The CNBC RQ50 ranking is based on the research quotient (RQ), developed by Anne Marie Knott, PhD, professor of strategy at Washington University in St. Louis’ Olin Business School. RQ is a measure of firms’ research and development (R&D) productivity. It captures the expected increase in revenue from a 1 percent increase in R&D.
Which companies get the biggest bang for their buck when it comes to R&D? Olin Business School professor of strategy Anne Marie Knott believes there is a strong correlation between certain characteristics of companies and their R&D practices. Effective R&D is a sign of firm with high IQ. But just what makes a company smart? Professor Knott is on a mission to measure firms’ IQ and how to improve it. Video included.