Siemens CEO Joe Kaeser right German Chancellor Angela Merkel center German Federal Press Office, Getty Images

Professor Karl-Heinz Büttner, left, the head of the Siemens plant in Amberg and company CEO Joe Kaeser, right, talk German Chancellor Angela Merkel through the process of printing a circuit board during her visit to the Siemens AG Electronics Manufacturing Plant.

Siemens Earmarks Nearly 5 Billion Euros for 2016 R&D

The German engineering powerhouse will increase its research and development spending almost 7%, though the bigger news is its plans to build a new research center in China.

FRANKFURT, Germany — Engineering giant Siemens announced plans Tuesday to increase spending in research and development to close to 5 billion euros next year and to open a new research center in China. 

“In 2016, Siemens will invest around 4.8 billion euros ($5.23 billion) in research and development, some 300 million euros ($326.60 million) more than last fiscal year,” Siemens said in a statement. R&D spending had therefore increased by about 20% since 2014, the statement said.

“In fiscal 2015, research intensity — defined as the ratio of R&D expenditures to revenue — was 5.9%, an increase of 0.3 percentage points over the prior year.” 

As part of a move to expand its R&D collaborations with top universities, Siemens said it would establish a new research center on the campus of Munich’s Technical University that would “focus on everything from IT security to autonomous systems.”

In addition, “Siemens will also establish a new innovation center in China. The more than 300 employees will conduct research in new digitalization solutions for both the Chinese and international markets.”

China is a key market for Siemens and the plans to build a new research center is a signal that the German giant is not being put off by the country’s economic slowdown.

Copyright Agence France-Presse, 2015

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish