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R&D STRUCTURE

Understanding Small Business R&D Tax Credits

By Katharine Paljug, WriterAugust 25, 2019 06:30 am EST

R&D tax credits allow qualified businesses to deduct the cost of qualified research and innovation from their taxable income.
Small businesses can use the R&D credit to offset the FICA portion of payroll taxes.
To find out if your business qualifies, check Section 41 of the Internal Revenue Code and its related regulations.

Growing a business eventually requires developing new products, technologies, systems and sometimes even industries. This growth is vital not only to the success of your individual company but also to the success of the overall economy, which needs innovation to continue growing.

However, innovation requires expensive research and development. In many cases, attempts at innovation fail, with no return on investment, or require multiple stages of development before becoming profitable. These costs can discourage businesses from investing in research and development. This is especially true for small businesses, which do not have the resources and cash flow that large corporations do.

That's where the R&D tax credit can help your small business.

Key takeaways

The Research and Experimentation Tax Credit is often known as the R&D tax credit.
It benefits businesses by helping them keep more of their profits while also improving their products and technology.
R&D tax credits allow qualified businesses to deduct the cost of qualified research and innovation from their taxable income.
Qualified research must be technological, involve uncertainty and experimentation, and create new products, processes or software.
Qualified research does not have to be successful.
Data analysis allows businesses in a variety of industries to claim the R&D tax credit.
Small businesses can use the R&D credit to offset the FICA portion of payroll taxes.

Keep reading to learn more about each of these topics and how your small business can start benefiting from R&D tax credits.

What is the research and development tax credit program?

The Research & Experimentation Tax Credit is also known as the research and development tax credit or R&D tax credit. As part of the United States tax code, the R&D credit was created to stimulate economic growth by encouraging companies to invest in research, innovation and new technologies.

It was first introduced in 1981 and regularly renewed in the following decades. In 2015, President Barack Obama signed the PATH Act to permanently extend the Research & Experimentation Tax Credit, along with expanding several of its provisions. Beginning in 2016, the R&D credit could offset the alternative minimum tax (AMT), and startup businesses could utilize the R&D credit against payroll taxes. The Tax Cuts and Jobs Act (TCJA) made further changes to the tax credit, which will go into effect in 2022.

A tax credit allows the taxpayer, in this case your business, to offset the value of that credit against your tax liability. According to the Internal Revenue Service (IRS), the R&D tax credit is for expenses that you incur for "qualified research."

What are the benefits of the R&D tax credit?

Granting businesses tax credits for research and development is generally thought to help the overall economy by increasing innovation. However, some business groups have said these benefits may be lost under the new amortization rules in the TCJA. Starting in 2022, the TCJA will require that businesses amortize their research and development costs over five years, rather than deducting them immediately. Analysis by the Tax Foundation, an independent tax policy research organization, says canceling the amortization rules will benefit both businesses and workers by increasing economic output and wages.

Businesses that currently claim the R&D credit, however, benefit from reduced tax liability. This makes it a source of cash for many small and midsize businesses. The R&D credit does the following:

Reduces your federal and state taxes for the current year as well as future years
Increases your company's market value and cash flow
Lowers your business's effective tax rate
Allows you to keep more of your profits

How do I know if I can claim R&D taxes?

In 2004, the IRS changed language used to decide who could claim tax credits for research and development. Now, most companies that test products, employ engineers, engage in data science and data analysis, or outsource product research can claim the credit.

However, your business must show a component of hard science in the research to claim the credit. If you own a restaurant or are an accountant, for example, you cannot claim the credit, even if you do research or test new products. A business in the "humanities" that tries to claim this tax credit may be more likely to be audited by the IRS.

No matter what type of business you run, if you want to claim a tax credit for research and development, you must keep proper documentation to prove that your expenses qualify.

What documents do I need to claim R&D tax credit?

The IRS does not specify what is "sufficient documentation" to claim a tax credit for research and development. However, the burden of proof is with the taxpayer, which means your business should retain as much documentation relating to your R&D activities as possible in case of an audit. These are some of the documents you should keep on hand:

Payroll information for employees directly involved in R&D and for employees or managers supervising them
Accounts of which expenses and supplies were related to R&D and those that were not
Copies of contracts with and invoices paid to any contractors who do third-party research for you
Timekeeping records for work plans, payroll, meetings and any other activities to prove they were related to R&D
Design drawings, test records, blueprints, progress reports, marketing materials, and any other documentation that shows the process and impact of your research

Can my small business's research tax credits increase?

