

Asian countries such as China and India
U.S. HQ Firms R&D Allocation
Top 7 Countries That the U.S. Exported R&D to

$80
$146
$214
11%
11%
Rest of World
17%
21%
Europe
27%
45%
25%
43%
Asia
U.S.
45%
$121
36%
Rest of World
5%
5%
7%
7%
Japan
Canada
5%
6%
7%
8%
9%
9%
15%
China
10%
15%
India
2007
2015
Germany
Israel
U.K.
9%
2007
2015
In 2007, the U.K.

was the top
export
destination for
U.S. R&D. In
2015, it was third.
Strategy& | PwC
October 2015
26
Europes decline was the result of low growth in domestic

and imported R&D, and high growth in exported R&D
% Change in R&D Spending By Region
2007-2015
North America
Asia
Europe
100%
100%
100%
90%
90%
90%
80%
80%
80%
70%
70%
70%
60%
60%
60%
86%
60%
50%
50%
40%
40%
30%
21%
20%
40%
30%
30%
18%
20%
10%
0%
0%
R&D
Exported
50%
40%
10%
R&D by
R&D Imported
Domestic
Companies
46%
50%
20%
16%
10%
2%
0%
R&D by
Domestic
Companies
R&D
Imported
R&D
Exported
R&D by
Domestic
Companies
R&D
Imported
R&D
Exported
Strategy& | PwC
October 2015
27
European firms increased their R&D allocation to Asian and

North American high-cost countries
European HQ Firms R&D Allocation
2007 vs. 2015 $US Billions
Offshore
$119
2%
13%
5%
$144
4%
14%
Rest of World
Asian Low-Cost Countries (LCC)
9%
Asian High-Cost Countries (HCC)
25%
North American HCC
23%
2%
Nearshore
23%
3%
Eastern European LCC
16%
Western European HCC
57%
Home
32%
2007
48%
29%
2015
Home
European firms
decreased their total
R&D allocated to
Europe from 57% in
2007 to 48% in 2015.

Note: High-cost countries (HCC) refers to countries with an average engineering wage > $35,000. All countries with an average engineering wage of less than or equal to $35,000 are low-cost countries
(LCC).
Strategy& | PwC
October 2015
28
The three largest economies in Europe - the U.K., France, and

Germany - all increased their share of exported R&D
R&D Allocation by Country
2007 vs. 2015 $US Billions
U.K.
Domestic R&D
France
Germany
Exported R&D
2007
33%
($6)
67%
($12)
50%
($10)
20%
($3)
2015
80%
($11)
50%
($10)
35%
($11)
65%
($20)
31%
($16)
35%
($8)
65%
($14)
69%
($35)
Strategy& | PwC
October 2015
29
In fact, France only saw positive growth in exported R&D,

but those exports were not to other European countries.
% Change in R&D Spending in France
2007-2015
French HQ Firms R&D Export

Allocation
% Change
$10
50%
45%
46%
0%
40%
35%
30%
$14
12%
Rest of World
26%
Asia
29%
Europe
29%
25%
20%
15%
32%
10%
5%
0%
North America replaced

Europe as the primary
destination for French
R&D.
-5%
-10%
-15%
-20%
-25%
38%
-21%
-20%
R&D Imported
R&D by Domestic
Companies
33%
North America
R&D Exported
2007
2015
Strategy& | PwC
October 2015
30
R&D professionals ranked access to talent and proximity to

customers as top factors in choosing where to conduct R&D
The Most Important Attributes When Considering Where to Conduct Your R&D
n = 369
100%
90%
80%
71%
70%
68%
64%
60%
56%
50%
44%
38%
40%
34%
30%
20%
10%
0%
Access to
Technical Talent
Proximity to
Customers
Insight into Local

Market Needs
Operating Costs
Labor Costs
Software Design
Tax Advantages
Strategy& | PwC
October 2015
31
R&D professionals ranked attributes related to managing

employees most challenging when conducting R&D abroad
The Most Challenging Attributes When Conducting R&D Outside of Home Country
n = 369
100%
90%
80%
70%
60%
53%
51%
50%
47%
43%
41%
39%
Risk/Project
Management
Managing Cultural
Differences
Focus on Profitability*
40%
30%
20%
10%
0%
Finding/Retaining
Talent
Intellectual
Property Protection
Quality and
Customer Focus
* Focus on profitability includes those who voted for Currency risk and Return on investment
Strategy& | PwC
October 2015
32
In both 2007 and 2015, companies investing in R&D globally

performed ~20% better over local R&D spenders
Global R&D vs. Local R&D Driven
Median of OI CAGR, Op Margin, and ROA
2007
2015
1.3
1.3
1.0
1.0
1.0
0.9
3Y Op Income 3Y Op Margin
CAGR
Global
Discussion
1.3
1.2
3Y Return
on Assets
Industry Indexed Median Values
1.2
1.0
1.0
1.0
Global R&D Driven

companies invest more
than 60% of their R&D
spend on facilities
outside their home
country annually.
Local R&D Driven
companies invest less
than 60% of R&D
spend on facilities
outside their home
country annually.
5Y Op Income 5Y Op Margin
CAGR
5Y Return
on Assets
Local

