R&D(Research and Development) is that component of a company that seeks knowledge to develop, design and enhance their products, services and technologies. It forms the company’s strategy of marketing and cost reduction. The process of R&D is very complicated; hence it must be understood before investing heavily. As the consumer preferences are changing it is very critical to customize R&D.
There are primarily three objectives of R&D funding are
- Obtain new ideas: It is vital to have think tanks which can gauge the consumer market and invent ideas which cater to it
- Primary Research: Research is an essential part as starting the project can be risky without it.
- Increase the company’s sales and profit: The primary aim of R&D is to increase the companies revenues.
Any industry, old or new, must continually revise their design and range of products. This is because both technology and consumers need changing every day. Many organizations industries like pharmaceuticals have a full-fledged R&D division with quality control to ensure the quality of product and invention of new technologies and products. The different fields where R&D is useful are education, agriculture and technology. They have an excellent website to understand how R&D funding works.