Abstract
One of the most concrete tools to estimate research, development and innovation (RDI) investments is cash flow earnings simulation, which estimates return on capital employed. The simulation of cash flows earnings enables a comparable assessment of the returns on various investments related to research, development and innovation. It also facilitates the presentation of profitable research and development projects. This article describes why cash flow earnings is excellent way to predict the success of the coming RDI-Investment and reduce the risk of investment to fail and how to utilize it. In addition, the article also gives insights how the attitude towards RDI affected to the cash flow earnings on several Finnish SME-companies.
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Acknowledgments
Special acknowledgments to a senior member of the Finnish management consultants association LJK, Mr. Riku Lehtinen, who’s over 40-years of lifework and experience with cash flow earnings enabled this study.
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Penttinen, M., Rantala, J., Holopainen, T. (2021). The Effect of Research, Development and Innovation (RDI) on Companies’ Financial Activity Capabilities: A Case Study of SME-Companies in Finland. In: Kantola, J.I., Nazir, S., Salminen, V. (eds) Advances in Human Factors, Business Management and Leadership. AHFE 2021. Lecture Notes in Networks and Systems, vol 267. Springer, Cham. https://doi.org/10.1007/978-3-030-80876-1_29
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DOI: https://doi.org/10.1007/978-3-030-80876-1_29
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