Proprietary Publications

T125 - "8 Metrics That Quantify R&D Spending Performance"

R&D Spending Performance 8-8-8 Series,
Needham, Massachusetts, USA
December 6, 2018 -- [50 Pages]
ISBN 978-1-937115-37-1


This presentation was made in conjunction with the R&D Spending Performance 8-8-8 Webinar Series on December 6, 2018 in Needham, Massachusetts.


This paper focuses on key performance indicators [KPIs] that have R&D spending in their calculation. The metrics range from corporate metrics that are either reported to Wall Street or used by analysts and CFOs, to measures that help to divvy-up funds across business units of different purposes and performance levels, to measures that improve the ranking of investments, to measures that can be used to modulate overspending or underspending for corporate and industry considerations.

Then is a discussion of R&D intensity and how it differs across industries and examine some recent cross-industry findings regarding the specific spending of funds for Advanced Development activities.

This introduction makes for a good lead in to the eight R&D spending metrics as industries are different, as are the quantified values of their metrics.

Table of Contents for Technical Paper 125

Section Titles:
R&D Spending Intensity & Trends  3
Performance Measures Based On R&D Spending 11
   01-Return On Innovation 12
   02-Return On Research Capital 17
   03-Price To Research Ratio 21
   04-Price/Growth Flow 24
   05-R&D Efficiency 27
   06-R&D Productivity 31
   07-R&D To Final Product Output 34
   08-Research Quotient 39
Lessons From Financial Reporting Practices 44-48
Author Biography 49-50

Bibliographic references are provided for the numerous cases and examples we cite to enable all participants to further their investigation on the subjects of specific interest.

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GGI Technical Paper T125