Community Forum – How do you account for R&D spend?

One of the most commonly reported innovation metrics is R&D spending as a percent of sales. However, it’s not always clear what expenses are counted towards that total. Your participation in this survey will help the IRI community benchmark what common practices are in building these metrics so that we have a better understanding of how comparable these numbers may be.

Other:  

• Frascati Manual 2015 of the UN
• Innovation initiatives

 Other:  

• Some as it related to quality escalations, but others are in Service
• Separate org structure, but counts toward spend

3.  Does your organization have a different management structure for product support vs product development? Yes/No (If yes, please describe)

• Yes – Within Innovation/R&D we have a New Product Development team focused on new products and a Continuation Engineering Team that focuses on R&D efforts needed to support existing products.
• Yes – Product Development falls in our R&DE organization whereas Product Support lies with BD Technologists and Applications Engineers, who are not included in R&D.
• Yes – we have three structures within Technology.  These are application development, Horizon 2 R&D and Horizon 3 or Transformational R&D.
• Yes – product support is part of the Service organization, not part of R&D
• Yes – It’s part of sales support
• Yes
• We have slightly different processes & requirements within our Stage-Gate methodology, but the project teams (including project & portfolio management structures) are the same for product support vs. product development.
• Yes – Product support.   Product development – not in chemistry but yes in other parts of organization
• Product development and product support steered from Marketing & Sales, but only the first executed by RT&D.
• No – But some portions of R&D product support are NOT charged to R&D depending on the activity they are doing.
• No – Both are part of the overall R&D management structure. Dotted line responsibilities are different, development to Innovation and support to commercial.
• If there is a plant issue that needs resources for fixing a problem, it gets captured as technical assistance which is not accounted in R&D.
• Both product support and product development report into the Divisions, but with different management teams.
• No – nine responses

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