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.

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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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