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Over $5.35 billion Mitsubishi Motors R&D investment

The Japanese automaker Mitsubishi Motors Corp has ambitious plans to invest more than 600 billion yen, which is equal to $5.35 billion, into capital and research and development (R&D). The investment will take place over the next three years.

The company will spend 5% of annual sales on equipment and R&D, and will be used for the development of innovative electrified vehicles to be produced in China and Indonesia.

This significant R&D investment is part of the company’s bid to turn around its business after recent scandals of fuel economy test manipulation.

Are you working on innovative ways to turn around your company to make it more successful? You may be eligible for the R&D Tax Credit and can receive up to 14% on your expenses, even if your experiments were not successful. To find out more, please contact a Swanson Reed R&D Specialist today.

Swanson Reed regularly hosts free webinars and provides free IRS CE credits as well as CPE credits for CPA’s. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Is autonomous flying the next big thing?

Near Earth Autonomy (NEA) develops technology for a large variety of unmanned flying vehicles from drones to flying cars to commercial planes. Boeing has announced a significant investment into NEA in hope to make autonomous flying the ‘next big thing’.

The investment is in fact part of a broader effort in creating and promoting an industry-wide standard for autonomous flying. Boeing has solidified autonomous flying into its ideal future targets with three specific goals, which are to: Fly safely, land safely and navigate without GPS.

The key factor which makes a vehicle autonomous is its ability to make decisions. It is no secret that commercial planes already have the ability to fly on autopilot, however they still rely on GPS to orient themselves and are unable to analyse their surroundings and adjust to circumstances without the help of a pilot.

NEA have been pursuing technology to aid autonomous vehicles in this decision making process since 2011 and their partnership with Boeing will continue to center around tools to help vehicles synthesize data from their surroundings and output their own plan.

The biggest task ahead for Boeing and NEA in implementing their innovative technologies actually has little to do with the development and is in fact being able to convince the U.S. government that their vision is worth a chance. There the agenda of the companies will be proving to the Federal Aviation Administration (FAA) that their vehicles can be trusted to fly safely.

Boeing is continuing to make significant investments into its vision and goal to making autonomous flying the way of the future; however the question remains whether it can get others on board.

Are you engaging in R&D to build innovative technology? You could be eligible for the R&D Tax Credit and can get up to 14% on your R&D expenses, even if your experiments were not successful. To find out more, please contact a Swanson Reed R&D Specialist today.

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The secret Snapchat R&D project is not so secret anymore..

Keeping a major project secretive in a globally successful company has always been a challenge in LA or SF and when that hugely successful company happens to be Snapchat, this mission proves to be all the more challenging. Now the secret is out; Snapchat R&D is building a new office in the remote location of Lehi, Utah, located 30 miles of Salt Lake City.

This remote location was selected as it is a respectable distance from other social media giants such as Facebook and will allow Snapchat to develop new app features and hardware devices beyond the prying eyes and ears of its competitors.

Snapchat has been able to tap a supply of engineering talent from Brigham Young University as the University is only a 25-minute drive away. Snapchat’s association with BYU has proven to be very significant in the past. They struck gold by acquiring the founders of Scan.me who were studying at the University at the time. The founders of Scan.me worked together with Snapchat to develop QR codes that evolved into Snapchat’s scannable Snapcodes.

Lehi is also home to the massive Intel and Micron-backed semiconductor fabricator plant, IM Flash Technologies. IM Flash Technologies led Lehi to produce one in 12 of the world’s flash memory chips as of 2013.

Snapchat’s new Lehi lab allows the company to recruit where other companies cannot, as talent from BYU and IM Flash might not be as eager to leave the quiet Utah life for the big cities, where other social media giants are based.

The whispers of Snapchats new R&D lab first began when a major Apple engineer from Utah announced he was leaving the company to start a new job at Snapchat. Snapchat have since confirmed the rumours and are excited about the opportunity to hire local Utah talent. Snapchat already have several offices across the U.S. and international cities, and this expansion is a product of the company’s growth.

Just like Snapchat, if your company is also engaging in research activities, it may be eligible for an R&D Tax Credit. An R&D Tax Credit reduces the cost and risk of undertaking R&D activities for your business. The benefit helps companies doing eligible work to create new or improved products, processes and services by reducing their tax. To find out if your company could be eligible, complete Swanson Reed’s quick and simple contact form.

Swanson Reed also regularly hosts free webinars and provides free IRS CE credits as well as CPE credits for CPA’s. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Significant R&D scheme attracting scientists from around the world

Almost 260 scientists from around the world have applied for the New Delhi Visiting Advanced Joint Research (VAJRA) R&D scheme, which attracts the top international talent in the country’s research and development ecosystem

Screening of applicants for this exciting opportunity will continue throughout October and 70 applicants will be shortlisted and begin work in December.

Being selected for the VAJRA Faculty scheme is a significant opportunity and achievement. Scientists will be provided with a lump-sum amount of USD 15,000 in the first month of residency and USD 10,000 per month afterwards.

Eventually the plan is for the department of Science and Technology to select 1,000 scientists every year for the pilot project. This will aim to significantly increase expertise in the areas which India currently lacks in such as, renewable energy and water.

