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Research &
Development
The phrase
research and development (also R and D or, more often,
R&D), according to the Organization for Economic
Co-operation and Development, refers to ...
"creative
work undertaken on a systematic basis in order to
increase the stock of knowledge, including knowledge of
man, culture and society, and the use of this stock of
knowledge to devise new applications".
Research
and development is often scientific or towards
developing particular technologies and is frequently
carried out as corporate or governmental activity.
R&D in Business
Research and development is nowadays of great importance
in business as the level of competition, production
processes and methods are rapidly increasing.
It is of special importance in the field of marketing
where companies keep an eagle eye on competitors and
customers in order to keep pace with modern trends and
analyze the needs, demands and desires of their
customers.
Unfortunately, research and development are very
difficult to manage, since the defining feature of
research is that the researchers do not know in advance
exactly how to accomplish the desired result.
As a result, higher R&D spending does not guarantee
"more creativity, higher profit or a greater market
share".
R&D alliance
An R&D alliance is a mutually beneficial formal
relationship between two or more parties to pursue a set
of agreed goals while remaining independent
organisations, where acquiring new knowledge is a goal
by itself. The different parties agree to combine their
knowledge to create new innovative products.
For Example, funding from government organizations, like
the European Union's Seventh Framework Programme (FP7),
and modern advances in technology, R&D alliances have
now become more efficient. Every company has their own
research and develop department.
On a technical level, high tech organizations explore
ways to re-purpose and repackage advanced technologies
as a way of amortizing the high overhead.
They often reuse advanced manufacturing processes,
expensive safety certifications, specialized embedded
software, computer-aided design software, electronic
designs and mechanical subsystems
Research has shown that firms with a persistent R&D
strategy outperform those with an irregular or no R&D
investment programme.
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