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How R&D functions develop a product
How R&D functions develop a product
Published: 2013/02/27
Channel: UnileverCareersSA
What is Research & Development ? - Leyton
What is Research & Development ? - Leyton
Published: 2015/09/28
Channel: Leyton Group
What
What's the Need for Research & Development? -- #MetroStarMinute, ep. 2
Published: 2016/02/24
Channel: metrostarsystems
How To Do Research and Development
How To Do Research and Development
Published: 2016/03/19
Channel: Entrepreneurs in Cars
Project Management for Research and Development
Project Management for Research and Development
Published: 2015/09/22
Channel: ITMPI
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
Honda Research & Development
Honda Research & Development
Published: 2014/12/04
Channel: Honda
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
Automotive Research and Development Centre
Automotive Research and Development Centre
Published: 2016/06/14
Channel: UWindsor Engineering
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
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
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
Emily
Emily's story, chemist in research and development
Published: 2015/10/30
Channel: Ordre des chimistes du Québec
Take a look behind the scenes at the research and development department
Take a look behind the scenes at the research and development department
Published: 2015/09/09
Channel: Toyota Material Handling UK.
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
USANA Research & Development Video | USANA Video
USANA Research & Development Video | USANA Video
Published: 2015/08/21
Channel: USANA Health Sciences
Research And Development In Business
Research And Development In Business
Published: 2012/11/04
Channel: Christopher Hunt
Haier America Research and Development Tech Center Capabilities
Haier America Research and Development Tech Center Capabilities
Published: 2015/08/03
Channel: Haier
Working in Research & Development at Unilever
Working in Research & Development at Unilever
Published: 2012/06/20
Channel: Our Unilever
Intangible Assets Accounting (Research & Development, R&D Whats Included, Accounting Treatment)
Intangible Assets Accounting (Research & Development, R&D Whats Included, Accounting Treatment)
Published: 2013/01/10
Channel: Allen Mursau
Music from KnowledgeHub (Research and Development)
Music from KnowledgeHub (Research and Development)
Published: 2016/10/21
Channel: No Sustain
Technical Research and Development Careers
Technical Research and Development Careers
Published: 2015/03/19
Channel: Federal-Mogul Powertrain
Pharmaceutical research and development: Framing the issues
Pharmaceutical research and development: Framing the issues
Published: 2015/07/30
Channel: Brookings Institution
Behind the Manufacturing: Tremco
Behind the Manufacturing: Tremco's Research and Development
Published: 2016/10/24
Channel: Tremco Sealants
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
Mercedes Benz 80s research and development
Mercedes Benz 80s research and development
Published: 2015/01/18
Channel: Ivan
Research and Development at Agilent
Research and Development at Agilent
Published: 2017/04/11
Channel: Agilent Technologies
Research and Development in Unilever
Research and Development in Unilever
Published: 2014/01/28
Channel: UnileverCareersTR
CRAFTING IN MASS EFFECT: ANDROMEDA, RESEARCH & DEVELOPMENT GUIDE
CRAFTING IN MASS EFFECT: ANDROMEDA, RESEARCH & DEVELOPMENT GUIDE
Published: 2017/03/18
Channel: Xaine's World
Customer focused research and development
Customer focused research and development
Published: 2015/11/19
Channel: SKF Group
Research and Development Explanation
Research and Development Explanation
Published: 2016/10/09
Channel: Student Board
Patanjali Research and development Department | Patanjali Ayurveda
Patanjali Research and development Department | Patanjali Ayurveda
Published: 2014/10/15
Channel: Bharat Swabhiman
Product Research and Development
Product Research and Development
Published: 2015/02/16
Channel: Product Design
The NHS Research and Development Lab
The NHS Research and Development Lab
Published: 2014/09/22
Channel: Strange Notes
Elon Musk - ISS Research & Development Conference 2017
Elon Musk - ISS Research & Development Conference 2017
Published: 2017/07/19
Channel: Cruel Coppinger
Research and Development costs
Research and Development costs
Published: 2011/11/11
Channel: David Cooper
The Research School in Drug Discovery and Development 2015
The Research School in Drug Discovery and Development 2015
Published: 2016/02/10
Channel: karolinskainstitutet
China and Germany keen to deepen research and development
China and Germany keen to deepen research and development
Published: 2016/06/12
Channel: CGTN
The Surge - Let
The Surge - Let's Play/Walkthrough - Part 8: Research and Development
Published: 2017/05/24
Channel: Serious Gaming
ArcelorMittal Automotive episode 3 - Global research and development
ArcelorMittal Automotive episode 3 - Global research and development
Published: 2014/04/09
Channel: ArcelorMittal corporate
RESEARCH AND DEVELOPMENT | Let
RESEARCH AND DEVELOPMENT | Let's Play Astroneer [#7]
Published: 2016/12/21
Channel: ConflictNerd
Research and Development Costs July 2016
Research and Development Costs July 2016
Published: 2016/07/25
Channel: Farrell CPA
Mass Effect Andromeda BEGINNER
Mass Effect Andromeda BEGINNER's Guide ► RESEARCH and DEVELOPMENT (Crafting Explained)
Published: 2017/03/26
Channel: Vulkk
2016 Mrecedes-Benz Research and Development - Daimler AG | AutoMotoTV
2016 Mrecedes-Benz Research and Development - Daimler AG | AutoMotoTV
Published: 2016/04/07
Channel: AutoMotoTV
Mridula - Research & Development
Mridula - Research & Development
Published: 2015/08/25
Channel: P&G Careers
Elon Musk, ISS R&D Conference, July 19, 2017
Elon Musk, ISS R&D Conference, July 19, 2017
Published: 2017/07/19
Channel: SpaceKSCBlog
Chagall Research and Development Live Stream
Chagall Research and Development Live Stream
Published: 2017/03/04
Channel: ChagallMusicOfficial
Breaking News - Air Force Plan To Accelerate Hypersonic Weapon Research and Development
Breaking News - Air Force Plan To Accelerate Hypersonic Weapon Research and Development
Published: 2017/05/11
Channel: Youtupe Mania
Research and Development Engineer
Research and Development Engineer
Published: 2014/05/09
Channel: bbccareers
Muhan Wang - Research & Development Trainee
Muhan Wang - Research & Development Trainee
Published: 2013/01/11
Channel: Our Unilever
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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), is activities in connection with corporate or government innovation. 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[citation needed] 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,[citation needed] 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 marketization of new products.

