December 2004

Special Report: R&D '04

Continued from page 5

By Technology Review

The Innovation Index, as calculated by Technology Review, takes into account not only the size of a company's R&D budget but also its increase in spending and the amount spent in relation to sales. Nonetheless, the second-largest R&D spender, Pfizer, comes out at the head of the pack.
Rank by Innovation Index	Company	Innovation Index	R&D 2003 ($Mil)	R&D percent change	Absolute change in R&D spending ($Mil)	R&D as a percent of sales
1	PFIZER	$178	$7,131	38%	$1,955	16%
2	AMGEN	$149	$1,655	48%	$539	20%
3	NOKIA	$146	$4,514	23%	$850	13%
4	JOHNSON and JOHNSON	$141	$4,684	18%	$727	11%
5	BMC SOFTWARE	$138	$586	20%	$96	41%
6	VOLKSWAGEN	$138	$4,233	22%	$762	4%
7	SONY	$136	$4,683	16%	$649	7%
8	MERCK (U.S.)	$135	$3,178	19%	$501	14%
9	SERONO	$134	$468	31%	$110	25%
10	ASTRAZENECA	$134	$3,451	12%	$382	18%
11	MICROSOFT	$133	$4,659	8%	$352	14%
12	ROCHE	$133	$3,694	12%	$396	15%
13	NOVARTIS	$133	$3,756	12%	$394	15%
14	INTEL	$132	$4,360	8%	$326	14%
15	NISSAN MOTOR	$129	$3,225	18%	$491	5%
The Innovation Index is calculated by indexing each of the four R&D measures shown to the highest-performing company and then creating a combined, unweighted average. Source: Standard and Poor's, Technology Review