Concepedia

Abstract

OVERVIEW:Managers are under ever-increasing pressure to enhance the productivity of their R&D investments. As a result, the question arises as to the applicability and utility of outsourcing all or portions of their R&D activities. Closely related is the currently popular concept of a "virtual corporation," one in which non-critical/non-core functions are resourced externally via collaborations, partnerships and/or straight outsourcing. The issue that remains is: How does one go about applying the "virtualization" concept in the R&D investment equation so as to minimize risk yet increase yield? Guides to determining the proper strategies for individual R&D programs are provided in this article.