Employees of German industrial giant Siemens stand in front of a company logo
Frankfurt - AFP
German engineering giant Siemens said Tuesday it plans to increase spending in research and development to close to five billion euros next year and will open a new research centre in China.
"In 2016, Siemens will invest around 4.8 billion euros ($5.2 billion) in research and development, some 300 million euros more than last fiscal year," Siemens said in a statement.
R&D spending had therefore increased by about 20 percent since 2014, the statement said.
"In fiscal 2015, research intensity ‒- defined as the ratio of R&D expenditures to revenue ‒- was 5.9 percent, an increase of 0.3 percentage points over the prior year."
As part of a move to expand its R&D collaborations with top universities, Siemens said it would establish a new research centre on the campus of Munich's Technical University which would "focus on everything from IT security to autonomous systems."
In addition, "Siemens will also establish a new innovation centre in China. The more than 300 employees will conduct research in new digitalisation solutions for both the Chinese and international markets," it continued.
China is a key market for Siemens and the plans to build a new research centre is a signal that the German giant is not being put off by the economic slowdown there.