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Strategy; Innovation One common measure of a firm's efforts in innovation is the amount the firm spends on research and development and capital spending (new plant and equipment) relative to other expenditures. Based on U.S. firms in the Standard & Poor's 500 stock index, innovation measured in this way differs significantly among industries. The highest rates of innovation are in software and services, semiconductors, drugs, biotech, and technology hardware. Somewhat lower levels of innovation are seen in the food and beverage, consumer goods, household products, and automobile industries.

Comment on the differences observed above from a strategic point of view.