BUSN20019 Assignment: Research Proposal on R&D Expenditure Analysis

This research proposal investigates the impact of research and development (R&D) expenditure on company revenue, focusing on Johnson & Johnson as a case study. The primary research question explores the direct impact of R&D spending on revenue, while secondary questions delve into the relationship between R&D expenditure and revenue, and potential recommendations for revenue enhancement. The study falls under the field of firm management and financial operations. The proposal references a data set from the article by VanderPal (2015) which provides empirical analysis on the correlation between R&D expenses and corporate financial performance. It also includes references for a literature review, including articles by Babkin et al. (2015), Schuhmacher et al. (2016), and Xu & Jin (2016), to support the research. The student aims to understand the overall operations of the firm and its revenue-earning capabilities through this research. The proposal is designed to meet the BUSN20019 assessment requirements and provides a clear statement of the field of research and the research questions.

RESEARCH
PROPOSAL
Name of the Author

Research Question
The Independent variable: Research and development expenses
The Dependent variable: Company revenue/Financial performance
◦ The primary research question is as follows:
1.What is the impact of the expenditure on research and development on the company revenue?
A case study of the Johnson and Johnson?
◦ The secondary research questions can be taken to be as follows:
◦ What is the relationship which exists between the expenditure of the research and development and the
revenue on the firm?
◦ What recommendations can be provided to Johnson and Johnson in order to ensure success in the overall
revenue of the firm such as Johnson and Johnson?
The field of study which I am involved is related to the overall management of the firm and the financial
operations. Hence, undertaking the study will assist me in ensuring that I am able to learn more about the
overall operations of the firm and the revenue earning capabilities as well.

Data set
◦ VanderPal, G. (2015). Impact of R&D expenses and corporate financial
performance. VanderPal, GA (2015). Impact of R&D expenses and corporate
financial performance. Journal of Accounting and Finance, 15(7), 135-149.
◦ The given article provides adequate information on the manner in which the impact of
Research and Development expenses on the Corporate Financial Performance can be
understood well.
◦ The journal article is based around previous researches in the field Research and
Development and related earnings. The empirical analysis using a sample of 103 companies
has been done between 1979 and 2013 data set.
◦ The study found a positive relationship between the Independent variable (Research and
development expenses) and the Dependent variable(Company revenue/Financial
performance)

References for Literature
Review
◦Babkin, A. V., Lipatnikov, V. S., & Muraveva, S. V. (2015).
Assessing the impact of innovation strategies and R&D costs
on the performance of IT companies. Procedia-Social and
Behavioral Sciences, 207, 749-758.
◦Schuhmacher, A., Gassmann, O., & Hinder, M. (2016).
Changing R&D models in research-based pharmaceutical
companies. Journal of translational medicine, 14(1), 105.
◦Xu, J., & Jin, Z. (2016). Research on the impact of r&d
investment on firm performance in China's internet of things
industry. Journal of.

Thank You