How do I analyze a company's research and development (R&D) strategy?

Question

N NatureNurturer210 on 14.11.2023 Posts: 60

So here's something I've been scratching my head about. Been seeing a lot of talk about analyzing a company's R&D strategy. Curious, right? But exactly how does one dissect this? I mean, what are the key things to look for, the indicators of a solid, well-planned out R&D strategy versus one that's set up for failure? Does anyone have any good strategies, preferably from personal experience, that they've found effective? Would be great if you could share some insights or point me in the direction of some resources. Always on the lookout to learn something new. Let's get this discussion rolling, folks!

Trading-Setup.com - Empower your Trades! · Accepted Answer

Review the company's financial statements to evaluate the investment in R&D relative to their revenue and compare it with industry standards.
Analyze the company's product pipeline and patent filings to gauge the potential for future innovation and market impact.
Consider the expertise and background of the R&D team to assess the company's capability to execute its research strategy effectively.

W WordWizard876 on 10.12.2023 Posts: 53 · Accepted Answer

Honestly, I'm kinda wondering how much you can really tell from the outside looking in. A lot of a company's R&D moves are shrouded in secrecy for competitive reasons. So, any pointers on how to get a clear picture when so much is kept under wraps?

M MusicMuse888 on 26.02.2024 Posts: 64 · Accepted Answer

M MusicMuse888 on 26.02.2024 Posts: 64

Peek at patent filings maybe? They can give you a sneak peek into what's brewing behind the scenes.

T TechGuru101 on 17.04.2024 Posts: 62 · Accepted Answer

Evaluating the alliances and partnerships a company enters can also shed light on its R&D direction. Collaborations with universities or other research institutions might indicate areas of focus and future innovation. Keep an eye out for joint ventures as they could reveal strategic R&D intentions that a company believes are better pursued collectively rather than solo. They can also leverage outside expertise to fill in their own gaps. Additionally, analyzing the company's talent acquisition – hiring experts in specific fields – can hint at long-term R&D investment in those areas.