Spending money on R&D has nothing to do with being innovative.
PWC made a study about it.
Here are some interesting facts about why it is so...
PWC looked at the correlation between R&D spending and sustained financial performance.
That does not only matter in good times. It is even more important in bad times.
They found the six characteristics of high-leverage innovators:
1️⃣ base innovation on direct insights from end-user
2️⃣ company-wide cultural support for innovation
3️⃣ leadership is closely involved with the innovation program
4️⃣ close alignment of innovation strategy with business strategy
5️⃣ rigorous control of project selection early in the innovation process
6️⃣ Ability to integrate all the above characteristics into a cohesive approach for innovation
Here is the video:
The summary of the video:
"It is not about how much money you throw at the problem. It is about building a set of capabilities that involve talent, process, culture, and customer understanding. And that actually manifests itself in sustained superior financial performance in good times but even more so in bad times" - Barry Jaruzelski