We live in a world that the Anglo-Saxons call the “VUCA world”. In other words, our environment is characterized more and more by volatility, uncertainty, complexity and ambiguity. R&D (research and development) is no exception to this rule. While the strategic nature of innovation and its importance for the survival and success of businesses could hardly be questioned, the role of R&D departments and the modalities of their management remain an under-investigated topic. The following are the most common questions that arise: how does one organize R&D activities in the short, medium and long terms? How can one measure their effectiveness? What is the real added value and how could we measure the return on investment?

Globalization brings additional difficulties to R&D, as it questions not only the strategic positioning of this function inside organizations but also the very existence of the latter. Some ponder whether it would be more appropriate to refer to “C&D” (connect and develop) by exploring the resources outside of the company like start-ups or suppliers in order to avoid fixing long-term capital.

To clarify all these issues, in this book, we conduct a thorough analysis of the different types of R&D organizations, the recent advances in the field and the strategic choices made by different companies in transition.

R&D is a difficult area to define in a business because it is only partially subjected to the performance indicators commonly used by other functions like marketing or production. Even a basic notion like wastage is difficult to define in this function. To find new solutions, we have to explore new territories. Although this can lead to failures and waste, we must accept such wastage in order to innovate.

The R&D area poses many challenges to the human resources department in managing recruitment and competence development in a different way from other departments by implementing effective training plans to cover future needs.

The “H” in Human Resources is key. Companies are made by employees, by their skills and abilities and, above all, by their passion. It is easy to develop and implement the desired techniques and models, but ultimately the success of the R&D function depends on the level of passion that employees venture on a path, which will not provide a return in the short term as in other departments. It is thus of primary importance to build an R&D department comprised of employees who have a passion for innovation.

Roberto RENIERO
Agricultural Engineer
Doctor in Molecular Biotechnology
President of CIME