Research and development resourcing when faced with fundamental market dynamics

System dynamics has been used over a number of years to explore and explain the role Research and Development (R&D) can play in shaping the dynamics of a firm or industry. This paper describes how a dynamic simulation model can be built which broadly characterises and captures the causal feedback structure and performance behaviour inherent to a generic R&D system within a firm. Alternative futures are played out to explore the long-term consequences of a confluence of R&D resource decisions, coupled with changes to market demand. Particular attention is paid to aspects of the Consumer Electronics (CE) industry, within such a rapidly changing industries system dynamics is recommended as an approach to inform R&D resourcing decisions.