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Some companies spend a lot on research and development to stay ahead in business. Booz & Company, a consultancy, has ranked firms based on R&D spending in 2013.
Let's take a look at companies that spend most on R&D in the world.
Source: Booz & Company
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Volkswagen
Industry: Automotive
Headquarters: Wolfsburg, Germany
Spending on R&D in 2013: $11.4 billion
Change in spending from 2012: 22.4 per cent
As a percentage of revenue: 4.6 per cent
Overall rank in 2013: 1
Overall rank in 2012: 11
Volkswagen, the third-biggest automaker in the world, posted revenue of 103.94 billion euros in 2012.
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Samsung
Industry: Computing and Electronics
Headquarters: Seoul, South Korea
Spending on R&D in 2013: $10.4 billion
Change in spending from 2012: 15.6 per cent
As a percentage of revenue: 5.8 per cent
Overall rank in 2013: 2
Overall rank in 2012: 6
Samsung, the largest business conglomerate in South Korea, posted revenue of $268.8 billion in 2012.
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Roche Holding
Industry: Healthcare
Headquarters: Basel, Switzerland
Spending on R&D in 2013: $10.2 billion
Change in spending from 2012: 14.7 per cent
As a percentage of revenue: 21.0 per cent
Overall rank in 2013: 3
Overall rank in 2012: 3
Roche Holding, a health-care company that has operations around the world, posted revenue of 42.53 billion Swiss franc in 2011.
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Intel
Industry: Computing and Electronics
Headquarters: California, United States
Spending on R&D in 2013: $10.1 billion
Change in spending from 2012: 21.5 per cent
As a percentage of revenue: 19.0 per cent
Overall rank in 2013: 4
Overall rank in 2012: 8
Intel, the largest semiconductor chip manufacturer in the world, posted revenue of $53.34 billion in 2012.
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Microsoft
Industry: Software and Internet
Headquarters: Washington, United States
Spending on R&D in 2013: $9.8 billion
Change in spending from 2012: 8.5 per cent
As a percentage of revenue: 13.3 per cent
Overall rank in 2013: 5
Overall rank in 2012: 5
Microsoft, which was founded in 1975, posted revenue of $77.85 billion in 2013.
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Toyota
Industry: Automotive
Headquarters: Aichi, Japan
Spending on R&D in 2013: $9.8 billion
Change in spending from 2012: 3.5 per cent
As a percentage of revenue: 3.7 per cent
Overall rank in 2013: 6
Overall rank in 2012: 1
Toyota, which was founded in 1937, posted revenue of 22.06 trillion Japanese yen in 2013.
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Novartis
Industry: Healthcare
Headquarters: Basel, Switzerland
Spending on R&D in 2013: $9.3 billion
Change in spending from 2012: Minus 2.6 per cent
As a percentage of revenue: 16.5 per cent
Overall rank in 2013: 7
Overall rank in 2012: 2
Novartis, which was founded in 1996, posted revenue of $58.56 billion in 2011.
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Merck
Industry: Healthcare
Headquarters: New Jersey, United States
Spending on R&D in 2013: $8.2 billion
Change in spending from 2012: Minus 3.5 per cent
As a percentage of revenue: 17.3 per cent
Overall rank in 2013: 8
Overall rank in 2012: 7
Merck, which was founded in 1917, posted revenue of $48.04 billion in 2011.
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Pfizer
Industry: Healthcare
Headquarters: New York City, United States
Spending on R&D in 2013: $7.9 billion
Change in spending from 2012: Minus 13.3 per cent
As a percentage of revenue: 13.3 per cent
Overall rank in 2013: 9
Overall rank in 2012: 4
Pfizer, which was founded in 1849, posted revenue of $58.98 billion in 2012.
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Johnson & Johnson
Industry: Healthcare
Headquarters: New York City, United States
Spending on R&D in 2013: $7.7 billion
Change in spending from 2012: 1.6 per cent
As a percentage of revenue: 11.4 per cent
Overall rank in 2013: 10
Overall rank in 2012: 12
Johnson & Johnson, which was founded in 1886, posted revenue of $65.03 billion in 2012.
