IdeaCHECK on the BCG report titled “Innovation Imperative in Manufacturing”

In March, the Boston Consulting Group published a report on “The Innovation Imperative in Manufacturing”. The goal of the report was to assess the level of innovation among US firms, both across the different states of the US as well as in comparison to other countries. Here is an IdeaCHECK on the report: Do share your thoughts here or on the CITE website.

Author: kwanghui

One thought on “IdeaCHECK on the BCG report titled “Innovation Imperative in Manufacturing””

  1. I agree with your comments Kwang on the relative lack of transparency in the BCG study. Unfortunately it also makes it easy to make analytical/interpretation errors.
    Consider BCG’s own claims about the size of R&D tax credits making little difference at exhibit 7, p20. This claim is based on a graph of innovation performance versus R&D tax credit where the  “weighted cumulative distance from the mean” of the R&D tax credit is greater than zero.
    But given this scale, zeroes appear to be the mean of the actual level of tax credits or perhaps of a survey response. Neither of these imply that a zero on the scale equals zero tax credits.
    So looking only at above zero on the scale (ie above mean) values of the tax credit to try and work out if the size of the tax credit counts is flawed – below mean values should not simply be ignored in this analysis.
    If on the other hand zero on the scale really does somehow mean zero tax credits – then how do a host of countries get negative R&D tax credits of various amounts – and why are they still ignored?


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