1.7. WHAT IS UNIQUE ABOUT MANAGING R&D ORGANIZATIONS?

R&D organizations are different from other organizations because of the people working in such organizations, the ideas that are generated, the funds or research support that are obtained, and the culture of the organization. These four elements—people, ideas, funds, and culture—are the basic elements of an R&D organization and are discussed in detail in the next chapter. A brief review of each element as related to an R&D organization's uniqueness follows.

1.7.1. People

People in R&D organizations normally would have graduate training and relatively high aptitude. They are socialized during their graduate training to work autonomously and show considerable initiative.

An anecdote will help convey more clearly what is special about R&D personnel. The famous German scientist Hermann Helmholtz put a sign up on his lab: "Do not disturb." This was all that his students and collaborators were able to see for a month. After some 30 days Helmholtz emerged with an important new theory that eventually led to the development of radio and television (related in Boring, 1957).

1.7.2. Ideas

Ideas in an R&D organization are generated through a unique communication network (discussed in the next chapter) and facilitated by the ethos of a scientific community (discussed in Chapter 3).

1.7.3. Funds

In general, funding sources for R&D organizations are different from those for any similar large enterprise. For example, in the United States about 28 percent (2006) of funds for R&D are provided by the federal government. The federal government spends over three times as much on basic research as does industry. Even for academic institutions, the majority of research funding support, 61 percent (2006), is derived from the federal government. This funding support, coupled with research productivity benefits that accrue to society at large rather than the individual or the sponsoring organization, gives R&D organizations a unique characteristic.

1.7.4. Culture

The culture of an organization relates to both objective and subjective elements. For an R&D organization, objective elements such as research laboratory facilities and equipment and office buildings are different from those of other organizations. Subjective elements such as rules, laws, standard operating procedures and unstated assumptions, values, and norms for an R&D organization are also different. For example, scientific discoveries, whatever their source, are subjected to impersonal judgments, and scientists often participate in organized skepticism and critically evaluate scientific ideas and discoveries. This permeates all aspects of an organization's function. Management decisions affecting individuals are thus critically evaluated and questioned by the researchers. After attending a senior management conference, a newly assigned deputy administrator of a federal research organization stated that he had never worked in an organization where people were so vocal and where management decisions were reviewed and discussed as openly and fully.

The culture and other elements vary from one R&D organization to another; however, as a group, R&D organizations generally possess unique characteristics.