Costs of product development

A patent is certainly the most adequate means to protect an invention, if a product derived from this invention can be developed and sold on the market within the foreseeable future and if one expects major financial revenues from this product. The expected revenues should be high enough to recoup the cost of product development and to justify the expense of obtaining and maintaining a patent. 

The majority of patented pharmaceuticals cannot recoup the cost of product development during the life-span of their patents (Prentis et al., 1988). Thus, patents do not guarantee high profits, but -depending on their quality- patents can significantly improve the chances of commercial success of innovative products. The quality of patents does not only depend on the quality of the research which led to the patented invention, but also on the quality of the patent application and a skilful patent strategy. 

The building and operating costs can often be justified based on the direct costs of product development and clinical manufacture under contract. In addition, delays in clinical programs can cost the company millions of dollars in lost revenue. However, if building or operational costs carmot be justified, it may be more effective to outsource work to a This may... 

Of the discussed issues, the trend towards increasing complexity and rising cost of product development are to be counteracted by increasing standardization, integration and interoperability. For these developments, it is critical that the savings incurred outweigh the associated costs efforts to combat complexity and rising costs must be cost- and time effective. 

The regulatory requirements for biocompatibility and sterihty increase the time and cost of product development for CGM sensors, as all materials and sensors to be used in any experimental programs or clinical trials must be evaluated and satisfy the requirements of the standards. 

Figure 1.3 Commitment and incursion of costs during product development and the knowledge gap principle (adapted from Fabrycky, 1994)...

Micro-scaling or bottom up approach to quality costs, where it is possible to calculate the cost of losses involved in manufacture and due to returns and/or claims. This method requires a great deal of experience and relies on the availability of detailed cost data throughout a product s life-cycle. While this is a crucial activity for a business, it is also not a practical approach for estimating the quality cost for product in the early stages of product development. 

The use of CA has proved to be beneficial for companies introducing a new product, when an opportunity exists to use new processes/technologies or when design rules are not widely known. Design conformance problems can be systematically addressed, with potential benefits, including reduced failure costs, shorter product development times and improved supplier dialogue. A number of detailed case studies are used to demonstrate its application at many different levels. 

To further reduce the cost of production and the number of reaction steps, an entirely new reaction step was developed (scheme 3 in Figure ll).176... 

During the first World War, the Corn Products Refining Company attempted to improve the methods of manufacturing dextrose to obtain a pure product at low cost. A process was developed in 1918 by Porst which produced chemically pure dextrose but cost of production was still high. 

In general, the larger corporations respond to TSCA demands much as they would to any other demand presented to them. There have been additional resources added the additional costs will be expressed in the cost of products and services provided by the corporation. With smaller companies, the general result has been to add the TSCA burdens to existing personnel, particularly in technical/research and development functions. The final result in these smaller companies may be less innovation and productivity. In the smallest companies, the burdens have fallen on the few managers whose time in general management functions is reduced. Less productivity may be the result here. 

These specific, and other broader, concerns in corporate compliance with TSCA s requirements were discussed by Diamond Shamrock Corporation s D. Harlow. He described how corporate structures and procedures, including those for research and development, for companies of all sizes, have been impacted by TSCA. These impacts are generally positive in that they reflect greatly increased awareness, resources and responsiveness to questions of chemicals effects on health and environment. These benefits are seen to be in balance with their costs, expressed in the increased costs of products and services. 

---