Had this question come up in a case challenge I am currently working on and was wondering what you would answer to this question:
Suppose the president of your company has come to you for advice. He has noted that by eliminating R&D expenditures the company could have reported $8 billion more in net income. He is frustrated because much of the research rarely results in a product, or the products take years to develop. He says shareholders are eager for higher returns, so he is considering eliminating R&D expenditures for at least a couple of years. What would you advise?
Any thoughts..? Thanks.