A Study On R&D Competence For R&D Management Personnel In Taiwan s High-Tech Industry

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1 A Study On R&D Competence For R&D Management Personnel In Taiwan s High-Tech Industry Pang-Lo Liu and Chih-Hung Tsai Department of Industrial Engineering and Management Ta-Hwa Institute of Technology 1 Ta-Hwa Road, Chung-Lin Hsin-Chu, Taiwan, ROC ietch@thit.edu.tw Abstract This study focuses on the research and development (R&D) competence required for R&D management personnel in Taiwan s High-tech industry. This study adopts the Literature Review, Interview and Delphi Technique to define the R&D competence required for the R&D management personnel in Taiwan s High-tech industry. The interview process conducted an in-depth interview with 10 supervisors and personnel in fields related to R&D management from domestic high-tech companies. The Delphi Technique carried out opinion consultation three times, selecting 30 consulting experts including: high-level supervisors from the high-tech industry, R&D management workers and scholars from related academic fields. The results obtained from conducting interviews and the Delphi Technique organized the major R&D competence required for R&D management personnel in Taiwan s High-tech industry. These skill sets included: (1) Competence in advancing R&D management; (2) Competence in understanding the industrial environment; (3) Competence in applying IT; and (4) Competence in managing information. The 10 detailed competences required for R&D management personnel included: (1) Competence in communication and coordination; (2) Competence in leading and assisting with teamwork operations; (3) Competence in understanding the company s developing direction and strategy; (4) Competence in planning activities that related to R&D management; (5) Competence in analyzing the organizational demand for R&D knowledge; (6) Competence in knowing the company s internal environment; (7) Possessing solid personal competence in professional R&D; (8) Competence in visioning the future developing trend of industry; (9) Competence in understanding the developing IT trends; and (10) Competence in summarizing data/information. The results from this study can be used as a reference for selecting and dispatching R&D personnel in Taiwan s high-tech industry. Key words: R&D Management, Connotation of R&D Competence, Delphi Technique 1. Introduction In this Knowledge-based Economic Era, enterprises should implement effective R&D management. They must develop a successful R&D management mechanism and also an integrated method and route to confront competition from global knowledge industries. This includes interlinking the company s R&D management, knowledge innovation, employees, customers, 1

2 Pang-Lo Liu and Chih-Hung Tsai organization development, tangible and intangible assets and company strategies. Companies should also recognize and approve management professionalism and professional R&D competence with professional techniques to effectively manage and innovate the limitless knowledge assets. R&D management has been categorized into a new management area for Taiwan s high-tech industry. Taiwan s high-tech industry has gradually placed more attention on R&D management talent. This study is an attempt to understand the current R&D management status for Taiwan s high-tech industry. The R&D competence required for R&D management personnel is investigated to provide Taiwan s high-tech industry with a reference to train, select and dispatch R&D management personnel. This study investigates (1) the current status of R&D management implementation in Taiwan s high-tech industry; (2) The R&D competence required for R&D management personnel in Taiwan s high-tech industry; and (3) The related R&D management for Taiwan s high-tech industry. 2. Literature Review 2.1 R&D Management Data organized by the US-based company, Arthur D. Little, in 1991 showed: R&D management can be divided into 3 eras from 1959 to date: (1) 1 st Generation R&D Management (1950~1960): its goal is just short of a strategic framework. (2) 2 nd Generation R&D Management (1970~1980): possesses a partial strategic framework that for projects, may consider cooperating with the enterprise s integrated development strategy. (3) 3 rd Generation R&D Management (after 1980): has an integrated strategic framework. The studies of Youssef (1994) pointed out: DFM (Designing for Manufacturing) is able to achieve the advantages of differentiation and low cost, and, through DFM, can also attain rapid delivery, high quality and flexible product types to achieve low cost advantages. The researches of Brown & Svenson (1988) indicated that the entire R&D activity can be regarded as a system that includes revenue, process and yield. In addition, the evaluation system is also divided into 5 phases: investment, procedure, yield, accepting system, and the achievement benefit feedback, yield and results to investigate R&D productivity. The studies of Karagozoglu & Brown (1993) pointed out that in the early stages of new product development, if related marketing approaches can be applied to customer participation, this may help to succeed in new product development and also shorten the R&D timeline. In the researches by Battelle and other companies that emphasized research and development, Millett (1990) pointed out that in order to respond to customer demand, regular upward and downward communication and technology that are usually not practical products may deeply influence R&D competence. The studies by Ellis & Curtis (1995) indicated that R&D activities influence customer satisfaction. The studies by Clausing (1994) pointed out that R&D contents are included whether products can sufficiently respond to customer demand, design feasibility, powerful function, successful integration, reusability or strategic influence. The researches of McDonough (1993) pointed out that external technology will save time for internal R&D. The studies of Karagozoglu (1993) indicated that if an enterprise is able to applied external technology, it may help shorten the R&D timeline. Chakrabarti (1991) indicated that a significant positive correlation exists among high-tech, capital-intensive and labor-intensive industries, and R&D investment and operating growth rates. Liu et al. (2005) proposed that R&D knowledge 2

