R&D management and financial performance

Empirical results of research into the relationship of R&D management and performance are reported, based on the contingency approach. This examination of global management of R&D looks at its place in the organization; the organizational structure of the R&D department; and the relationship between R&D and other parts of the company. In this context, setting of goals, overall planning, initiation of project, budgeting and control, and the transfer of results to other functions are examined. Return on capital is used as a measure of performance rather than subjective appraisals, the number of patents granted, or measures which are only indirectly related to R&D´s effect on company performance. For several integrative devices it is found that there exists an optimum for their development beyond which performance falls off. In particular, this is true for the influence of marketing on R&D.