Samsung is on pace to once again break a company record for investing in research and development, as it has been reported that the South Korean tech giant will pour about $4.5 (USD) billion into constructing five more innovation centers on Korean soil.
Samsung has experienced tremendous growth in recent years, leading to its rapid expansion both abroad and at home. A luxurious Samsung campus based in the Silicon Valley area is already on the table, but domestically Samsung will also invest in a similar expansion package.
According to a report out of Korea, Samsung will spend somewhere in the realm of 5 trillion won ($4.5 billion) to build five R&D centers in South Korea within the next three years. One of the centers, which is expected to have its doors open in 2015, will house some 10,000 designers, software developers and strategists.
“Given heated competition in the consumer electronics market, odds can be in favor or against us depending on how to prepare and cope with it,” said a Samsung official.
Samsung has been more than willing to spend its fair share in research and development within the last few years. In 2011, the company’s investment in R&D was reported to be 10.3 trillion won, and that number went up by a hefty sum in 2012 as it spent a record 11.9 trillion won on R&D.
“R&D may not generate tangible results in the short term. But the key point is that Samsung can’t survive, if it fails to develop products that can give value to customers,” another Samsung official said. “Much of the remarkable progress in fields such as mobile computing and medicine has been possible thanks to the advancement of information technology backed increased spending on research.”