Most tech companies reinvest 15-20% of profits in R&D. Based on their web site
Pentax has the following lines of business:
Photographic/Binoculars
Medical
Surveying
Info Tech
Opthalmic
CCTV
It's quite probable that each is treated as a seperate profit center and their
avalable R&D is based on their individual profits. They may also use one big
R&D pot, or that they split things up based on product lines within each LOB.
(?) R&D allocation is strongly influenced on probable return. Product lines
that have greater growth potential will get more. One could pretty safely
assume, that within photographic, digital imaging products will be getting the
big bucks. Pentax's biggest potential problem is that they may not have a big
pot to begin with.
--- Collin Brendemuehl <[EMAIL PROTECTED]> wrote:
> I'm going to suppose that a company's
> available R&D monies for product development
> is largely dependent on the accounting
> and business methods in place.
> For some firms it is easier than for others
> to switch monies between departments, even
> between subsidiaries, in order to foster growth
> in particular areas.
>
> Could that be Pentax' (apparently) real struggle?
>
> Collin
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