Generating And Commercializing Ideas In R&D Laboratory Organizations

Investment in R&D is no guarantee of invention or profit. The mantra to innovative is obfuscated by uncertainty regarding the benefit of investing in R&D. Concurrent practices offer a robust solution. This chapter statistically analyzes multiple studies of R&D organizations to identify concurrent practices predictive of discoveries, inventions, and profitable new products. For example, a regression model of a small sample of R&D labs shows how six concurrent practices explain 80% of the variance in why some enterprises have more sales from new products originated in their labs than others. Analyses of data from an NSF study of 120 R&D labs identify concurrent practices of value development as reliable predictors of innovative outputs, such as novel products, patents, trade, and secrets. Organic practices, such as the formation of heterogeneous teams, foster radical innovations throughout the development lifecycle, but are relatively more essential at the front end. Structured processes are needed for discoveries as well as incremental improvements along the value stream to integrate research with development and manufacturing. The analyses of studies reported herein support the notion that concurrent practices apply throughout the value stream, from the upstream work of scientists and engineers to production operations and services.Appendix Table 12A enables readers to evaluate the extent to which graphic depictions of relationships between 10 R&D management practices and outputs identified in the analysis of 120 R&D labs are deployed in their enterprise. Readers may use Appendix Table 12B to prioritize n SPOT practices that are predictive of product development performance and sales of profitable new products by calculating Big Bang gaps. Appendix Table 12C provides 10 practices that have Big Bangs on product development performance that are enhanced by synergistic benefits for enterprises leading their industries in R&D investment. Appendix Table 12D lists 10 practices hypothesized to be the best for breakthrough innovation. Appendix Table 12E amalgamates 10 statements for readers to evaluate as characterizing integrated value development along the lifecycle from concept to customer experience.