What Is R&D and How Does It Work?
Research and development, or R&D, is a process that many businesses invest in. While it may oftentimes sound like a vague business jargon, R&D has a valuable place in the value of many businesses.
So, let’s explore what exactly is research and development and why it has such a significant place in both small and large businesses alike.
The Middle Man
In a nutshell, research and development is here to help a business discover:
- New ways of working with existing processes.
- How to put things together in a more sustainable and financially viable way.
- How to create new products, ideas and developments.
Read here to learn how R&D can help a business to excel.
How it Works
R&D broadly works in two different scales.
It often starts as basic research, where the focus is on collecting any necessary information in order to start escalating their processes. You might think of this step as building a portfolio of knowledge where all the necessary information fits together.
The next level is applied research, where a specific goal is made. With this step there will be focused targets such as developing a new product or minimising expenditure.
Applied Research is where the development side kicks off and where tangible changes are made. This can be a service, an innovation, or product.
There are usually many trials and errors before reaching a satisfactory result. In this development and design stage, prototypes are made to ensure success.
Industries that rely on R&D
R&D is so popular as investing in it offers opportunities to improve the way things are being done currently, risk mitigation, and also the possibility to cut costs. There are countless industries that R&D can be applied in. Some big sectors that use R&D a lot are:
- Natural sciences
- Construction and property development