Global Chemical R&D investment grows strongly

Sinochem New Network News US Chemical Weekly released on December 19, 2011, the world's top 50 chemical industry R & D rankings, in order to enter the company's 2010 chemical R & D investment rankings. The list shows that the R&D investment of the top 50 companies in 2010 increased by an average of 7.3% compared to 2009, and that the R&D investment of these companies in 2009 fell by an average of 1.7% from 2008. The data shows that chemical companies were more pessimistic about the outlook in early 2009. With the recovery of the global economy in 2010, chemical companies have increased their confidence in the future and increased their R&D spending.

Dow Chemical Corporation topped the list with US$1.66 billion in chemical R&D investment (3% of sales revenue), followed by DuPont ($1.651 billion, 5% of sales revenue) and Mitsubishi Chemicals (Japan). US$1.597 billion, which accounted for 4% of sales revenue, ranked third, Germany’s BASF Europe (15.15 billion US dollars, accounting for 2% of sales revenue) ranked fourth, and Germany’s Bayer AG (US$1.309 billion, accounting for 5). 6.5% of sales revenue, ranking sixth is the United States Monsanto Company (12.05 billion US dollars, accounting for 11% of sales revenue), ranking seventh is the Swiss Syngenta company (1.032 billion US dollars, accounting for 9% of sales revenue) The eighth-ranked company is Sumitomo Chemical Co., Ltd. (US$805 million, accounting for 4% of sales revenue). The ninth-ranked company is DSM Netherlands (US$568 million, 5% of sales revenue), ranking tenth. It is Japan Shin-Etsu Chemical Co. (450 million U.S. dollars, accounting for 4% of sales revenue).

The average proportion of R&D investment in sales revenue of chemical companies that were shortlisted in the rankings has changed little in the past few years. It was 3.4% in 2010, 3.6% in 2009, and 3.3% in 2008. Seven chemical companies in the top ten of this year's list have a large-scale agrochemical business. Only DSM, Mitsubishi Chemicals, and Sumitomo Chemical have a relatively small proportion of agrochemicals. The agrochemical company’s R&D investment accounted for the largest proportion of sales revenue. Monsanto Chemical Company is a pure agrochemical company. Its 2010 R&D investment accounted for 11% of sales revenue, followed closely by Swiss Syngenta. Companies, R&D investment accounted for 9% of sales revenue.

Flavors and spices are also R&D-intensive industries. International fragrances and fragrance companies accounted for 10% of sales revenue in 2010. Dexinxin’s R&D investment accounted for 7% of sales revenue. Givaudan’s R&D investment accounted for sales. 5% of income.

The number of U.S. chemical companies in this ranking is still number one. In this year's ranking, there are 20 U.S. companies that are short-listed. The second is the European company with 19 companies, of which 9 are German companies. Ranked third is the Japanese company, a total of nine short-listed.

According to the data provided by the American Chemical Industry Council (ACC), in 2010, the US R&D expenditures in the chemical industry increased by 13% over the previous year, exceeding the average growth rate of the top 50 chemical companies. According to ACC, in 2010, the US chemical industry (excluding the pharmaceutical industry) spent 13.4 billion U.S. dollars on research and development, and 11.9 billion U.S. dollars in 2009. In 2010, U.S. pharmaceutical industry spending on research and development was 42 billion U.S. dollars, and in 2009 it was 37.5 billion U.S. dollars. In 2010, the proportion of U.S. chemical companies’ investment in basic research in total R&D expenditures fell to 10.4%. In 2009, this proportion was 11.2%; the proportion of investment in applied research fields fell from 39.8% in 2009 to 2010. The proportion of investment in development areas increased from 49% in 2009 to 57.7% in 2010. In 2010, the number of patents related to chemistry and chemistry in the United States accounted for 20% of all patents.