3 has currently become the main manufacturing resource and a prerequisite for success in the production environment. Competitiveness and the resulting rewards can be obtained by taking advantage of knowledge management and intensive learning. DeMott (1990) pointed out that a strategic alliance with other companies sharing their facilities and exchanging information can produce a strategic advantage. Rosenau (1998) indicated that the participation of high-level managers can help provide supporting resources. Mabert et al. (1992) pointed out that it may help to shorten the R&D life-cycle when the R&D team experiences a competitive threat. After interviewing 3 major automobile manufacturers and tens of auto part suppliers in Japan, Kamath & Liker (1994) indicated that if enterprises allow suppliers to participate in the new product development process, this may effectively help enterprises to shorten lead time, reduce production costs and accelerate the design procedure. Gordon & Anne (2001) pointed out that managers, especially project team leaders, should understand the mental patterns and character traits of their team members. After reviewing and organizing the literature and documentation, this study listed 5 facets for measuring R&D management in Taiwan s high-tech industry, as described below: (1) Karagozoglu and Brown (1993) indicated that the degree of customer participation in Early New Product R&D may provide the R&D department with effective means for solving customer demand. Kamath & Liker (1994) indicated that if enterprises allow suppliers to participate in the new product development process, enterprises may shorten lead time. (2) The degree of cooperation between R&D Projects and External Technologies: Karagozoglu (1993) pointed out that if an enterprise is able to apply external technology, it may help to shorten the R&D cycle and reduce costs. (3) Degree of cooperation between R&D Projects and External Funds/Capitals: Chakrabarti (1991) indicated that high-technology has been categorized into capital-intensive and labor-intensive industries. There is a significant positive correlation between R&D investment and operating growth rates. (4) The degree of Interdepartmental R&D Plans: Youssef (1994) indicated that early participation in manufacturing may substantially reduce the design trial duration, design adjustments, manufacturing, and re-evaluation. Cusumano & Nobeoka (1992) pointed out that adopting new multi-functional new product development teams may produce better manufacturing productivity, design productivity, total quality and the design for manufacturability. (5) Degree of Investment in R&D Plans by High-level Managers: Rosenau (1998) pointed out that the participation of high-level managers can provide supporting resources, and increase personnel motivation while engaged in new product R&D. Karagozoglu & Brown (1993) indicated that the participation of high-level managers in new product R&D may accelerate the R&D schedule, speed up cooperation, and make the multi-functional team more efficient. 2.2 High-Tech Industry Bleicher & Paul (1983) pointed out that the high-tech industry is a high-capital and precision-technology industry that is particular about the professional knowledge, emphasizes R&D and science and technology talent incubation. Gould & 3

