Manufacturing Companies Continue to Focus on Research and Development Even during the Coronavirus Crisis

Expenditure on research and development (R&D) is essential for a company’s competitive position and its (long-term) success. Moreover, R&D plays a very important role for the long-term production potential of an economy. Based on the ifo Business Survey, this article shows that, on the one hand, the number of manufacturing companies engaging in innovation actually increased slightly in 2020 despite the economic crisis. On the other hand, R&D expenditure as a proportion of sales has slightly decreased. However, this should be seen against the background of possible declines in sales in manufacturing as a whole. It is to be expected that overall R&D spending in 2020 will probably not be able to continue the increases seen in previous years. However, a slump is not to be expected.