Managing the Ties Between Central R&D and Business Units

OVERVIEW: The specific ways in which companies organize the relationship between central R&D and the business units vary considerably, this study shows. In the External Partnership Model, the CRD group performs minimal in-house research. The primary CRD role is to identify many different, external technologies and coordinate the introduction of those technologies to the business units. In the Relationship Manager Model, each CRD–BU interface is managed by one person who coordinates the specific BU and the various CRD functions that might interact with it. In the Individual Initiative Model, firms promote individual networking to build interactions between CRD and the business units. Several variations on these models are also evident. In addition to organizational structure, firms also implement processes to supplement and enhance communication and coordination between CRD and BUs. These mechanisms include funding, project screening, technology platforms, social facilitation, and documentation.