The following are the top five R&D metrics used by industry (2008):
- R&D spending as a percentage of sales (77%)
- Total patents filed/pending/awarded/rejected (61%)
- Total R&D headcount (59%)
- Current-year percentage sales due to new products released in the past six years (56%)
- Number of new products released (53%)
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Source: Goldense Group Inc.’s 2008 Product Development Metrics Survey
Base: 200 companies that design and develop new products
Discovered via ThomasNet’s Industrial Market Trends
The fact that these are the most used metrics does not necessarily mean they are the best, or together form a BISC, for balanced innovation scorecard.
1 and 3 are input-indicators
2 and 5 are output-indicators
4 may be a measure of the succes of innovation output.
What is absent is a process indicator like actual leadtime versus planned for NPD-projects.
And senior management should have a clear definition of ‘new’ when using 4 or 5, otherwise any minor kai-zen-like improved product will be labelled ‘new’ by their business units aiming at presenting the required performance.
By: L.J. Lekkerkerk on August 20, 2009
at 3:34 pm