|2013 med tech R&D budget:||$1.06 billion|
|Change from 2012 budget ($1.12 billion):||-5.4%|
|Percent of segment sales ($13.02 billion):||8.1%|
R&D spending fell in 2013 due to lower restructuring costs in Philips' imaging system and patient care and clinical informatics, reflecting cost cutting in those subdivisions in 2012; the annual report says that Philips Healthcare ($PHG) had $157 million in restructuring charges in 2012.
The Healthcare Informatics Solutions & Services business subdivision was launched at the beginning of 2014, a sign of the company's future priorities. It focuses on digital healthcare, big data and consulting. Another priority seems to be environmentally friendly products. Philips Healthcare launched 13 low-weight, energy-efficient "green" products in 2013, according to the annual report. Examples include the Certeray and DuraDiagnost X-ray systems.
In addition, Philips Healthcare is focusing on installing and further developing MRI-guided radiation therapy systems for cancer treatment, and recently announced a partnership with the Institute of Cancer Research in London. Imaging systems comprised 38% of the company's sales in 2013.
Healthcare R&D comprised 45% of the conglomerate's R&D budget. The division's R&D spending as a percentage of its sales was higher than Philips' company-wide ratio of 7.4%. -- Varun Saxena (email | Twitter)
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