We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is Business R&D?

By G. Melanson
Updated: May 17, 2024
Views: 17,640
Share

Business research and development (R&D) refers to the analysis and improvement of products, services and processes that a company must continuously undergo in order to stay competitive. Pharmaceutical and technology companies in particular conduct a high level of business R&D due to the constantly-evolving nature of their industries. Companies that don’t invest in business R&D risk losing their competitive positions in the marketplace, as well as potential new revenue streams from alternate applications for their products and services.

Technology companies often assign the research portion of their business R&D to a technology advisor or researcher within the company, whose responsibility is to monitor competitive technologies and their position in the marketplace. The development side of business R&D is often outsourced, as companies require outside expertise in the new applications for which their technology is being adapted. For example, a company that manufactures body scanners used in the apparel industry might outsource an expert in the deployment of scanning technology in other sectors, such as security or health and fitness. Pharmaceutical companies typically turn to universities for their research needs and outsource private companies during the development phase, which must be carried out according to their country’s drug safety regulations.

In addition to outsourcing for their business R&D, some leading technology companies such as Dell Computers have taken an approach known as crowdsourcing. Outsourcing on a mass scale, crowdsourcing entails surveying customers to determine which upgrades or features they’d like to have added to the company’s products or services. Once the suggestions have been amassed, the customers vote on which features or upgrades they want the most, and the winner proceeds to the development phase.

Because business R&D is so costly, some countries offer tax relief incentives and grants to foster leading technologies and world class systems within their own nation. Some of these countries include the US, France, Canada, Australia, and the UK. Once a company has been accepted into a government-sponsored tax relief program, they are usually matched with a caseworker who maps out milestones that the company plans to achieve using the incentive. Companies that receive tax incentives or grants are also often required to file regular reports on the progress of their research and development, along with invoices, pay stubs, and other records of R&D expenditure.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Editors' Picks

Discussion Comments
Share
https://www.wisegeek.net/what-is-business-rd.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.