Supply of high caliber investments

A goal of World Class R&D is to build an exclusive club. This is a club that attracts research investments of the highest caliber. Researchers want to join our club because they know that membership+ often guarantees their success. The exclusivity is maintained due to our high hurdles for membership and our high standards for remaining a member.

We can’t be exclusive if we don’t have enough candidates. We will turn away many more high quality candidates than we accept. The quality of our rejected candidates is measured by their subsequent acceptance by our competitors. We’re known in the industry to only select the best from the best – even our rejects are acknowledged as being among the best. We set the bar high and by doing so we attract even more candidates who consider it a privilege to even be considered for membership.

The funding agent+ (i.e., corporation) can never be held hostage+ to the success of one or a few investments. That is part of what defines R&D as a trusted partner to the rest of the corporation. We must have many attractive investment opportunities across the spectrum, from initial recruit to seasoned member. The R&D function (i.e., R&D Governance) has the responsibility to seek out, evaluate and investigate a large number and variety of investment opportunities, and to ensure these opportunities continue to show blockbuster+ potential as they advance along the spectrum.

There are two major hurdles to membership: recruitment and graduation+. Recruitment wins you provisional membership with which comes maintenance-level funding and access to many of the technical and business resources available to membership. You are still a recruit, though. This merely means you have a grace period to more fully develop your technology and your team. Your goal is to show you have what it takes for full membership. There is ‘attrition’ in each of these two hurdles.

We only graduate teams that demonstrate their potential to realize multiple blockbuster products with their technology. We recognize that as many as half of these early recruits may fail to meet this criterion. This is not a forced ranking, but teams understand that on average only 50% graduate. The corporation will not be held hostage to funding sub-par graduates. Graduates are all of the highest quality and each is fully expected to succeed on its own merits.

This is not a numbers game. Having more numbers up front does not increase the likelihood of having greater quality down the line. In fact, above a certain level, having more candidates can hurt the quality further down the line when resources get diverted to manage the increased volumes. Instead, we look back at the candidates that fail and use that experience to tighten up admission criteria at the earlier hurdles. The absolute numbers at any stage of advancement+ do not change: only the measures of quality are tightened.

Worried about losing out on many promising investment opportunities because the hurdles are too high? Then it better be true that membership greatly increases the likelihood of success for members. And this must be well-understood by many players in the industry. Our success rate far exceeds that of our competitors. We routinely pick up failed investments of our competitors and make them successful. The best investment opportunities come to us first. We win in bidding wars even with a much lower bid. These are some of the successes we document and tout across the industry, both through our publicity and through personal testimonies.







Home Page June 2010

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