Google to spend more this year on innovations

Search engine giants Google has said in a statement that they would be spending a lot more than usual to continue innovating in the market where they face serious competition from big players like Microsoft and Yahoo!

This means that their revenue growth will continue to decline amid increasing competition. The company notified this in its annual form filed late Thursday with the Securities and Exchange Commission.

The company stated: “Our investments in property and equipment, including information technology infrastructure and land and buildings, will likely be significantly greater in 2006 compared to 2005.”

The year 2005 say Google spending 838.2 million dollars on capital expenditure compared to just around 319 million in 2004. They also added that their primary revenue source (online advertisement) faces increasing competition from the traditional sources of advertisements like on television and print media.