4 Pang-Lo Liu and Chih-Hung Tsai Keeble (1984) indicated that the high-tech industry should be measured using three indicators: the ratio of R&D expense to yield; the speed of technological innovation and the weight of the number of technology personnel to R&D personnel. Shanklin & Ryans (1984) indicated that enterprises that possess a powerful science and technology foundation, and conditions able to establish or alter markets and demand following the application of new technologies can be regarded as high-tech enterprises. Science and technology companies (high-tech companies) are companies that adopt science and technology as their competitive strategy and tool. Under planned Government promotion and cooperation with the industrial environment trend, Taiwan s industries are currently developing towards high-technology. In the near future Taiwan will be a science and technology country with the high-tech industry as its main strategy and R&D and innovation as its orientation. This study integrated and organized the mentioned literature to divide the characteristics of Taiwan s high-tech industry into 6 major categories: (1) Integrated Circuit (IC) industry; (2) Computer and Peripheral Industry; (3) Communication Industry; (4) Optoelectronics Industry; (5) Precision Machinery Industry; and (6) Biotechnology Industry for the interview and questionnaire survey subject of this study. 2.3 Meaning and Connotation of R&D Management and New Product Development Performance in High-tech Industry Taiwan s high-tech industry competitive advantage consists of its continuous product development that is able to conform to customer demand. The keys to survival and success and unceasingly changing its internal high-tech environment. By pinpointing common new product development that can be controlled by organizations, Cooper & Kleinschmidt (1995) proposed 11 solutions that emphasized R&D discussion, procedures and project management. Kanter (1988) indicated that it may helpful to cohere with the organizational knowledge power through the internal learning method that may promote the enterprise to have better innovative competence. Song & Weiss (1998) indicated that the new product development process should possess 6 basic activities, strategy planning, creativity development and recruitment, business and market opportunity analysis, technology development, product testing and product commercialization. Cooper & Kleinschmidt (1995) pointed out that the key success factors in affecting new product development are: (1) Company s goal in new product development should be clear and definite; (2) New product development needs adequate resources; (3) Recognition and support of high-level managers; (4) Climate of creativity; (5) High-level managers responsibility; (6) Development and synergy of core competence; and (7) Team working competence in new product development. Adler (1990) pointed out that within the technology management process, sharing the learning experience may accelerate the research organization and team efficiency. Crawford & Di Benedetto (2000) indicated that the new product development process included confirmation and selection of opportunity, conceptual formation, conceptual/professional evaluation, development and product launch. Calanton et al. (1995) pointed out that the Ratio of Investment and the Investment Growth Rate, the Ratio of Sales, the Market share and Market Share Growth Rate should be used as indicators for new product development performance measurement. Song & Parry (1997) adopted 4 indicators to measure the relative successful level for manufacturers new product development, including: (1) Comparing the quality of new products with 4

5 those of competitors; (2) Comparing the sales volume of new products with those of competitors; (3) Comparing the profit margin of new products with that of competitors; and (4) Comparing the launch ratio of new products with the expected profit goal. This study sorted the basic elements of R&D management including: (1) Giving R&D knowledge value, companies should limit, define and identify organizational R&D knowledge to make R&D knowledge yield value; (2) Initiating activities and providing an environment for R&D knowledge creation. Organizational knowledge should not be static, but used to design various activities favorable for knowledge creation, as well as forming an environment that provides creation and circulates knowledge; (3) Establishing a culture of R&D knowledge sharing, and eliminating employee fear of R&D knowledge sharing through stimulating, rewarding and encouraging approaches to promote R&D knowledge sharing among employees; (4) Strengthening the infrastructure and comprehensively using information technology, such as intranet, application software, , etc., to provide employees tools for retrieving, sharing and applying R&D knowledge, or stimulating them to create knowledge; and (5) Ensuring R&D content management, the content of R&D knowledge database should be cautiously and professionally sieved and constructed that allowed employees obtaining the most effective, professional and suitable R&D knowledge which demanded by individual or organization. In addition, R&D management system should be able to integrate with company operations and each department. 3. Research Design To achieve the research goal this study systematically designed and planned the research procedures, thus as for the research methodology, research subject, interview implementation, and data processing are respectively described as follows: 3.1 Methodology This study adopted a two-tier research procedure. The first tier confirms the questionnaire, constructs the questionnaire questions about the definition of competence for R&D management personnel, and employs the Literature Review and Interview. The second tier adopts the Delphi Technique to conduct the survey analysis using the questionnaire. This study adopted 3 research methods as follows: (1) Literature Review: To understand competence for R&D management personnel, this study conducted an in-depth induction and analysis aimed at the relevant literature and documents on recent R&D and high-tech R&D management, and then regarded the analytical result as the theoretical basis for developing the Delphi Technique questionnaire used in this study. (2) Interview: To identify the development and implementation of R&D management in Taiwan s high-tech industry. Obtain interviewees opinions about the meaning of competence required for the R&D management personnel. This study chose 10 persons each from supervisors and R&D knowledge management personnel in Taiwan s high-tech companies to conduct interview and in-depth discussion to understand the current status of implementing R&D management in Taiwan s high-tech industry. The result was used as the basis for the Delphi Technique questionnaire survey used in this study. This study conducted 4 interview sessions during the period of June to August of During the interview process, according to the interview 5

