Introduction: The Common Imbalance
Many industrial technology companies excel at innovation. They invest significant resources in research and development (R&D), designing pioneering products that are then sold under someone else’s brand. This OEM (original equipment manufacturer) model has allowed them to grow without exposing themselves directly to the end customer.
But when the time comes to launch their own brand, a new challenge arises: the imbalance between what is invested in R&D and what is allocated to marketing, sales, and distribution. Innovation can be brilliant, but if nobody knows about it, it stays in the lab.
The Contrast: From Siemens to Salesforce
Depending on the sector, the relative weight of R&D and marketing can be radically different.
– Siemens (advanced industrial): Spends around 8% of its revenue on R&D and 18% on sales and administration, according to its Annual Report 2024, reflecting the need to sustain innovation without neglecting B2B relationships
– Salesforce (cloud software) invests less in R&D (~15%) but spends more than 35% on sales and marketing, according to FourWeekMBA, prioritizing market conquest over technical innovation.
– In private B2B SaaS companies, studies show a ratio of 22% in R&D vs. 8% in marketing, according to SaaS Capital, suggesting innovation remains central but with growing commercial muscle (saas-capital.com).
This contrast illustrates a key point: there is no universal formula. The right balance depends on strategy, product type, and target market.
Why Marketing Matters More Once You Leave OEM
Moving from OEM to your own brand brings new responsibilities:
1. Building new channels: it’s no longer enough to have a distributor. You now need effective websites, digital presence, commercial partners, and customer support.
2. A clear message: technical data must be translated into understandable stories that connect with clients and end users.
3. Sustained investment: while R&D can focus on peaks (launches, patents), marketing requires constancy—campaigns, content, trade fairs, and social media.
The result is that many companies discover the cost of making their innovation visible is as high as developing it.
The Incentive: More Value in the Chain
Why is investing in marketing worth it? Because when you move from OEM to your own brand, margins can double.
– McKinsey highlights that private-label products can achieve up to twice the gross margin compared to third-party brands (The Power of Private Label Brands in Distribution).
– NielsenIQ confirms that private label has moved beyond being synonymous with “low cost” and now represents innovation and value in many industries (Private Label Branded Shelfscape).
In other words: what you invest in marketing is not an extra cost, but the key to unlocking additional value.
Strategies to Balance R&D and Marketing
1. Start in a niche
Launching a branded product in a specific segment reduces the initial marketing investment and allows you to test narrative, channels, and digital UX.
2. Tell your innovation through web design
An industrial website cannot be limited to technical sheets. It should include:
– Use cases: how the technology solves a real problem.
– Clear visuals: diagrams, videos, interactive prototypes.
– Accessible language: not only for engineers but also for decision-makers.
Additionally, the website should be designed as a lead-generation platform, with forms, catalog downloads, and direct chat for distributors. Good design turns technical innovation into commercial opportunities.
3. Bet on technical inbound marketing
Industrial clients don’t buy on impulse: they research, compare, and consult.
That’s exactly where technical inbound marketing becomes a growth driver: it translates your R&D know-how into content that builds trust, visibility, and authority. A good inbound marketing strategy includes actions, among others, like:
- Publishing SEO-optimized technical articles explaining trends or comparing technologies.
- Offering webinars or whitepapers that position the company as a sector reference.
- Using LinkedIn Ads to reach engineers, architects, or integrators.
And if well done together, these tactics can put companies right on the map at the beginning of the inquiry and eventually shorten the journey from “interesting technology” to “let’s get a quote.”
4. Measure ROI from the start
Marketing must be justified with metrics: qualified web traffic, leads generated, customer acquisition cost (CAC).
– Unlike innovation, whose return takes time, digital marketing impact can be measured in weeks.
– This allows investment adjustments without waiting for the end of the product cycle.
Checklist: Is Your Innovation Ready for the Market?
– Do we have dedicated digital marketing resources, or are we improvising?
– Does our website communicate tangible benefits, not just specs?
– Are we ready to invest 8–15% of the annual budget in marketing and sales, at least at launch?
– Are we generating technical content (articles, webinars, comparisons) that positions us on Google and LinkedIn?
– Do we have a brand narrative of our own, distinct from our OEM clients?
Conclusion: Innovation Is Not Enough
The real leap for an industrial tech company is not just inventing, but turning that invention into a recognized brand. Balancing R&D and marketing does not mean spending equally on both, but allocating what’s needed to ensure innovation reaches those who should use it.
In short: technology creates value, but marketing turns it into market.
Sources:
If you’d like to dive deeper into the data and studies behind this article, here is the full list of sources we used:
- Siemens. Annual Report 2024. Available here.
- FourWeekMBA. Salesforce Marketing Expense as a Percentage of Revenue. Available here.
- SaaS Capital. Spending Benchmarks for Private B2B SaaS Companies. Available here.
- McKinsey & Company. The Power of Private Label Brands in Distribution. Available here.
- NielsenIQ. Private Label Branded Shelfscape. Available here
