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R&D is the process of creating new products or improving existing ones through research and development. It involves investigating current knowledge, testing and refining ideas before they can be implemented on the market. Companies spend varying amounts on R&D, with pharmaceutical and IT industries spending the most. Research is typically conducted by universities, governments, and non-profit organizations, while development is undertaken by manufacturers and for-profit companies.
R&D, otherwise known as R&D, is typically the conception and implementation of new product ideas. The research part of R&D refers to the investigation and testing phase of creating a new product or improving an existing product. The development part is the process of designing and verifying the effectiveness of the new product or product improvement. Around the world, millions of dollars each year are spent on research and development by governments, non-governmental organizations and companies.
Research is typically an investigation of current knowledge about existing products in order to find a new idea for a new product. The theory behind this part of R&D is that without the discovery of innovative ideas, there may be no creation of new products. Basic research seeks to increase knowledge about a topic, while applied research often looks for creative ideas for designing new products or ways to improve existing ones.
Developing these ideas into viable and marketable products also often falls under the R&D banner. Discoveries typically need to be tested and refined before they can be implemented on the market. For example, the pharmaceutical industry usually puts years of testing new drugs to ensure they are safe for patients.
Unlike scientists who conduct experiments, researchers working in an R&D department usually don’t begin tests with a predetermined hypothesis in mind. There are no guarantees that the research will produce usable or marketable products, so investing heavily in it is risky. This may be part of the reason why many companies leave much of the research part of R&D at universities.
Many companies have an R&D department, but not many spend a large portion of the revenue. Most of these companies spend less than 5% of profits on R&D initiatives, but some, mainly in the pharmaceutical or IT industries, can spend more than 10%. In general, the more new products an industry needs to keep up with technology, the more the industry spends on R&D to create them.
Research and development is typically conducted in the research and development departments of many different organizations. For the most part, the research side is taken on by universities, governments and non-profit organizations, while the development phase is undertaken by manufacturers and for-profit companies. Some organizations may hire an independent R&D organization or pool their resources with similar companies to make their investments more effective.
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