Research & development per employee

Research & development per employee is a financial metric that measures the amount of investment a company makes in research and development activities per employee in a year. Research and development expenses are costs incurred by a company to develop new products, services, or technologies. Dividing this figure by the number of employees provides insight into how much the company is investing in innovation and development per employee.

Research & development per employee = Research & development expenses / Number of employees

The result of this calculation provides the amount of research & development expenditure allocated per employee on an annual basis.

This metric helps investors evaluate the company's commitment to innovation and future growth. A higher research & development per employee value indicates that the company is investing more resources in developing new products or improving existing ones per employee. This can be a positive signal for investors looking for companies focused on innovation and long-term competitiveness. Comparing research & development per employee across companies can provide insights into each company's innovation strategy and potential for future success.