Which of the following statements is true with regard to the R&D activities of a firm?
A)As a strategic asset, R&D activities are of moderate importance to the firm.
B)R&D activities are usually concentrated at home.
C)R&D activities have a low likelihood of being internalized.
D)R&D activities have a high likelihood of being outsourced.

Question

Quizplus · Accepted Answer

R&D activities are often concentrated at home, as they require close coordination with other functional areas of the firm and may involve proprietary knowledge that the firm wishes to keep within its own borders. A is incorrect, as R&D activities are generally considered to be a critical strategic asset for many firms. C and D are incorrect, as R&D activities can be internalized or outsourced depending on the firm's strategy and capabilities.

Which of the Following Statements Is True with Regard to the R&D