Exploring Strategic R&D Success Factors

This paper identifies strategic R&D success factors for organizations that produce R&D results for proprietary use. First, six types of R&D organizations are identified by using the criteria of profit orientation and external or internal use of R&D results. Following this, success criteria are identified by studying sample organizations that match the classification criteria. In the concluding section it is shown that important success criteria can be derived, many of which are independent of the organizational arrangement chosen for the generation of R& D results. Among them are: embedment into the scientific system, development of core competencies, securing appropriability, choosing appropriate organizational structures and processes.     

Coordinating R&D and business planning

In order for US companies to become more competitive they need to improve coordination between their R&D and business planning. This article explanis what is known about coordinating R&D and business palnning, and provides guidance on how to improve it. It examines the development of a technology plan. Before a company can effectively deal with issues related to coordinating R&D and business planning, the R&D organization should understand its own capabilities through developing a technology plan. The intergration of technology planning with business planning is then examined. Two types of business palns are considered in relation to technology planning-product line strategies and a long-range business plan. Finally, the problem of definning on R&D organization's mission clearly is looked at.     

Schumpeterian cycles with pro-cyclical R&D

Recent empirical work finds that R&D expenditures are quite pro-cyclical even for firms that are not credit-constrained during downturns. This has been taken as strong evidence against Schumpeterian-style theories of business cycles that emphasize the idea that downturns in production may be good times to allocate labor towards innovative activities. Here we argue that the pro-cyclicality of R&D investment is in fact quite consistent with at least one of these theories. In our analysis we emphasize three key features of R&D investment relative to other types of innovative activity: (1) it uses knowledge intensively, (2) it is a long-term investment with uncertain applications, and (3) it suffers from diminishing returns over time.     

A dynamic model of R&D competition

This study considers a dynamic model of R&D competition in a situation of no uncertainty with identical firms in a perfect foresight. We are going to find out about the effects of firms' absorptive capacity on R&D strategies in the presence of technological spillovers. The conditions for the existence and uniqueness of a feedback–Nash equilibrium on firms' R&D expense will be also discussed. Numerical simulations will show as the introduction of the absorptive capacity reduces the impact of spillovers degree on firms' R&D strategies.     

The strategic management of R&D collaboration

For many firms collaborative R&D is an important component of their technology strategies. R&D collaboration can provide valuable supplementary technological knowledge for firms, building technological capacity. Due to the additional problems of managing R&D in collaboration, rather than entirely in-house, outcomes from it are often uncertain and benefits are hard-earned. This paper, based on a literature review, and on six case-studies of firms experienced in collaboration, examines some of these problems. Because of the high management costs of collaboration, the length of tme needed to build effective communications paths between different organisations, and the specific technological nature of these forms of inter-firm linkage R&D collaboration should be a strategic toncern. Partner selection should be made, and the collaboration conducted, on the basis of the expectation of a continuing relationship encouraging mutual learning and based on a high degree of trust.     

Business process re-engineering: experiences in R&D

This study presents information drawn from leading transnational organizations headquartered in the US that are, to different degrees, involved in restructuring their R&D. Interviews were conducted with three companies in the chemical/pharmaceutical industry and three in electronics/information technology. All companies interviewed agreed on the need to organize their R&D more effectively in order to meet consumer demands and respond to competitive pressure. There are significant differences in the extent to which each company is involved in organizational change as well as their approach to such changes. The interview findings indicate that global re-engineering and business transformation programmes are being carried out. We identify the application of such approachs, men though thg may be initiated under other names.     

R&D Investments, Information and Strategy

This paper argues that firms can best realize the value of their investments in R&D by exploiting the associated information asymmetries. Attention is directed away from the physical results of R&D and towards the firm's ability, more generally, to earn rents from the private information emanating from its R&D. Four strategies may be used to exploit the information asymmetries from R&D: (1) publish the details of the innovation in return for legal protection; (2) keep the information inside the firm; (3) make the information selectively, informally available to others; and (4) disseminate the information as widely and rapidly as possible. To implement these strategies, resources may be allocated both to the commercial development of new technologies, and/or to related market opportunities (investing in other companies, assets and technologies). Of critical importance are the innovator's own skills and resources in effectively gathering, understanding, and commercially exploiting R&D-generated information asymmetries, both internally and in relation to other firms. This study should yield new insights to managers in designing strategies (and counter-strategies) to position themselves not only at the technological edge, but more fundamentally, at the 'information edge'.     

