Investment

Innovation Allies: The Business Unit President

Innovation Allies: The Business Unit President

Today, we are continuing the discussion of executives that the Chief Innovation Officer needs to include in the coalition that guides the transformation of innovation capabilities, capacity and business results. The presidents of business units, or whoever has line accountability, within your corporate structure should be key allies in the transformation.

Innovation Allies

Innovation Allies

I met with a former client last week to get caught up on life and his work in innovation. He leads the innovation and product development program office for a large, global life sciences corporation. The primary responsibilities of the group are management and execution of the portfolio management and program review processes, resource allocation, and innovation performance reporting. 

Innovation Measures #3 – R&D Growth Effectiveness

Innovation Measures #3 – R&D Growth Effectiveness

There are several methods that can be used to measure the effectiveness of spending on research and development. I will cover a couple of them in this series. The one that is the easiest to measure and the least subject to manipulation is the R&D Growth Effectiveness Ratio.

The CINO’s Team #1 – Portfolio Analyst

The CINO’s Team #1 – Portfolio Analyst

The responsibilities of a corporate Chief Innovation Officer in a large, established enterprise are far too great to realistically be handled by one person, no matter what super hero powers they may possess. Over the next few weeks I am going to write about the roles that I believe are critical to the success of any effort to transform the innovation performance of an organization.

SxSW Video Clip - High Tech Innovation Effectiveness

SxSW Video Clip - High Tech Innovation Effectiveness

As an industry, high tech spent an average of 8.3% of revenue on R&D over the four year period from 2008 - 2011. This compares to a spend rate of only 4.8% in a diversified set of other product-driven industries. Meaning that on average high tech spent 73% more on R&D as a percent of revenue than other industries. 

SxSW Video Clip - Diseconomies of Scale

SxSW Video Clip - Diseconomies of Scale

In the thirty year period from 1981 to 2011 the share of US R&D investment made by companies with more than 25,000 employees fell by more than half. Yes, the total investment in R&D rose substantially during this period, as did the number of companies with this many employees, but all of the growth in investment came from smaller enterprises. Startups and companies with fewer than 1,000 employees grew their share by almost six fold.