Internal R&D - Vital but only one piece of the innovation puzzle
The benefit of return in internal Research and Development (R&D) to yield return on physical asset investment is discussed. The R&D is required to generate innovations and to utilize internal knowledge to access ousite technologies. It also provide an ability to integrate the disparate technologies acquired from sources outside of the firm. It is stated that the R&D investments have a positive effect on stock prices and operating performance over the life of the firm.