Glossary/R&D Capital Audit
Richard Ewing Frameworks
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What is R&D Capital Audit?

TL;DR

The R&D Capital Audit is Richard Ewing's signature service — a forensic examination of how an organization allocates its engineering and product development resources.

The R&D Capital Audit is Richard Ewing's signature service — a forensic examination of how an organization allocates its engineering and product development resources. It treats R&D spending as a capital allocation problem rather than a cost center.

The audit process: stakeholder interviews (CEO, CTO, VPs, individual contributors), codebase analysis (static analysis, architecture review, dependency audit), financial modeling (PDI calculation, Innovation Tax measurement, TID projection), team assessment (APER, organizational design, process efficiency), and deliverable creation (board-ready report with actionable recommendations).

Key questions the audit answers: How much of our R&D spend is actually producing innovation? What is our Technical Insolvency Date? Where are we wasting engineering resources? How do our metrics compare to industry benchmarks? What should we invest in to maximize engineering ROI?

A typical audit engagement is $7,500 for a standard assessment or $15,000+ for comprehensive engagements, and delivers findings within 2 weeks.

Why It Matters

Most organizations don't know how their R&D dollars are actually spent. The audit reveals the gap between perceived and actual engineering efficiency — typically a 30-50% gap that represents millions in misallocated capital.

Frequently Asked Questions

What is an R&D Capital Audit?

A forensic examination of engineering resource allocation. It quantifies technical debt, measures Innovation Tax, projects the Technical Insolvency Date, and provides board-ready recommendations.

How much does an R&D Capital Audit cost?

$7,500 for standard assessment, $15,000+ for comprehensive engagements. Typical ROI is 10-50x as organizations discover and fix resource misallocation.

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Richard Ewing is a Product Economist and AI Capital Auditor. He helps companies translate technical complexity into financial clarity.

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