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R&D Market Pulse Index for the week ending July 21, 2017 closed at 3,554.73 for the 25 companies in the R&D Index. The Index was up 0.92% (or 32.57 basis points) over the week ending July 14, 2017. Fourteen R&D Index companies gained value last week from 0.15% (Pfizer) to 2.38% (Amazon). Eleven R&D Index companies lost value last week from -0.21% (GlaxoSmithKline) to -5.23% (Qualcomm).

R&D Index members IBM and Qualcomm had an unusually bad week with IBM reporting its 21st consecutive quarter of year-on-year sales declines (back to 2Q 2012). IBM's important (for future growth) cloud platforms dropped 5.1% in revenues while its legacy computing systems fell 10.4%. IBM (with 3% market share) continues to trail cloud market leaders Amazon, Microsoft and Google. R&D Index member Microsoft last week reported that its cloud computing product, Azure, rose 11% in the latest quarter, beating analysts expectations. Earlier in the week, IBM announced its new line of mainframe computers, IBM Z, which have faster processors and increased encryption. IBM hopes that the new mainframe computers will increase the company's profits in the second half of 2017.

Qualcomm's stock decline (-5.23%) was associated with its 40% profit drop in 2Q which was attributed to the lack of patent royalties on devices from Apple, in which it is engaged in a legal battle concerning overpricing of chips in its iPhone cell phones. Qualcomm's revenue was down 11% in 2Q from 2Q 2016. On Tuesday, four other smartphone Taiwan-based firms also filed lawsuits against Qualcomm.

Each of the R&D Index's automotive sector members (Toyota, GM, Honda, Daimler and Volkswagen) dropped in value last week reflecting the overall decline in automotive sales this year and the shift from sedan vehicles to small trucks and SUVs which the manufacturers are attempting to adjust to by dropping some sedan-based models.

Elon Musk, CEO of Tesla and SpaceX, commented in a meeting last week of state governors that a regulatory agency needs to be formed to control and guide the development of artificial intelligence (AI) technologies before they become a threat to the U.S. economy.

Lyft Inc. announced last week that it was forming its own autonomous car development division to be staffed by hundreds of engineers and researchers at a new office in Silicon Valley. The company stated that it would develop its own software and hardware to create autonomous vehicles. This approach changes Lyft's previous strategy of creating partnerships with self-driving vehicle developers that included Alphabet's Waymo, GM and Tata Motors.

      R&D Index Week Ending July 21, 2017        
    Ticker Exchange 2017 R&D billions$ 07/14/17 07/21/17 7/21/17 to 7/14/17 7/21/17 to 1/1/17
1 Amazon AMZN NASDAQ 17,774 1,001.81 1,025.67 2.38% 36.78%
2 Alphabet/Google GOOGL NASDAQ 15,845 976.91 993.84 1.73% 25.41%
3 Microsoft MSFT NASDAQ 13,987 72.78 73.79 1.39% 18.75%
4 Intel INTC NASDAQ 13,499 34.68 34.73 0.14% -4.25%
5 Apple AAPL NASDAQ 11,506 149.04 150.27 0.83% 29.74%
6 Volkswagen AG VLKAY OTC 11,260 33.62 32.98 -1.90% 15.00%
7 Roche Pharm RHHBY OTC 10,174 31.94 32.27 1.03% 13.11%
8 Toyota TM NYSE 9,170 110.20 109.31 -0.81% -6.73%
9 Johnson & Johnson JNJ NYSE 9,060 132.60 135.31 2.04% 17.45%
10 Novartis NVS NYSE 7,870 83.16 84.99 2.20% 16.68%
11 General Motors GM NYSE 7,468 36.35 36.07 -0.77% 3.53%
12 Pfizer PFE NYSE 7,288 33.43 33.48 0.15% 3.08%
13 Bristol-Myers Squibb BMY NYSE 6,942 55.15 55.65 0.91% -4.77%
14 Cisco CSCO NASDAQ 6,827 31.42 31.84 1.34% 5.36%
15 Qualcomm QCOM NASDAQ 6,723 56.81 53.84 -5.23% -17.42%
16 Oracle ORCL NYSE 6,702 50.56 50.80 0.47% 32.12%
17 Honda HMC NYSE 6,519 27.63 27.52 -0.40% -5.72%
18 Astra Zeneca PLC AZN NYSE 6,363 33.87 34.05 0.53% 24.63%
19 Merck & Co. MRK NYSE 5,759 63.06 62.63 -0.68% 6.39%
20 Daimler DDAIY OTC 5,084 64.87 62.58 -3.53% -11.51%
21 Bayer AG BAYN XETRA 4,880 112.75 111.00 -1.55% 11.97%
22 Sanofi SA SNY NYSE 4,755 48.18 47.71 -0.98% 17.98%
23 IBM IBM NYSE 4,628 154.24 147.08 -4.64% -11.39%
24 GlaxoSmithKline GSK NYSE 4,508 42.75 42.66 -0.21% 10.78%
25 Eli Lilly Co LLY NYSE 4,489 84.35 84.66 0.37% 15.11%
  Total     209,080 3,522.16 3,554.73 0.92% 19.19%
                 
      Biopharmaceutical 721.24 724.41 0.44% 12.26%
      Automotive 272.67 268.46 -1.54% -4.34%
      ICT   1,526.44 1,536.19 0.64% 17.58%

About R&D Market Pulse 

R&D Magazine's R&D Market Pulse is a weekly stock market summary of the top international companies involved in research and development. The top 25 industrial spenders of R&D in 2017 were selected based on the latest listings from Schonfeld & Associates' June 2017 R&D Ratios & Budgets. These 25 companies include pharmaceutical (11 companies), automotive (5), ICT  (8) and conglomerate (1) organizations who invested a cumulative total of more than $209 billion in R&D in 2017, or approximately 10% of all the R&D spent in the world by government, industries and academia combined, according to R&D Magazine's 2017 Global R&D Funding Forecast. The stock prices used in the R&D Index are tabulated from NASDAQ, NYSE, XETRA and OTC common stock prices (in U.S. dollars) for the companies selected at the close of stock trading business on the Friday preceding the publication of the R&D Index in R&D Magazine's R&D Daily eNewsletter.

The companies used in the R&D Index include Amazon, Alphabet/Google, Microsoft, Intel, Apple, Volkswagen AG, Roche Pharma, Toyota, Johnson & Johnson, Novartis, General Motors, Pfizer, Bristol-Myers Squibb, Cisco, Qualcomm, Oracle, Honda Motor Company, Astra Zeneca plc, Merck & Company, Daimler, Bayer AG, Sanofi SA, IBM, GlaxoSmithKline and Eli Lilly Co. Stock prices are based on those stocks traded on the U.S. exchanges. R&D Index trends (in the stock prices) are just one indicator of the amount of capital available to these high-technology companies to invest in R&D and should not be implied to indicate the absolute value of R&D investments made by these organizations. The companies chosen for the R&D Index have very large sophisticated internal and global R&D organizations with each company investing between $4.5 and $17 billion annually on their

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