Formulation of research and development strategy in power plant equipment’s manufacturing industries

Application of advanced technologies in the production process has continuously made power plant equipment’s manufacturing industries to move beyond the borders of knowledge and technology. What expedites this movement is R&D1 which involves organizational resources and aligning with goals and strategies. Proper selection of R&D projects requires an appropriate strategy in line with the business goals of companies operating in this sector. To identify factors affecting R&D strategy formulation, we reviewed existing literature. Then a questionnaire was made using perceptions of 18 academic experts working in R&D departments. The questionnaire was confirmed in terms of validity and reliability and then distributed among experts of 10 companies active in R&D. Findings from structural equation modeling in Smart PLS software revealed that 23 established indicators affect R&D strategy formulation. The indicators were lied and prioritized in six main drivers including business strategy, technology strategy, R&D collaboration strategy, R&D funding strategy, innovation strategy, and R&D supportive strategy, respectively. The results show all the extracted factors have a significant impact on the formulation of R&D strategy. Policymakers should consider each of the great six factors when formulating R&D strategy