What is business research and development?
Business Research and Development (R&D) concerns the process of developing and testing new products that can eventually be launched. This process is particularly important for pharmaceutical companies, technology companies and some types of industrial companies, but also has consequences for many other types of businesses. Those who are able to maintain customers in the market satisfied with new innovations and often find new ideas that they have a leg for competition.
The importance of business research and development is difficult to overestimate. Even at a time when the economy is fighting, businesses understand that for the continuing success of the operation, a good strategy for research and development is essential. Although it may seem easy to reduce business research and development when sales slow, some CEOs believe it is the best time to spend more time. New products mean new opportunities and more customers.
The innovation process is particularly essential in the pharmaceutical field where business research and development are responsible for productionNew drugs in the fight against cancer, heart disease and other diseases that threaten the lives or health of individuals. Millions of dollars can be spent on this research until a suitable medicine is created. If one is found, the patent may take approximately 20 years after which the generation can be produced. Companies producing these generations have the advantage because all research and development have carried out others. The name brand has more motivation for further research and development, because it eventually loses its market share and has to come up with new products.
This applies not only to pharmaceutical companies, but also for many industrial companies. If Henry Ford stopped his innovation with the T model, there is only a very little chance that his company would survive before the preferences. Since the competition continues to build faster, more reliable and more comfortable cars, others must follow a lawsuit or risk that they will remain behind.
Although automotive companies, as one example, separateThey finance most of their business research and development, there may be other sources of money for some industries. Research and development can be offered by government or private groups. For example, the government can offer grants to research drugs for cancer, cars that run on alternative fuels, and cheaper ways to explore the universe. In any case, although there may be an advantage for society, the government may also feel that there is an advantage for society.
Technology companies also invest considerably in research and development. For example, take the constant wars between two main software and computer giants, Microsoft® and Apple®. Both must constantly offer customers new products, more stable platforms and higher computing speeds. For this purpose, research must be carried out in new software and new hardware to power software.