The Innovation Dilemma:
How to Achieve High Performance through Superior Research&Development
Part I: Where and How Much to Spend on R&D
An Accenture paper in co-operation with the EconomistIntelligence Unit.
Improving product innovation has become vital for every corporation strivingfor high performance—especially given the increasing pressures of low-costcompetition, shorter product life cycles, and investors demanding profit andrevenue growth, sometimes on a quarterly basis. Indeed, Accenture’ssurveyinto high-performance businesses has revealed that innovation and continuousrenewal is a key element of performance anatomy—one of the building blocksof high performance. Yet most firms remain caught in a web of complex andsometimes conflicting realities. Market pressures tend to focus availableresources on existing products and the near term, seldom leaving organizationsenough maneuvering room to develop game-changing innovations. At thesame time, executives seem skeptical about how much they can learn fromthe various metrics that attempt to quantify returns on R&D investments.