Small businesses can use the R&D tax credit in multiple ways. Qualified small businesses can claim tax credits for research expenses that increase over time. To claim this credit, you must show that your expenses have increased from your previous year in business.

If your qualified small business doesn't have an income tax liability, this credit can be used to offset the FICA portion of payroll taxes for up to $250,000. Qualified small businesses are those with annual gross receipts under $5 million and with gross receipts for no more than five years. This allows your small business to claim tax credits for research expenses even if you aren't yet generating revenue.

Do I qualify for the research and development tax credits?

The rules for the Research & Experimentation Tax Credit are found in Section 41 of the Internal Revenue Code (IRC) and its related regulations. This credit can be applied to any taxpayer who incurs qualified research and development expenses on United States soil.

To qualify for the credit, you must show that your research and development activities meet the following criteria:

They are for the purpose of discovering information that is technological in nature.
They are intended to develop a new or improved business component, such as products, internal-use software, inventions or techniques to be used in your business.
They rely on hard science, such as computer science, engineering, biological sciences or the physical sciences.
They involve uncertainty.
They use experimentation, including testing and alternatives.

If research and development is related to internal-use software for your business, it must meet these criteria:

Be innovative
Result in an economically significant reduction in cost or improvement in speed
Involve economic risk to develop
Not be commercially available

What expenses qualify for research and development tax credits?

These are some expenses related to research and development that qualify for the tax credit:

Wages that you pay to employees involved in qualified research and development, or employees who supervise or support those involved in R&D
Supplies used for researching and developing new technologies other than land, property subject to depreciation or improvements to land
Costs paid to a third-party contractor to perform qualified activities for your business, regardless of the outcome or success of that research
Research payments to a qualified education institution or scientific research organization for qualified R&D activities
Costs for developing a patent

What expenses are excluded from research and development tax credits?

The R&D tax credit can offset the cost of many areas of research and development. However, some expenses are excluded:

Research conducted after you have begun commercial production
Research to adapt an existing product or process to an individual customer
Duplication of a product or process that already exists
Surveys or studies you conduct, such as market research
Research relating to some kinds of software intended for internal use
Research you conduct outside the United States, Puerto Rico or a U.S. territory
Research in the humanities, arts or social sciences
Research funded by another person, government, grant or organization
The cost of fixed assets necessary to run your business

In some cases, you may also find that expenses which qualify for the R&D tax credit are also eligible for other tax credits, and you will have to choose between them. For example, qualified expenses relating to clinical testing for certain drugs or rare diseases may also qualify for the Orphan Drug Credit. You will need to work with your accountant or a tax preparation expert to decide which credits make the most sense for your business.

The IRS website can provide additional information to help you determine whether your business qualifies for R&D credits and how to claim them.

Is data science research eligible for the R&D tax credit?

In the current economy, businesses that can particularly benefit from R&D tax credits are those that use data science and big data analysis.

With the growth of online data collection and analysis, many organizations, including small and midsize businesses, have dedicated data analysis and data science departments. Employees involved in these departments use complex algorithms, innovative software, and advances in data science to allow them to analyze markets and innovate. The employees responsible for these data science departments are often trained in complex mathematics and computer engineering.

This increases the opportunities for businesses across various industries to claim the R&D tax credit. If your business wants to use data science to understand its market, customers and product innovation, that analysis involves a degree of scientific rigor that almost always qualifies for the R&D tax credit.

The nature of data analysis also involves a high level of documentation, including the development and tests of distinct data sets, that can help your business prove it qualifies for the R&D credit.

How is the R&D tax credit calculated?

In 2007, the IRS introduced an "alternative simplified credit" formula to calculate R&D tax credits. Calculating your tax credit involves five steps:

Calculate qualified research expenses for the preceding three years.
Average these amounts.
Multiply that average by 50%. This number is your credit base.
Subtract the amount of your credit base from your total R&D expenses for the year.
Multiply by 14% to find your R&D tax credit.

