Keywords: R&, D, productivity, performance measurement, benchmarking, strategy, innovation
Productivity and performance measurement in R&D
The paper discusses the challenges facing productivity and performance measurement in research and development (R&D). Traditional methods are generally not appropriate because of the nature of the output which is long-term and often intangible. R&D can be related to three types of pertinent measures which are the process, the output and the pay-off. Capability and latency are also illustrated as the strategic link between productivity and performance. Total productivity, supported by a family of partial yardsticks, is advocated as the most effective means of control. Benchmarking is shown as significant and important in the pursuit of improved R&D management. It is stressed that though measurement may be difficult it is vital for the success of R&D strategic planning.