Innovation is an increasingly important source of competitive advantage for companies: Over the last 40 years, organizations have increased their expenditures on R&D as a percentage of all expenses by 800%. However, increased R&D budgets alone do not always lead to real innovation. The types of researchers a company hires plays an important role in whether it will succeed in leaping ahead of competition. But what types of researchers are most valuable?
In R&D, Generalists Are More Valuable Than You Think
Specialized researchers have the advantage of knowledge depth in their domain of expertise at the cost of narrow breadth across other domains of knowledge. Conversely, diversified researchers have the advantage of breadth across domains of knowledge at the cost of shallower depth in these domains. Which are most important to companies? Generalists, the authors argue. In their research they find that the ability to make cross-discipline connections is a necessary ingredient for generating explorative research, the type of innovation that generates a competitive advantage, because absent breadth, depth is not sufficient. Breadth is needed to understand which combinations of knowledge might lead to innovations that can generate a competitive advantage.