The following program will greatly benefit the advancement of research and R&D expertise in India, which will ultimately lead to further opportunities within the sector in the years to come.

India has seen a surge in global R&D, which helps nurture the country’s innovation ecosystem. If your company is engaging in research activities, it may be eligible for an R&D Tax Credit. An R&D Tax Credit reduces the cost and risk of undertaking R&D activities for your business. The benefit helps companies doing eligible work to create new or improved products, processes and services by reducing their tax. To find out if your company could be eligible, complete Swanson Reed’s quick and simple contact form.

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Digital R&D facility in Chicago will create over 100 new tech opportunities

An exciting time lies ahead for research and development in Chicago! Siemens have officially announced their plans for a digital R&D hub due to open in October 2017.

The facility will generate over 100 new tech jobs in the city which will bring the Siemens Chicago employee count up to 3,300. New jobs will be created in the fields of software development, software architecture, product testing, project leadership, application engineering, configuration management, team leadership and technical writing. It is anticipated that the center will open in October 2017 and will have $20 million per year invested into it.

It is no doubt that establishing this R&D center in Chicago is a significant opportunity for Siemens to leverage the extremely talented tech community in the city.

The center will build applications for Siemens Control Products and Systems (CPS) technology. The CPS Software House will take the lead on global R&D efforts for the company’s design CC platform, which makes it easier to manage the functions of large buildings. In addition the facility will also work to add more cloud functionality to the System One smart home application.

The logical next step and a critical component in the Siemens digitalization strategy is establishing the CPS Software House, which continues driving towards a future that includes autonomous buildings. The goal for Siemens as a company is to build new capabilities, bring them to customers sooner and work with customers to quickly obtain feedback.

The technology industry is growing at an aggressive rate and like Siemens, many are investing millions in R&D to stay ahead of the technology curve. An R&D Tax Credit can support businesses in any industry to further develop their research. If you would like to find out more about R&D tax and whether your company may qualify for an R&D Tax Credit, contact a Swanson Reed R&D specialist today.

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Texas startup on mission to cure wine hangovers

Research has shown that after drinking wine, up to 75% of adult consumers may experience hangover-like symptoms such as headaches, flushed skin or congestion. PureWine is a Texas based startup that has created a new filter that removes ingredients (specifically, histamines and sulfites) from wine prior to drinking, aiming to prevent hangover like symptoms.

PureWine’s co-founder, David Meadows, and his son started researching this system, referred to as a ‘Brita filter for wine’, over five years ago. Today, the company has successfully developed a wand-shaped filter that absorbs the chemical compounds, or ingredients, from the drink, preventing the dreaded hangover. The wand filter has been designed to cover multiple beverage platforms, including beer and champagne.

The R&D Tax Credit is available to PureWine and other companies developing new and improved products and processes, allowing a credit of up to 14% of eligible spending.

If you would like to find out how your company could benefit from R&D Tax Credits, please contact a Swanson Reed R&D Specialist today.

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R&D Tax Credits for Pet Tech and Toys

Data from the American Pet Products Association (APPA) states that over 65% of US households own a pet, with around 86 million cats and 78 million dogs across the country. Pet-owners are spoiling their furry friends more than ever. Countless toys pervade the market and “pet tech” like GPS trackers, pet cameras and activity monitors have become popular ways to help keep pets safe and healthy. In fact, the wearable market for pets is expected to reach $2.36 billion by 2022.

If your business creates pet technology or other pet items, you may be eligible for R&D tax credits. Items like dog bones, hamster wheels and even protective pet shoes may count as eligible R&D, as well as innovative water and food dispensers, pet brushes and work undertaken to improve pet nutrition and behavior. The development of software and apps to create or improve technologies such as “fitbits” for dogs or pet door technology are often eligible as long as they meet the requirements below.

3D printing of pet products is a strong indicator of innovative activity as it is often used to create one-off prototypes to economically test ideas. This can be useful for products like retractable dog leashes, which often fail during use. Another area of 3D development is pet prosthetics, where 3D scanners can custom fit a pet with a fitted limb.

R&D activities must do the following:

Require experimentation
Attempt to eliminate an unknown
Be technological or scientific in nature
Be a new or improved product, service, process or technology

If you are unsure whether your work qualifies for R&D tax credits, or you would like expert assistance in making a claim, please contact Swanson Reed R&D Tax Consultants. You may also be interested in our free, online eligibility test.

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Pharma stocks to invest in based on R&D spending levels

Continued research and development (R&D) is a must in the pharmaceutical industry as even the biggest blockbuster drugs eventually lose patent exclusivity or face new and improved competition. However throwing money into R&D alone doesn’t guarantee success, it is vital to also make smart investments into companies which are successfully incorporating R&D into their business activities. The following five pharma stocks are recommended for investors to own based on R&D spending levels.

Merck

Merck invested $6.8 billion into R&D in 2016, this being slightly over 19% of the company’s total pharmaceutical revenue. Market research conducted by EvaluatePharma, projects that the company will hold onto this spot until 2022.

