The Mechanism Of Action Research, Information And R & D Risk

Entrepreneurs strive to get extra profit from innovation only because the uncertainty of innovation gives them many opportunities. But at the same time, they have to suffer from the risk that leads to the innovation failure. This paper tends to explore the insidious relationship between information and R&D risk on the project level. R&D risk referred to by this thesis excludes many other risks and concentrates on the R&D technical risk and R&D market risk.R&D project is a process by adding information and decreasing risk. The attribute of information, such as usefulness, relevance, timeliness and accurateness will decrease the risk. In the meantime, these factors may be influenced by the organizational factors, such as the information source, the integrated level among the R&D organization and the knowledge of R&D personnel.In terms of empirical research, quantitative research and qualitative research are conducted independently in the same period to prove initial assumptions. The data is collected from 110 technological firms and corporations in China , and many subsidiary of foreign famous enterprises in China.The conclusions are as follows:1. Effective information processing can decrease the R&D market risk and R&D technical risk.2. The integrated level among the R&D organization will moderate the risk by determining the quality of perceived information.3. The communication frequency of R&D and marketing has a cubic relationship with the information quality. While that of marketing and clients (of customers) has a linear relationship with the quality of information.The paper gives some practically useful suggestions for the enterprises:1. R&D organization should choose the best R&D portfolio by balancing the R&D capability and risk.2. R&D organization should spare no efforts to manage the R&D team and manage R&D personnel.3. R&D organization should try to make the information more timely and valuable.4. R&D organization should optimize the structure and improve the culture to better the innovation and information.5. R&D organization should communicate efficiently and effectively.