[analogwzrd]

What does the average company spend on R&D percentage-wise?

My old company was a contract engineering company, so they always tried to staff everyone possible on projects being paid for by customers. R&D was used to develop internal tech and build expertise on new technologies so it was only maybe 10-25% of most engineer's timesheets.

Do other tech companies spend that much more on R&D?

[mike_hearn]

Tech companies routinely report nearly their entire engineering division as R&D for tax purposes.

[ryanSrich]

From what I recall, the tax credit is used for products that aren't yet available to the market.

So let's say a company needs 5 years to build some new hardware. Those 5 years of labor and expenses are all R&D.

I think that's why this is such a big deal. I could be wrong though.

[sciencesama]

in general they can balloon the r&d and can have a huge tax write off !!