Performing Research and Development for Services

The leading firms in services fall well down the list of top R&D spenders (with the exception of Microsoft, if software is considered a services business). Why is this? Are there no genuine benefits achievable through R&D for the wide array of firms considered to fall within services? Consider the consulting firms, for example, both the majors and the boutique specialty services providers. These firms exploit economies of scale by expanding, and apparently invest in achieving operational effectiveness. But these service providers do not perform R&D to accomplish anything like technology-based strategic positioning – they have not sought to develop unique positions or capabilities that would be difficult for competitors to replicate. Why? Do some background work to gather actual data on this phenomenon and then pursue any aspect of this topic.
Performing Research and Development for Services
The services area represents a steadily growing segment of the economy, while manufacturing has
declined. At the same time R&D spending nationwide has been growing strongly for decades, but this
R&D has been performed overwhelmingly by manufacturing or process development organizations and
only to a small degree by service providers of various kinds. Is this appropriate? R&D for manufactured
goods and processes can lead to large margins for corporations if they are successful in bringing new
products to market, and can serve as a source of strong competitive advantage for the best practitioners of
R&D the
top pharmaceuticals and biotech houses, the microelectronics leaders, information technology
leaders and even, over a long period historically, the telecoms.
The leading firms in services fall well down the list of top R&D spenders (with the exception of Microsoft,
if software is considered a services business). Why is this? Are there no genuine benefits achievable
through R&D for the wide array of firms considered to fall within services? Consider the consulting firms,
for example, both the majors and the boutique specialty services providers. These firms exploit economies
of scale by expanding, and apparently invest in achieving operational effectiveness. But these service
providers do not perform R&D to accomplish anything like technologybased
strategic positioning they
have not sought to develop unique positions or capabilities that would be difficult for competitors to
replicate. Why? Do some background work to gather actual data on this phenomenon and then pursue any
aspect of this topic of interest to you. You could look at this as a global issue, or as one that could be
elucidated by looking at a single industry or a particular corporation, or you could critically assess the
potential for R&D to be beneficial in your own organization, if appropriate. In the latter case, you could
interview your own management to discuss the idea.
Write a critical analysis on chosen topic. Take a position on the issue and develop the merits of the position
you take, indicating why you have come to this conclusion. What would you do about these matters from a
public policy perspective or from the perspective of enlightened corporate practice? Address your chosen
subtopic
comprehensively. Consult reference materials to develop and support your position.
IMPORTANT: As much as possible, please employ material from the textbook (Melissa A. Schilling,
Strategic Management of Technological Innovation, 4th ed., McGrawHill
Irwin, 2013.). Include some
innovation management principles.
IMPORTANT: Indicate referenced passages with footnotes or a reference list at the end of the paper.
It is NOT sufficient to simply list a bibliography.
Please write approximately 18002000
words on your chosen topic, single spaced, 12 pt font, with 1 inch
margins. (The reference list would be additional.)
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