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The Promise of Targeted Innovation

The biggest consumer goods companies shell out more than $1 billion a year for R&D but lately have seen no appreciable impact on their sales. That’s troubling for companies whose growth has plateaued in recent years. In contrast, some smaller competitors that spend less on R&D — but do so more shrewdly — have seen a significant boost in sales. In this sector, innovators needn’t bet big to reap returns.

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