Reviewing some OECD's R&D definitions

This chapter introduces basic terms and definitions. First, the nature and characteristics of invention and innovation are examined. The review shows that the commercial success of an innovation does not only depend on the quality of inventions generated in research and/or development and that both invention and innovation represent components of a process of managing innovation that extends over the entire value chain of a company. Furthermore, the following concepts are distinguished: Innovation Management, Technology Management and R&D Management in order to also understand in detail differences between the functions: research and development. The following questions are answered: What is meant by research and by development; what are the roles and tasks of the units; what kind of technological knowledge do they produce; what is the purpose of Performance Management; what are its components; and, what are industrial research departments? Keywords Goals and goal setting - Innovation management - Invention versus innovation - Key performance indicators (KPI) - Measures, metrics, and indicators - Performance management and measurement - Research and development (R&D)