In this article the results are presented of an empirical study focusing on the effectiveness of R&Dperformance measurement practices in the Netherlands. First, a theoretical examination of the subject`R&D performance measurement' is given within the context of performance control. A distinction ismade between feedback and feed forward control and between the R&D function and the R&Dorganisation. Subsequently, a description is given of the current practices of R&D performancemeasurement in terms of measurement purposes, metrics, measurement techniques, norms setting, etc.Furthermore, the influence of contingencies on measurement system design is explored. The data for thisresearch were gathered by means of a survey and nine in-depth interviews. Generally, managers evaluatetheir measurement systems as being quite valuable, having a positive impact on performance. The findingsdescribed in this paper can be used as references for managers to benchmark their R&D measurementprocedures: in this respect we distinguish highly and hardly effective measurement procedures. The mostimportant characteristic that seems to distinguish the most effective systems from the less effective ones iscustomer focus.