Four common approaches to determine R&D budget allocations used successfully are: 1) finance as many project proposals as possible; 2) use a percentage-of-sales method; 3) budget for R&D about what competitors spend; or 4) decide how many successful new products are needed and work backwards to estimate the required R&D investment.

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Quizplus · Accepted Answer

These are common approaches that have been used successfully to determine R&D budget allocations.

Four Common Approaches to Determine R&D Budget Allocations Used Successfully