Posted in Marketing and Strategy Terms, Total Reads: 583
Definition: R&D Research and Development
R&D or Research and Development refers to a specific set of activities that happen within a business, which enable the business to develop new products, innovations and services. There are different models of research and development.
Primarily there are two models, one where in new product development is the end objective, in the other finding or documenting new scientific principles and technological topics and documenting them to support the business. The first model has engineers who drive the process. In the second one technology and industrial scientists drive the process.
Research and development is a key to a business success, as they act as stimulants to drive the business in new domains or new products and keep innovation in business going.
On an average every company spends some of their revenue on research and development, though this value varies from company to company, an estimated 5% is considered as an average. The companies measure their returns on investment on the capital pumped into the research and development.