KPIs (Key Performance Indicators)

Top R&D KPIs

By A Staff Writer | Updated 28 Feb, 2024

Top R&D KPIs

1.R&D Spending as a Percentage of Sales: Measures the amount of R&D expenditure relative to total sales revenue. It indicates the company’s commitment to innovation and development.

2.Patents Filed/Patents Granted: Tracks the number of patents filed and subsequently granted. This KPI reflects the innovative output and intellectual property generation of R&D.

3.Time to Market: Measures the duration from the initiation of a project to the commercial release of the product. It assesses the speed and efficiency of the R&D process.

4.R&D Project Success Rate: The percentage of R&D projects that meet predefined objectives and are considered successful. This KPI evaluates the effectiveness of project selection and execution.

5.Return on R&D Investment: Calculates the financial return generated from R&D activities. It assesses the profitability and value creation of R&D investments.

6.Product Development Cycle Time: Measures the time required to develop a new product from conception to launch. This KPI assesses the agility and efficiency of the product development process.

7.Innovation Rate: The percentage of revenue from new products or services introduced within a certain timeframe. It evaluates the contribution of new innovations to the business.

8.R&D Staff Productivity: Assesses the output of R&D staff, typically measured by innovations, patents, or projects completed per employee. It gauges the efficiency and effectiveness of the R&D team.

9.Research to Development Ratio: The proportion of resources allocated to pure research versus development activities. This KPI helps in understanding the balance between generating new knowledge and applying it.

10.External R&D Funding: Measures the amount of funding received from external sources for R&D activities. It reflects the external validation and support for the company’s R&D efforts.