R&D - revenues and contribution from patents

R&D investment doesn't generate revenues unless you actually generate income and reveue by exploiting that idea/innovation through manufacturing something incorporating that patent or license its use by an authorised 3rd party... otherwise you have the comfort of knowing that your employees are smart, that they have unique ideas (that are capable of being exploited), and that by paying for and registering them that you have just put them into the public domain but are choosing not to actively manage your investment for the benefit of your company, staff and shareholders....

not every dollar, yen, euro or pound will generate a direct return (in the short term) but by actively managing your return on intellectual capital you should manage to account for your R&D budget and the benefits this should (and needs to) acrue.

as regards the 70-20-10 guideline - everyone is looking to get better at what they do, the smarter ones do that and also keep an eye to the future and are constantly trying to figure out their way into the next big thing (think Boston Consulting Group and Cash Cows vs Rising Stars)...

Smarter companies allow some "loose" or creative time to see if they can divine or invent the next big thing....

comments welcome !

Paul