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Updated  R & D Strategies

April 10, 2007
by

 Curt Deckert Ph.D, CMC.


        
         We have experienced accelerated international technology development since the 1940s.  Prior to that technical development were relatively slow and spread over many years as evidenced by patent and other records. Until recently, there has been little tough, critical, systematic analysis and comparison of R&D strategy, policy, and implementation. Many R&D managers are not able to select strategies that have been thought out, experienced, articulated, analyzed, or clearly debated. In general, values, facts, and predictions are often not complete, and optimum R&D strategies have not been implemented or even clearly identified. During the past decade, the efficiency of research and development has become a significant issue because of international competition, outsourcing, shorter product life cycles, and increasing R&D cost.

 

   What competitive R&D strategies will help you move your organization to develop successful products? This will depend on the type and size of your organization, its products, and the size of markets. Even large successful organizations often face considerable difficulty in maintaining their core strengths, technological edge, and consumer demand over time. Because of rapid change, factors that lead to initial success can also play a significant role in decline. For example, relying on a single technology or a very narrow focus may not be the best long term R&D strategy. Also, vision, policies, leadership, strategic R&D focus, competencies, structures, and corporate culture are also critical in the development of R&D strategy. A number of possible R&D strategies from my earlier US company research survey are shown in the following table. The complete survey article on our web site deckert.net indicates that some of these R&D Strategies, such as the first three, are much better than some of the others.

 

· New development driven by market requirements 

· Internal R&D 

· Internal R&D with outside consulting 

· Cooperation with universities 

· Purchase of small technology companies 

· Use of R&D partnerships 

· Association or alliance with local companies 

· Copying a product of a competitor 

· Purchasing of. Patents

· Contracting for development by R&D firms 

· Purchase of technology from large companies 

· Contract R&D to foreign development organizations 

· Purchase of foreign technology &/or patents 

· Use of high-tech incubators for new R&D organizations 

· Government developed technology or patents 

 

                    Shorter product life cycles have caused an increased need for new R&D which may require revision of existing R&D strategies. Major technology management problems currently faced by many corporations include rapid application of technology to get to the correct market quickly and effectively; international competition including labor cost, subsidies, technology drain, and other factors. The process of deciding on new R&D strategies and projects can benefit from objective Market Research. The previous US survey also indicated that user training and functional literacy of the technology workforce, and manufacturing and quality processes were in need of improvement relative to international competition. Engineering and marketing functions need to agree on all specifications after demonstrating that there is at least one way to satisfy adequate market needs at a competitive price. Manufacturing and other functions must also participate in the establishment of overall R&D strategy. One cannot control IP and other internal knowledge so well that no one else can take it away, because there can be overlap in patents and trade secrets as personnel changes. If you can't control a core technology you might benefit from a strategic partner who has well-protected technology.

 

              Changes in the international environment causing the most difficulty in the implementation of present R&D strategies include the following: government regulations, taxation, IP violations, people shortages, housing costs, turnover, training; increased costs of money, new materials for R&D; advancement of education; short product lifetimes; and market environment changes such as new high tech market shifts. Technology developments needed for competitive new R&D include: development of new computer software such as improved computer-aided software, artificial intelligence, and data quality. Also, to compete in international markets, improved materials and processes are needed for increased performance, tighter tolerances, and lower cost. More efficient management of people and other resources are required for new competitive products. More efficiency in R&D is needed for successful competition in an international market, but much of it is still dependent upon the creative human element. Encouragement of and focus on making the human element more valuable and useful should be a high priority relative to application of technology to aid the R&D process. New R&D strategies need to concentrate on making the human element as effective as possible.

 

                   Realizing that external environments change, R&D strategies now need to be updated to meet and exceed that of international competition. For example, one should try to remove sustaining engineering and project maintenance from the primary R&D team since they do not have time to do very creative and competitive new R&D and engage in significant competitive sustaining engineering programs. Incremental market-led product innovations are not sufficient when major competitive technological leaps are occurring. A new look at related technologies can be helpful, if not necessary, for competitive R&D to take place. International competition has increased the need for competitive R&D and cost reduction to meet international pricing pressures. There has been a great deal of external and internal restructuring going on. To stay at the forefront of technology, companies need to make consistent investments in new R&D. Continual product development is an effective, competitive economic weapon. One should aim at continually researching present and new product developments in order to alert the total R&D organization to threats and opportunities associated with new technological shifts. Improved R&D education is also necessary for preparing people for success as new ideas are channeled into more effective R&D strategies for international competition. Small start up organizations need some special care in the development of R&D strategies because of limited resources and the pressing need for commercialization.

 

Curt Deckert Associates, Inc.
Competitive R&D

18061 Darmel Place
Santa Ana, CA 92705, USA.

Tel:(714) 639-0746
       (800) 394-0748
Fax:(714) 639-0746

   © 2007 Curt Deckert Associates, Inc. Established 1976.