Research and development is the scientific research and technological development of new products and processes.
It can be both expensive and take a long time.
However it is vital to many firms because it allows them to;
-develop new products
-improve existing products
-improve produce process
Through research and development firms can innovate and gain the competitive advantage provided by a USP or greater productive efficiency (producing products at a lower average cost)
The Process of Research and Development:
Ideas Generation --- Development of Ideas --- Business Analysis --- Product Developing --- Test Marketing --- Preview/Adjust
This involves the identification of a wide range of new ideas. Employees not directly involved with the research and development team may be involved in the process. Ideas are then subjected to a screening process to narrow them down to a small number of potentially viable ones. Ideas are screened according to the practical…