The article I referenced about R&D investments by networking companies the other day has produced some feedback that made me consider some other aspects.
Obviously, the primary reason for investing company resources in an R&D program is to develop new products to bring to the marketplace for the field personnel to represent. The committed investment in this area is relative to the market segment that the company wishes to occupy and the overall philosophy of the sales and marketing plan.
As companies strive to position themselves to capitalize on emerging trends, such as health and wellness, they are willing to gamble heavily with an increasing budget expenditure to develop the "ground-breaking" or "remarkable" product. But what happens if there is no successful result in this pursuit? The addition of corporate infrastructure seeks a pay-off and when it does not occur, a company may be forced to either scale-back their development efforts or raise prices accordingly.
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