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 technolog 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[1] 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.[2]

Business[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".[3][full citation needed]

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.[4] One way of reducing the uncertainty of researching know-hows is to obtain already researched know-hows.[5]

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.[6][7] 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.[8] 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.[9]

Government expenditures[edit]

United States[edit]

President Barack Obama requested $147.696 billion for research & development in FY2012. A large part[quantify] of this spending was devoted to basic research on the mechanisms of disease.[10] Yet, government-funded research that paid for the work in discovering the human genetic code (DNA) has patent-restrictions.[citation needed]

European Union[edit]

Research and innovation in Europe are financially supported by the programme Horizon 2020, which is open to participation worldwide.[11]

A notable example is the European environmental research and innovation policy,[when?] a multidisciplinary effort to provide safe, economically feasible, environmentally sound and socially acceptable solutions along the entire value chain of human activities.[12]

See also[edit]

Notes and references[edit]

  1. ^ All figures UK R&D Scoreboard as of 2006.
  2. ^ Johansson; Lööf (December 2008). "The Impact of Firm's R&D Strategy on Profit and Productivity". 
  3. ^ "Aerospace and Defense: Inventing and Selling the Next Generation" (PDF). Center for Strategic and International Studies. 
  4. ^ "Investor-partner business partner finder Business dictionary". 
  5. ^ "Investor-partner business partner finder Business dictionary". 
  6. ^ 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. 
  7. ^ 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. 
  8. ^ 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. 
  9. ^ 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. 
  10. ^ https://fas.org/sgp/crs/misc/R41098.pdf
  11. ^ Horizon 2020 – the EU's new research and innovation programme
  12. ^ "EUR-Lex - 02013R1291-20150704 - EN - EUR-Lex". eur-lex.europa.eu. Retrieved 2017-03-16. 


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