Innovation as the final result of R&D projects

R&D projects are the types of projects which can be a source of innovation. The complexities and unpredictability of R&D projects mean that companies need to continuously review projects’ assumptions to attain success. In order to establish a system of indicators, metrics and forecasts to measure the project results, a division of R&D works must be carried out: basic research, applied research, experimental development. The method of accounting for income and expenses incurred in the research activities differs due to the division for these different types of research. Only properly recognized types of R&D projects will give project managers appropriate information to assess expenditures and monitor project progress