No connection to R&D spend and business success
For the second year in a row, Booz Allen Hamilton finds “there are no significant statistical relationships between R&D spending and the primary measures of financial or corporate success: sales and earnings growth, gross and operating profitability, market capitalization growth, and total shareholder returns.”
However the study does report that “effective innovators excel at four key elements. The high-leverage innovators distinguish themselves not by the money they spend, but by building strong capabilities in the four principal elements of innovation: ideation, project selection, product development, and commercialization. High-leverage innovators listen closely to their customers across the entire innovation cycle. Companies such as Stryker and Black & Decker design their innovation strategy around a keen understanding of their end customers’ needs.”
How loud can you say DESIGN THINKING? Design thinking provides context for ideation and deep understanding of end user benefits improves your success at picking the right opportunities. Effective use of design during product development reduces risk & costs. This is the making of design innovation.
Smart Spenders: The Global Innovation 1000
How to turn money into innovation
