Measurement of R&D Effectiveness on Company Productivity

(Identify leading and lagging indicators of R&D productivity for use in creating a vocabulary for dialogue with top management)

This subcommittee began its work with a study of leading and lagging indicators of R&D productivity to provide a useful dialogue between R&D and top management. The indicators led to the development of a set of metrics to cover the interests and needs of different stakeholders in the innovation process of a firm. The metrics were presented to the IRI membership at the 1994 IRI Fall Meeting, in a session on "Measuring and Improving R&D Effectiveness," and published the following year in RTM.  Responding to a survey of membership needs in 1993, the IRI Board had directed ROR "to develop a valid set of measures for R&D effectiveness." Further work resulted in IRI's "Technology Value Program," or TVP, which offers 55 metrics to measure the effectiveness of management actions in any stage of the innovation process.  This project was another important milestone for ROR. Efforts are under way to update and improve the TVP.