A practical approach to R&D project selection

We present a technique to allocate available resources more systematically to competing R&D projects in a government laboratory setting. The technique is simpler than most models described in the literature, systematically utilizes the expertise of various organizational units in the corporation, and does not try to substitute complex calculations for good managerial judgment. The literature on R&D project selection models is briefly reviewed. Key factors identified are used to develop the approach. Details are presented on the sequence of the R&D project selection process through alternative levels of corporate management. Sample forms used for R&D ideas submittal and evaluation are included. Experiences gained from applying the approach in a large R&D laboratory are discussed.     

Creating New Resources through European R&D Partnerships

This paper describes the way firms participating in R&D consortia can benefit from the outcome of common R&D. More specifically, it is suggested that R&D consortia, which are part of the European EUREKA initiative, provide appropriate organizational structures for the creation of new knowledge and competencies. This qualitative research shows that both the function provided to the consortium and in-house capabilities help partners to create resources thanks to co-operative R&D. The links between R&D co-operative outcomes and both the organizational design of the consortium and the internal capabilities of member firms are of general interest for all companies involved in comparable types of consortia and, more generally, in technological partnerships.     

How to promote R&D-based growth? Public education expenditure on scientists and engineers versus R&D subsidies

This paper compares the positive and normative implications of two alternative measures to promote R&D-based growth: R&D subsidies to firms and publicly provided education targeted to the development of science and engineering (S&E) skills. The model accounts for the specificity of S&E skills, where individuals with heterogeneous ability choose their type of education. Although intertemporal knowledge spillovers are the only R&D externality, the analysis suggests that R&D subsidies may be detrimental to both productivity growth and welfare. Moreover, they raise earnings inequality. In contrast to R&D subsidies, publicly provided education targeted to S&E skills are found to be unambiguously growth-promoting and neutral with respect to the earnings distribution.     

Product market competition, R&D, and welfare

We compare the subgame perfect equilibrium emerging in four regimes of research and development (R&D) competition between duopolists: (i) full competition, (ii) coordination of research strategies, (iii) joint venture with cross licensing of patents, and (iv) full collusion in R&D and the product market. The outcome of the firms' interaction depends on the interplay of the degree of product market competition, the similarity of the research strategies, and the cost of R&D, relatively to market size. Our main result is that each of the four regimes can, for plausible parameter combinations, yield the highest level of welfare. Therefore it is problematic to draw general rules applicable to all proposed research joint ventures.     

Strategic control of technology in diversified companies with decentralized R&D

This paper analyzes current trends in the strategic management of technology in a sample of 25 companies. It is particularly concerned with the balance of responsibility between the corporate level and the business unit level for accumulation of technological assets. It is argued that preuious tendencies to decentralize these issues, along with K & D operations, to the business unit level are being partially rtversed. A new paradigm of corporate management of technological assets is identified. This analysis is then used in conjunction with existing taxonomies of innovation strategy and corporate strategy to propose a new taxonomy of corporate technology strategies.     

R&D Corporate Planning: Selecting the Core Technological Competencies

This paper deals with the selection of a firm's technological competencies on which to concentrate development efforts in a long term view. The perspective is that of corporate R&D which has to identify the technological competencies relevant to future competition and select those core for the firm. This process faces a major challenge, especially to put together different issues relevant to the problem: identify future scenarios and predict how new industries will be shaped, evaluate the potential of future markets, estimate the role and relevance of the technologies involved, identify a balanced set of technologies. This paper proposes a comprehensive methodology to support the process of selection of core technological competencies.     

Joint R&D projects: Experiences in the context of European technology policy

Joint R&D projects have emerged as a significant model for the development of research and technological activities. Our study examines, through an exploratory analysis, the typology of joint R&D projects and the characteristics of R&D networks in which the projects are developed. In addition, the interrelation between the R&D projects in the context of European Technology Policy is analysed. Findings from survey data collected on joint R&D projects carried out in the context of European Framework Programmes indicate that three groups of R&D projects can be identified (invention, innovation and diffusion projects), and that each of these projects is managed inside the R&D network with a different degree of structuring and external opening. The analysis of interrelations between R&D projects also shows a low, non-linear and non-progressive interrelation. This conclusion is an important question to bear in mind in the design of scientific and technological policies.     

