What is the real research and development meaning? What is the importance of this? Why does your company need to do this? Let us know below. So, read on.
Research and Development Meaning
Research and development or R&D refer to a broad range of activities aimed at enhancing the knowledge base of an organization. And hence, its capability to render new products, processes, or services. This knowledge encompasses pure scientific knowledge as well as an applied science that has potential commercial value.
R&D is carried out by R&D departments, also called laboratories, and can also be done in a company’s production facilities or external organizations. The new products or services that are created through such activities can be ones that the company’s existing business sells. Or wholly new ones that will be sold by the R&D department.
Further, R&D involves a broad range of scientific and engineering disciplines, including computer science, mathematics, biochemistry, chemistry, metallurgy, materials science, mechanical engineering, electrical engineering, and electronics.
The term is also often used to refer to scientific research in general.
R&D Definition – Examples
Research and development can refer to:
- the creation of something new and innovative that has never existed before. For example, the invention of a new manufacturing process or new material. Or the creation of a new product or service;
- the refining of something that already exists. For example, an improvement in an existing process or product;
- the re-purposing of already existing technologies and knowledge for different uses. For example, using an old manufacturing process to create a new type of product;
- the designing and building of prototypes that are then evaluated for possible production. This can be done through the use of R&D departments (such as laboratories). Or it can be done within individual departments or in production facilities where prototypes are built on the job. In either case, prototypes must be evaluated and tested to ensure they meet the established specifications before entering full-scale production;
- the application of science and technology to solve business problems by performing fundamental research and applied research;
- the integration of research with design to develop new products and services. As well as improve existing products and services;
- the use of R&D activities to improve management control systems by integrating them into an organization’s overall operations;
- And much more.
Why Is R&D Important?
Why, then, is R&D important? Firstly, it is a way of creating new knowledge, products, or services. As such, it is a means of being able to offer new products and services to the market to increase revenue.
Also, R&D is vital for organizational growth and success because it can help identify opportunities for new business ventures. For example, it can be a source of new product lines and revenue streams for companies. Or it can be leveraged to identify opportunities for selling existing products or services to new markets or through new distribution channels.
And finally, R&D efforts can be used to strengthen and enhance a company’s existing offerings by improving them. By making them faster, better, stronger, etc.