Telecom systems vendors’ R&D spending remains in the range of 13-14% of their revenues (on average), but venture capital funding of telecom start-ups has fallen steadily in recent quarters. Telecom-related patent filings are still rising at a strong rate, but there’s a growing consensus that telecom vendors’ differentiation must come from software, applications, and services. We agree, but believe current VC and vendor R&D trends threaten innovation.
