Can innovative R&D performance be managed

Summary form only given. Companies around the world look toward their R&D function for innovative ideas that can be transferred to market for economic gain. Yet, managers often argue that innovative R&D performance is difficult to measure and nearly impossible to control. The findings of a field study into technology-oriented R&D environments show that effective management of innovative R&D teams involves a complex set of variables related to the task, people, and organizational environment. Correlation of these variables to performance suggests that many of the performance variables have their locus outside the R&D organization, however managerial leadership style has significant cross-functional impact and drives R&D creativity. This research focused on innovative R&D performance as an integral part of the total enterprise. A number of lessons have been learned from this study and its broader context. First, successful organizations and their managers pay attention to the human side. Second, effective cross functional integration is the key to transferring technology from the discovery stage to a profitable product or service. Third, innovation can rarely be directed in a top-down fashion, but requires a great deal of autonomy and freedom to experiment, explore and interact with others, and evaluate possibilities. Fourth, innovative work groups have good leadership