As an example, if your business averaged $100,000 in qualified research and development expenses for the past three years, your credit base would be $50,000 (50% of $100,000). If you spent $120,000 on research and development this year, that is $70,000 more than your base. Multiplied by 14%, that means your tax credit is $9,800. This amount can be claimed at once or amortized over 60 months

If your business doesn't have three years of research and development history to calculate a credit base, then your R&D tax credit can be calculated as a flat 6% of your total R&D expenses for that year. In that case, the credit for $120,000 of qualified expenses would be $7,200.

Though calculating the R&D credit is not complicated, knowing which expenses qualify, and whether you have the correct documentation to back them up, is more difficult for many small businesses. Changes to tax laws, which often go into effect over an extended period of time, can also impact when and how you claim your credits. Before calculating any tax credits, including those for research and development, consult with your accountant or a tax preparation specialist.

Understanding Small Business R&D Tax Credits

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Audit Techniques Guide: Credit for Increasing Research Activities (i.e. Research Tax Credit) IRC § 41* Qualified Research Expenses

Audit Techniques Guide: Credit for Increasing Research Activities (i.e. Research Tax Credit) IRC § 41* - Qualified Research Expenses

Publication Date - June, 2005

* Unless otherwise indicated, all section references are to the Internal Revenue Code of 1986, as amended, and the Treasury Regulations.

NOTE: This guide is current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date.

Chapter 3 | Table of Contents | Chapter 5

4. QUALIFIED RESEARCH EXPENSES (“QREs”)

Section 41(b)(1) defines QREs as the sum of (1) "in-house research expenses" and (2) "contract research expenses”.

Section 41(b)(2) defines in-house research expenses as:

any "wages" paid or incurred to an employee for "qualified services" performed by such employee;
any amount paid or incurred for "supplies" used in the conduct of "qualified research”;
under regulations prescribed by the Secretary, any amount paid or incurred to another person for the right to use computers in the conduct of qualified research.

Section 41(b)(3) defines "contract research expenses" as 65 percent of any amount paid or incurred by the taxpayer to any person (other than an employee of the taxpayer) for qualified research. If an expense is not set forth in section 41(b), a taxpayer may not claim the expense as a QRE.

a. Wages

The first category of in-house research expenditures eligible for the research credit consists of amounts paid or incurred for wages. Wages paid to an employee constitute in-house research expenses only to the extent the wages were paid or incurred for "qualified services" performed by the employee. For purposes of section 41, the term “wages” means wages as defined in section 3401(a). This means all taxable wages as reported on Form W-2, including bonuses and stock option redemptions. It does not include amounts that are not subject to withholding, such as certain fringe benefits or non-taxed income, even if paid for research services performed by an employee.

Stock options that are exercised and then included in wages subject to withholding, may or may not be included as wages in the research credit computation.5 The option is generally granted as compensation for work performed and is subject to withholding upon grant. In such situations, the type of work done will determine if the option spread (wage) is included in the computation. For example, if an option is granted in 1997 and exercised in 2003, you would look to see if the work performed in 1997 would qualify as a qualified service. If it would qualify, then the spread is included in wages in the year the option is exercised. In other words, look to the grant year to determine if it is a qualified service but include the spread amount the computation in the year it is exercised.

Section 41(b)(2)(B) identifies three types of qualified services:

Engaging in qualified research,
Directly supervising qualified research; or
Directly supporting qualified research .

Treasury Regulation section 1.41-2(c) provides further guidance.

The term "engaging in qualified research" means the actual conduct of qualified research, as in the case of a scientist conducting laboratory experiments.

The term "direct supervision" means the immediate supervision (first-line management) of qualified research (as in the case of a research scientist who directly supervises laboratory experiments, but who may not actually perform experiments). "Direct supervision" does not include supervision by a higher-level manager to whom first-line managers report, even if that manager is a "qualified research scientist“. Specific attention should be paid to individuals who do not "directly" supervise qualified research activities (i.e., management levels higher than first line supervisors). In some cases, higher level research managers may perform some qualified research or direct supervision of qualified research due to their technical background and expertise, but this is usually only a minor fraction of their overall work activities. In addition, companies generally have a certain number of employees that work within traditional "research" departments who do not perform qualified services.

The term "direct support" means services in the direct support of either persons engaging in the actual conduct of qualified research, or persons who are directly supervising persons engaging in the actual conduct of qualified research. This would include the services of a machinist for machining a part of an experimental model used in qualified research.6 Direct support of research does not include general and administrative services, or other services only indirectly of benefit to research activities.7 This is true whether general and administrative personnel are part of the research department or in a separate department.

