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What is Research & Development ? - Leyton
What is Research & Development ? - Leyton
Published: 2015/09/28
Channel: Leyton Group
How R&D functions develop a product
How R&D functions develop a product
Published: 2013/02/27
Channel: UnileverCareersSA
How To Do Research and Development
How To Do Research and Development
Published: 2016/03/19
Channel: Entrepreneurs in Cars
What
What's the Need for Research & Development? -- #MetroStarMinute, ep. 2
Published: 2016/02/24
Channel: metrostarsystems
Opening Mercedes-Benz Research and Development North America
Opening Mercedes-Benz Research and Development North America
Published: 2013/11/19
Channel: Mercedes-Benz Canada
Project Management for Research and Development
Project Management for Research and Development
Published: 2015/09/22
Channel: ITMPI
What is R&D? - An introduction to research and development tax reliefs
What is R&D? - An introduction to research and development tax reliefs
Published: 2017/03/22
Channel: Menzies LLP
Example Research and development cost FAR CPA exam Intermediate accounting ch 12
Example Research and development cost FAR CPA exam Intermediate accounting ch 12
Published: 2017/09/24
Channel: Farhat's Accounting Lectures
Half-Life 2: Research and Development:  Full Walkthrough 【60FPS】【NO Commentary】
Half-Life 2: Research and Development: Full Walkthrough 【60FPS】【NO Commentary】
Published: 2015/12/05
Channel: Bolloxed
Effective Management of Research and Development (R&D) Teams and Organizations Dr Bruce Chehroudi
Effective Management of Research and Development (R&D) Teams and Organizations Dr Bruce Chehroudi
Published: 2016/05/05
Channel: Advanced Technology Consultants
Research and development Dermo cosmetic
Research and development Dermo cosmetic
Published: 2014/08/06
Channel: Laboratoires Pierre Fabre
Research and development
Research and development
Published: 2016/12/12
Channel: bulthaup
Behind the Manufacturing: Tremco
Behind the Manufacturing: Tremco's Research and Development
Published: 2016/10/24
Channel: Tremco Sealants
Trends in Engineering, Design, Research and Development
Trends in Engineering, Design, Research and Development
Published: 2016/08/01
Channel: Plunkett Research, Ltd.
Let
Let's Play! - Research and Development - Part 1 - N.E.R.D.S. - [Half Life 2 Mod]
Published: 2015/03/12
Channel: PixelTwitch | PC Gaming Goodness
Research And Development In Business
Research And Development In Business
Published: 2012/11/04
Channel: Christopher Hunt
Bee Business Bee Innovation and Research and Development Presentation
Bee Business Bee Innovation and Research and Development Presentation
Published: 2014/06/03
Channel: Bee Business Bee
The Process of Research and Development
The Process of Research and Development
Published: 2015/11/11
Channel: Sarah Thomas
Merck Research and Development
Merck Research and Development
Published: 2011/09/19
Channel: Merck
Technical Research and Development Careers
Technical Research and Development Careers
Published: 2015/03/19
Channel: Federal-Mogul Powertrain
Award Winning Research And Development Centre In Chennai
Award Winning Research And Development Centre In Chennai
Published: 2017/07/12
Channel: NDTV
DNA : Why India need to spend more on Research and Development?
DNA : Why India need to spend more on Research and Development?
Published: 2016/10/20
Channel: Zee News
Patanjali Research and development Department | Patanjali Ayurveda
Patanjali Research and development Department | Patanjali Ayurveda
Published: 2014/10/15
Channel: Bharat Swabhiman
Progressing your career in Research and Development
Progressing your career in Research and Development
Published: 2014/06/10
Channel: CKScienceRecruitment
ACCA F3 Intangible Assets: Goodwill, Research and Development
ACCA F3 Intangible Assets: Goodwill, Research and Development
Published: 2017/04/25
Channel: OpenTuition
Emily
Emily's story, chemist in research and development
Published: 2015/10/30
