A R&D network of divisions can compensate for higher R&D costs. The resulting increase in R&D productivity is economically more attractive than eliminating R&D projects or increasing efficiency within divisions, which often compromises R&D quality.
Often change requires compensation for higher R&D costs. There are many reasons for this, such as reduced margins, technology change, market share increase or post merger integration. For this, the R&D network of divisions or regions of companies with a divisional or regional base structure is an economically attractive solution. For specific R&D areas, lead divisions or lead regions with lead R&D departments take on responsibility for costs and performance. They bear higher R&D costs, which are more than offset by disproportionate cost reductions of other divisions or regions, low-cost locations and suppliers, without necessarily centralizing them. Thus, the R&D costs of the company decrease without loss of R&D performance.
The implementation usually requires different, often temporally staged solutions for technologies, innovations, kits, platforms, variants, applications and series support as well as a novel roadmapping, all in cooperation with the R&D engineers. We advise you to create a R&D network.