Emerging challenges for R&D executives — an American perspective

In recent years, many companies have witnessed dramatic changes in their business environment. Emergence of global markets and competitors coupled with new competitive strategies based on quality, speed and/or alliances have forced business managers — especially in the United States — to adopt new management strategies, structures and systems. These in turn have caused many R&D executives to progress from their traditional agenda of managing R&D activities in domestic laboratories to a new agenda of coordinating and integrating technology development and exploitation on a world-wide basis. This paper discusses this evolution of R&D management agenda in the United States and its implications. It also reviews the approaches being used and the experiences being gained by the American R&D management community to address the emerging challenges.     

R&D 'programmes-competencies' matrix: analyzing R&D expertise within the firm

The author suggests that the systematic identification of a firm's technologies opens up the possibility of evaluating, protecting, optimizing, enriching and exploiting these technologies to the full. A firm's technologies fall into two parts: those embodied and exploited in current operations and those evolving from the collective competencies of its R&D staff. The author's aim is to evaluate and describe the firm's R&D competencies.
The identification of R&D competencies proceeds in three steps: tracing the background of the current and past programmes, constructing a programmes/competencies matrix, and deriving an expertise profile. The construction of the matrix is the key activity and requires much care in its execution, if competencies are to be properly defined and truly existing, and if it is to be exhaustive. The author sketches a procedure for constructing a matrix and discusses problems of implementation and draws attention to some of its limitations.
The author claims that such an inventory of expertise could improve the efficiency of the use of the R&D resource, identify a laboratory's strengths and weaknesses, direct R&D into hitherto neglected channels, assist individuals to identify and evaluate their own expertise, justify obtaining funding for building expertise in shortage areas. The method should be considered as a starting point to formulate appropriate strategies to gain access to technology.     

Improving R&D/Marketing relations: R&D's perspective

Abstract
Successful product innovation hinges on close R&D/marketing relationships, especially in technology-based organizations. However, there is evidence that linkage problems are common and when they are not overcome failure is the usual result.
R&D's perspective on what R&D, marketing and senior management can do to improve their relationship with marketing is presented. The recommendations are based on suggestions from R&D directors involved in new product development efforts in 83 technology-based companies. Also presented is how the need for integration has changed over time and where it is going in the future.     

Towards networked R&D management: the R&D approach of Sonera Corporation as an example

In this paper the authors delineate the challenges of a dynamic environment to R&D management. The authors build on most recent ideas, such as the dynamic capability view of the firm, as strategic foundation for modern R&D management. Collaboration is emphasized as a meta-capability for innovation. These ideas are merged into a 'Networked R&D Management' approach that emphasizes internal and external collaboration networks as critical for companies operating in a dynamic business environment. The approach is illustrated with ICT industry as an example. The implementation of Networked R&D Management is reflected in the illustrative case discussion of R&D management of Sonera Corporation.     

Controlling new product R&D projects

New products are critical to the success of most corporations. But managing the R&D projects that produce new products has proven to be a risky and tricky business. Theorists and practitioners claim that one of the major obstacles to higher new product output is the ‘tight’ control practices found in large corporations. The conventional wisdom argues that, to correct this, firms need to find ways ‘to loosen-up.’ But is that all there is to it? This article presents five findings for effectively controlling new product R&D projects. These findings emerged at the conclusion of an empirical research investigation into the formal and informal control practices that business unit managers use to control various new product R&D situations. The article concludes with several recommendations for those managers who want to control their new product R&D projects better.     

R&D strategies and variable demand

This paper looks at some of the factors imposing on the resourcing of R&D in the face of fluctuating demand. R&D has various features that differentiate it from other aspects of corporate activity and consequently managerial strategies for dealing with R&D may vary substantially. The implications for R&D strategies and the acquisition of technology are considered under different demand conditions. Various alternative strategies are developed including contracting out, technology licensing and the maintenance of an in-house facility through labour hoarding. New and existing empirical estimates are used to support the arguments and explain corporate strategy in this area.     

OPEN ARCHITECTURE AND R&D INCENTIVES

In open systems, firms give up their property rights to technologies and permit other companies to use these technologies. We ask how an incumbent's architecture choice affects social welfare by altering R&D competition among firms. More specifically, we ask whether an incumbent, by adopting an open system, can establish its socially inefficient technology as the market standard, while an entrant is developing a more efficient technology. It is shown that an incumbent has an incentive to preempt an entrant's competing technology by choosing an open system, but that the open system might result in a premature market standard.     

