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To: TomH7259 who wrote (247884)2/16/2008 2:46:52 AM
From: VattilaRespond to of 275872
 
> Intel's R&D spending went up in all 3 years 1997 to 1999

Of course, in absolute terms Intel's R&D rose each year. The company was growing. In fact, in the period 1990 to 1999 R&D rose from 517 million to 3111 million while net revenues went from 3921 million to 29389 million.

As a percentage of net revenue --- a more relevant measure --- the R&D was 8.7%, 9.4%, 9.5% and 10.6% for the years 1996 to 1999. That's yearly increases of 8%, 8%, 2% and 11%.

Interestingly, R&D as a percentage of net revenue fell in the period 1993 to 1995 (-17%, -13% and -17%) after a peak of 13.3% in 1992. In the same period, 1993 to 1995, Intel saw net revenue increases of 50%, 31% and 41%.

I leave it to the reader to speculate whether R&D spending was related to competition in these periods.

intel.com