For the past decade, which translates into two to five product cycles for most industries, broad-based innovation has been on the decline. The research of Dr. Robert Cooper, the creator of Stage-Gate, indicates that companies typically spent almost 60% of R&D funds on New-to-the-World, New-to-the-Market, and New Product Lines. The remaining 40% went to Additions to Existing Product Lines and Improvements to Existing Products. These figures are now inverted. Most companies now focus on extending the life of existing products and assets, and they will until GDP clearly outpaces inflation again. There are now indications that top-line pressures may lessen in a year. Let’s get a jump on likely good news by revisiting the alternatives companies have to spur innovation.
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