Management of innovation in the modern corporation: dilemmas in the corporate control of R&D

Abstract

It is often claimed that the alignment of R&D with the overall corporate strategy will benefit growth for the whole corporation. This study highlights the fallibility of this belief by revealing some dilemmas inherent in subordinating all R&D to corporate strategy. The case study suggests that the imposition of stricter central control over the R&D of different business units may be difficult to realize if the traditional practices and structures do not support such a change. The case also indicates that the reinforcing of central control over technological development in particular calls for interaction of a very high quality between corporate and business management.