Linking R&D spending to revenue growth

被引:16
作者
Hartmann, GC [1 ]
机构
[1] Xerox Corp, Strategry & Innovat Grp, Xerox Corp Res & Technol, Stamford, CT 06902 USA
关键词
D O I
10.1080/08956308.2003.11671543
中图分类号
F [经济];
学科分类号
02 ;
摘要
A recently proposed model for revenue growth clarifies the linkage between R&D intensity and the annual revenue growth rate. A key assumption is that the lifetime revenue generated by a group of products launched in a particular year is proportional to the total R&D investment in that year. In practice, the product-related R&D investment occurs over several years preceding the year of product launch. By decomposing the total R&D into product-related investment streams, distributed over the years prior to launch, the link between the revenue growth rate and product development schedule can be modeled. The extended model yields a formula that links the growth rate, R&D intensity, and shapes of the revenue and investment streams. Management can use the simulation method as a planning tool, to quantify potential ramifications of their RD decisions.
引用
收藏
页码:39 / 46
页数:8
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