Why industries are all research and almost no development

In the US, just 5% of patents ever result in a marketable product, and this rate holds true worldwide, because the funding isn’t there, says Edward Jung.

When business leaders talk about innovating their industries, they focus on initiatives such as improving government funding for research, or building technology hubs and incubators. But a crucial element of innovation is not discussed: The final product.

That’s no oversight. The lack of product-focused discussion is symptomatic of a more serious problem for businesses of all sizes in every industry: Product development takes a back seat in innovation strategy, because the financial link between ideation and commercialisation is broken.