BSE 100 companies are driving R&D spending, but innovation challenges remain

Research and development (R&D) expenditure by BSE 100 companies has grown steadily, from 0.89 percent of revenue in FY20 to 1.32 percent in FY24, with an average of around 1 percent in the intervening period, according to data from Bloomberg and company annual reports.

Moreover, these companies have more than doubled their R&D expenditure in absolute terms in the last five years, from Rs 25,041 crore to Rs 63,072 crore.

While this reflects the priority given to innovation, companies’ R&D investments remain relatively conservative. Experts note that only a handful of companies have significantly increased their R&D spending, suggesting that