Final answer:
A six-month project delay in high-tech product development can result in a loss of product revenue share of 33 percent. This reflects the competitive and fast-paced nature of the industry, where timing is crucial. The rule of 70 and the concept of social benefits from investments like the Gizmo Company example further highlight the implications of such delays.
Step-by-step explanation:
When it comes to the high-tech product development world, a six-month project delay can have a significant impact on a product's revenue share. A rule of thumb within this fast-paced industry is that such a delay can lead to a loss of product revenue share by 33 percent. This estimate takes into account the highly competitive nature of the market, where the speed to market can be critical for the success of a new product.
Additionally, it's important to note the economic principle known as the rule of 70, which aids in understanding the time it takes for an investment to double at a given growth rate. While this rule is separate from product development delays, it reflects the importance of growth rates and investment returns in the business world. Furthermore, the original inventor typically receives one-third to one-half of the total economic benefits from their innovations, implying that delays can significantly decrease the portion of benefits that accrue to the innovator.
When evaluating the scenarios such as that of the Gizmo Company, which is planning to invest in the development of new household gadgets, the projected return on investment must not only account for financial returns but also for the social benefits. For example, an investment that offers a 6% return to the company equates to an 11% return to society. Delays in such developments can have a compounded effect, reducing both financial and social returns.