Relationship between R&D and Innovation

Relationship between R&D and Innovation

In today’s society, it is common for companies to compare their R&D spending to competitors and other companies around the world.  In the ICT field there is constant innovation.  Companies are trying to adhere to the fluid expectations that consumers have today in 2017–and this will almost indefinitely be the case for the years to come.  This is where R&D comes in.  R&D groups of companies have a large impact on how up-to-date their products are and if they’re releasing products that are going to fit the consumer’s wants and needs upon its date of release.

At the surface, it may seem like that the more money you pump into R&D, you will clearly be superior to your competitors.  However, just because the companies in this part of the business have more money to use to fund their research and projects, it doesn’t necessarily mean that they will be the most innovative in the market.  

Innovation isn’t necessarily all creating the greatest product.  It also about solving for both technical and market risk that can apply to the company. “The challenge with R&D labs is that they have traditionally focused on solving for technical risk only. While this might increase a company’s number of patentable technologies, it does not guarantee the success of those technologies in the market.”  I believe an aspect of R&D that isn’t looked into as much from our graduate program is that it R&D spending should work for creating sustainability.  According to the article, “to solve for market risk, companies need innovation frameworks and processes that allow them to search for sustainable business models.”

I would be very curious to see how much money, percentage wise, is put into the technical research to help create new, shiny products, and how much goes into forecasting market changes and competitors’ trends.  I believe great companies will have a generous amount of money invested in their R&D and have a balanced approach to the technology/market research situation.

 

See what Forbes has to say about this situation:

https://www.forbes.com/sites/tendayiviki/2016/08/21/why-rd-spending-is-not-a-measure-of-innovation/#1eb16d8cc77d


One thought on “Relationship between R&D and Innovation

  1. RS,
    Good post.
    You have a good observation above, backed by a source quote:
    I believe an aspect of R&D that isn’t looked into as much from our graduate program is that it R&D spending should work for creating sustainability. According to the article, “to solve for market risk, companies need innovation frameworks and processes that allow them to search for sustainable business models.”
    Good weblog work throughout this R&D course period, as well.
    JEG

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