Comments on: How much do you spend on R&D? Is it enough? https://berkonomics.com/?p=3865&utm_source=rss&utm_medium=rss&utm_campaign=how-much-do-you-spend-on-rd-is-it-enough Dave Berkus' business insights Tue, 25 Jun 2019 20:33:01 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Kent Deines https://berkonomics.com/?p=3865&cpage=1#comment-130813 Tue, 25 Jun 2019 20:33:01 +0000 https://berkonomics.com/?p=3865#comment-130813 It seems like a lot of companies find it easier, cheaper or more convenient to use lobbyist and attorneys to protect them from competition and change. R&D has an uncertain payoff, to profit from it requires the company to act on the results (Xerox and its Palo Alto Research Center is a fine example of that), i.e. change what it is doing and how it does it. Nobody wants that. Not management, not employees, not unions, not shareholders. Its better to stop the change or buy the threatening company – if you can.

]]> By: Steve Meyer https://berkonomics.com/?p=3865&cpage=1#comment-130808 Tue, 25 Jun 2019 18:03:45 +0000 https://berkonomics.com/?p=3865#comment-130808 I read, with special interest, your weekly offering this morning as I understand the importance of R&D. The day one stops innovating is the day they plan to die. This is especially true in this age where virtually everything is being assaulted by one form or another or digital-based disruption.

While many companies, startups or established, continue to innovate, not all of them are taking advantage of the strategic tax credits available to them. There are several to consider however for a moment I will focus on R&D. As you may know, several years ago Congress revised the definition of QREs or qualified research expenses. No longer are they just related to beakers and bunsen burners. Now software development, new product design and even architecture all meet the definition of a QRE.

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