This study examines the relationship between the introduction of new products and R&D process and product expenditures of 15 industries. The objective is to determine the degree to which product and process R&D expenditures,uniquelyorjointly, contribute to the development of new products. The findings suggest that concurrent R&D expenditures on products and processes lead to higher R&D output, as measured by new product announcements, than R&D expenditures on products or processes alone. As a by-product, the analysis clearly shows that the relationship between the number of new products introduced and product and process R&D expenditures can be represented by a function resembling the Cobb-Douglas production function