6 Pang-Lo Liu and Chih-Hung Tsai content, this study also made opinion consultation with interviewees and recorded the whole interview session after acquired consent from interviewees. The interview content was transcribed into the text record, and analysis conducted focusing on the recorded content, wording and meaning. (3) Delphi Technique: This study applied the self-developed Delphi Technique questionnaire that based on the document analysis and interview result to conduct the opinion consultation with aiming at R&D supervisors and related knowledge management personnel in Taiwan s high-tech industry, and scholars from related academic fields from 30 persons. This study sent out the approval inquiry letter and then conducted 3 survey sessions during the period September to November of The response rate for the valid questionnaire was 95% for each session. 3.2 Data Analysis According to the organized opinions of expert interview and the results of Delphi Technique questionnaire survey, this study adopted: (1) K-S test (hereinafter referred to as K-S test) to identify the common trend towards the important level of each competence for Delphi Technique experts; and (2) Kruskal-Wallis test (hereinafter referred to as Kruskal-Wallis test) to investigate the consistent situation in opinions from 3 types of experts. 4. Research Result and Analysis This study applied the K-S test and Kruskal-Wallis test approaches to conduct the analysis of the interview and Delphi Technique data, and the analyzed results are described as follows: 4.1 Interview Section This study has conducted 3 sessions of interview during the period of June to August of 2006, and the interview content included the current status of implementing R&D management in Taiwan s high-tech industry and competence that required for R&D management personnel. Hereinafter the interview content is described as follows: Current Status of R&D Management (1) The number of Taiwan s high-tech companies that implemented R&D management is increased gradually: except for few companies, the number of Taiwan s high-tech companies that led in R&D management is increased gradually. (2) Taiwan s high-tech companies still confined in the phase of R&D Data Management: for many high-tech companies, R&D management is not new term, but a mechanism with more systematization and institutionalization. (3) As for those companies that led in R&D management, their R&D management talents often came from their own companies internally: companies that already established the R&D management unit, their selection of talents is mainly on the internal personnel from their own companies because these personnel are not only knew about their company s environment, but also possessed their professional backgrounds that will have more direct help for company s R&D management Demand of R&D Management (1) It is necessary for each company to establish the specific unit to carry out the related activities to R&D management: Taiwan s high-tech industry is actively 6

7 focused on the R&D management to make R&D management be able to quickly merge into the organizational operation. In addition, in the high-tech environment with high competition and elimination rates, only strive for the R&D to create better competitive advantage. (2) R&D management team should include talents with various professional backgrounds: all current companies are particular about the teamwork spirit, so does R&D management, in addition, it needs various professional talents from each department and field to form the R&D management team, thus it may thoroughly implement R&D management. (3) Establishment of stimulation measures is help for increasing employees willingness to R&D task: in the R&D process, reward should be more than punishment and that may effectively and positively achieve the result of stimulating R&D management Competence that R&D Management Personnel Shall be Possessed 1. Competence in Professional R&D Technology: R&D management personnel must be able to handle organizational knowledge and also use their professional background to develop the knowledge in such field. The so-called professional backgrounds should include the related professional fields to company s production, management, and service etc. However, R&D management personnel should combine their professional backgrounds with R&D management, and then to achieve the actual effectiveness of R&D management. 2. Competence in Basic Computer and IT: in this high-tech era with particular about speed and efficiency, the application of computers has become the most basic and the most important requirement for organizational operations. The application of IT is the most important contact tool between R&D management personnel, employees and clients. It is able to substantially improve speed and efficiency and also strengthen the interaction between users. 3. Competence in Communication and Coordination: in a company, only a few people can really understand R&D management, thus most employees do not have the relevant concept of R&D management. Therefore, R&D management personnel should have competence in communication and coordination, and then they may do better work on R&D. 4. Competence in Document Processing, Report Writing, Management and Leading: R&D management personnel will engage in the tasks of document process or report writing, and file management, thus research personnel should be competent in management, leadership, etc., and then they can be one of the Total R&D management personnel. 5. Competence in Organizing: R&D management personnel s competence in organizing is not only the text or information organizing, but also includes the organizing competence in interpersonal relationship, communication and coordination; in addition, if they have good competence in organizing, and in the R&D product handling process, they are able to be well-regulated and improved the efficiency in R&D. 6. Competence in Promoting Activities that Related to R&D Management: within the process and content of R&D management, the role that R&D management personnel played should progressively and actively to lead R&D 7