Channel: Ordre des chimistes du Québec
Research and development cost FAR CPA exam Intermediate Account ch 12
Research and development cost FAR CPA exam Intermediate Account ch 12
Published: 2017/09/24
Channel: Farhat's Accounting Lectures
China and Germany keen to deepen research and development
China and Germany keen to deepen research and development
Published: 2016/06/12
Channel: CGTN
Our Research and Development Department
Our Research and Development Department
Published: 2017/11/02
Channel: Sonova
Research and Development Costs July 2016
Research and Development Costs July 2016
Published: 2016/07/25
Channel: Farrell CPA
Haier America Research and Development Tech Center Capabilities
Haier America Research and Development Tech Center Capabilities
Published: 2015/08/03
Channel: Haier
BMW Research and Development Test Facility
BMW Research and Development Test Facility
Published: 2010/12/29
Channel: eurocarnews
United States Army Research And Development - 1963 Educational Documentary - WDTVLIVE42
United States Army Research And Development - 1963 Educational Documentary - WDTVLIVE42
Published: 2016/09/08
Channel: wdtvlive42 - Archive Footage
The NHS Research and Development Lab
The NHS Research and Development Lab
Published: 2014/09/22
Channel: Strange Notes
Automotive Research and Development Centre
Automotive Research and Development Centre
Published: 2016/06/14
Channel: UWindsor Engineering
Mercedes Benz 80s research and development
Mercedes Benz 80s research and development
Published: 2015/01/18
Channel: Ivan
Borderlands The Pre Sequel | Ultimate Farming Routes | Research and Development
Borderlands The Pre Sequel | Ultimate Farming Routes | Research and Development
Published: 2016/02/20
Channel: 00TheMessiah00
The Surge Walkthrough - Part 10 - Research And Development And Regrets
The Surge Walkthrough - Part 10 - Research And Development And Regrets
Published: 2017/05/23
Channel: VertigoTeaparty
LEGO Batman 2 DC Super Heroes Walkthrough - Part 7 - Research and Development (Wii U, Xbox 360, PS3)
LEGO Batman 2 DC Super Heroes Walkthrough - Part 7 - Research and Development (Wii U, Xbox 360, PS3)
Published: 2013/05/24
Channel: packattack04082
Borderlands Pre-Sequel - Research and Development Pressure Plates
Borderlands Pre-Sequel - Research and Development Pressure Plates
Published: 2014/10/25
Channel: midsidion
Research and Development costs
Research and Development costs
Published: 2011/11/11
Channel: David Cooper
Blood 2: The Chosen - Research and Development
Blood 2: The Chosen - Research and Development
Published: 2011/05/18
Channel: ChronoRaven
Pakistan to Develop Research and Development Base in Kamra to Start Stealth Fighter Project
Pakistan to Develop Research and Development Base in Kamra to Start Stealth Fighter Project
Published: 2017/03/13
Channel: SuperPower Pakistan
PhET: Research and Development
PhET: Research and Development
Published: 2013/01/13
Channel: PhET Sims
How to Identify Research and Development for Tax Credits - UK
How to Identify Research and Development for Tax Credits - UK
Published: 2013/05/20
Channel: Linda Eziquiel
The Surge Walkthrough - Part 12 - Research and Development, Project Utopia, Proteus
The Surge Walkthrough - Part 12 - Research and Development, Project Utopia, Proteus
Published: 2017/05/31
Channel: BlueLizardJello
SCUBAPRO - Research and Development
SCUBAPRO - Research and Development
Published: 2013/10/23
Channel: Scubapro
The Surge - Jump to 25 override in Research and Development
The Surge - Jump to 25 override in Research and Development
Published: 2017/05/27
Channel: Tryhard Blvd
Assassin
Assassin's Creed Syndicate Walkthrough Part 11 - RESEARCH AND DEVELOPMENT (AC Syndicate Gameplay)
Published: 2015/10/22
Channel: GameRiot
Healthcare Research and Development Trends | Cognizant
Healthcare Research and Development Trends | Cognizant
Published: 2014/12/11
Channel: Cognizant
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WIKIPEDIA ARTICLE

