Alphabet Inc. Alphabet Inc. $($Google$)$ spends over $$30$ billion annually on R&D$.$ While the company generates strong profitability in search advertising and through its Google cloud platform, Alphabet$$s profits would be higher were it not for its strategy of remaining a step ahead of competitors in terms of innovation. To that end, Alphabet is investing in smart homes $($Nest$),$ using technology to enhance health $($Verily$),$ providing faster Internet access to homes $($Google Fiber$),$ self$-$driving cars $($Waymo$),$ and much more. Some of these wagers may fail and others may take years to turn a profit. However, a hit with any of these bets could put Alphabet even further ahead of the technology pack. In making R&D investments, Alphabet uses what they call the $70/20/10$ model: $70\%$ of projects are dedicated to the core business $20\%$ are related to the core business $10\%$ are unrelated to the core business