Case Interview Prep

Answer: C - The pharmaceutical industry spends the greatest proportion of their costs on Research & Development activities.

Key Takeaway: R&D is an important investment for companies that develop and improve their products continually. Pharmaceutical companies spend the greatest proportion of their costs on R&D activities (up to a third for some companies) in the development and testing of drugs. Other industries that spend a high proportion of their costs on R&D are technology, telecommunications, and other health industries.