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Facebook reaps R&D saving

Facebook has enjoyed a profits boost from spending proportionally less on R&D than many of its tech rivals, new analysis has indicated.

Bloomberg reports that the social network has increased earnings by maintaining a relatively tight innovation budget, with its R&D spend equivalent to just 10 percent of total sales.

Partnerships with external affiliates such as Zynga allow Facebook to offer new products, such as FarmVille and Words With Friends, without adding to its R&D costs.