ServiceNow, Inc. or Telefonaktiebolaget LM Ericsson (publ): Who Invests More in Innovation?

Innovation Investment: A Tale of Two Giants

In the ever-evolving tech landscape, innovation is the lifeblood of success. ServiceNow, Inc. and Telefonaktiebolaget LM Ericsson (publ) are two titans in this arena, each with a distinct approach to research and development (R&D) investment. From 2014 to 2023, ServiceNow's R&D expenses surged by over 1,600%, reflecting its aggressive growth strategy. In contrast, Ericsson's R&D spending, though consistently high, grew by approximately 43% over the same period, underscoring its commitment to maintaining a robust innovation pipeline.

While ServiceNow's R&D investment reached $2.5 billion in 2024, Ericsson's data for the same year remains undisclosed, leaving room for speculation. This comparison highlights the dynamic strategies of these industry leaders, with ServiceNow focusing on rapid expansion and Ericsson on steady innovation. As the tech world continues to evolve, these investment patterns offer a glimpse into the future of technological advancement.