In this article the results are presented of an empirical study focusing on
the effectiveness of R&D performance measurement practices in the Netherla
nds. First, a theoretical examination of the subject 'R&D performance measu
rement' is given within the context of performance control. A distinction i
s made between feedback and feed forward control and between the R&D functi
on and the R&D organisation. Subsequently, a description is given of the cu
rrent practices of R&D performance measurement in terms of measurement purp
oses, metrics, measurement techniques, norms setting, etc. Furthermore, the
influence of contingencies on measurement system design is explored. The d
ata for this research were gathered by means of a survey and nine in-depth
interviews. Generally, managers evaluate their measurement systems as being
quite valuable, having a positive impact on performance. The findings desc
ribed in this paper can be used as references for managers to benchmark the
ir R&D measurement procedures: in this respect we distinguish highly and ha
rdly effective measurement procedures. The most important characteristic th
at seems to distinguish the most effective systems from the less effective
ones is customer focus.