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Centuries of protection have impeded innovation in the textile industry. As these protections elapse, the industry must contend with increasing competition from abroad. This raises the question: will more R&D expenditure enhance competitiveness? To assess this, we measure firm profitability using Tobin's q, the ratio of the stock market valuation of the firm compared to the book value of the firm's assets. Q values are compared to other financial ratios, and then used to assess the impact of research and development (R&D) spending. A Mann‐Whitney rank test indicates firms that conduct R&D are not more profitable, as measured by q, than those that do not conduct R&D.

Proposes a new product implementation process which is designed to reduce the risk inherent in new product introductions in consumer markets. Defines the stages of this process as idea generation, idea screening, conceptual development and testing, business analysis, product development, test market, and product introduction. Concludes that this process differs from previous models in suggesting a team be created to manage the development, speeding up the tasks in each stage.

Presents a new product implementation model which is designed to reduce the risk inherent in new product ventures in the industrial marketplace. Show that while there is debate over the number of failures, there is little debate that the new product failure rate is high. Describes a process that gives the industrial firm the ability to exert greater control over internal and external factors critical to the successful new product implementation. Concludes that the model is appropriate for many types of firms.

Core‐deposit franchises usually fetch substantial premiums when placed on the market. Those premiums are consistent with the “core‐deposit hypothesis:” because of limitations on competition (rationing of charters), deposits provide below‐market funds to financial intermediaries (Spellman, 1982, Chapter 3). However, two other hypotheses can explain core‐deposit premiums. The first holds that generally accepted accounting principles (GAAP) misallocate the costs of developing a core‐deposit base, by charging such costs against current income rather than capitalizing them as an asset; core‐deposit premiums merely represent a normal return to the costs of developing a core‐deposit base. The second holds that core‐deposit premiums arise from banks' good reputation (“goodwill”). A test which can discriminate between the three hypotheses is needed.