return on research capital (RORC)

Definition

A calculation made in an attempt to put a figure on the revenue a company generates as a result of an expenditure on research and development of new products. RORC is considered to be closely tied to growth as new product developments often fit into a company's long-term strategic plans. This calculation is often seen in the medical and technology industries.
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return on policyholder surplus return on retained earnings (RORE)