Finding the Right Innovation Balance
May 7, 2014 By Tim Kastelle
ABSTRACT:
3M is one of the most innovative companies in the world. Each year, their target is to have more than 30% of their revenue come from products that are less than four years old. To do this, they must constantly come up with new stuff. To find this new stuff, they spend about 6.6% of their annual revenue on Research & Development. The average large US corporation spends less than 2% of revenues on R&D, so 6.6% is a whole lot. But think about this for a second – what is 3m spending the other %93.4 of their money on? The rest of the money goes to executing ideas that they’ve already had.
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