Why should a company or organization invest in R&D? If we look at big picture economics, societies are riding global waves of prosperity, progress, and decline. New knowledge coming from R&D can be thought of as a surfboard that helps us ride these waves, rolling along in the good times and keeping us afloat when the going gets tough. Continuing the analogy, how much should we pay for this surfboard, i.e., how much should we be investing in R&D? We can use science research expenditures in the U.S. as a guideline, which approach 1% of our Gross Domestic Product (GDP) annually. Extending this rule to a manufacturing company with $200 million revenue (GDP), this means they would dedicate $2 million a year to exploring new market directions, expanding product lines, and looking down the road at materials and systems and processes.
At NBM Technologies, we are thinking quite a bit these days about how to grow, allocate resources and time, and we are using this 1% rule as a guide. In the same vein, we live to help our clients find their edge. Letâ€™s all give 1% of our GDP. Letâ€™s push ourselves to get better. Letâ€™s all Hang Ten.
Cristopher Moen, Ph.D., P.E.