MANAGEMENT is efficiency in climbing the ladder of success; LEADERSHIP determines whether the ladder is leaning against the right wall - Stephen Covey

Wednesday, October 19, 2005

R&D spending does not deliver profits

Recently, I read an article published in a leading financial journal which mentioned that companies which invest heavily in research and development may be wasting their money and according to a new study of the world's top 1,000 corporate R&D spenders, it was established that there was no direct relationship between R&D investment and significant measures of corporate performance such as growth, profitability, and shareholder return. Well, then should I say why the heck corporations have significant budgets for R&D if they are gonna behave like charities!!!???


Blogger Trevor Gay said...

A great topic Sriram

One business leader said 'We do have a strategic plan - it is called DOING THINGS'

There must be a balance between R&D and Action in my opinion. Too much R&D is a sure fire way of making sure you do absolutely nothing but you do have good plans. Maybe I am just a little cynical (not) :-)

6:58 PM


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