How Innovation Really Works: Using the Trillion-Dollar R&D Fix to Drive Growth

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BEHIND RQ: What It Really Is and How to Find Yours

We’ve seen many ways RQ can help companies generate greater value from their R&D. Until now, however, you have had to take it on faith that RQ is a meaningful and valid measure. This chapter provides the evidence to replace the faith. It describes the RQ measure, discusses how it is derived, links it to economic theory, and shows through that theory how RQ can predict optimal R&D spending, revenue, profits, and market value.

THE THEORY AND METHOD BEHIND RQ

I argue that RQ is the most intuitive measure you could construct for R&D effectiveness (though once you see the equation for RQ, you may not agree). It’s so intuitive it occurred to me as a first-year PhD student. In fact, my being a novice ...