Alphabet the parent company of Google and its subsidiaries has seen a monstrous growth in the annual revenue for the past decade and one of the main reasons behind that is its research and development efforts to make its products and services the best they can be. Almost all the top technology companies spend a hefty amount of money on creating and developing the next version of a possible consumer product that can be launched into the global mass market.
One of the ways all these companies do this is by allocating a percentage of their annual revenue or profit to the research and development team.
And, in this blog post, I want to discuss and list out the data set of Alphabet’s research and development cost for every year from 2013 to up until 2020.
Down below is the visual graph with the amount of money the company has spent for the past seven or so years. Note: The numbers are in millions of U.S. dollars.
As it is visible from the above given graphic representation of data Alphabet has been spending really huge sums of money behind experimental and new types of technological advancements.
Now, as a result of that, the company would have also got a very high number of crucial technology patents to help their business have an edge over competitors of all sizes.
Alphabet's annual expenditure towards research and development has gone from a mere $7.1 billion U.S. dollars to a mind-boggling $27.5 billion U.S. dollars as of 2020.
Even though for us outsiders it may look like a lot of money to put towards the process of research and development. This in fact is the real price that these big tech companies need to pay to stay ahead in their game of business not just to thrive but also just to survive sometimes.
And failing to do so can very easily make a technology company go from being a market leader to a business with a bunch of competitors.
If you look at almost all of the technology companies that failed over time they would have not given much attention to their company’s core research aspects.
On the other hand, the one who constantly prioritizes the innovation part of their business continues to grow and dominate the market in a fast-evolving world from all possible angles.
Thank you for reading this, and God Bless Everyone.
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Bio: Genius, Polymath, Entrepreneur, Philosopher.