R&D Management Practices and Innovation: Evidence from a Firm Survey (SpringerBriefs in Economics)

This Open Access book provides a detailed account of firms’ research and development (R&D) management practices, and whether and how R&D management practices are associated with the success and the nature (explorative or exploitive) of innovation, using a unique survey of firms in Japan. While there is wide agreement that innovation is a key determinant for growth of firms, there are few studies that systematically and quantitatively investigate what firms do in their R&D management to create innovation. Utilizing insights from theoretical and empirical studies on innovation, the authors focus on the following four aspects of R&D management: the organizational structure of R&D, staged project management for R&D projects, compensation and incentive schemes for R&D personnel, and a firm’s risk preferences and corporate culture. The authors examine whether and how R&D management practices are linked to the likelihood of firms’ success in making product innovations and the choice between explorative and exploitive innovation. The book furnishes vital information that can be used as a reference for future theoretical and empirical analyses of R&D management practices and innovation. This monograph is highly recommended to academics and practitioners who seek an in-depth and detailed analysis of R&D management. This is an open access book. Preface Contents About the Authors 1 R&D Management Practices and Innovation: Evidence from a Firm Survey 1.1 Introduction 1.2 Key Questions and Related Literature 1.2.1 Organizational Structure of R&D Activities 1.2.2 Staged Project Management 1.2.3 Compensation and Incentive Schemes for R&D Personnel 1.2.4 Risk Preferences and Corporate Culture 1.3 Methodology 1.3.1 Survey Design 1.3.2 Summary Statistics 1.4 R&D Outcomes and Inputs 1.4.1 R&D Outcomes 1.4.2 R&D Inputs: R&D Expenditures 1.4.3 R&D Inputs: R&D Personnel 1.5 Organizational Structure of R&D Activities 1.5.1 Centralized/Decentralized R&D Structure 1.5.2 Allocation of R&D Expenditure and R&D Personnel in Firms with a Hybrid R&D Structure 1.5.3 Initiative in Hiring R&D Personnel 1.6 R&D Project Management 1.6.1 Overview on R&D Projects 1.6.2 Staged Project Management 1.7 Evaluation of R&D Personnel 1.7.1 Salary Schemes for R&D Personnel 1.7.2 Performance- and Ability-Based Evaluation 1.7.3 Incentive Schemes for R&D Personnel 1.7.4 Incentives for Long-Term Success 1.8 Risk Preferences and Corporate Culture 1.8.1 Risk Preferences 1.8.2 Corporate Culture 1.9 Conclusion Appendix Survey of R&D Management Practices Glossary of Terms in the “Survey of R&D Management Practices” References