Unequivocally the answer is No for the vast majority of firms, especially in the technology sector.  A recent study reported that the stock price appreciation of technology companies in the lowest third of R&D spending have consistently outperformed companies in the highest third over one-, three-, five-, and ten-year periods since 1977, with a five-year average outperformance of eight percent.  22  In the huge recent study, some huge R&D under-spenders whose stock price significantly outperformed were Micron Technology, Seagate Technology, Western Digital, and Apple.  The study reported in Investor’s Business Daily accents the need to formulate and implement an effective R&D spending strategy consistent with overall corporate strategy and objectives.

22  Patrick Seitz, “Largest Tech R&D Spenders Not Top Stock Performers,” Investor’s Business Daily, July 8, 2014, A5.