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Operations Management
Research & Development ­ Text Book
Research and development (R&D) is the generation and application of scientific
knowledge to create a product or develop a new production process, which can increase
the firm's productive efficiency. If successful it leads to new ideas for products and
new methods of…

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Research and Development and Culture
Unfortunately simply investing in R&D does not guarantee that it will be successful; the
process has to be managed carefully and firms must be prepared for some failures.

The success of R&D is often linked to the culture of the business. Firms that encourage
employees…

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that many products do not meet customer needs; this could help explain the high rate of
failure of new products.

Good research and development will take into account a range of factors such as
Customer needs
How the product or service is likely to be used
Competitors offerings
Cost constraints…

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Why Might Firms Fail to Invest in Research and Development?
One reason why firms might fail to invest sufficiently in research and development may
be that they cannot raise the necessary funds. R&D involves investment now in the hope
of future returns. Firms, which lack enough internal funds, may struggle…

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Operations Management
Research and Development ­ Class Notes
Research and Development is the discovery and application of scientific knowledge that
helps create a new product or enhances existing products or the production process.
These things should increase the firm's productive efficiency.

Innovation is taking the development of promising ideas into…

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