Research and Development
The definition research and development (commonly referred to in industry
literature as "R and D") varies from industry to industry. The one thing
they share, however, is the desire to acquire knowledge outside of their
current expertise. Organizations that conduct successful R and D integrate
and absorb ideas, knowledge and technology.
The development aspect of the R and D process involves the application and
adaptation of new knowledge to the creation of a product or process,
applications, services, market research and data analysis. In the business
world, research and development is a critical activity for keeping
companies competitive in a fast-moving knowledge market.
The development of innovation requires a substantial commitment from an
organization, and can be a very time-consuming venture. They must accept
the risk that a project might fail, or generate unexpected or unintended
results. Research removes some of the uncertainty in the innovation
process, doubt about the technical elements of an innovation, as well as
market reaction. Simply stated, R and D helps uncover what it will cost,
how much time it will take, what resources will be needed to undertake
development, and potential socio-economic impacts of an intended
innovation.
R and D costs can vary widely, not just to hire staff and facilities, but
also to support hardware needs and cover related expenditures. Large
organizations are likely to spend more on their R and D efforts than smaller
retailers or businesses with only a few specialized products. They also
have more market influence, industry alliances, internal technical support
and the ability to absorb unexpected costs. However, small companies can
claim some advantages: they tend to be less bureaucratic, have lower
development and operation costs and have more flexibility when the need
arises to make organizational adjustments.
Some corporations and organizations are devoted solely to R and D
activities. For example, the
Office of Energy Research and Development of Natural Resources Canada
created a specific research initiative to study greenhouse gases. It
provides assistance to provincial, territorial and federal institutions
and outlines desired outcomes and objectives.
Likewise, University research laboratories conduct
important general research, helping to generate a body of knowledge, which
acts as a base for all forms of R and D, whether pure or applied.
Technology parks and research centres also provide a focus for development
efforts.
Within Canada, organizations that don't have the
capacity for in-house R and D have a number of options at their disposal,
including the use of private research and development firms, universities
that provide services for a fee, testing laboratories and public and
not-for-profit organizations. Visit our sections on Research
Establishments and Innovation Policy through the quicklinks in the top,
right-hand corner of this page for more information on R and D resources
and organizations.
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