Definition of Research and development

In business terms, Research and Development (also known as R&D) can be defined as a series of activities that differs from company to company in terms of purposes and goals. R&D (or Research and Technical development) is categorized in two primary models.

The purpose of one model is classified as the development of new products. In other model R&D goes under the process of discovery and creation of fresh understanding related to scientific and technical subjects in order to initiate the development of new products, services and processes.

The purpose of R&D is to cater the organization the experiences of future growth which a business crave for with the help of development of new products or processes with the intention of improvement and expansion of operations and involve little uncertainty as to the return on investment (ROI).

Books on Research and development

Book 1 –

Management of Research and Development Organizations: Managing the Unmanageable By Ravinder Kumar Jain, Harry C. Triandis (published by John Wiley & Sons, 1997)

Book 2 –

Practical Process Research & Development By Neal G. Anderson (published by Academic Press, 2000)

How Research and development works?

There are several firms, organizations and companies that have invested a handsome sum on R&D in order to evolve new technology that can help the new product or else bring improvements on existing products. For example, Gillette Company has invested a good amount on R&D each year as a attempt to discover fresh designs of shavers, which are more effective than the previous product in the market.

on average basis, it is seen that most company tend to invest a small percentage in R&D from their revenue (usually under 5%), but it is also true that pharmaceuticals, semiconductor and software companies spend a handsome amount on R&D to come up with fresh technology ideas.

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