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We live in a time where technology is growing super fast. Big companies, especially those listed on the Nasdaq (which is like a big list of tech companies), are spending a lot of money on research and development (R&D) to stay ahead of the game. Here, we’ll look at the ten biggest companies on the Nasdaq and how much they’re spending on R&D.

Wall Street Sign in Manhattan, New York

How R&D Spending Has Changed

Over the past ten years, big companies on the Nasdaq have been spending more and more on R&D. Take Apple, for example; they went from spending $3 billion to a massive $26 billion on R&D. This shows that companies are investing a lot in new tech, especially because of things like artificial intelligence that are changing the way we live and work.

The Big Spenders on R&D

Here’s a list of the top 10 Nasdaq companies and how much they spent on R&D in 2022:

  1. Amazon: Spent $73.2 billion
  • What they’re working on: Everything from computer programs to self-driving cars.
  1. Alphabet (the company that owns Google): Spent $39.5 billion
  • What they’re working on: Lots of tech projects to stay ahead.
  1. Meta (used to be Facebook): Spent $35.3 billion
  • What they’re working on: Creating AI and moving away from the metaverse.
  1. Apple: Spent $27.7 billion
  • What they’re working on: All sorts of new tech to keep being cool.
  1. Microsoft: Spent $26.6 billion
  • What they’re working on: New tech stuff to keep being relevant.
  1. Nvidia: Spent $7.3 billion
  • What they’re working on: AI, learning machines, and robots.
  1. Broadcom: Spent $4.9 billion
  • What they’re working on: Different tech projects.
  1. ASML: Spent $3.3 billion
  • What they’re working on: Bettering computer chip technology.
  1. Tesla: Spent $3.1 billion
  • What they’re working on: Electric cars and green energy.
  1. PepsiCo: Spent $0.8 billion
  • What they’re working on: New products, even if they’re not a tech company.

Other Big R&D Spenders Around the World

It’s not just Nasdaq companies. Businesses all over the world are spending big on R&D. Here are some of the top ones and how much more they spent in 2022 compared to 2021:

  1. BYD (from China): Increased spending by 133%
  • What they’re working on: Electric cars and a new kind of battery.
  1. AMD: Increased spending by 76%
  • What they’re working on: Better computers.
  1. Moderna: Increased spending by 65%
  • What they’re working on: Important vaccines.

… and the list goes on.

Wrapping it Up

In simple words, big companies are putting a lot of money into creating new things and improving their products. From 2000 to 2020, the money spent on R&D in the world went from being a lot to being super, super lot: $2.4 trillion!

To end, these top companies are not just using new inventions; they’re making them. They’re pushing us into a future where anything seems possible, and where the only thing that stays the same is that everything keeps changing.

Stock market chart on digital tablet pc

FAQ (Frequently Asked Questions) for the Article

Q1: What is R&D?

Answer: R&D stands for Research and Development. It’s the process where companies invest money and time to create new products, improve existing ones, or find new ways of doing things.

Q2: Why are companies spending so much on R&D?

Answer: Companies spend on R&D to stay competitive, innovate, and keep up with the fast-changing world of technology. By investing in R&D, they hope to find the next big thing, improve their products, and meet the needs of their customers.

Q3: What’s the Nasdaq?

Answer: The Nasdaq is like a big list (or stock exchange) mainly for tech companies. It’s where these companies’ stocks are bought and sold. Companies like Apple, Amazon, and Google (Alphabet) are part of this list.

Q4: How has Apple’s R&D spending changed over the years?

Answer: In the past ten years, Apple increased its R&D spending from billion to a whopping billion, showing just how much they’re investing in new tech and ideas.

Q5: Why is PepsiCo on the list if they’re not a tech company?

Answer: Even though PepsiCo is mainly known for food and beverages, they still invest in R&D to create new products or improve the ones they have. This shows that R&D isn’t just for tech companies!

Q6: Which company increased its R&D spending the most from 2021 to 2022?

Answer: BYD, a company from China focusing on electric cars, increased its R&D spending by a massive 133% compared to the previous year.

Q7: What are some areas of focus in R&D for these companies?

Answer: The areas of focus vary. For instance, Amazon is into everything from software to self-driving cars, while Nvidia is looking into AI, learning machines, and robotics. Each company has its unique areas they’re exploring.

Q8: How much did global R&D spending grow between 2000 and 2020?

Answer: From 2000 to 2020, global R&D spending grew massively, going up to $2.4 trillion. That’s a lot of money invested in innovation!

Q9: What’s the metaverse that Meta (previously Facebook) was involved in?

Answer: The metaverse is a virtual reality space where users can interact with computer-generated environments and other users. Think of it as an immersive 3D internet. However, Meta has since shifted some of its focus to generative AI.

Q10: Why is R&D important for the future?

Answer: R&D is crucial for driving progress, coming up with new innovations, and ensuring companies can meet the challenges of the future. As technology and customer needs change, R&D helps companies stay ahead of the curve.

Sources Visual Capitalist

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