Research and Development plays a critical role in the innovation process. R&D is an investment in technology and future capabilities which is transformed into new products, processes, and services(1)- It directly supports the development of knowledge and technology. Research and development can occur without innovation, alternatively, innovation can occur without research and development. However, R&D usually results in innovation and innovation often stems from R&D. When a company takes the time to invest in research and development, they gain a vast amount of knowledge; R&D exists to gather knowledge, not as an entity in itself.
“Experts agree that research and development (R&D) is the backbone of a globally competitive, knowledge-driven economy. R&D investment helps develop new products and services that drive growth, create jobs, and improve the national welfare”(2). R&D is critical to maintaining a competitive edge. Without research and development, companies will fall far behind on global scale. In order to stay at the top of the global chain, it is crucial that companies invest in research and development initiatives.
1.The importance of R&D to innovation. Incremental Innovation. Retrieved from: http://www.incrementalinnovation.com/innovation-management-development/rd-to-innovation
2. Markovich, S. (2012). Promoting innovation through R&D. Council on Foreign Relations. Retrieved from: https://www.cfr.org/backgrounder/promoting-innovation-through-rd