Published: 22 May 2023
Gartner recently collected data on how R&D organizations allocate resources among sustaining engineering, incremental, next-generation and transformational projects. R&D leaders responsible for functional strategy and management can use this information to benchmark or rebalance their R&D portfolio.
Seventy-three percent of organizations review their R&D portfolio at least once per quarter.
On average, R&D organizations in technology-intensive industries allocate 36% of their total R&D spend to research activities, while 64% is allocated to development.
Thirty-nine percent of projects in the average R&D portfolio utilize emerging technologies, while 61% utilize established technologies.
On average, R&D organizations in technology-intensive industries allocate 48% of their total R&D spend to sustaining engineering and 52% to innovation projects. On average, organizations allocate 44% of their budget for innovation initiatives to incremental projects, 36% to next-generation projects and 21% to transformational projects.
Clients can log in to view the entire document.
Analysts:
Research and Development Research Team
Gartner research, which includes in-depth proprietary studies, peer and industry best practices, trend analysis and quantitative modeling, enables us to offer innovative approaches that can help you drive stronger, more sustainable business performance.
Our independence as a research firm enables our experts to provide unbiased advice you can trust.
Not only is Gartner research unbiased, it also contains key take-aways and recommendations for impactful next steps.
Our research practices and procedures distill large volumes of data into clear, precise recommendations.
We provide actionable, objective insight to help organizations make smarter, faster decisions to stay ahead of disruption and accelerate growth.
We offer one-on-one guidance tailored to your mission-critical priorities.
We work with you to select the best-fit providers and tools, so you avoid the costly repercussions of a poor decision.
Connect directly with peers to discuss common issues and initiatives and accelerate, validate and solidify your strategy.
Gartner clients can log in to access the full library.
Join your peers for the unveiling of the latest insights at Gartner conferences.
©2022 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.
