Chapter 2. ELEMENTS NEEDED FOR AN R&D ORGANIZATION

The basic elements required for an R&D organization are (1) people, (2) ideas, (3) funds, and (4) cultural elements. These four basic ingredients have to be coordinated with skill by the management of R&D organizations in order to achieve high productivity and excellence. In this chapter we will cover some of the introductory topics concerning these basic elements. In later chapters we will focus more specifically on the task of coordinating and managing.

It is obvious that the most important element is creative people. Such people have the bright ideas and skills to do research and then translate research results into useful products. However, these people must be organized into structures that permit effective cooperation. In doing so it is important to keep in mind that certain mixes of people work better than others. To ensure a smoothly functioning organization, one needs unstated assumptions, beliefs, norms, and values—in other words, an organizational culture that will favor creativity and innovation. Last, but not least, one needs funds.