Today, companies spend ten times more on research and development (R&D) than on marketing.
A recent study by Vijay Govindarajan, Shivaram Rajgopal and Anup Srivastava has established that companies now spend on R&D much more than before.
If in the 1970s, advertising costs were similar to R&D costs, these days companies, both small and large, spend more on R&D than on marketing.
Small companies are especially prone to innovation: their costs on engineering, technology and product development are ten times higher than on marketing.
Source: HBR
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