Google research budget will be twice as large as DARPA in 2012
Google reported revenues of $10.65 billion for the first quarter which ended March 31, 2012, an increase of 24% compared to the first quarter of 2011 ($8.58 billion). But minus traffic acquisition costs, Google pulled in $8.14 billion in revenue. Google spent about $1.5 billion on research and development. Google spent about 18% of revenue (after traffic acquisition) on research and development.
In the last quarter of 2011, top US public companies for R&D spending were:
Microsoft $2.517 billion
Intel $2.401 billion
IBM $1.6 billion
Google $1.44 billion
Oracle $1.226 billion
Apple $842 million
Darpa has an annual budget of about $3.2 billion which is a quarterly budget of $800 million.
Microsoft and Intel are each over three times the R&D budget of DARPA.
I expect Google to increase its R&D to match its 24% growth. This should put Google ahead of IBM in R&D spending in 2012. If Google is able to maintain growth then in 2014 it could have the largest R&D spending.
Intel, IBM and Microsoft have had relatively little revenue growth. Microsoft did have about 4.5-6% revenue growth in its first quarter. Intel and IBM have had flat revenue.
Internet advertising is still projected to grow in the double digits each year.
The Battelle-R&D Magazine annual Global R&D Funding Forecast released today shows global research and development (R&D) spending is expected to grow by about 5.2 percent in 2012 to more than $1.4 trillion.
Experts from Battelle and R&D Magazine forecast that a 2.1 percent growth in United States R&D expenditures will be balanced against an estimated 2 percent inflation rate, suggesting that U.S. R&D investments will remain flat in real terms over the next year. That $436 billion in forecasted spending is expected to be broken down in the following way:
* U.S. Private Industry will spend by far the largest amount with a projection of $279.6 billion in R&D in 2012, up 3.75 percent over 2011.
*U.S. Federal Government spending will reach $125.6 billion in 2012, a decrease of 1.16 percent.
* Academia in the U.S. will spend $12 billion on research in 2012, up 2.85 percent over last year.
* Non-profits will increase spending in 2012 by 2.7 percent to $14.5 billion and other government entities in the U.S. will round out total R&D expenditures by increasing 2.72 percent to $3.8 billion.
During the past two years, ICT-related manufacturing has been particularly volatile, with leading companies experiencing commercial dynamics following the introduction of new products arising from R&D decisions. Despite these fluctuations the United States’ R&D spending in the ICT industry is forecast to increase by 9.9 percent, reaching $138.8 billion in 2012. This U.S. growth helps drive an overall global ICT industry growth of 4.1 percent to $238.5 billion.
Google’s Research is not yet translating to lots of Patents
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