Corporate R&D portfolios are out of balance, leading to a material impact on company growth. Despite increasing the amount of spending on innovation projects, most R&D leaders report that these projects are being delayed and “traded off” as they face intense pressure from the business to support near-term incremental projects.
Fewer than half of R&D leaders believe their portfolios contain an adequate number of on-schedule high-value projects, and even fewer are satisfied with their portfolio management processes. Seventy-eight percent of companies with the unhealthiest R&D portfolios anticipate missing their five-year revenue growth goals.
R&D must change how it guides the business away from lower-value incremental projects, as well as strengthen limits on R&D resources available for incremental work.
Download our research on how to achieve balance and value.