Note: In 2015, 38.57% is the median R&D spend at home among the universe of 207 companies studied; % of R&D spend in home countries ranges from 0 to 100%; Companies selected for the study are
top 100 R&D spenders overall, the top 50 spenders in Auto, C&E and Health, and the top 20 in industrials and software.
Strategy& | PwC
October 2015
33
Unlike in 2007, companies with more dispersed R&D

footprints now outperform companies with focused ones
Highly Focused vs. Dispersed R&D Footprints
Median of OI CAGR, TSR, and Market Cap CAGR
2007
2015
1.4
1.1
1.3
1.0
3Y Op Income
CAGR
1.0
3Y TSR
Highly Focused
Discussion
1.2
1.0
3Y Market
Cap CAGR
1.3
1.0
1.0
1.1
1.0
Highly Focused R&D

Footprint players have
the smallest number
of R&D sites, after
indexing against
sales.
Dispersed R&D
Footprint players have
a widespread network
of R&D locations.
5Y Op Income
CAGR
5Y TSR
5Y Market
Cap CAGR
Dispersed

Note: In 2015, highly focused R&D footprint companies have less than 1.3 sales indexed R&D location, (1.3 representing the 25% percentile in the universe of 207 companies); Number of indexed R&D
locations range from 0.03 to 40.77; Dispersed R&D Footprint companies have more than 1.3 sales indexed R&D location.
Strategy& | PwC
October 2015
34
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information on the annual
Strategy& Global Innovation 1000
study
Please visit:
www.strategyand.pwc.com/innovation1000
For media or other inquiries, please contact:

Kiran Chauhan
+1 416 890 8695
kiran.chauhan@ca.pwc.com
Strategy& | PwC
October 2015
35
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Strategy& | PwC
October 2015
36

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October 2015

is a principal with Strategy&, PwCs

is a principal with Strategy&, PwCs

is a principal with PwC US, and

For the 11th year Strategy&, PwCs strategy consulting

The study has become a recognized contributor in better

Global Innovation 1000:

Called the most comprehensive

In addition to performing our annual R&D spending

The Globalization of R&D

Annual R&D spending across the 1,000 largest R&D

How much and where in the world are companies

R&D spending by region and industry (absolute

How regional spending has changed since we last

R&D intensity (spending as a percent of revenue)

Higher R&D spend doesnt ensure performance

The Performance Disconnect

Net profit growth

however, there is a minimum threshold you can be Too

Indexed Middle 80%

Indexed Top 10%

In 2015, R&D spending by the Global Innovation 1000 saw the

Global Innovation 1000 R&D Intensity (Spending as a Percent of Revenue)

Computing & electronics, healthcare, and auto continue to be

Computing and Electronics

Software & Internet passed industrials and healthcare is

Computing and Electronics

Software and Internet

Aerospace and Defense

Apple made its first-ever appearance in the Top 20 R&D

2015 R&D Spending ($B)

Computing and Electronics

Computing and Electronics

Johnson & Johnson

Computing and Electronics

Computing and Electronics

Honda fell to #21, IBM fell to #26,

Apple & Google continue to lead the Most Innovative list,

Procter & Gamble

Procter & Gamble

Procter & Gamble Procter & Gamble

As in previous years, the 10 Most Innovative Companies

10 Most Innovative Companies

The largest spenders by region have remained the same, but

Corporate In-Region (Domestic &

2007 & 2015 $US Billions

2007 & 2015 $US Billions

In 2015, almost half of

Source: Strategy& 2015 Global Innovation 1000 analysis

Leading the way for Asia was China, which is closing in on

Imported R&D by Country

2007 & 2015 $US Billions

Source: Strategy& 2015 Global Innovation 1000 analysis

R&D professionals ranked strategic reasons higher than cost

What Are the Benefits of Moving R&D Functions to China?

Proximity to Key Proximity to

The U.S. remains the largest in-country R&D spender...

In-Country (Domestic & Imported) R&D

Source: Strategy& 2015 Global Innovation 1000 analysis

however, its lead against key Asian countries is eroding

Source: Strategy& 2015 Global Innovation 1000 analysis

U.S. firms significantly increased R&D performed in low-cost

Top 7 Countries That the U.S. Exported R&D to

2007 & 2015 $US Billions