Research And Development (R&Amp;D) Definition
R&D is short for Research and Development and refers to the inventive activities undertaken by a company in order to develop new products or services. It can also be referred to as innovation. R&D is a key driver of economic growth and competitiveness, and is essential for companies in all sectors in order to stay ahead of the curve.
There are two main types of R&D: basic research and applied research. Basic research is exploratory in nature and seeks to increase our understanding of the world around us. Applied research takes this knowledge and seeks to develop new products or services.
R&D is important for companies as it allows them to bring new products or services to market, which can help them gain a competitive advantage. It can also help them improve existing products or services, making them more efficient and effective. Additionally, R&D can help companies reduce their costs by developing new processes or technologies that are more efficient than existing ones.
Investment in R&D is essential for long-term growth and prosperity, and governments often provide financial incentives for companies to undertaking R&D activities. In the United States, the federal government provides tax breaks for companies engaged in R&D through the Research & Experimentation Tax Credit program.
