As she unveiled Hewlett-Packard's
Indeed, the world's top tech companies are cranking up R&D spending. That's great news for shareholders of HP, IBM
Face it, R&D matters. These days, most technology has a shelf life of a banana. Firms that can keep fresh products coming out of the development pipeline will be better positioned to attract more customers. When times are tough, companies can be tempted to cut back. Fools, take note: Those that cut R&D are in danger of saving today at the cost of growth tomorrow.
Believe it or not, networking giant Cisco Systems
But other technology names could be in danger of shortchanging R&D.
Lucent Technologies
Then, there's Sun Microsystems
Sure, R&D expenditures do not tell investors everything. If it's misdirected, R&D won't have the desired payoff. That said, it's hard not to think that the odds of future profits are better for technology companies that boost R&D than those that slash it. The players that underinvest in R&D tend to get hurt.
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Motley Fool contributor Ben McClure hails from the Great White North. He doesn't own any shares of companies mentioned here.