Research & Development KPIs

Here are the main KPIs for the Research & Development. They are part of the Research & Development Dashboard or Balanced Scorecard.

Please see the following table.

-> Recommended bibliography about R&D KPIs

Activity Subject Calculation
Income Sales due to new product / service Sales due to products launched in previous period ÷ total sales
License income as % of R&D cost License income ÷ total R&D cost
Cost R&D cost vs last year vs budget R&D cost vs last year vs budget
R&D cost as % of total cost R&D cost ÷ total cost
R&D cost as % of the revenue R&D cost ÷ revenue
Design to cost accuracy Actual product cost ÷ Estimated cost of product at the beginning of the product design
Average development costs per new product / service Development cost ÷ number of new products
New product / service development cost as % of total R&D cost R&D cost related to new product development ÷ total R&D cost
Product / service improvements and extensions cost as % of total R&D cost R&D cost related to product improvements and extensions ÷ total R&D cost
License costs as % of total R&D cost License cost ÷ total R&D cost
Patents and licenses Patents for sale Number of patents for sale ÷ total number of patent
Application time Average application time for patents
Age Average age of patents
Rejected patents Number of rejected patents ÷ total number of patents
Time from idea to patent Average time from idea to first patent filing
Ideas Ideas from outside the organization Number of ideas from outside the organization ÷ Total number of ideas
Collected ideas Number of collected ideas that were developed further
Number of collected ideas that were implemented
Quality of ideas Number of ideas for products improvement or for the launch of new products
Number of concepts ÷ number of actual products
Time Time from concept to application
Projects Number of projects Total number of running projects
Investments Total funds invested in projects
Investment in non-core innovation projects ÷ total investment
Prototypes Average prototyping speed Time to create a first prototype
Average number of prototypes per new product Number of prototypes ÷ total number of products launched
New products Average time-to-profitability Time from the time a product change is envisioned or defined until it is profitable
Time from the time a new product is envisioned or defined until it is profitable
Time-to-market Time from the time a product change is envisioned or defined until it is on store shelves
Time from the time a new product is envisioned or defined until it is on store shelves
Customers Number of customer satisfied with new products ÷ total number of customers
Number of new customers from new product ÷ total number of new customers
Collaboration Universities / research institutes Number of projects with universities or research institutes ÷ total number of projects
Competitors Number of projects with competing companies ÷ total number of projects
Customers Number of projects with customers ÷ total number of projects
HR R&D resources as a % of total resources R&D FTEs ÷ total FTEs
Hours spent on R&D Total amount of hours spent on R&D
Resources for radical innovation as a % of total resources FTEs dedicated for radical innovation ÷ total FTEs


Recommended bibliography