IT's frivolously spending on R&D?

IT firms are frivolously spending on research and development, sources believe. Companies like Nokia, Microsoft and RIM are heavily spending in R & D to hunt and invent new products but are not coming out very successful, sources added. R & D in the technology market reportedly is only leading to falling margins for these firms with Nokia having a 14.4 percent expense, Microsoft having 13.9 percent and RIM spending 6.8 percent on R & D. Apple only spends 2.7 percent of its sales revenue on research, it yet leads the pack. This leads us to draw an inference that R & D is not at all related to the profits a firm generates. Instead of spending on R & D, analysts advice these firms to spend on Mergers & Acquisitions which helps companies in the long run to bring new products in the market and overcome their institutional inertia. Google too has adopted the M & A strategy when it bought Android rather than developing it, sources noted. R & D is important but not to the extent, it is being given importance in terms of money spent. It should be done but in a cautious way.