Once again, Nortel topped Canada’s R&D spending list with $2.25-billion in 2005 even though this was a 12% drop from 2004, according to Research Infosource Inc. This placed it well ahead Bell Canada, which was second with $1.74-billion. Overall, the 100 biggest companies spent $12-billion, a 4.9% increase. “The R&D outlook is optimistic,” Ron Freeman, CEO with Research Infosource. “Spending has increased at over two-thirds of the top 100 companies, and in many instances, growth in R&D investments, exceeds revenue growth.” Not that it’s relevant to Nortel or the telecom sector but Microsoft plans to spend $7.5-billion on R&D this year, $1.3-billion more than expectations.
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All Nortel, All the Time 
October 20, 2006 at 7:23 pm |
They boasted cutting R&D for so long then R&D spending was left intact. Why? I wonder why the change of heart.
Another contradiction was their failing to provide a long awaited plan(right after promising one “next week” a while ago). Instead a plan will be made up as they go along they said, on the fly, shooting from the hip, directionless.
Also, how can they assess injecting funds into R&D with evidently weak financial controls given their recent dramatic revisions (worse by the week, doubling intial estimates).
Perhaps the change of heart to maintain a high budget R&D it is all part and parcell of the ongoing theatrics to look like they are doing something /anything, in desperation, directionless as they sell all assets to the point of selling business while maintaining a huge inefficient non-profit hobby white elephant R&D. How long can they keep printing Nortel paper to pay for all of this is beyond me. Closing loopholes in bond applications requiring pensions be listed now doesn’t help either.
Now what? WiMax /IPTV / assimilting Voice into others server software in areas others control, dominate, or that will accompany no substantial returns as they learn lessons directionless?