70% of scientific research expenditures of global enterprises wasted

It is reported that the large-scale enterprises often invested a great sum of money to launch new technology. According to the latest survey concerns scientific research, about 70% of the expenditure is not applied in the right matters.

scienticfic research

A survey made by Genpact Research Institute shows that American enterprises invested about $600 billion on digital business, while about$400 billion projects did not meet the expectation. In fact, the enterprises invest much of money in IT industry is to maintain their existing or outdated systems instead of purchasing new technology.

Gartner’s data suggested that the scale of global technical expenditure is about $ 400 billion, estimating 5% decline compared with last year. The enterprises put much money on those projects do not perform well. Gartner suggests the enterprises should make strict budget for investments. Wise investors should regularly note its expenditure and make adjustments for better investment.

Gianni Giacomelli, product innovation vice president of Genpact claimed that about 67% of the invested projects either abandoned or did not perform well in Cloud Computing, PPcloud and social technologies.

The silicon valley giants and big banks invested great sum in technologies and they are considered as the leading enterprises in their fields. The survey of Genpact implied that the technical expenditure did not meet its expectation.

Bernstein Research analyzed the report concerned the technical expenditure accounted for revenue ratios among 68 technical enterprises and drafted a chart related to their share prices. The more they put in technical expenditure, the higher risk will lead to declines of their share prices in five years.

Bernstein Research implied the launch research and development expenditures is not an ideal standard for share performance and innovation.

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