Strategic R&D Investments: Salesforce vs. Ericsson

In the ever-evolving tech landscape, strategic investments in research and development (R&D) are pivotal for innovation and growth. Over the past decade, Salesforce, Inc. and Telefonaktiebolaget LM Ericsson (publ) have demonstrated contrasting approaches to R&D spending. From 2014 to 2023, Salesforce's R&D expenses surged by over 700%, reflecting its commitment to expanding its cloud-based solutions. In contrast, Ericsson's R&D spending, while consistently high, grew by approximately 43%, underscoring its focus on maintaining a stronghold in telecommunications.

A Decade of Growth

Salesforce's R&D expenditure increased from $623 million in 2014 to a peak of $5.1 billion in 2023, before slightly declining in 2024. Meanwhile, Ericsson's investment reached a high of $51.8 billion in 2023. This disparity highlights Salesforce's aggressive growth strategy compared to Ericsson's steady innovation pace. Notably, data for Ericsson in 2024 is unavailable, suggesting potential shifts in strategy or reporting.