Treasury Regulation section 1.41-2(d)(2) provides that if substantially all 8 of the services performed by an employee during the taxable year consist of qualified services, then the term “qualified services” means all of the services performed by the employee for the taxpayer during the taxable year. The ‘substantially all’ rule for wages is analyzed on an employee-by-employee basis, and, in general, is determined by multiplying total wages by the following fraction: Hours spent in the conduct of qualified services over total hours spent in the conduct of all services (sick leave, for example, would not be included in the fraction). See Treasury Regulation section 1.41-2(d) for the methodology applicable to this rule. If the ratio is less than 80%, the actual amount of qualified services should be used

Identifying the employees whose wages are claimed as QREs and determining the services they perform is perhaps the most important phase of auditing the research credit. Payroll records, employee job descriptions, performance evaluations, calendars and appointment books are good sources of information. The goal is to determine what the employee did and how much time they spent doing it.

If the employee pool is large, and it is impractical to achieve complete coverage, consider using statistical sampling techniques. Audit resources should focus on those employees whose job descriptions suggest they are engaging in administrative, manufacturing, marketing, and other non-qualifying activities. When appropriate, interviews should be considered to supplement and corroborate information obtained from the review of existing records.

An important caveat: Determinations as to whether an employee is (or is not) engaged in qualified services, should not be based solely on job descriptions or titles. Credit eligibility is based solely upon what an employee actually does, or does not, do during a specific time period. It is important to note the technical and educational qualification of a researcher, but this is not conclusive evidence that the individual engaged (or did not engage) in the performance of qualified services.

b. Supplies

A taxpayer may claim the research credit for amounts it paid or incurred for supplies used in the conduct of qualified research. Section 41(b)(2)(C) defines the term "supply" to mean any tangible property other than (1) land or improvements to land, and (2) property of a character subject to the allowance for depreciation. For example, overhead, license fees and costs for leasing assets are not tangible property and, therefore, not supplies. Supplies are used in the conduct of qualified research if they are used in the performance of "qualified services" by an employee of the taxpayer (or person acting in the capacity of an employee). To be a QRE, a supply must be directly related to the performance of "qualified services”. Expenses for property used in general and administrative activities are not QREs. Accordingly, for the purposes of section 41, a "supply" is non depreciable tangible property acquired by the taxpayer that is used in the performance of "qualified services". 9

The examiner should request that the taxpayer produce documents to support its claimed supply expense to ensure that the amount only includes non depreciable tangible property acquired by the taxpayer that was used in the performance of "qualified services".

There has been a trend to include a myriad of non-qualified research related costs in the credit computation by claiming such costs are "supplies”. When reviewing the supplies claimed as qualified, focus on the statutory and regulatory definition of supplies. For example, taxpayers often improperly treat as a supply expense, the general and administrative costs related to "self constructed" supplies. Additionally, the examiner should carefully scrutinize "prototype" 10 expenditures to determine whether the "prototype" is (or contains) property of a character subject to an allowance for depreciation. Other examples of costs that are not supply QREs are:

travel, meals or entertainment
telephone expenses of researchers
relocation or rental/lease expense
professional dues or royalty/license expenses substantial

Supply QREs, in general, should represent a small portion of total QREs. When supply QREs are substantial, you should be alerted to the possible inclusion of capital or other ineligible expenses being claimed as QREs.

c. Contract Research Expenses

A contract research expense is 65 percent of any expense paid or incurred in carrying on a trade or business to any person, other than an employee of the taxpayer, for the performance on behalf of the taxpayer of qualified research, or services which, if performed by employees of the taxpayer, would constitute qualified services within the meaning of section 41(b)(2)(B). Treas. Reg. § 1.41-2(e)(1). If any contract research expense is attributable to qualified research to be conducted after the close of the taxable year, it shall be treated as paid or incurred when the qualified research is conducted. I.R.C. § 41(b)(3)(B). Thus, prepaid research expenditures are not eligible for the credit until the services are performed.

Examining contract research expenses is one of the most straightforward, yet most often overlooked, research credit issues. An important audit step is to request a list of all contracts, along with the dollar amount of the claimed contract research expense (by contract). From this list, select the contracts that should be requested and reviewed. When there are only a few material contracts, all the contracts should be requested. The contracts should be reviewed to determine whether all the above legal requirements have been met.

