External R&D is driving new product technologies

Electronic companies have stopped cutting budgets and are working towards developing new product technologies quickly. A new marketing research study among corporate R&D managers shows that 52% of the respondents expect R&D spending to increase slightly in 2004, and 33% expect spending to increase significantly in five years. It is critical that companies establish appropriate mechanisms for monitoring and sourcing innovation. Open innovation, provides many benefits for the technology seeker as well as the solution provider. More companies are relaxing their hold on internal development, directing their engineers to focus on their core areas of innovation and sourcing technologies that can be integrated from the outside.