8 Pang-Lo Liu and Chih-Hung Tsai personnel to invest them in the related tasks of R&D management. 7. Competence in Dealing Professional R&D Knowledge: To grow out of nothing and from out of order to well-regulated for the professional knowledge of R&D management, this is quite an important task for R&D management personnel. It included retrieving valuable data, information and knowledge from the organization internally and externally; analyzing data or information and making it to be the knowledge with utilization value; competence in data storage and transmission, and it may helpful to increase the quality and value of the organizational R&D management if possessed these competences. 8. Competence in Integrating with Company s Interdepartmental Management: no matter the personal or each department s knowledge is considerably valuable, and, of course, it has its own applicable value. Therefore, R&D management personnel should be able to integrate with interdepartmental knowledge and allow the adequate circulation for each department s knowledge, technique, information and experience etc., then make further integration and utilization that may greatly help with the R&D tasks. 4.2 Delphi Technique Survey (1) Expert viewpoints on the importance/ priority of each competence skill required for R&D management personnel: the number obtained from the expert interview for the competence required for R&D management personnel in Taiwan s high-tech industry is 30 in total. In addition, the Delphi Technique was used to conduct the opinion consultation to total 30 high-level supervisors of high-tech industry, related R&D management workers and scholars of related academic fields; moreover, after K-S test, the results of experts viewpoint in the importance/priority of each competence are shown in Table 1. (2) Viewpoint of 3 types of experts in each R&D competence: used the analysis of Kruskal-Wallis Test to investigate the viewpoint of these 3 types of experts in each R&D competence with aiming at whether significant difference existed among them or not, and the analyzed results are shown in Table 2. (3) Importance/priority Ranking of Each Major and Detailed Competence The statistical result enables us to find out the following: 1. There are 4 items of major competence that required for R&D management personnel in Taiwan s high-tech industry, as shown in Table 3. The importance/priority ranking of Competence in advancing research management is in the first place, and sequentially are Competence in Understanding the Industrial Environment, Competence in Applying IT, and Competence in Managing Information. 2. The research management personnel in Taiwan s high-tech industry should possess the Competence in Advancing R&D Management, as shown in Table 4. According its importance/priority ranking, it included: (1) Competence in Communication and Coordination; (2) Competence in Leading and Assisting with Teamwork Operation; (3) Competence in Planning Activities that Related to R&D Management; (4) Competence in Possessing Personal Professional R&D; and (5) Competence in Teaching Employees with Retrieving and Applying R&D Knowledge. 8

9 Table 1: R&D Management Personnel s Competence ~ K-S test Summary Table Competence Item E Values of K-S test 1. Competence in Communication and Coordination Competence in Designing Web Page Competence in Understanding Company s Developing Direction and 2.28 Strategy 4. Competence in Understanding Client s Information Competence in Leading R&D Teamwork Operation Competence in Understanding the Developing Trend of IT Competence in Integrating with Company s R&D Knowledge Competence in Planning Activities that Related to R&D Management Competence in Establishing the Enquiring Tools Possessing Personal Competence in Professional R&D Management Competence in Designing and Establishing R&D Database Competence in Teaching Employees with Retrieving and Applying 1.93 R&D Knowledge 13. Competence in Applying Statistical Methods Competence in Configuring Network Competence in Internationalization Competence in Analyzing the Organizational Demand for R&D 1.99 Knowledge 17. Competence in Solving Internal Problems Competence in Knowing well about company s operation and 1.81 procedure 19. Competence in Written Expression Competence in Knowing well about company s external environment Competence in File and Document Management Competence in Summarizing Data/Information Competence in Cataloging and Establishing Index Competence in Visioning Industry s Future Developing Trend Competence in Discovering Business Opportunity Competence in Maintaining and Updating Information Competence in Analyzing Information Competence in Integrating with Inter-industry Technologies Competence in Editing and Writing R&D Report Competence in Developing Information Software

10 Pang-Lo Liu and Chih-Hung Tsai Table 2: The Kruskal-Wallis Test Table Competence Item X 2 P 1. Competence in Communication and Coordination Competence in Designing Web Page Competence in Understanding Company s Developing Direction and Strategy 4. Competence in Understanding Client s Information Competence in Leading R&D Teamwork Operation Competence in Understanding the Developing Trend of IT Competence in Integrating with Company s R&D Knowledge Competence in Planning Activities that Related to R&D Management Competence in Establishing the Enquiring Tools Possessing Personal Competence in Professional R&D Management Competence in Designing and Establishing R&D Database Competence in Teaching Employees with Retrieving and Applying R&D Knowledge 13. Competence in Applying Statistical Methods Competence in Configuring Network Competence in Internationalization Competence in Analyzing the Organizational Demand for R&D Knowledge 17. Competence in Solving Internal Problems Competence in Knowing well about Company s Operation and Procedure 19. Competence in Written Expression Competence in Knowing well about Company s External Environment Competence in File and Document Management Competence in Summarizing Data/Information Competence in Cataloging and Establishing Index Competence in Visioning Industry s Future Developing Trend Competence in Discovering Business Opportunity Competence in Maintaining and Updating Information Competence in Analyzing Information Competence in Integrating with Inter-industry Technologies Competence in Editing and Writing R&D Report Competence in Developing Information Software Table 3: Major Competence that Required for High-tech Industry Knowledge Management Personnel Major Competence Priority Rank Competence in Advancing R&D Management 1 Competence in Understanding the Industrial Environment 2 Competence in Applying IT 3 Competence in Managing Information 4 10

11 Table 4: Competence in Advancing R&D Management Major Competence Priority Rank Competence in Communication and Coordination 1 Competence in Leading and Assisting with Teamwork Operation 2 Competence in Planning Activities that Related to R&D Management 3 Competence in Possessing Personal Professional R&D 4 Competence in Teaching Employees with Retrieving and Applying R&D 5 Knowledge 3. The R&D management personnel in Taiwan s high-tech industry should possess the Competence in Understanding the Industrial Environment as shown in Table 5. According its importance/priority ranking, it included: Competence in Understanding Company s Developing Direction and Strategy, Competence in Analyzing the Organizational Demand for R&D Knowledge, and Competence in knowing well about company s external environment have higher importance/priority ranking. 4. The R&D management personnel in Taiwan s high-tech industry should possess competence in Applying IT, as shown in Table 6. According its importance/priority ranking, it included: Competence in Understanding the Developing Trend of IT, and Competence in Designing and Constructing Database or Knowledge Base have higher importance/priority ranking. 5. The R&D management personnel in Taiwan s high-tech industry should possess the Competence in Managing Information as shown in Table 7. According its importance/priority ranking, it included: among which, Competence in Summarizing Data/Information, and Competence in Maintaining and Updating have higher importance/priority ranking. (4) 10 Major Detailed Competences that Required for R&D Management Personnel in Taiwan s High-tech Industry Based on the statistical result, 10 major detailed competences that required for R&D management personnel in Taiwan s high-tech industry are as shown in Table 8. Among which, Competence in Communication and Coordination, Competence in Leading and Assisting with Teamwork Operation, and Competence in Understanding Company s Developing Direction and Strategy are the top 3 items, respectively. 5. Conclusion The purpose of this study was to investigate and identify the skills for research and development (R&D) competence required for the R&D management personnel in Taiwan s High-tech industry. The research results can be used as a reference to lead R&D management or incubate related R&D management talents for the high-tech industry in the near future. The relevant literature and documents on R&D management were reviewed and used as the basis for developing the Delphi Technique questionnaire for this study. Interviews were conducted with supervisors from Taiwan s high-tech industry and R&D management personnel. The interview result was also used in developing the Delphi Technique questionnaire. This study interviewed 30 11

12 Pang-Lo Liu and Chih-Hung Tsai Table 5: Competence in Understanding the Industrial Environment Major Competence Competence in Understanding Company s Developing Direction and Strategy Competence in Analyzing the Organizational Demand for R&D Knowledge Priority Rank 1 Competence in knowing well about company s external environment 3 Competence in Visioning Industry s Future Developing Trend 4 Competence in Integrating with Inter-industry Technologies 5 2 Table 6: Competence in Applying IT Major Competence Priority Rank Competence in Understanding the Developing Trend of IT 1 Competence in Designing and Establishing R&D Database 2 Competence in Developing Information Software 3 Competence in Designing Web Page 4 Competence in Configuring Network 5 Table 7: Competence in Managing Information Major Competence Importance/priority Rank Competence in Summarizing Data/Information 1 Competence in Maintaining and Updating Information 2 Competence in Analyzing Information 3 Competence in Editing and Writing 4 Competence in Applying Statistical Methods 5 12

13 Table 8: 10 Detailed Competences that Required for High-tech Industry R&D Management Personnel Major Competence Average Standard Number Priority Rank Competence in Communication and Coordination Competence in Leading and Assisting with Teamwork Operation Competence in Understanding Company s Developing Direction and Strategy Competence in Planning Activities that Related to R&D Management Competence in Analyzing the Organizational Demand for R&D Knowledge Competence in Knowing Well about Company s Internal Environment Possessing Solid Personal Competence in Professional R&D (2004) Competence in Understanding the Developing Trend of IT Competence in Summarizing Data/Information high-level supervisors from the high-tech industry, related R&D management workers and scholars of related academic fields as the subjects of Delphi Technique. Three opinion consultation sessions were conducted and further confirmed the meaning of competence required for R&D management personnel in the high-tech industry. The data analytical methods that this study adopted are including the basic statistical analysis (Average, Standard Deviation, and Importance/Priority Ranking), K-S test, Kruskal-Wallis tests, etc. The conclusion obtained from this study is discussed as follows: 5.1 Conclusion 1. The meaning of Competence in Advancing R&D Management: According the statistical data, it showed that the competence in advancing R&D management that required for R&D management personnel in Taiwan s high-tech industry has 5 items totally, among which, the Competence in Communication and Coordination and Competence in Leading Teamwork Operation are the most important items. It showed that when management personnel are advancing R&D management, the primary task for them is to act as a bridge between the entire employees and R&D management unit with maintaining good relationship with employees and making the entire employees to identify with R&D management and willing to implement the task of R&D management that may successfully advance the R&D management. 2. As for the Aspect of Competence in Understanding the Industrial Environment: According the statistical data, it showed that the competence in understanding the industrial environment that required for R&D management personnel in Taiwan s high-tech industry has 5 items totally, among which, the Competence in Understanding 13

14 Pang-Lo Liu and Chih-Hung Tsai Company s Developing Direction and Strategy, and Competence in Analyzing the Organizational Demand for R&D Knowledge are the most important items. As a result, it described the R&D management personnel that they should thoroughly understand the developing trends and strategy of their own companies, and then it is able to initiate the proper R&D management mechanism and culture for the company. 3. As for the Aspect of Competence in Applying IT: According the statistical data, it showed that the competence in applying IT that required for R&D management personnel in Taiwan s high-tech industry has 5 items totally, among which, the competence in understanding IT developing trend and designing and constructing database is the most important. Taking into account the ever-changing advances in technology, the information development is still one of important foundations in R&D management. Thus, R&D management personnel should know well about the IT movement and its developing trend in order to strengthen the infrastructure of company s R&D management mechanism. In addition, Knowledge Base is regarded as the access center of R&D knowledge in a company, and in terms of the technical aspect, R&D management personnel should be able to provide the entire employees with a convenient and human-based interactive R&D database to not only attract employees motivation of access, but also improve the utility rate of R&D information. 4. As the Aspect of Competence in Managing Information: According the statistical data, it showed that the Competence in Managing Information that required for R&D management personnel in Taiwan s high-tech industry has 5 items totally, among which, the Competence in Summarizing Data/Information and Competence in Maintaining and Updating Information are the most important items. As a result, it showed that, with facing tones of data and information, R&D management personnel should be able to summarize them to provide employees with the convenience in reading and making selection. In addition, according to the rapid development of media business and multiplied speed of information communication, thus R&D management personnel should be able to provide the update information and know well about the latest industrial movement to maintain the practicability of information. 5. As for the 10 Major Detailed Competence: Among the 10 major detailed competences that required for the R&D management personnel in Taiwan s high-tech industry, the importance/priority ranking of them are: (1) Competence in Communication and Coordination; (2) Competence in Leading and Assisting with Teamwork Operations; (3) Competence in Understanding Company s Developing Direction and Strategy; (4) Competence in Planning Activities that Related to R&D Management; (5) Competence in Analyzing the Organizational Demand for R&D Knowledge; (6) Competence in Knowing Well about Company s Internal Environment; (7) Possessing Solid Personal Competence in Professional R&D; (8) Competence in Visioning Industry s Future Developing Trend; (9) Competence in Understanding the Developing Trend of IT; and (10) Competence in Summarizing Data/Information. From this result, it showed that the competence required for R&D management in Taiwan s high-tech industry is mainly on the mental aspect, such as communication, leadership, 14

15 understanding the industry and environment, etc. 5.2 Management Competence 1. The key points of incubating the R&D management talents in Taiwan s high-tech industry could include the 4 major competences that proposed by this study. In addition, the 4 major competences required for the R&D management personnel that inducted by this study including: Competence in Advancing R&D Management, Competence in Understanding the Industrial Environment, Competence in Applying IT and Competence in Managing Information. In the future, the related training units are able to refer to the direction of these mentioned 4 major competences and according to the importance/priority ranking of detailed competence for each major competence to carefully consider arranging the quality and quantity of training program/course. 2. The training program/course of R&D management talents should focus mainly on the development of Competence in Advancing R&D Management. According the statistical data, it showed that, among the major competences, the importance/priority ranking of the Competence in Advancing R&D Management is the first place in Taiwan s high-tech industry; therefore, related training organizations or institutes should provide more talents for assisting in advancing R&D management to the industry, and their program/course planning should be mainly on developing the Competence in Advancing R&D Management, along with developing other major competences orderly as the supplement to establish the sound basis of R&D management. 3. The incubation of the Competence in Understanding the Industrial Environment should emphasize the competence in understanding company s developing trend and strategy, according the statistical data, it showed that the competence in understanding company s developing trend and strategy is the most important among competences in understanding industrial environment. Therefore, when a company is incubating R&D management talents, it should focus on their understanding about company s strategy and developing direction; competences in analyzing the knowledge demand of organization and familiarizing with company s internal environment, and should arrange more opportunities to serve in each company s unit for them to improve their understanding level for the company and its departments via such position allocation. 4. The incubation of Competence in Advancing R&D Management should emphasize the competence in communication, according to the 10 detailed competences that inducted by this study and each competence in advancing R&D management, it can be clearly showed that the importance/priority ranking of the communication and coordination competences is the highest. As a result, related training organizations or institutes should regard the competence training in communication and coordination, leadership and activity planning as the core of training program/course. 5. The incubation of the Competence in Applying IT should emphasize the competence in understanding the developing trend of IT: according to the rapid alteration in IT, thus each training organization or institute should strengthen the program/course planning of the Competence in Applying IT for the Competence in Understanding the 15

16 Pang-Lo Liu and Chih-Hung Tsai Developing Trend of IT to conform to the demand for current trend. However, even the Competence in Applying IT is the requirement for the management personnel with helpful to the fluency and diversification of R&D management, yet there re many human-based aspects that IT still unable to solve and it will be improved by human intelligence and experience. Therefore, it shouldn t only focus on the related technologies of IT while incubating the related R&D management talents in the future. 6. The incubation of R&D management personnel in high-tech industry should be conducted mainly for the company s internal employees. The statistical data showed that a close interrelationship existed among the competences in understanding company s developing direct and strategy, analyzing the knowledge demand for organization, expecting the future industrial developing trend and integrating the research knowledge of company/department, and the development of company/department. Therefore, when the company is incubating its R&D management talents in the future, according to the consideration to its internal employees understanding of organization and industry, the selection of incubating personnel should mainly on the company s internal employees. 7. The incubation of Competence in Managing Information should emphasize the competence in summarizing data/information: according the statistical data, it showed that the competence in summarizing data/information is the most important among each competence in managing information. As a result, each training organization or institute should strengthen the program/course planning of the Competence in Managing Information for the competence in summarizing, maintaining and analyzing the data/information; in addition, firstly, the training of such competence should require R&D management personnel knowing well about the latest data and information and then they are able to conduct the analysis, summarization and update tasks. References 1. Adler, P.S., (1990). Share Learning, Management Science, Vol. 36, No. 8, pp Brown, G.M. and R.A. Svenson (1988). Measuring R&D Productivity, Research Technology Management, Vol. 31, No. 4, pp Brown, S.L. and K.M. Eisenhardt, (1995). Product Development: Past Research, Present Findings, and Future Direction, Academy of Management Review, Vol. 20, No. 2, pp Calanton, R., S. Vickery and C. Deoge, (1995). Business Performance and Strategic New Product Development Activities: An Empirical Investigation, Journal of Product Innovation management, Vol. 12, No. 3, pp Chakrabarti, A.K., (1991). Industry Characteristic Influencing The Technical Output: A Case of Small and Medium Size Firms in The US, R&D Management, Vol. 21, No.2, pp Cusumano, M.A. and Nobeaka, K., (1992). Strategy, Structure and Performance in Product Development: Observation from the Auto Industry, Research Policy, Vol. 21, No. 23, pp Clausing, D.P., (1994). Total Quality Development, Mechanical Engineering, Vol. 116, No. 3, pp Cooper, R.G. and E.J. Kleinschmidt, (1995). Benchmarking the Firm s Critical Success Factors in New Product Development, Journal of Product Innovation Management, Vol. 12, 16

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