Technology is a major driving force for growth in the U.S. economy. Advancements in technology, and new products based on that technology, derive mainly from the research and development activities carried out in government, academic and private sector R&D facilities across the country.
It is self-evident that R&D is indispensable to any manufacturer of the high-tech products that are literally born in R&D labs. Past examples include lasers, transistors and optical fiber-transformational technologies that came out of the research centers of, respectively, Hughes Aircraft, Bell Labs and Corning Glass Works. Today, Medtronic Inc. spends $1 billion a year on R&D, which represents 9.5 percent of sales. Revenue growth at this medical device manufacturer is driven by new product introductions-approximately two-thirds of Medtronic's gross revenue is derived from products introduced within the past 2 years.