PRODUCTIVITY AND PERFORMANCE-MEASUREMENT IN RESEARCH-AND-DEVELOPMENT

The paper discusses the challenges facing productivity and performance measurement in research and development (R&D). Traditional methods ar e generally not appropriate because of the nature of the output which is long-term and often intangible. R&D can be related to three types o f pertinent measures which are the process, the output and the pay-off . Capability and latency are also illustrated as the strategic link be tween productivity and performance. Total productivity, supported by a family of partial yardsticks, is advocated as the most effective mean s of control. Benchmarking is shown as significant and important in th e pursuit of improved R&D management. It is stressed that though measu rement may be difficult it is vital for the success of R&D strategic p lanning.