This report provides information about the overall R&D environment, economic drivers, the value of product echnologies, a short-term economic and technological
outlook and the global R&D environment and its inter-relation-ships. So with that knowledge, how do you go about creating an
R&D budget, what’s important for it and how reliable is it likely
to be? The Chart provides reader survey results on the ranked
generic factors for establishing an R&D budget for 2018.
As shown and discussed in this report, economic factors are
the most chosen items for R&D operations. As such, R&D
operating costs were selected by more than half of the survey
respondents. The biggest concerns that researchers have with
their existing budgets is that the costs of operating the R&D
facility are continually increasing and they often don’t have the
budget to meet those rising costs. They also are concerned that
they have insufficient R&D funds for completing their goals.
With inflexible budgets to satisfy cost overruns, their research
projects cannot be completed. Both of these issues with current
operations can be moderated by ensuring that changing operating costs are satisfied within the initial operating budget.
Capital requirements (another economic factor), administration approval and staffing considerations (with their own
quasi-economic issues) were the next most selected factors
in the reader survey. Some items considered important
for the operation of an R&D facility, such as sustainability,
energy usage (itself a sustainability factor), technology licensing and outsourcing, were not considered comparatively
important by the survey respondents for creating an R&D
budget. Each of these “minor” factors were chosen by less
than 10% of the survey respondents.
Competition, the general economy, patent protection, regulations, revenue growth, safety/security, technology advances and technology costs were considered
to be of intermediate importance by the survey
respondent and only have relative importance to
the individual research organization and their
Important, non-economic features considered
important for operating an R&D facility were also
chosen and ranked in our reader survey. Unsurprisingly, attracting, developing and retaining R&D talent or staff was considered the most important feature by the survey respondents, who are researchers
and research managers. This high ranking matches
the results of previous similar reader surveys on
maintaining a research lab or facility.
Some of the other features that may be important in considering when creating a new
R&D budget include recent changes in the R&D
environment. About 20% more research organizations are now becoming involved in collaborations
and alliances with domestic and foreign research
organizations than they were involved with in the
past, according to R&D Magazine surveys. The
fact that your organization is involved in collaborations or alliances may affect the amount of R&D
budgeting you require. A strong collaboration may
actually decrease your budget requirements since
can also affect the
demands made on an
R&D budgeting process.
Factors for Establishing a 2018 R&D Budget
0 10 20 30 40 50 60
Source: R&D Magazine Survey 2017