~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Innovative Solutions _______ August 2006
In this issue
-- Feature Article: R&D spending – How much is enough?
-- On a Personal Note:
-- On the Lighter Side:
-- Article Policy
Welcome to the August 2006 edition of Innovative Solutions, the monthly
newsletter from Innovative Thermal Solutions. If you find this information
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Word count approx. 1000
Feature Article: R&D spending – How much is enough?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The past couple of newsletter articles have been devoted to the value of innovation and how important innovation and new products are to survival in a flat world. So are there any guidelines on how much a company should spend on innovation as measured by R&D spending? Booz Allen Hamilton published an interesting report late last year, titled “The Booz Allen Hamilton Global Innovation 1000: Money Isn’t Everything” (Full report here). Their central conclusion was that more R&D spending does not correlate with improved business performance. Here are the basic conclusions from the report:
Two things jump out at me from their conclusions. First, while the data shows that spending a lot on R&D doesn’t guarantee successful innovation and the resulting business growth that innovation drives, the data clearly shows that spending too little on R&D does correlate very well with poor business performance. Second, properly managing the innovation process is more important than how much you spend.
The report goes on to say:
Based on in-depth observations of real-world innovation practice and our analysis of the Booz Allen Global Innovation 1000, we find that effective innovators do four things well:
What they are really describing are the key elements of “lean development”.
So there is the raw essence of using innovation to drive business performance.
One – make sure that you devote some money and resources to R&D and innovation.
Two – Be sure you manage your innovation effort effectively. How it’s managed is more important than how much you spend.
On a Personal Note:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I feel like I’m up to my neck in Japanese Beetles! I have trapped literally gallons of them and still they keep attacking the vineyard. They particularly like the tender young leaves of the new vines we planted this year. Some of the new vines are mere skeletons, having succumbed to the voracious appetites of the beetles. I keep spraying the vines once a week, but that doesn’t hold them off completely. They seem to come back stronger than ever after every rain. But I have deployed a secret weapon. Those of you also doing battle with Japanese Beetles may want to check it out.
We won’t have any grapes to harvest this fall, but I’m really looking forward to next year. Hopefully we will get our first small harvest and start a new chapter in the saga of the Flying Otter Vineyard.
On the Lighter Side:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~An architect, an artist and an engineer were discussing whether it was better to spend time with the wife or a mistress. The architect said he enjoyed time with his wife, building a solid foundation for an enduring relationship. The artist said he enjoyed time with his mistress, because of the passion and mystery he found there. The engineer said, "I like both."
Engineer: "Yeah. If you have a wife and a mistress, they will each assume you are spending time with the other woman, and you can go to the lab and get some work done."
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