Community Forum – How does your company estimate the risk and value of long-term R&D?
- Resource Type
- Survey (Community Forum)
- Publish Date
- 06/02/2023
- Author
- Innovation Research Interchange
- Topics
- Finance for R+D, Patent
- Associated Event
- Publication
A: How does your company estimate the risk and value of long-term R&D?
As innovation leaders, we often find ourselves navigating the intersection of creativity and financial considerations. While our passion lies in driving groundbreaking research and development (R&D) initiatives, it’s crucial to recognize the importance of financial management in sustaining these endeavors.
The results from this week’s survey are below.
Community Responses
Other*
- Application engineers or sales representatives
- We have an innovation project management group that does this
Other*
- Revenue Potential and Gross Margin
- Combination of strategic fit, payback and time to market
- Both strategic alignment as well as ROI
Other*
- Revenue potential and Gross Margin
- We are doing almost all adjacencies and very little over 3 yrs time horizon
- Strategic alignment
- Clear point of differentiation (technology, market gap, etc.)
- Both strategic alignment as well as ROI
Other*
- NPV and sensitivity analysis with open discussions in group
- Specified scores for Technology Readiness & Resource readiness (also includes Commercial readiness but provided by Marketing)
- Complexity scorecard
Additional Resources:
- Developing a Long-Term R&D Strategy in an Increasingly Changing World (RTM Publication)
- Risk Analytics for Innovation Projects (RTM Publication)
- How do you measure the quality of an idea? (Community Forum)
Have a response to add? Email us!