MUNICH: German industrial group Siemens will raise its spending on research and development by almost 7 percent this year to 4.8 billion euros ($5.2 billion), it said.

Most of the additional funds are earmarked for its core businesses of automation, digitization and decentralized energy systems, the trains-to-turbines group said at the start of a capital markets day in its home city of Munich.

The rise means Siemens will likely spend a higher proportion of its revenue on R&D than the 5.9 percent it spent in its fiscal year to September 2015. It expects a “moderate” rise in sales this year, which it has said means up to 5 percent.

Siemens announced a new order for high-voltage direct-current transmission technology for routes between northern and southern Germany, a potential alternative to building controversial new power lines.

The order, from Amprion and TransnetBW, is worth 900 million euros between now and 2018, Siemens said.

Siemens also said it would create a new fund of initially up to 100 million euros over three years for employees to propose and carry out projects.