Corporate R&D strategy portfolio in Japanese and Australian technology-based firms: an empirical study

This paper presents an empirical study on the strategic structure of corporate R&D in Japanese and Australian technology-based companies. The perceived importance and distribution of basic research, precompetitive strategic research and applied research within a corporate R&D portfolio are examined through a comparative analysis of survey data. The results suggest that Japanese firms tend to place great emphasis on basic and precompetitive strategic research, although applied research still retains its importance. They recognize that basic research is critical to achieve long-term competitive advantages in the marketplace. Australian firms also realize the importance of basic research and the use of portfolio approach in R&D management. However, research work in Australian firms tends to focus on applied research with only a limited involvement in medium- and long-term research. Finally, it is concluded that Japanese firms utilize a portfolio approach to corporate R&D management more systematically than do their Australian counterparts.