Products' Quality and R&D Investments - F.A.Q.

66.How can one affect a product's quality rating?
Answer: A products quality rating is set by its four main characteristics; shelf life, pollution, cost and quality. The products quality is affected by investing in R&D in these areas.

67.What are products 'Returned' from the market and how can this phenomenon be avoided?
Answer: These are products returned by unsatisfied customers. A company should then improve its Q.A. staff and improve the products' quality.

68.What is the 'Firm Knowledge Index' and how does it affect the firm's activity?
Answer: The 'Firm Knowledge Index' is a numerical representation of the firm's ability to posess industrial knowledge and IP, research and implement R&D projects and utilize production machinery. A high knowledge index will result in better products and a higher overall efficiency.

69.How can this 'Knowledge Index' be improved?
Answer: The Knowledge Index can be influenced through research into new IP's, hiring engineers and motivating experienced engineers to continue working in the firm using a premium.