Nation of Beancounters

Good rebuttals

Posted in Innovation by Navin Kumar on December 3, 2012

Argument: Pharmaceutical companies do not innovate.

Proof: Expenditure on marketing is larger than expenditure on R&D


Apple spends more on marketing than on R&D but this doesn’t make Apple any less innovative … if the marketing budget were cut, revenues would fall. Marketing drives sales and (expected) sales drives R&D. [A person arguing this line] is like the financial expert who recommends that a family save money by selling its car forgetting that without a car it makes it much harder to get to work.

That’s Alex Tabarrok in fine form. Rest here.

Tagged with: , ,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: