Brightening the black box of R&D

McKinsey’s take on measuring productivity of R&D.  This is a very contentious area, and many have criticized companies for spending too much or too little on R&D.  It’s largely based on hypotheticals however, because it is hard to guess what a project is going to contribute.  And it’s worse at small innovative enterprises, which are mostly R&D, because there is little info on what the impact of new products will be. The formula would seem to work well at Clayton Christensen’s large stable companies which are simply innovating to please a large group of present and demanding customers, rather than disrupt through spectacular new innovation to gather new customers.  Still, it’s good reading and extends the thinking in this area.

Brightening the black box of R&D | McKinsey & Company.

Advertisement

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s