When it comes to technology, innovation holds the key, In today’s age if a tech company doesn’t innovate it will soon end up being a dinosaur and conversely, innovation can also bring back an erstwhile dinosaur (remember Apple Inc. (NASDAQ:AAPL)?) to the forefront of technology. So, which are the companies that rank highly when it comes to Research & Development spending and innovation? Most of you will answer tech companies, but as CNBC showed in its RQ 50 ranking, tech companies don’t lead the innovation game. The first company from the tech sector that appears in the list is Amazon.com, Inc. (NASDAQ:AMZN), which comes as fourth.
Amazon.com, Inc. (NASDAQ:AMZN) is the top company from the tech space in the list with 2013 R&D expense of $6.565 Billion, which constituted 8.82%of its revenues. Amazon.com, Inc. (NASDAQ:AMZN) is expected to increase its revenue by $1.718 billion due to its R&D spending.
McKesson Corporation (NYSE:MCK) tops CNBC’s RQ 50 ranking. Other tech companies that found a mention in the rankings include Silicon Laboratories (NASDAQ:SLAB) on the fifth spot, Advanced Micro Devices, Inc. (NYSE:AMD) on the seventh position, followed by SanDisk Corporation (NASDAQ:SNDK) and Informatica Corporation(NASDAQ:INFA) on the eighth and ninth spots.
CNBC partnered with Washington University in St. Louis business school professor Anne Marie Knott, who specializes in innovation, to develop a list of publicly-held U.S. companies investing $100 million or more in R&D. It then ranked their research quotient (RQ): the measure of R&D productivity that links R&D spending to corporate revenue growth and market value. Companies are ranked based on ability to increase revenue from R&D, not the absolute dollar value of projected revenue increase.