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Which Innovation Efforts Will Pay Case Solution & Answer

Successful innovation, the kind that leads to customer engagement and profits-is rare and hard to get, or could conclude observing the results of many efforts companies’innovation. Some have tried to invest heavily in research and development. But the author has recently studied public companies represent nearly 60% of global R & D and found that above a certain minimum level, there is generally no correlation between R & D and financial measures such as sales or earnings growth. For many companies, the development of new products is unpredictable. However, according to research conducted by the author, successful innovation is not magic. Continued attention to some important criteria. The key question is not how much to spend, but how to spend. The author introduces a “return on investment in innovation,” or ROI2 method is directly correlated to expenditure growth and eco-innovation refers to the financial results in a manner that may lead policymakers to generate higher returns and more reliable on innovation and D. The R & ROI2 approach is based on a number of innovation studies conducted over the last seven years with companies in consumer products, healthcare and chemical industries. To be more efficient, a company needs to diagnose their practices and innovation capacity. The diagnosis can be very different from one company to another, and that is why the adoption of industry standards does not work. Profile of individual innovation is the value and quality of the innovation portfolio of a company and can be clearly expressed in “yield curve of innovation.” This curve allows companies to track annual spending on innovation projects against the financial impact of these projects and “solve for growth.”
by
Alexander Kandybin
Source: MIT Sloan Management Review
10 pages.
Publication Date: October 1, 2009. Prod #: SMR332-PDF-ENG
What innovation efforts will pay? Case Solution

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