Performance measurement in R&D

21 Jul 2010 Sandeep Mehta

Here is quick reference from the Journal R&D Management: Performance measurement in R&D: exploring the interplay between measurement objectives, dimensions of performance and contextual factors.  The overall learning is that industry and size and a big influencer on what metrics firms use.  Furthermore, overall goal for performance management also guides what metrics are used.

The results indicate that firms measure R&D performance with different purposes, i.e. motivate researchers and engineers, monitor the progress of activities, evaluate the profitability of R&D projects, favour coordination and communication and stimulate organisational learning. These objectives are pursued in clusters, and the importance firms attach to each cluster is influenced by the context (type of R&D, industry belonging, size) in which measurement takes place. Furthermore, a firm’s choice to measure R&D performance along a particular perspective (i.e. financial, customer, business processes or innovation and learning) is influenced by the classes of objectives (diagnostic, motivational or interactive) that are given higher priority.

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