Abstract
The "R&D-oriented" management is defined as a management policy in which the expansion and growth of a company is based on original products from its own R&D department, and tools needed by such management are presented. The management tools are based on a statistical simulation model called JSR-RDM and consist of three sets of methods and criteria: maximization of pre-tax profit, sector management, and marginal profit from product sales. The sector management means controlling three ratios of each two indices in direct proportion: sales and personnel cost; marginal profit and R&D expenditure; and pre-tax profit and material costs. Management of marginal profit aims at maintaining a certain level of the marginal profit from well-established products. It is demonstrated that, if these methods are properly used, the R&D expenditure and marginal profit of the company will continuously grow, contributing to increased revenue and expansion of business. The JSR-RDM model presents how the expansion in business scale affects sales, marginal profit, R&D expenditure and personnel and material costs. A problem of the R&D-oriented management is that contribution of cutting-edge technologies decreases as the business expands. Establishing independent management units may be an effective measure to this tendency.