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Cycle of research and development

Research and development (R&D, R+D, or Rn'D), also known in Europe as research and technological development (RTD), refers to innovative activities undertaken by corporations or governments in developing new services or products, or improving existing services or products.[1] Research and development constitutes the first stage of development of a potential new service or product.

R&D activities differ from institution to institution, with two primary models[1] of an R&D department either staffed by engineers and tasked with directly developing new products, or staffed with industrial scientists and tasked with applied research in scientific or technological fields, which may facilitate future product development. R&D differs from the vast majority of corporate activities in that it is not intended to yield immediate profit, and generally carries greater risk and an uncertain return on investment. However R&D is crucial for acquiring larger shares of the market through the marketisation of new products.[1]

Background[edit]

New product design and development is more often than not a crucial factor in the survival of a company. In a global industrial landscape that is changing fast, firms must continually revise their design and range of products. This is necessary as well due to the fierce competition and the evolving preferences of consumers. Without an R&D program, a firm must rely on strategic alliances, acquisitions, and networks to tap into the innovations of others.

A system driven by marketing is one that puts the customer needs first, and produces goods that are known to sell.[citation needed] Market research is carried out, which establishes the needs of consumers and the potential niche market of a new product. If the development is technology driven, R&D is directed toward developing products to meet the unmet needs.[citation needed]

In general, research and development activities are conducted by specialized units or centers belonging to a company, or can be out-sourced to a contract research organization, universities, or state agencies.[citation needed] In the context of commerce, "research and development" normally refers to future-oriented, longer-term activities in science or technology, using similar techniques to scientific research but directed toward desired outcomes and with broad forecasts of commercial yield.[citation needed]

Statistics on organizations devoted to "R&D" may express the state of an industry, the degree of competition or the lure of progress.[citation needed] Some common measures include: budgets, numbers of patents or on rates of peer-reviewed publications. Bank ratios are one of the best measures, because they are continuously maintained, public and reflect risk.[citation needed]

In the United States, a typical ratio of research and development for an industrial company is about 3.5% of revenues; this measure is called "R&D intensity".[citation needed] A high technology company, such as a computer manufacturer, might spend 7% or a pharmaceutical companies such as Merck & Co. 14.1% or Novartis 15.1%. Anything over 15% is remarkable, and usually gains a reputation for being a high technology company such as engineering company Ericsson 24.9%, or Allergan a biotech company, tops the spending table with 43.4% investment[2] Such companies are often seen as credit risks because their spending ratios are so unusual.[citation needed]

Generally such firms prosper only in markets whose customers have extreme high technology needs, like certain prescription drugs or special chemicals, scientific instruments, and safety-critical systems in medicine, aeronautics or military weapons.[citation needed]The extreme needs justify the high risk of failure and consequently high gross margins from 60% to 90% of revenues.[citation needed] That is, gross profits will be as much as 90% of the sales cost, with manufacturing costing only 10% of the product price, because so many individual projects yield no exploitable product. Most industrial companies get 40% revenues only.[citation needed]

On a technical level, high tech organizations explore ways to re-purpose and repackage advanced technologies as a way of amortizing the high overhead.[citation needed] They often reuse advanced manufacturing processes, expensive safety certifications, specialized embedded software, computer-aided design software, electronic designs and mechanical subsystems.[citation needed]

Research from 2000 has shown that firms with a persistent R&D strategy outperform those with an irregular or no R&D investment program.[3]

Business R&D[edit]

Research and development are very difficult to manage, since the defining feature of research is that the researchers do not know in advance exactly how to accomplish the desired result. As a result, "higher R&D spending does not guarantee more creativity, higher profit or a greater market share".[4]

Research is the most risky financing area because both the development of an invention and its successful realization carries uncertainty including the profitability of the invention.[5] One way entrepreneurs can reduce these uncertainties is to buy the licence for a franchise, so that the know-how is already incorporated in the licence.[6]

