EROSION OF R&D'S VALUE

The ability of internal R&D to contribute to a company revenue growth is weakened by the presence of conditions termed. R&D Value Eroders (TM). These conditions erode the relevance of R&D to the organization and its influence in getting resources and shaping strategic decisions. They are frequently invisible and unmanaged-either because they become obvious only after one knows what to look for or because they are accepted as a reality of the times. Eliminating a Value Eroder can dramatically improve R&D contributions and unlock powerful new patterns of thinking and acting in the entire organization. When the new patterns become routine and repeatable, the Value Eroder is transformed into a Value Accelerator (TM)-a powerful new strategy, backed by assets and tactics that build competitive advantage. This paper presents a framework to evaluate which Value Eroders are eroding R&D value the most and should be eliminated, and which would create the most new value if converted into Value Accelerators.