According to a recent article featured in Bloomberg, although there was a cut in research costs in 2009, a report finds that investment has seen a gradual increase in the last two years, going up by 9% in 2011. With the financial slowdown, companies were in deep cost-cutting mode in 2009, but became cautiously optimistic in 2010, eventually allowing the increase of spending in 2011, say the report authors, Giovannetti and Jaggi. They hypothesize that “the financial performance of publicly traded companies is more robust than at any time since the onset of the global financial crisis.”
To read the article from Bloomberg, click here. To read Giovannetti and Jaggi’s report, click here.