Johnson & Johnson

In 2016 Johnson & Johnson has $7 billion R&D spending which reflects 22% of the company’s total pharmaceutical sales. EvaluatePharma predicts that J&J will move up to third position for its R&D spending by 2022.

Pfizer

Pfizer is the world’s leader in prescription drug sales and ranks third for R&D investments. Pfizer spent $7.8 billion on R&D in 2016, which is roughly 17% of total pharma sales. EvaluatePharma predicts that Pfizer will drop in its ranking by 2022 for both prescription drug sales and R&D spending.

Novartis

Novartis invested $7.9 billion into pharmaceutical R&D in 2016, which comprised a little over 19% of total pharmaceutical sales. EvaluatePharma also predicts that Novartis will keep its ranking for R&D spending until 2022.

Roche

In the number one spot comes the Swiss Pharmaceutical giant Roche. Roche invested $8.7 billion in pharmaceutical R&D in 2016, this represents 22% of Roche’s total prescription drug sales in 2016 and is the most any big pharma company has invested. It is projected that the Swiss healthcare company will retain this number one position until at least 2022.

In addition to securing a competitive position in the market, investing into R&D also allows businesses to claim an R&D Tax Credit. The R&D Tax Credit reduces the cost and risk of undertaking R&D activities for your business and supports companies doing eligible work to create new or improved products, processes and services by reducing their tax. To find out more contact a Swanson Reed R&D Tax advisor today, we look forward to guiding you through the R&D process.

3D Printing Could Transform the Eyewear Industry

Need a new pair of glasses? 3D printed glasses are a new phenomenon, which have many advantages over traditional glasses. For starters, they will allow eyewear companies to improve their business performance while decreasing manufacturing costs and waste.

As glasses are worn on the face and are seen instantly, customization is important for wearers. 3D printers can print many versions and designs without having to consider production volume-to-cost ratios. Printing costs for one pair of glasses are the same per pair as producing thousands. Therefore, each pair can be unique and additionally, the availability of a specific frame is increased.

Unlike expensive custom glasses, 3D printed eyewear does not require a mold and any errors can be easily corrected. The glasses are completely bespoke using a one-off production process. Customers can choose the style, colour and size. Production methods like laser sintering or lost wax metal casting ensure optimal finish. They can be precisely fitted to the wearer’s face in terms of size and dimensions, so it is no longer a one-size-fits-all approach. Furthermore, glasses can be printed on-site, rather than having to import from China, eliminating transportation costs and significantly reducing waiting times.

In terms of vision, traditional glasses require the lenses to be placed into the chosen frame, which can result in suboptimal lens performance from its impact on lens alignment. 3D printed glasses build the frame around the lenses, providing the best possible visual performance.

3D printing has the potential to completely transform the eyewear business. It has happened in other industries; the manufacture of 3D-printed hearing aids grew from 20 percent to almost 100 percent within two years.

Currently, drawbacks include strength and variety but these are continually being improved. Companies who are developing 3D printed eyewear can now apply for research and development tax credits. Qualified costs may include wages, supplies, research, testing and expenditure incurred for patent development. To check your eligibility for R&D tax credits, use our online eligibility test. Alternatively, contact us directly for further information.

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Coca-Cola is outsourcing its R&D to the public

As consumers are constantly pushing for cleaner and healthier products, the beverage giant Coca-Cola is ramping up its efforts to uncover new non-sugar sweeteners for its portfolio of beverages and snacks. However Coca-Cola is taking a slightly different R&D approach with this project. The company has decided to outsource its R&D to the public to come up with a naturally sourced, low-calorie sugar alternative that mimics the taste of sugar.

Coca-cola has launched two sweetener campaigns on the HeroX platform, the first gives five individuals the chance to win $100,000 in prize money and the second is a grand prize of $1 million.

The first campaign is the ‘sweet story challenge’, which asks consumers around the world to submit written anecdotes and videos about their favorite methods of naturally sweetening foods and beverages in their cultures, communities or families.

The second challenge calls on researchers and scientists to find sugar alternatives that create the taste sensation of sugar when used in food and beverage. This challenge is the largest and offers the grand prize of $1 million which will be announced in October 2018.

The Chief Innovation Officer at Coca-cola believes that amazing ideas can come from anywhere and that it is vital to always search for newer and better ingredients. The two challenges are very much rooted in the company’s desire to make the drinks that consumers want to drink, and the company’s willingness to find sugar alternatives that help it deliver the great taste people love but in a health conscious manner.

Coca-Cola isn’t proving the be the only company to commit to reducing the amount of sugar in drinks, Dr Pepper Snapple and PepsiCo have also made similar pledges and companies such as KIND Healthy Snacks and Panera Bread have also been adamant about providing consumers with healthier options.

This inclusion of the public to finding solutions serves not only as a way to source new ideas but also to strengthen the brand and retain consumer trust.

Companies creating new knowledge on a global scale can apply for a federal or state R&D Tax Credit. To find out more about R&D and to assess your company’s eligibility, contact a Swanson Reed R&D Tax Advisor today. We look forward to speaking with you and guiding you through the R&D process.

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