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1 Explain how two firms, A and B, in the same industry, investing the same in R&D as a percentage of sales, can perform so differently. Firm A delivers three new patents and two new successful products; whereas firm B fails to deliver anything.

2 Consider a firm of your choice. Examine what its level of expenditure on R&D could be. What should it be? And what is its actual expenditure?

3 Use CIM to illustrate the innovation process in the Viagra study.

4 Firms investing in R&D in the many countries in the world receive tax credits. How can countries encourage further R&D investment?

5 Describe a balanced portfolio of R&D projects for Nokia. This should incorporate its technology portfolio.



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