Investment practices

Prioritize investment in research and development based on economic outlook.

1. Economic Outlook Analysis:

- Economic Trend Assessment: Regularly monitor key economic indicators (GDP growth, inflation, interest rates, etc.) to anticipate future economic conditions.

- Business Cycle Identification: Analyze business cycles to determine favorable or unfavorable periods for R&D investment.

2. Development of a Decision Framework for R&D Investment:

- Establishment of Economic Criteria: Define specific economic criteria that will guide the decision to invest or reduce R&D investments (e.g., growth or recession).

- Creation of a Budget Allocation Model: Develop a flexible model to adjust R&D budgets based on the economic outlook and the organization's strategic priorities.

3. Prioritizing R&D projects:

- Evaluating ongoing and future projects: Ranking R&D projects based on their profitability potential, alignment with strategic objectives, and sensitivity to economic conditions.

- Updating priorities based on economic outlook: Reassessing R&D project priorities when economic conditions change, favoring the most resilient and strategically important projects.

4. Implementing an adaptive investment strategy:

- Adjusting R&D budgets: Increasing or decreasing R&D budgets based on economic outlook, while maintaining a minimum innovation capacity even in times of recession.

- Phasing projects: Planning the launch and implementation of R&D projects in several phases, allowing for modulating investment based on changing economic conditions.

5. Monitoring and continuous reassessment:

- Continuous economic monitoring: Establish a system for continuous monitoring of the economic outlook to quickly adjust R&D investments in the event of changes.

- Periodic review of priorities: Organize regular reviews to assess the effectiveness of R&D investments in light of economic conditions and adjust priorities as necessary.

6. Communication and internal alignment:

- Inform stakeholders: Clearly communicate to R&D teams and management the reasons for budget adjustments based on the economic outlook, to ensure alignment and understanding.

- Ensure team buy-in: Work with R&D teams to integrate economic criteria into their project planning and execution, while remaining flexible in the face of changes.

7. Optimization and feedback:

- Analyze the results of past investments: Examine the results of past R&D projects to identify patterns of success or failure based on economic conditions.

- Improve the decision-making process: Refine the prioritization framework for R&D investments based on feedback, to better align future investments with economic prospects.