Honda Leads Auto Industry R&D

TULLAMARINE AUSTRALIA - November 16, 2009: Honda Motor Co. leads the car manufacturing industry in research and development, according to a report from consulting firm Booz and Co.

The report shows that five of the world’s top 20 R&D spenders for 2008 are car companies, with Honda recording the highest proportion of dollars spent versus sales.

According to the report, Honda has a total R&D spend of USD$5.6 billion or 5.6 per cent of sales, the highest of any major manufacturer.

The report also shows that while manufacturers and part suppliers make up just eight percent of corporate R&D spenders, they account for 16 per cent of the total R&D spend. Despite 60 per cent of manufacturers reducing this cost during 2008, the survey reports that the industry increased overall R&D investment by 0.6 per cent to USD$86 billion.

The report indicates that companies have become more targeted in their R&D spend, choosing to focus on projects with a greater expected return on investment as well as develop products for growth markets.

The automotive industry joined the computing and electronics as well as the health industry in comprising two thirds of total R&D spend for the Global Innovation 1000, estimated at USD$528 billion by Booz and Co.