OVERVIEW : A McKinsey & Company study of corporate performance reveals that even the best-run and most widely admired companies have been unable to sustain their market-beating performance over the long term. Eight key insights from this study of more than 2,500 companies are discussed, including that R&D spending does not correlate with shareholder returns in any simple way. R&D leaders should learn from this that while there may be periods when companies and industries display extraordinary performance, these periods always end. R&D management - who are at the very center of creation - must look hard at spending, particularly when others are cutting back. Many of today's industry leaders actually increased their R&D spending during the 1990-91 recession.
Document Type: Research Article
Publication date: November 1, 2003
More about this publication?
Research-Technology Management has been publishing peer-reviewed articles covering the entire spectrum of technological innovation since 1958. RTM is a leading source of knowledge and best practices on innovation management, from research and development through product development to marketing, for leaders of research, development, and engineering worldwide.