Sb 330 Week 6 Chapter Discussions

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Krystofir Weaver SB 330 Week 6 - Chapter Discussions What are the relationships between R&D spending, patents and economic performance? In the fast changing, and competitive business environment that firms of today operate in, it’s important for firms to be coming up with new products and better value and to stay ahead of the competition. Also, the product life cycles are short and consumer preferences change all the time, which means it’s necessary to have new products with a healthy pipeline that would be launched as recently launched products get close to the end of their life. In such a scenario, it’s crucial that a firm has the required setup and organizational environment where new product development is given its due importance, there are sufficient resources allocated to research and development to enable the same. Studies in this area across different sectors show a positive relationship between spending on R&D and the sales of the company and also have a significant positive effect on value additions and the number of new product announcements made (Bessant, J. R., and Joseph Tidd, 2011). Also, companies that invest a lot in research and development, also normally place a lot of patents for their proprietary process, knowledge or technology that will let them stand out, and so be more successful. This is supported with the fact that some of the most successful companies like Google, Microsoft, Apple, and Samsung, each of these are leaders in their industry spend good amount of resources on R&D and have a large number of patents that are filed regularly. Companies that are focused on innovation and new product development, and hence by creating proprietary assets and filing more patents, and invest a lot research and development, are not performing well in the present but are also positioning themselves to succeed in the future.
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