In this article the results are presented of an empirical study focusing on the effectiveness of R&D performance measurement practices in the Netherlands. First, a theoretical examination of the subject ‘R&D performance measurement’ is given within the context of performance control. A distinction is made between feedback and feed forward control and between the R&D function and the R&D organisation. Subsequently, a description is given of the current practices of R&D performance measurement in terms of measurement purposes, metrics, measurement techniques, norms setting, etc. Furthermore, the influence of contingencies on measurement system design is explored. The data for this research were gathered by means of a survey and nine in‐depth interviews. Generally, managers evaluate their measurement systems as being quite valuable, having a positive impact on performance. The findings described in this paper can be used as references for managers to benchmark their R&D measurement procedures: in this respect we distinguish highly and hardly effective measurement procedures. The most important characteristic that seems to distinguish the most effective systems from the less effective ones is customer focus.

R&D performance measurement: more than choosing a set of metrics

Performance measurement of R&D projects in a multi-project, concurrent engineering environment

Measuring research and development (R&D) performance has become a fundamental concern for R&D managers and executives in the last decades. As a result, the issue has been extensively debated in innovation and R&D management literature. The paper contributes to this growing body of knowledge, adopting a systemic and contextual perspective to look into the problem of measuring R&D performance. In particular, it explores the interplay between measurement objectives, performance dimensions and contextual factors in the design of a performance measurement system (PMS) for R&D activities. The paper relies on a multiple case study analysis that involved 15 Italian technology-intensive firms. The results indicate that firms measure R&D performance with different purposes, i.e. motivate researchers and engineers, monitor the progress of activities, evaluate the profitability of R&D projects, favour coordination and communication and stimulate organisational learning. These objectives are pursued in clusters, and the importance firms attach to each cluster is influenced by the context (type of R&D, industry belonging, size) in which measurement takes place. Furthermore, a firm's choice to measure R&D performance along a particular perspective (i.e. financial, customer, business processes or innovation and learning) is influenced by the classes of objectives (diagnostic, motivational or interactive) that are given higher priority. The implications of these results for R&D managers and scholars are discussed in the paper.

https://papers.ssrn.com/sol3/Delivery.cfm/radm_554.pdf?abstractid=1488503&mirid=2

Performance measurement in R&D: exploring the interplay between measurement objectives, dimensions of performance and contextual factors

Researchers and practitioners have recently paid great attention to research and development (RD specifically, we investigate if and how the design of the PMS is influenced by the type of activity it is applied to, namely Basic and Applied Research or new product development (NPD). We first develop a theoretical framework that comprises the main constitutive elements of a PMS for R&D. Then the framework is used for supporting a multiple case study analysis involving eight Italian technology-intensive firms. The research results show that the criteria for designing the constitutive elements of the PMS are radically different in Basic and Applied Research and NPD. The reasons behind the observed dissimilarities in the design criteria are widely discussed in the paper, as well as their implications for R&D managers.

Exploring the differences in performance measurement between research and development: evidence from a multiple case study

A model for R&D performance measurement

Project Management Systems can use a variety of tools to model and visualise project status. This paper discusses the application of an integrated approach for project modeling and proposes a new graphic tool called PACT for evaluation of project status. An integrated performance monitoring system comprising many tools, including PACT, was used successfully with multiple advanced technology projects within the Indian Guided Missiles Development Programme. The approach provided a better insight into the status and problems of projects, and enabled management to initiate the most appropriate actions towards better performance.

Performance monitoring in R&D projects

In a high technology product development environment, due to large uncertainty and complexity, decision-making becomes very difficult. A review system provides a means for systematically dealing with this uncertainty and complexity. This paper intends to bring out a typical review system for high technology product development projects, based on the experiences of the Indian Guided Missile Programme. In order to gain a deeper understanding of the review system, the high technology product development environment has been modelled and the review system has been characterised for use in similar projects. The need for integration of decision making at various levels, integrated implication analysis of technical and managerial issues, special tools for decision collation and conflict resolution in a multi-project environment have been highlighted. The Indian experience shows that as we move from a traditional project environment towards a high technology environment, the review system attains greater significance and becomes vital for the success of the project.

K. Srinivasa Rao

Papers

Performance monitoring in R&D projects

High technology product development: technical and management review system