R&D is an easy target for cuts when firms face pressure from quarterly earnings. One problem is that firms don't have a metric to benchmark their R&D productivity. Professor Anne Marie Knott, affiliate faculty member for George Mason University's Center for Government Contracting, has developed such a metric, the Research Quotient (RQ), which uses financial data to isolate the effect of R&D spending on revenue growth. While she finds a worrisome trend that R&D productivity has declined a staggering 65% over the past half-century, Anne Marie presents several insightful actions that can reverse the trend.
What does all this mean for Defense & Aerospace firms and their Independent Research & Development (IRAD) spending? How is the business of government different than the commercial sector? Can firms drive more value not just for their shareholders, but for the taxpayer and the national security?
This video presents a discussion on IRAD policies and practices designed to jump-start military innovation. Watch on-demand: