R & D Is More Efficient in Small Companies.

The article presents the findings of a study on the differences in the way certain large and small companies undertake product development and the effect these differences have on development costs. Evidence collected suggests that large companies tend to spend substantially more to develop products than small firms. Three major factors make it possible for small companies to develop new products at less cost than large organizations: ability of engineers, attitude toward costs, and communication and coordination. This study shows the natural advantages of small companies, but efficiency in product development does not ensure competitive success.