Strategy; Innovation One common measure of a firm’s efforts in innovation is the amount thefirm spends on research and development and capital spending (new plant and equipment) relativeto other expenditures. Based on U.S. firms in the Standard & Poor’s 500 stock index, innovationmeasured in this way differs significantly among industries. The highest rates of innovation are insoftware and services, semiconductors, drugs, biotech, and technology hardware. Somewhat lowerlevels of innovation are seen in the food and beverage, consumer goods, household products, andautomobile industries.Required Comment on the differences observed above from a strategic point of view.

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
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Strategy; Innovation One common measure of a firm’s efforts in innovation is the amount the
firm spends on research and development and capital spending (new plant and equipment) relative
to other expenditures. Based on U.S. firms in the Standard & Poor’s 500 stock index, innovation
measured in this way differs significantly among industries. The highest rates of innovation are in
software and services, semiconductors, drugs, biotech, and technology hardware. Somewhat lower
levels of innovation are seen in the food and beverage, consumer goods, household products, and
automobile industries.
Required Comment on the differences observed above from a strategic point of view.

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