Assistance of local counsel can be helpful in securing these agreements, as well as assisting with their interpretation. If requested contracts are not provided, and the taxpayer fails to represent (preferably in writing) that such contracts do not exist, we recommend the use of summons. This will ensure that the examiner has had the opportunity to review all of the taxpayer’s documentation, and if the case is unagreed, helps to ensure that no new documentation will be provided at an Appeals conference.

Treasury Regulation section 1.41-2(e) provides a three-part test for determining if the payment is for the performance of qualified research where a third party performs the research for the taxpayer. An expense is paid or incurred for the performance of qualified research only to the extent that it is paid or incurred pursuant to an agreement (usually in writing, but not required) that:

is entered into prior to the performance of the qualified research,
provides that research be performed on behalf of the taxpayer, and
requires the taxpayer to bear the expense even if the research is not successful.

Qualified research is performed on behalf of the taxpayer if the taxpayer has a right to the research results. Qualified research can be performed on behalf of the taxpayer notwithstanding the fact that the taxpayer does not have exclusive rights to the results. Also, if the expense is paid or incurred pursuant to an agreement under which payment is contingent on the success of the research, then the expense is considered paid for the product or result, rather than the performance of research, and the payment is not a qualified contract research expense.

Under Treasury Regulation section 1.41-2(e), a contract research expense is 65 percent of any expense paid or incurred in carrying on a trade or business to any person other than an employee of the taxpayer for the performance on behalf of the taxpayer of (i) qualified research, or (ii) services which, if performed by employees of the taxpayer, would constitute qualified services within the meaning of section 41(b)(2)(B). Where the contract calls for services other than services described above, only 65 percent of the portion of the amount paid or incurred, that is attributable to the services described above is a contract research expense.

Sometimes the activities to be performed by the contractor are more clearly defined in contractually-referenced work orders or statements of work rather than the body of the main contract. Such documents should be secured and reviewed.

A service contract differs from a research contract in calculating what amounts will be allowable contract research expenses. For example, in a service contract, the vendor may be paid by the hour and the research is not specified. In this case, you must look at the work done. Only the amounts paid for qualified research work would be included in QREs (subject to the 65% limitation). In a research contract where there is an agreed fixed price amount to perform qualified research, the entire amount would be subject to the 65% limitation and included as a QRE.

5 See Apple Computer, Inc. v. Commissioner, 98 T.C. 232 (1992), acq., 1992-2 C.B. 1 (rtf, 31kb). and Sun Microsystems v. Commissioner, T.C. Memo 1995-69, acq., 1997-2 C.B. 1 (rtf, 25kb) for treatment of stock options.

6 Other examples of direct support of research would include the services of (1) a secretary typing reports describing laboratory results derived from qualified research; (2) a laboratory worker for cleaning equipment used in qualified research; and (3) a clerk for compiling research data. Treas. Reg. § 1.41-2(c)(3).

7 Services of payroll personnel in preparing salary checks of laboratory scientists, of an accountant for accounting for research expenses, of a janitor for general cleaning of a research laboratory, or of officers engaged in supervising financial or personnel matters do not qualify as direct support. Treas. Reg. § 1.41-2(c)(3).

8 The “substantially all” for wages differs from the “substantially all rule” for Process of Experimentation.

9 For more information on the definition of a supply, see Lockheed Martin Corp. v. United States, 87 A.F.T.R.2d, ¶ 2001 812 (Ct. Cl. 2001). The only exception to the general rule is for certain "extraordinary utilities" expenditures. See Treas. Reg. § 1.41-2(b)(2).

8 Step Process Perfects New Product Development

By Robert Brands | May 21, 2013

Every entrepreneur knows that productivity is one of the key ingredients for successful product development. One of the two key processes in Robert’s Rules of Innovation is the NEW PRODUCT DEVELOPMENT PROCESS. A formalized, NPD process – also referred to and best practice: the Stage Gate® Process – is a must, from simple to sophisticated.

The New Product Development process is often referred to as The Stage-Gate innovation process, developed by Dr. Robert G. Cooper as a result of comprehensive research on reasons why products succeed and why they fail.

When teams collaborate in developing new innovations, having the following eight ingredients mixed into your team’s new product developmental repertoire will ensure that it’s overall marketability will happen relatively quick, and accurately – making everyone productive across the board.

