The investment that builds intangible value: research

When budgets tighten, research is often the first to go. By some, it is seen as an expense - a cost centre rather than a growth engine. Visionary companies, however, do not see research as another expense but rather an investment in the future, and in the intangible assets that define a company’s worth.

Why research matters for value creation

Today, intangible assets including intellectual property, patents, proprietary technology, and brand equity, make up the majority of market capitalization for leading companies. These assets do not appear overnight. They are the result of sustained research and development. Every breakthrough algorithm, every patented material, every life-saving therapy begins with research.

When you cut research, you are not just trimming costs, you are eroding the foundation of your competitiveness.

Who gets it right?

Companies that dominate their industries have invested heavily in research:

• Shopify is one of the leaders in R&D spending in Canada.

• Amazon invests over $85 billion annually in R&D to advance AI, logistics, and cloud computing.

• Alphabet (Google) channels billions into next-gen computing and autonomous systems.

• Apple, Microsoft, and Samsung consistently lead in hardware, software, and semiconductor innovation.

• In healthcare, Roche, Merck, and Johnson & Johnson invest heavily to develop life-saving therapies.

  
  

These organizations understand that research builds intellectual property, strengthens competitive advantage, and drives shareholder value. It is not only about short-term profits - it is about shaping the next frontier of products and services.

Importantly, it is important to know that not all research is created equal. Understanding which research areas are pertinent and finding the right researchers is pivotal.

The strategic lens

If you see research as a cost, you will cut it when times get tough. If you see it as an investment in intangible value, you will protect it because it’s the engine of your future growth. Research is what transforms ideas into assets, and assets into market leadership. Not every research effort results in a profitable product or service, but when it does, the impact is transformative.

The question is: How does your organization frame research: expense or investment? And what would change if you treated it as the ultimate growth strategy?

The W&W Team

Sources:

• Amazon, 10K form, SEC

• Alphabet, 10K form, SEC

• Apple, 10K form, SEC