Author: | Morbey, G. K. Reithner, R. M. |
Title: | How R and D affects sales growth, productivity and profitability (R and D = research and development) |
Journal: | Research Management
1990 : MAY-JUN, VOL. 33:3, p. 11-14 |
Index terms: | R&D SALES GROWTH PRODUCTIVITY PROFITABILITY |
Language: | eng |
Abstract: | If successful R and D (research and development) projects are promoted sales will be increased as well. This conclusion has been combined with previous observations on company performance to clarify how R and D spending pays off. The strong relationship between R and D intensity and subsequent growth in sales, but with no significant relationship to profitability, is contradictory. Therefore the influence of R and D on future sales and profits was reexamined. It was shown that most companies with above-average sales growth also have above-average R and D intensity. Greater profit margins were found to depend on overall employee productivity. |
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