{
  "version": "1.3.0",
  "releasedAt": "2026-05-20",
  "kpi": {
    "rogueId": "product.rd_efficiency",
    "slug": "rd_efficiency",
    "domain": "product",
    "defaultLabel": "R&D Efficiency",
    "description": "Ratio of net-new ARR generated in a period to R&D spend in the same period — answers \"how much revenue does each R&D dollar produce?\" Distinct from sales-efficiency metrics (Magic Number, CAC payback) which measure sales/marketing productivity. Common pitfall: R&D-driven ARR (new capabilities, expansion features) shows up on a 2–4 quarter lag after the spend — single-period ratios mis-state the relationship. Boards should look at trailing-twelve-month R&D efficiency, not month-over-month, and pair with `innovation_capacity_pct` to understand whether the spend is on growth bets or maintenance.",
    "fieldType": "number",
    "unit": null,
    "maturity": "general",
    "suggestedForStages": [
      "seriesA",
      "seriesB",
      "seriesC",
      "public"
    ],
    "defaultOwningFunctions": [
      "R&D"
    ],
    "stageRelevance": {
      "seriesA": "core",
      "seriesB": "core",
      "seriesC": "core",
      "public": "core"
    },
    "definitionSource": {
      "tier": "editorial",
      "sourceName": "imboard Editorial",
      "sourceUrl": null,
      "sectionRef": null,
      "publicationDate": "2026-04-01",
      "attributionNotice": null
    },
    "benchmark": {
      "p25": 0.15,
      "median": 0.27,
      "p75": 0.4,
      "unit": "ratio",
      "sourceName": "imboard Editorial",
      "sourceYear": "2026",
      "higherIsBetter": true
    },
    "formula": "rd_efficiency = net_new_arr_in_period / rd_monthly_spend_in_period. Best computed on a trailing-twelve-month basis to absorb the spend-to-revenue lag. Note: not the same as \"R&D ROI\" (which would deduct R&D cost from revenue); this is a velocity ratio, not a profitability ratio.",
    "whyItMatters": "Highest-leverage indicator of whether R&D investment is converting into revenue. A persistent decline signals either an over-built team relative to demand, a feature-product fit gap, or accumulated tech debt slowing throughput — each prescribes different board action.",
    "interpretationGuidance": "No single published benchmark applies across stages and business models. Industry folk-wisdom, not citation-grade: at growth-stage SaaS, $1 of R&D spend producing $1–2 of net-new ARR is healthy; below $0.5 is a flag; above $3 typically signals either underinvestment in R&D (about to hit a velocity wall) or a one-time price-increase boost. Always pair with `quality_churn_pct` — high efficiency with rising quality-churn means the ratio is borrowing from future periods.",
    "relatedKpiIds": [
      "product.rd_monthly_spend",
      "product.total_engineers",
      "product.innovation_capacity_pct",
      "product.quality_churn_pct",
      "sales.arr"
    ],
    "metricBasis": {
      "timeBasis": "period_flow",
      "production": "computed"
    }
  }
}