Industrial research and development is essential for technology-based companies to create new products or improve existing ones. It involves new technologies or products, exploitation of existing products, and applying for patents. Researchers are typically required to have a PhD, and the decision to start production is a business decision. Patents are also an important aspect of industrial research and development.
Industrial research and development is a term used to describe research activity conducted within a specific area or discipline. While all industries develop new products and ways to reach customers, technology-based companies rely on industrial research and development projects to produce new products or improve existing ones. This type of department is often found in large manufacturing companies around the world.
There are three main aspects of industrial research and development: new technologies or products, exploitation of existing products and applying for patents. People employed in industrial research and development projects include scientists and IT professionals. The vast majority of companies require all researchers to have a PhD. In many cases, researchers are hired by universities and publicly funded institutes based on their work.
In order to maintain market share, most companies have to create new products. This is especially true in technology based industries, as it is an extremely competitive market. Companies that fail to deliver new products soon fall behind. The process required to develop new technologies is complex and time consuming. Most technology companies invest a lot of time and money in research activities.
One way to get an excellent return on investment is to improve an existing product. In many cases, when a new product is being developed, it is possible to include a number of different features and options. These elements are either incorporated into the initial design or are held over for further exploration. Investigating and improving these options allows the company to extend the product lifecycle, while still generating revenue from the existing product offering.
The decision about when the research phase of product development is over and when production begins is usually a business decision. Left to their own devices, researchers could continue to explore the different options, features and functions forever. However, a business can only start generating revenue from the product once it is finalized and presented to potential customers. Deciding when to draw that line and which features will be retained is complex, involving a review of competition, consumer needs, pricing and manufacturing challenges.
Applying for and using existing patents is an important element of industrial research and development. The most innovative companies take pride in the number of patents awarded and the principal investigator is often rewarded both financially and socially for this achievement. Many companies have administrative staff dedicated to the patent management process, both for new patents and for monitoring the use and payment of existing patents.
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