Benefit by sector[edit]

In general, it has been found that there is a positive correlation between the research and development and firm productivity across all sectors, but that this positive correlation is much stronger in high-tech firms than in low-tech firms.[7][8] In research done by Francesco Crespi and Cristiano Antonelli, high-tech firms were found to have "virtuous" Matthew effects while low-tech firms experienced "vicious" Matthew effects, meaning that high-tech firms were awarded subsidies on merit while low-tech firms most often were given subsidies based on name recognition, even if not put to good use.[9] While the strength of the correlation between R&D spending and productivity in low-tech industries is less than in high-tech industries, studies have been done showing non-trivial carryover effects to other parts of the marketplace by low-tech R&D.[10]

Global[edit]

Global R&D management is the discipline of designing and leading R&D processes globally, across cultural and lingual settings, and the transfer of knowledge across international corporate networks.[11]

Government expenditures[edit]

United States[edit]

President Barack Obama requested $147.696 billion for research & development in FY2012, of which 21% was destined to fund basic research.[12]

European Union[edit]

Research and innovation in Europe are financially supported by the programme Horizon 2020, which is open to participation worldwide.[13]

A notable example is the European environmental research and innovation policy, based on the Europe 2020 strategy which will run from 2014 to 2020,[14] a multidisciplinary effort to provide safe, economically feasible, environmentally sound and socially acceptable solutions along the entire value chain of human activities.[15]

Worldwide[edit]

In 2015, research and development constituted an average 2.2% of the global GDP according to the UNESCO Institute for Statistics.[16]

See also[edit]

Notes and references[edit]

  1. ^ a b c http://www.investopedia.com/terms/r/randd.asp
  2. ^ All figures UK R&D Scoreboard as of 2006.
  3. ^ Johansson; Lööf (December 2008). "The Impact of Firm's R&D Strategy on Profit and Productivity". 
  4. ^ "Aerospace and Defense: Inventing and Selling the Next Generation" (pdf). Center for Strategic and International Studies. Center for Strategic and International Studies, International Security Program. December 5, 2009. p. 1. Retrieved 6 August 2017. 
  5. ^ "Investor-partner business partner finder Business dictionary". 
  6. ^ "Investor-partner business partner finder Business dictionary". 
  7. ^ Ortega-Argiles, Raquel; Potters, Lesley; Vivarelli, Marco (2011). "R&D and productivity: testing sectoral peculiarities using micro data". Empirical Economics. 41 (3): 817–839. doi:10.1007/s00181-010-0406-3. 
  8. ^ Ortega-Argiles, Raquel; Piva, Mariacristina; Vivarelli, Marco (2011). "Productivity Gains from R&D Investment: Are High-Tech Sectors Still Ahead?". IZA Discussion Papers. IZA (5975): 1–22. 
  9. ^ Crespi, Francesco; Antonelli, Cristiano (2011). "Matthew Effects and R&D Subsidies: Knowledge Cumulability in High-Tech and Low-Tech Industries". Working Papers. Università degli Studi Roma Tre (140): 1–24. 
  10. ^ Mendonca, Sandro (2009). "Brave Old World: Accounting for 'High-Tech' Knowledge in 'Low-Tech' Industries". Research Policy. 38 (3): 470–482. doi:10.1016/j.respol.2008.10.018. 
  11. ^ Chiesa, V. (2001). R&D Strategy and Organisation, Imperial College Press
  12. ^ https://fas.org/sgp/crs/misc/R41098.pdf
  13. ^ Horizon 2020 – the EU's new research and innovation programme
  14. ^ http://europa.eu/rapid/press-release_MEMO-11-848_en.htm?locale=en
  15. ^ "EUR-Lex - 02013R1291-20150704 - EN - EUR-Lex". eur-lex.europa.eu. Retrieved 2017-03-16. 
  16. ^ https://data.worldbank.org/indicator/GB.XPD.RSDV.GD.ZS


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