R&D productivity based on gross margin

Definition

Gross margin is a good proxy for what R&D can impact since R&D influences the cost to invent/develop, COGS (cost of goods sold) and the willingness of the customer to pay a premium for the product. R&D productivity measures for every amount of R&D invested (input) how much GM is obtained (output). R&D Productivity based on GM= (Revenue ñ COGS) / R&D overlays. Cost of goods sold includes variable and fixed costs directly linked to the product, such as material and labor. It does not includ

Formula

Tags

fixed cost, expense, material, cost, productivity

Metadata

Category: Innovation · Added: May 17, 2026