logologologo
  • Home
  • About
    • Contributors
    • Guide for contributors
  • Themes
    • Roadmapping
    • Open Innovation
    • Managing the R&D pipeline
    • Technology Strategy
    • Managing international R&D
    • Ideation and creativity in R&D
    • Impact of digital technologies
    • The resurgence of frugal innovation
    • Design Thinking
    • Penetrating the fog of Agile
    • China’s Belt and Road Initiative, a new model for Open Innovation
  • Tools
  • News
    • R&D Today newsletter archive
  • Resources
  • Papers
  • Case Studies
  • Events
  • R&D Conference
  • Contact
  • Home
  • About
    • Contributors
    • Guide for contributors
  • Themes
    • Roadmapping
    • Open Innovation
    • Managing the R&D pipeline
    • Technology Strategy
    • Managing international R&D
    • Ideation and creativity in R&D
    • Impact of digital technologies
    • The resurgence of frugal innovation
    • Design Thinking
    • Penetrating the fog of Agile
    • China’s Belt and Road Initiative, a new model for Open Innovation
  • Tools
  • News
    • R&D Today newsletter archive
  • Resources
  • Papers
  • Case Studies
  • Events
  • R&D Conference
  • Contact

Choosing The Best Metric For Measuring The Effectiveness Of R&D

Measuring the effectiveness of R&D can be a challenge. Larry Schwartz, Founder of IP Business-Tech Solutions LLC, led an investigation by the Industrial Research Institute’s research-on-research working group to looked at how managers define R&D effectiveness and what metrics they use to measure it.  We asked about this work.

Q&A with Larry Schwartz

Larry Schwartz

From your work could you recommend a tool or technique that is useful for improving the effectiveness of R&D management? 

I would suggest Patent Landscaping tools, of which a good example is Patent Inspiration www.patentinspiration.com. Before starting a project, you need to understand the breadth of a technology, who are the key players, key inventors, how fast the landscape is changing, what are the key patents (most cited)?

Are there areas of the landscape less populated that would allow an easier entry point? If the landscape is too crowded what are options (license technologies, hire key inventors, partner, invent around)?

What would you recommend someone new to this subject reads? 

It is important not just to read technical articles, but also articles on techniques of how to improve the R&D process, for example how can you improve your cycle time, integration of new product development phase gate process, metrics, continuous improvement (a good source is Research-Technology Management)

Looking back on your career what advice would you give your younger self about R&D?

No matter how good an idea sounds, it is essential that you understand what it will take to make it successful. This includes time, money, buy-in from the organization, people, skills necessary (not just scientists) but also marketing, sales, support staff. You must get buy-in from many areas.

Be realistic on your estimates, it always takes at least twice as long to complete a project than you think!

Review of Larry Schwartz’s paper “Measuring the effectiveness of R&D”

Measuring the effectiveness of R&D can be a challenge. This article outlines the results of an investigation by the Industrial Research Institute’s research-on-research working group Measuring the Effectiveness of R&D which looked at how managers define R&D effectiveness and what metrics they use to measure it.

The investigation revealed that whilst the top three metrics had remained the same for a number of years there were significant differences in metrics used depending on the industry type. It also revealed issues with metrics in general and the need for new metrics to meet the challenging R&D environment.

The IRI’s working group reviewed the literature which was available on R&D metrics and then polled members on the metrics they used. The group then then attempted to evaluate whether metric choices were dependent on the type or industry of the organisation. Using a modernised version of a model created by a previous research-on-research group, ‘The Technology Value Pyramid’, the group:

  • Classified and organised existing metrics;
  • Provided a guide for choosing relevant, useful metrics;
  • Identified gaps in available metrics.

The authors report that enhanced importance of reliable metrics is being driven by several forces: the need to justify the investment in R&D to senior management, the desire to improve efficiency in the use of R&D resources and the need for a means to estimate the value of the R&D investment for the future growth of the company.

As the R&D model is changing from exclusively internal development to an open innovation perspective, metrics depicting these changes, and measuring their outcomes, will be required. Since R&D will continue to evolve, identifying and integrating new metrics is a continuous process.

Taken from Measuring the effectiveness of R&D by Lawrence Schwartz, Roger Miller, Daniel Plummer and Alan R Fusfeld, published in Research Technology Management September-October 2011.

 

Biography

Larry Schwartz is the Founder of IP Business-Tech Solutions LLC which uses IP and business analysis to understand the landscape around a business area or technology to support informed business decisions. He has strong domain experience in technical management, business development and intellectual property.

Larry specialises in business development, R&D link to business strategic direction, competitive analysis including determining competitors’ business/IP strategy, technical and business consulting and materials science. He is a Subject Matter Expert for the Industrial Research Institute (best practices for R&D organisations) and NSF SBIR panel reviewer. He has authored multiple articles on sustainability and new product development.

Alan R FusfeldDaniel PlummerLawrence Schwartzmeasuring the effectiveness of R&Dpatent landscapeRoger MillerThe Technology Value Pyramid
Previous PostIncreasing chances of success for science-bas...
Next PostHow to protect know-how and trade secrets in ...
Search R&D Today
Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt
Filter by Article Type
Papers
Events
Tools
Funding Articles
Case Studies
Resources
Opportunities
Theme Editor Blogs
Filter by Categories
Business model innovation
Ideation and creativity in R&D
Latest news
Managing international R&D
Managing technology platforms
Managing the R&D pipeline
Open innovation
Outsourcing R&D
Project valuation and selection
R&D strategy
Roadmapping
Stage gate processes
Technology intelligence
View our newsletter archive
Theme Editor Blogs
  • Digital disruption in the lab: The case for R&D digitalization in chemicals – a review
  • Accelerating product development: the tools you need now – a review
  • Using good practice R&D management to create new innovations in malodour control
Resources
  • Innovation Management: Learning for the experiences of companies in European countries
  • Top 20 Innovation Blogs of 2016
  • Portfolio management at GlaxoSmithKline
Tools
  • Frugal Innovation Index
    Frugal innovation - competitive advantage when resources are limited
    Frugal innovation allows a company with a quality product to compete effectively with cheaper...
  • Kano model of product or service features 2
    Improving Product Features: When is More Less?
    Different types of feature have different effects on customer satisfaction - analysis by Quality...
  • Green Check Your Idea
    “Green Check Your Idea” – assess the environmental impact of innovation ideas
    The Green Check Your Idea tool helps innovation managers prepare an initial assessment of...
  • portfolio tools
    Portfolio management tools and approaches
    The aim of portfolio management is to ensure that a sensible set of innovation...
  • Valuing and comparing small portfolios
    Many of the tools used in valuing and selecting projects are only really applicable...
Have Your Say…

Have Your Say / Follow Us

R&D Today is the outreach site for the Research and Development Management Association, a charitable organisation that supports research, best practice and innovation.  www.radma.net

Click here to sign up to our newsletter, and click here to view our newsletter archive.

Copyright R&D Today 2020. All rights reserved.