In Research and development (R&D) we are intended to create new or improved technology that can provide a competitive advantage at the business, industry, or national level. While the rewards can be very high, the process of technological innovation (of which R&D is the first phase) is complex and risky.

Academic and Institutional R &D

The objective of academic and institutional R&D is to obtain new knowledge, which may or may not be applied to practical uses. In contrast, the objective of industrial R&D is to obtain new knowledge, applicable to the company’s business needs, that eventually will result in new or improved products, processes, systems, or services that can increase the company’s sales and profits.

R&D AND TECHNOLOGY ACQUISITION

In many cases, technology required for industrial purposes is available in the marketplace—for a price. Before embarking on the lengthy and risky process of performing its own R&D, we are in phase of “make or buy” analysis and taking our decision for different products whether to make or buy that would at least justify R & D. Factors that influence the decision include the ability to protect the innovation, its timing, risk, and cost.

Moving Ahead With R & D

R&D can be conducted in-house, under contract, or jointly with others. In-house R&D commands a strategic advantage: the company is the sole owner of the know-how created and can protect it from unauthorized use. R&D is also basically a learning process; in-house research thus trains the company’s own research people who may go on to ever better things.