The value of conserving genetic resources for R&D: A survey

The value of genetic resources for R&D is placed within the framework of discussions concerning sustainability. We assess the extent to which society is able to invest now in order to prepare for future risks and uncertainties in the arrival of biological problems. Each of the approaches to valuation is discussed within this setting. Weitzman's approach to measurement is seen to be one that considers society's current objectives and information to be little relevant to future risks and uncertainties. Sedjo, Simpson and Reids' search-theoretic perspective is seen to reduce future uncertainties to highly tractable and known problems. Goeschl and Swanson's bio-technological approach also constrains the problem to be one without any real uncertainty, and focuses on the need to maintain genetic resources in order to maintain control over the problem. Kassar and Lasserre place uncertainty at the core of the problem, and assess the extent to which additional value is added by this feature. In sum all of the approaches to the problem evince a pessimism regarding the capacity of future technological change automatically to resolve these problems. Given this, the value of genetic resources depends on beliefs concerning the ability of current objectives to anticipate future risks and uncertainties.     

Using Delphi for a Long-Range Technology Forecasting, and Assessing Directions of Future R&D Activities The Korean Exercise

This article summarizes and discusses major findings of the Korean Delphi. The Korean Delphi was first carried out on a large scale. The results of the Korean Delphi include the forecast time of realization and an evaluation of importance for about 1200 technological topics. The forecast time of realization was estimated and compared in both Korea and the world's leading countries. We also provide a comparison of the Delphi results among Korea, Japan, and Germany, with some topics in common in the areas of information, electronics, and communications technology. This study interprets the results of the Delphi and explores the future directions of R&D activities with relevance to the Korean Society.     

Using resources in R&D policy planning: Brazil, the Amazon and biotechnology

Brazil's research and development (R&D) policies are examined in light of changes in economic direction especially as it pertains to competition. In a competitive environment, regions should develop industrial applications and expertise in areas that coincide with their resources. These could be human resources but could, as in the focus of this paper, be useful resources that differentiate the region from others in the world. This differentiation provides an advantage to the region. Brazil and its Amazon region has the large majority of the world's rare genes. In biotechnology, genes are “green gold,” and Brazil is slowly developing a biotechnology industry and beginning to tap into the Brazilian Amazon region's economic biotech potential. This region has enormous potential for the development of biotech-related technologies and products. This paper discusses the relationship between resources and an R&D strategy using as an example the recent developments in biotechnology research in Brazil and the role of the Amazon region in the development of a Brazilian biotechnology industry. It recommends a number of policy initiatives that will enhance Brazil's focus on biotechnology.     

Managing global research and development in China: Patterns of R&D configuration and evolution

The growing internationalization of R&D activities challenges multinational corporations (MNCs) to formulate technology strategies and manage increasingly diffuse and diverse networks of R&D laboratories and alliances in the context of disparate national institutions. This paper examines the evolutionary processes of MNCs' R&D strategies in China in terms of two principal dimensions, i.e. geographic dispersion and functional focus. Based on a study of 378 international R&D centers and alliances established in China over the 1995-2001 period, we investigate the evolution of managing international R&D configurations in an emerging economy. The model is further illustrated with key findings from case studies of three leading high-tech MNCs in managing their global R&D operations in China over 1996-2004, specifically Fujitsu, Motorola and Nokia. This study contributes to the existing literature by exploring the globalization of R&D through foreign centers of scientific and technological excellence, which enables MNCs to innovate closer to their product markets and manufacturing facilities in emerging markets.     

On the effects of human capital and R&D policies in an endogenous growth model

We introduce an external effect of existing technologies in human capital accumulation in an endogenous growth model and describe its steady-state and transition. We numerically solve the model to compare the quantitative effects of R&D policy with the quantitative effects of human capital policy in wealth and welfare. Although R&D subsidies have now an overall positive effect on growth, wealth and welfare, the calibration exercise shows that for plausible values for the parameters, human capital policy is simultaneously the most income and welfare-improving and the less expensive to the government.