The bump that Nokia is suffering, with a drop in 44% of its sales this year highlights the enormous dynamism of the technological world. It is evident that Nokia has failed in several of its technological bets and that its alliance with Microsoft at the moment casts even more uncertainty about its future.
But what is even more astonishing is Nokia’s huge investment in R&D which, however, has not helped it to remain an innovative company. Nokia has lagged far behind its competitors in the growing smartphone market, despite its R&D investment being three times that of most of its competitors. Investment in R&D does not mean innovation. Contrast, above all, its effort in R&D with that made by two of the most innovative companies: Apple and HTC as you can see in the graphic below.
