Metrics & KPIsR&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
Tags
fixed cost, expense, material, cost, productivity