Value‐centered R&D organizations: Ten principles for characterizing, assessing, and managing value

The management of R&D organizations has received considerable attention in terms of the nature of the flow from research to development to deployed technology, as well as planning and managing this flow. R&D strategies, innovation funnels, and multistage decision processes, to name just a few constructs, have been articulated and elaborated. This article builds on this foundation to consider the nature of the value created by this process. An options‐based approach is advocated for economic valuation of the products of R&D. Adoption and implementation of this approach is outlined in terms of ten principles for characterizing, assessing, and managing value.