What is research and development – R&d
Research and development (R & d) refers to the work of the business leads to innovation, implementation and improvement of its products and procedures. Simply put, it’s a number of investigative actions for the improvement of existing products and procedures or will lead to the development of new products and procedures.
Consumer products companies in all sectors and industries use R&D to improve on the production line, and corporations growth through these enhancements and development of new products and services. In General, medicines, semiconductors, and software/technology companies typically spend on R & d activities.
Penetration research and development – R&d
The term “research and development” is widely associated with the concept of corporate or governmental innovation. Known as scientific and technical/technological development (ITR) in Europe, an activity that is classified as R & d differ from company to company, but standard primary models have been identified.
Basic research and organizational development settings
There are two basic R & d that appeared in the company during the trading spectrum. One model R&D is the Department that works primarily for engineers involved in the development of new products, a task that usually involves extensive research. Another model involves the division consists of industrial scientists or researchers, all the task of applied research in technical, scientific, or industrial sectors, which aims to promote the development of future products or the improvement of existing products and/or operating procedures.
R & d differs from most of the activities undertaken by the Corporation in the process of operation. Research and/or development, as a rule, not met with the expectation or purpose of short term profit. Instead, it focuses on long-term profitability of the company. Companies that employ entire departments dedicated to R & d to allocate significant capital to the effort. They should assess the risk-adjusted return on their R&D costs that are inevitably associated with the risk of capital and no immediate repayment is experienced and the overall return on investment (ROI) is somewhat uncertain. The level of risk increases capital as a result of R & d expenditure.
Fundamental and applied research
Basic research is systematic study aimed at a fuller knowledge and understanding of fundamental aspects of the concept or phenomenon. Fundamental research is usually the first step in the research and development carried out to give a full understanding of the information without application to products, policies, or operational processes.
Applied research is systematic study and get knowledge and understanding to apply to the definition and development of products, policies, and workflows. While basic research takes a long time, applied research is time-consuming and more costly because of its detailed and complex.
Who spends the most on R & d
Companies can spend billions of dollars on R&D to produce the latest, most popular products. According to experts of the company, PricewaterhouseCoopers, the following ten companies spent on innovation and improvements in 2015:
- Volkswagen: 15.3 billion.
- Samsung: 14.1 billion.
- Intel: 11.5 billion.
- Microsoft: 11.4 billion.
- Rosh: 10.8 billion.
- Google: $9.8 billion
- Amazon: $9.3 billion
- Toyota: $9.2 billion
- Novartis: $9.1 billion
- Johnson & Johnson: $8.5 billion