Final answer:
A measure of research and development on the balanced scorecard could include the number of new products, as it is a direct indicator of R&D outcomes and innovation within a company.
Step-by-step explanation:
A measure of research and development on the balanced scorecard could include the number of new products. This metric pertains to the innovation and learning perspective of the balanced scorecard and directly reflects the outcomes of R&D activities. While market share, sales growth, and cash flows are important business indicators, they are more reflective of the financial perspective and do not specifically measure the effectiveness of R&D endeavors. The quantity of new products illustrates the company's ability to innovate and bring new offerings to the market, which is a direct result of its research and development efforts. Reinvesting profits into R&D can lead to the creation of new products, contributing to the growth of the business. Additionally, the investment in research and development can create spillover benefits to society, emphasizing the importance of this activity to both the firm and the larger community.