Hi folks,

Just a quick note to say we've redistributed the server load for the mass
TurboNote downloads, so there shouldn't be any further problems accessing
the Canterbury Software Web site. And spotted this in the latest Royal
Society Alert:

1. DOES R&D LEAD TO BUSINESS SUCCESS?
Comment by Royal Society CEO Dr Steve Thompson

New Zealand economists Richard Fabling and Arthur Grimes have given an
insight into business success in an updated version of a paper they gave
to the NZ Association of Economists in June. They drew on a Ministry of
Economic Development 2001 survey of some 3000 firms which categorised
various measures of firms' responses as to their profitability relative to
major competitors.

Buried in the paper, they found that firms investing in modern equipment
have an 8% greater chance of seeing themselves in the "high profit" group
than in the "low profit" group. Firms which commissioned external research
stood a 17% better chance of being "high profit", and in-house research
stood a 19% better chance. Fabling and Grimes also found that innovation
helps: firms introducing more than 30% new products stood 11-19% chance of
improving various profitability measures.

While not ascribing cause or effect to these relationships, the authors
note that their findings jibe with current policies emphasizing the
importance of innovation for economic growth. Of all the variables covered
in the study, investment, R&D, and marketing of new products showed the
greatest explanatory power.

They go on to say that small firms operating in competitive markets tend
to have very limited R&D budgets. They may be established on the basis of
an initial innovation, but they rarely embark on sustained innovative
activity backed by research. Intriguingly, firms that perceived Technology
New Zealand, Industry New Zealand (now NZTE), universities or polytechs as
sources of help actually fared worse in productivity. Now is that cause or
effect? Do policemen on point duty cause traffic jams or relieve them?

******

Sounds likely. Anyone looked at their research figures lately?

Cheers,
Vicki
CSI Web wrangler


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