Relationships between R&D and Profitability: An Exploratory Comparison of Two Business Simulations with Two Real-World. Technology Intensive Industries

Abstract

The purpose of this study is to provide an exploratory framework for analysis that can be used in future studies. Some of the relationships between R&D and profitability between two business simulations and two industries were used to illustrate this framework. This study explores whether R&D: profitability relationships ere the same in two industries and in two simulations. The R&D: profitability relationships for each of the four settings are examined first. The results show similarities in R&D: profitability between the two industries. For the two simulations, an equal number of similarities and differences were identified when comparing R&D and profitability. Finally, the core issue is addressed; do the BSG and MMG simulations reflect the same R&D: profitability relationships as two real world, technologically intensive industries? In most instances, the simulations do not. Questions for further exploration are then identified.