Step 1: Generating

Utilizing basic internal and external SWOT analyses, as well as current marketing trends, one can distance themselves from the competition by generating ideologies which take affordability, ROI, and widespread distribution costs into account.

Lean, mean and scalable are the key points to keep in mind. During the NPD process, keep the system nimble and use flexible discretion over which activities are executed. You may want to develop multiple versions of your road map scaled to suit different types and risk levels of projects.

Step 2: Screening The Idea

Wichita, possessing more aviation industry than most other states, is seeing many new innovations stop with Step 2 – screening. Do you go/no go? Set specific criteria for ideas that should be continued or dropped. Stick to the agreed upon criteria so poor projects can be sent back to the idea-hopper early on.

Because product development costs are being cut in areas like Wichita, “prescreening product ideas,” means taking your Top 3 competitors’ new innovations into account, how much market share they’re chomping up, what benefits end consumers could expect etc. An interesting industry fact: Aviation industrialists will often compare growth with metals markets; therefore, when Boeing is idle, never assume that all airplanes are grounded, per se.

Step 3: Testing The Concept

As Gaurav Akrani has said, “Concept testing is done after idea screening.” And it is important to note, it is different from test marketing.

Aside from patent research, design due diligence, and other legalities involved with new product development; knowing where the marketing messages will work best is often the biggest part of testing the concept. Does the consumer understand, need, or want the product or service?

Step 4: Business Analytics

During the New Product Development process, build a system of metrics to monitor progress. Include input metrics, such as average time in each stage, as well as output metrics that measure the value of launched products, percentage of new product sales and other figures that provide valuable feedback. It is important for an organization to be in agreement for these criteria and metrics.

Even if an idea doesn’t turn into product, keep it in the hopper because it can prove to be a valuable asset for future products and a basis for learning and growth.

Step 5: Beta / Marketability Tests

Arranging private tests groups, launching beta versions, and then forming test panels after the product or products have been tested will provide you with valuable information allowing last minute improvements and tweaks. Not to mention helping to generate a small amount of buzz. WordPress is becoming synonymous with beta testing, and it’s effective; Thousands of programmers contribute code, millions test it, and finally even more download the completed end-product.

Step 6: Technicalities + Product Development

Provided the technical aspects can be perfected without alterations to post-beta products, heading towards a smooth step 7 is imminent. According to Akrani, in this step, “The production department will make plans to produce the product. The marketing department will make plans to distribute the product. The finance department will provide the finance for introducing the new product”.

As an example; In manufacturing, the process before sending technical specs to machinery involves printing MSDS sheets, a requirement for retaining an ISO 9001 certification (the organizational structure, procedures, processes and resources needed to implement quality management.)

In internet jargon, honing the technicalities after beta testing involves final database preparations, estimation of server resources, and planning automated logistics. Be sure to have your technicalities in line when moving forward.

Step 7: Commercialize

At this stage, your new product developments have gone mainstream, consumers are purchasing your good or service, and technical support is consistently monitoring progress. Keeping your distribution pipelines loaded with products is an integral part of this process too, as one prefers not to give physical (or perpetual) shelf space to competition. Refreshing advertisements during this stage will keep your product’s name firmly supplanted into the minds of those in the contemplation stages of purchase.

Step 8: Post Launch Review and Perfect Pricing

Review the NPD process efficiency and look for continues improvements. Most new products are introduced with introductory pricing, in which final prices are nailed down after consumers have ‘gotten in’. In this final stage, you’ll gauge overall value relevant to COGS (cost of goods sold), making sure internal costs aren’t overshadowing new product profits. You continuously differentiate consumer needs as your products age, forecast profits and improve delivery process whether physical, or digital, products are being perpetuated.

Remember: The Process Is Loose

The entire new product development process is an ever evolving testing platform where errors will be made, designs will get trashed, and loss could be recorded. Having your entire team working in tight synchronicity will ensure the successful launch of goods or services, even if reinventing your own wheel. Productivity during product development can be achieved if, and only if, goals are clearly defined along the way and each process has contingencies clearly outlined on paper.

For more tips and guidelines on developing the right implementation strategy, see Robert’s Rules of Innovation: A 10-Step Program for Corporate Survival.

For more another version, and more information on the 8-step process, go to http://kalyan-city.blogspot.com/2012/02/stages-process-steps-of-new-product.html

Stage-Gate® is a registered TM of Stage gate International, Inc.

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