Problem Set in R&D Company

Problem Set 3
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1. List the input, and output, measures of innovation. How should one deal with so many possible measures?Input include: the number of innovative projects started, number of new ideas presented by workers, research and development (R&D) spent as a percentage of sales, and the number of new employees in R&D. Output measures include number of new products launched in a particular period, profit growth from new products, Return of investment (ROI) of innovative activities, and breakeven period for new products. One should deal with so many possible measures by investing only in projects and processes that work. Focusing on the projects that work limits the measures to those projects. 2. “R&D is the only important measure of innovation”. Discuss.
R&D provides powerful knowledge and insights that allows an organization to develop new products and services to survive in a competitive market. A business that invests in R&D has an upper hand of understanding the market trends and developing products based on customer preferences. Doing so also enables a company to achieve more including providing real-world benefits to people. Effective R&D can lower the production cost by improving the process used. This can increase the profit margins and increase the competitive advantage of the firm. These roles and benefits mean that R&D is the only important measure of innovation.
3. Choose a selection of firms, or countries, and attempt to produce a ranking or innovation scoreboard
Innovation Score Board


Company

Summary Innovation Index

Performance

1

Apple

Attractive research system

87%

2

Microsoft