Discuss Whether

Discuss whether R&D should be viewed just like any other expenditure and, hence, should
deliver a positive return for the investor.
R&D is an investment made by companies to develop new products, improve existing products,
and research new technologies that can lead to innovation and growth for the company. Just like
any other investment, R&D projects need to deliver a positive return for the investor. However,
the nature of R&D projects makes it difficult to measure their returns in the short term.
Explain why R&D functions often are thought as freewheeling places of disorder, yet, in reality,
R&D is routine and follows many procedures.
R&D functions are often thought of as freewheeling places of disorder because they are tasked
with generating new, innovative ideas and solutions. This implies that individuals working in R&D
may need to follow nontraditional thought patterns and processes to arrive at these solutions.
Explain how two firms, A and B, in the same industry, investing the same in R&D as a
percentage of sales, can perform so differently. Firm A delivers three new patents and two new
successful products; whereas firm B fails to deliver anything
There could be several reasons why two firms in the same industry with the same investment in
R&D would perform differently. Here are a few potential explanations:
1. Differences in R&D strategy: Firm A and Firm B may have different R&D strategies. For instance,
Firm A might focus on developing products that can be brought to market quickly, while Firm B
may prioritize developing more experimental and high-risk products. This could lead to
differences in the number of successful products released.
2. The quality of personnel: Another possible explanation is that one firm has a more talented
workforce than the other.
3. Timing: There could also be differences in the timing of R&D efforts. It's possible that Firm B
is working on products that aren't yet ready for release.
Consider apple examine what its level of expenditure on R&D could be. What should it be? And
what is its actual expenditure?
As an AI language model, I cannot access real-time financial information. However, based on
Apple's financial statements from previous years, it is generally recommended for technology
companies to spend approximately 7-10% of their revenue on research and development (R&D)
to maintain their competitive edge.
Use CIM (Figure 1.9) to illustrate the innovation process in the Viagra study
NB::: the answer will be the book
Firms investing in R&D in the many countries in the world receive tax credits. How can
countries encourage further R&D investment?
Countries can use various policies and strategies to encourage further R&D investment. Here are
some examples:
1. Tax Incentives: Countries can provide R&D tax credits, exemptions, or deductions for firms
conducting R&D activities.
2. Grants and Subsidies: Governments can provide grants or subsidies to firms to encourage R&D
investment. This can help reduce the financial burden on firms, especially small and medium-
sized enterprises (SMEs).
3. Collaborations and Partnerships: Governments can promote collaboration between firms,

universities, and research institutions. By working together, firms can share the cost of R&D and
benefit from each other's expertise.
4. IP Protection: Governments can provide strong intellectual property (IP) protection to

encourage innovation. This can encourage firms to invest in R&D knowing that their intellectual
property is protected.
5. Regulatory Frameworks: Governments can review their regulatory frameworks to ensure that
they are not hindering R&D investments.
6. Education and Training: Countries can invest in education

Describe a balanced portfolio of R&D projects for Nokia. This should incorporate its technology
portfolio.
What are the advantages and disadvantages from cutting R&D in a downturn?
Cutting R&D in a downturn can have both advantages and disadvantages.
Advantages:
1. Cost savings: Cutting R&D can provide immediate cost savings to the company, which can help
improve the bottom line.
2. Short-term focus: By cutting R&D, the company can focus on short-term goals that can bring in
revenue quickly.
3. Reduced risk: Investing in R&D can be risky, and cutting it can reduce the risk associated with
failed projects.
Disadvantages:
1. Reduced innovation: Cutting R&D may reduce the company's ability to innovate, which can
impact its ability to stay competitive in the long run.
2. Impaired growth potential: Without investment in R&D, the company may not be able to
develop new products, leading to impaired growth potential.
3. Negative impact on morale: Cutting R&D can impact employee morale, as it could lead to
layoffs and reduced resources to develop new projects.
Overall, cutting R&D in a downturn can provide short-term benefits

Discuss Whether

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Discuss Whether

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Discuss whether R&D should be viewed just like any other expenditure and, hence, should

deliver a positive return for the investor.

3. Collaborations and Partnerships: Governments can promote collaboration between firms,

4. IP Protection: Governments can provide strong intellectual property (IP) protection to

6. Education and Training: Countries can invest in education

Cutting R&D in a downturn can have both advantages and disadvantages.

Overall, cutting R&D in a downturn can provide short-term benefits

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