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General Motors
Industry: Automaker
Headquarters: Michigan, United States
Spending on R&D in 2013: $7.4 billion
Change in spending from 2012: Minus 9.3 per cent
As a percentage of revenue: 4.8 per cent
Overall rank in 2013: 11
Overall rank in 2012: 9
General Motors, which was founded in 1908, posted revenue of $150.27 billion in 2011.
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Industry: Software and Internet
Headquarters: California, United States
Spending on R&D in 2013: $6.8 billion
Change in spending from 2012: 31.6 per cent
As a percentage of revenue: 13.5 per cent
Overall rank in 2013: 12
Overall rank in 2012: 26
Google, which was founded in 1998, posted revenue of $10.74 billion in 2012.
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Honda
Industry: Automaker
Headquarters: Tokyo, Japan
Spending on R&D in 2013: $6.8 billion
Change in spending from 2012: 7.8 per cent
As a percentage of revenue: 5.7 per cent
Overall rank in 2013: 13
Overall rank in 2012: 15
Honda, which was founded in 1948, posted revenue of 9.87 trillion Japanese yen in 2013.
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Daimler
Industry: Automaker
Headquarters: Stuttgart, Germany
Spending on R&D in 2013: $6.6 billion
Change in spending from 2012: 3.2 per cent
As a percentage of revenue: 4.5 per cent
Overall rank in 2013: 14
Overall rank in 2012: 19
Daimler, which was founded in 1998, posted revenue of 114.297 billion euros in 2012.
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Sanofi
Industry: Healthcare
Headquarters: Paris, France
Spending on R&D in 2013: $6.3 billion
Change in spending from 2012: 2.3 per cent
As a percentage of revenue: 14.1 per cent
Overall rank in 2013: 15
Overall rank in 2012: 13
Sanofi, a multinational pharmaceutical company, posted revenue of 33.38 billion euros in 2011.
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IBM
Industry: Computing and Electronics
Headquarters: New York, United States
Spending on R&D in 2013: $6.3 billion
Change in spending from 2012: 0.7 per cent
As a percentage of revenue: 6.0 per cent
Overall rank in 2013: 16
Overall rank in 2012: 17
IBM, which was founded in 1911, posted revenue of $104.5 billion in 2012.
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GlaxoSmithKline
Industry: Healthcare
Headquarters: Brentford, United Kingdom
Spending on R&D in 2013: $6.3 billion
Change in spending from 2012: Minus 1.0 per cent
As a percentage of revenue: 15.0 per cent
Overall rank in 2013: 17
Overall rank in 2012: 16
GlaxoSmithKline, which was founded in 2000, posted revenue of 26.431 billion British pounds in 2012.
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Nokia
Industry: Computing and Electronics
Headquarters: Espoo, Finland
Spending on R&D in 2013: $6.1 billion
Change in spending from 2012: Minus 14.4 per cent
As a percentage of revenue: 15.8 per cent
Overall rank in 2013: 18
Overall rank in 2012: 10
Nokia, which employs 101,982 people across 120 countries, posted revenue of 30.17 billion euros in 2012.
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Panasonic
Industry: Computing and Electronics
Headquarters: Osaka, Japan
Spending on R&D in 2013: $6.1 billion
Change in spending from 2012: Minus 3.5 per cent
As a percentage of revenue: 6.9 per cent
Overall rank in 2013: 19
Overall rank in 2012: 14
Panasonic, which was founded in 1918, posted revenue of 7.30 trillion Japanese yen in 2013.
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Sony
Industry: Computing and Electronics
Headquarters: Osaka, Japan
Spending on R&D in 2013: $5.7 billion
Change in spending from 2012: 9.3 per cent
As a percentage of revenue: 7.0 per cent
Overall rank in 2013: 20
Overall rank in 2012: 21
Sony, which was founded in 1958, posted revenue of $72.349 billion in 2013.