Developing a Network R&D Strategy

If you visualize your firm as a unit in a vast and complex network of contacts, it may change the way you manage your technological resources. That's the proposition of Håkan Håkansson and Jens Laage-Hellman. They present here a framework for examining the technological and knowledge bonds that develop among members of the network and suggest several alternatives for structuring network relationships. The key issue, they believe, is to choose a cooperation strategy that provides the right balance between efficient use of resources and the control of technology.     

R&D budgeting in Swedish firms

Recent work by Näslund and Sellstedt report results which apparently conflict with accepted opinion on the techniques generally adopted in R&D budgeting. The analysis here suggests that these results can be reconciled with previous analyses and that in fact the role of ‘big science’ in Swedish R&D as well as relative size of Swedish firms compared to large U. S. and U. K. firms may explain the different conventions adopted in Swedish industry.     

A utopian view of R&D functions

Technology management research appears to have a much longer history than is commonly assumed. In this short paper attention is drawn to some of Francis Bacon's writings which appeared in the early seventeenth century, and which contain ideas on laboratory organization that still have relevance today. In fact, it is only recently that the same broadness of laboratory functions described in the earlier text has been re–discovered.     

Management of European fast reactor R&D

Since 1984 government-funded fast reactor R&D in France, Germany and the UK has been run as a collaborative activity, and since 1988 as a unified programme in support of the design and construction of the advanced European Fast Reactor. This paper describes the international management structure which has been set up, and the means used to control the work. It is written from the point of view of those engaged in the project, and makes no attempt at a formal analysis of the structure.
The main difficulty is that control of funding remains with the three governments. The R&D programme has to be managed so that it meets the needs of each government separately as well as the designers' requirements.
To start with the management structure was excessively bureaucratic, but it has become more flexible and efficient. This has happened as the initial nationalistic suspicions have broken down, and the staff engaged in the work have learnt more about each others' ways of working so that an atmosphere of trust and inter-dependence has grown up.
(This paper was written before the changes in UK policy on fast reactor development were announced in November 1992.)     

A simulation model of R&D budgeting

Abstract
A simple simulation model is developed that allows the testing of alternative heuristic rules for R&D budgeting. Sales-dependent budgeting, all-you-can-afford budgeting, and budgeting tied to a target rate of product innovativeness are studied. It can be shown that the choice, of the budgeting rules as well as their parameters interact with market diffusion of new products as well as with R&D returns to scale. Thus, budgeting to achieve certain growth or profit objectives has to keep these interactions in mind.     

Problems of R&D manpower in India

Abstract
Manpower Planning is important in R&D organizations. If one examines the budget of a research institute in any part of the world, one would find that 60–70% of the expenditure is incurred on staff salaries and benefits. Of course, manpower planning is beset with problems. This paper deals with: (i) lack of literature; (ii) scientific manpower statistics; (iii) recruitment; (iv) unemployment of S&T personnel; (v) brain drain; (vi) internal brain drain; and (vii) suggestions.     

The impact of EC R&D programmes on corporate R&D practice in Europe: a knowledge-base approach

This paper examines the role of additionality in the impact of EC R&D pro-grammes on firms. It comes from a study of the Impact of the EC Framework Pro-gramme on European Industry, which was sponsored by the Support Programme for Evaluation Activities in Research (SPEAR) of the EC. The argument is that there is an interaction between ie use of additional R&D resources, the organization of the R&D process, and the exploitation of R&D results. The analysis of the R&D process takes place within a framework based on the concept of the knowledge-base of the firm. A number of case studies are discussed and conclusions are drawn as to the impact of the EC Framework Pro-gramme on European firms.     

A model for R&D performance measurement

R&D activities are increasingly costly and risky and, as a consequence, measuring their performance and contribution to value becomes critical. This paper illustrates a formal model for measuring R&D performance, based upon a balanced and synthetic evaluation of quantitative indicators from five different perspectives of performance: financial, customer, innovation and learning, internal business, alliances, and networks. The model is built in coherence with the suggestions coming from the theory of measurement in soft systems, which gives relevant guidelines for ensuring validity, objectivity and inter-subjectivity of the model. Then, an application in a real R&D setting is described, which helps to understand the model and to enlighten its main advantages and limits.