Research and development (R&D) portfolio management in the electric utility sector: Does it change for the service sector?

Abstract

Purpose

The electric utility industry, unlike most other technology‐intensive industries, does not spend much money or effort on research and development. Many utilities do not possess an in‐house R&D facility, nor is there an R&D line item in their budgets. Over the last several decades the rate of change in the electric utility industry has been very slow and in‐house R&D efforts have not been required. As the rate of change in the industry is beginning to change, the need to pursue R&D is increasing. The electric utility industry is responding to this increasing requirement by increasing R&D budgets, and in some cases re‐initiating the R&D process within individual utilities. The purpose of this paper is to focus on R&D portfolio management efforts of various actors from different industrial sectors, to find out the best practices by using benchmarking method.

Design/methodology/approach

The paper used case study approach and on‐site interviews as research methods.

Findings

The authors found that R&D management is in its infancy in the electric utility sector, while the methods established in the manufacturing sector are applicable there.

Originality/value

This study is exploring R&D management in the electric utility sector and contributes to the service innovation research stream.

Citation

Daim, T.U., Oliver, T. and Iskin, I. (2013), "Research and development (R&D) portfolio management in the electric utility sector: Does it change for the service sector?", Benchmarking: An International Journal, Vol. 20 No. 2, pp. 186-211. https://doi.org/10.1108/14635771311307678