This study deals with R&D strategy and management systems of private R&D centers to increase R&D productivity and to manage R&D activities effectively.
The objective of this study is to provide some implications which will be useful in managing private R&D centers. For this purpose, this study investigated some cases of private R&D centers of Korea and Japan, especially focusing on the heavy industries which are constructing commercial ships as well as industrial machines, energy plants, and so on.
Through the analyses of advanced private R&D centers, critical management issues and implications for the R&D strategy and management systems were identified.
In spite of methodological limitations such as lack of the depth of the case analysis and limited data availability, this exploratory study desirably provides following implications:
First, R&D strategy should be linked to business strategy. The R&D organization and R&D strategy which are matched to the business environment and business strategy will increase R&D productivity because all employees in the company as well as top management will know the strategy and pay their attentions to the R&D strategy which will be same direction with the business strategy of the company. Conclusively, the third generation of R&D management should be absolutely required.
Second, a new team such as 'R&D coordination team' will be necessary in the corporate R&D center in order to manage the field of R&D and collaborative R&D among R&D centers and R&D teams through breakdown or integration of the technology.
Third, it will be necessary to reinforce the role of the CTO(chief technology officer) and a technical planning team in order to integrate and utilize the technologies among the R&D teams in the other companies as well as their company in the group.
Fourth, R&D themes should be related to the business areas and products considering the difficult situation of the heavy industries in Korea. Also, incremental R&D and radical R&D which are directly related to products should have more priority than fundamental R&D.
Fifth, matrix organization among the R&D teams and/or other R&D centers may be desirable to cross-fertilize and synthesize the technologies. Furthermore, if they have 'technology forum' or 'technology communication committee', it will be helpful to coordinate the planning of the manpower, facilities and R&D themes in the viewpoint of the company.
Sixth, in order to strengthen technical ability of researchers and designers, 'technical training center' in the R&D center will be necessary.
In conclusion, it will be absolutely necessary to increase R&D productivity and manage R&D activities effectively in order to be in the competent position through diversification of the business to overcome hard times of the heavy industries. R&D strategy and carefully designed management systems with the concept of third generation of R&D should be absolutely implemented. Also, leadership of top management and CTO and partnership among the corporate R&D center, R&D teams and production divisions in the factories is very important.
