How Stagflation Is Reshaping Corporate R&D Spending

In this episode of Stagflation Conversations, Lucas and Luna dig into a surprising trend in the current stagflation environment: corporate research and development spending is actually rising, even as profit margins shrink and the economy slows. Using recent data from the National Science Foundation and earnings reports from large industrials and tech firms, they explore why companies are increasing R&D budgets in the face of high inflation and weak growth. Lucas points out that R&D spending by U.S. businesses hit a record $800 billion in 2025, up 9% year-over-year, despite real GDP growth hovering around 2%. Luna connects this to the labor market, noting that with job openings declining to 6.87 million in March 2026, companies are investing in automation and product innovation rather than hiring. They discuss the strategic calculus behind these investments, the risk of cutting R&D during stagflation, and what this means for long-term productivity and competitiveness. The hosts also touch on the persistence of energy inflation and the record-low consumer sentiment, tying it back to how companies are betting on future growth in a difficult present. #Stagflation #Economics #CorporateR&D #Innovation #Productivity #NSF #R&DSpending #Automation #Inflation #SlowGrowth #LaborMarket #JobOpenings #BusinessInvestment #FexingoBusiness #BusinessPodcast #EconomicPodcast #LucasAndLuna #StagflationConversations Keep every episode free: buymeacoffee.com/fexingo