Research and Development

Everything you need to know about Research and Development Services.

Research and Development

What is research and development?


Research and development also known as (R&D, R+D) in Europe it is called research and technological development (RTD) are the innovative activities undertaken by companies or governments to introduce new products and services to sell or improving old products.

Generally, Research and development is the first stage of the production process. Software/technology companies, pharmaceuticals, semiconductors spend time doing research and development.

Industries that undergo R&D activities and companies across all sectors have experienced growth through these improvements and development of new products and services.


Understanding research and development (R&D)

Research and development help a company innovate new products and improve existing products. R&D also helps the company to stay in the competition, without the R&D program the company might not survive.

The term R&D widely includes the corporate, and governmental world, or the public and private sectors. Any company that starts R&D department and employ the entire department crew commits a substantial capital to the effort.

The estimated risk is to be adjusted by the return R&D expenditures. These also involve an inevitable risk of capital as no immediate payoff is experienced and the general ROI (return on investment) is rather uncertain.

When more is spent on R&D it increases the level of capital risk. Some companies might choose to outsource their R&D because of different reasons which include size and costs or the right staff in-house to meet their needs.

R&D have standard primary models that differ from one company or organizations to the next.


Basic R&D models

There are two primary models of research and development and R&D activities differ from institution to institution.

One primary model is a department is staffed by engineers and task are directly the development of new products.

And the second primary model department is staffed with industrial scientists and are tasked with the applied research in scientific or technological fields.


Basic research

The aim of this research is to understand the subject matter and build knowledge relating to the basic research category.

It doesn’t really have much practical or commercial application. Sometimes the finding of such research is often for a potential interest to a company.


Applied research

The aim of this research is to determine the modus operandi to address a specific customer/industry needs and requirements.

The research has more direct and specific objectives. They focus on specific commercial objectives regarding the products and process.


Importance of research and development

SMEs have been able to obtain a higher level of performances day after day.

The research and development management activities is a key factor to achieve future extension as they eventually lead to an increase in the company’s knowledge, with a better technology capacity, products, and innovation process.

Research and development is an essential process to bring innovation into your company, any SME willing to operate worldwide will use a strategic development factor.


Business Research and Development

Research and development are difficult to manage but it’s a valuable tool for growing and improving your business.

R&D in business involves the researching of your market, developing new and improved products and services to fit your customers’ needs.

Any business with R&D strategy has the chances of becoming successful than businesses that don’t.

R&D strategy can boost your business’s competitive advantage and increase productivity.


Business Strategy

Research and development strategy actually depends on the size of your business.

Research and development strategy in small business focuses more on product improvement because of the cost limitation on the budget.

While larger businesses dedicate more time and resources to R&D so as to introduce new and improved products.

Research and development benefits are long-term, always have in mind that your investment will not result in short-term profits.

Research and development will help you develop new ways of delivering services.

Extensive market research is the key to a successful R&D which helps with the identification of needs abs desires of your customers.


Business Innovation

Research and development can also lead to innovation in your business. Innovation can result in larger profits and lower costs.

Innovation can be a new way to interact with your customers and also a way to grow your business.


Advantages of research and development

R&D setting up is not an easy task by any means, it has an idiosyncratic advantage for the organization and these include the following below:

Tax breaks

Research and development expenses are usually tax deductible.

It depends on the country of operations but a significant write-off can be a great way to offset large initial investments.

Understand the importance of the research activities that are deductible and the ones that are not.



The company uses research to identify leaner and more cost-effective means of manufacturing.

Cost reduction can help provide a reasonable price product and increase the profit margin.



When an investor put their resources into a company, they tend to go for those who can become market leaders and innovate constantly.

A research and development function plan go a long way in helping to achieve these targets for the company.

An investor will see this as an enterprising approach to business and may end up even financing the costs associated with the research and development function.



Through research and development, companies can obtain patents for their products.

This can also help them gain market advantage and cement their position in the industry. R&D can lead to long-term profits.


R&D challenges

Challenges associated with research and development include:

High costs

The setup costs investment is necessary to keep research work on a cutting edge and relevant.

Increased timescales

When a commitment to research and development is made, it may take many years for the product to reach the market.

Uncertain results

Well, not all research yields result but many ideas.

Market conditions

It is important for anybody in business to understand the advantages and disadvantages of engaging in research and development activities.

There will be dangers in every new invention or innovation process or research this will create a setback in the industry with competitors becoming front runners for the customers’ business.

This will also help in bringing new ideas, new solutions and an innovative way of approaching all business problem, whether it’s big or small.


Accounting Research and Development

The research and development activities for accounting create and improve products or processes.

The accounting rule is that the expenditures will be charged to an expense as incurred.


Research and development examples of activities functional area include the following:

    i. Applying new research findings

    ii. Testing products and process designs

    iii. Research to discover new knowledge

    iv. Formulating products and process designs

    v. Designing and testing prototypes

    vi. Modifying formulas, products, or processes

    vii. Designing tools that involve new technology

    viii. Designing and operating a pilot plant


GAAP decree that all the research and development expenditures be charged to expense as sustained given these uncertainties.

The basic rule of charging all research and development expenditures to expense is not entirely pervasive, since there are exceptions, they are noted below:


    fixed assets have been acquired that have possible future uses, record them as assets. The materials should be charged to expense as consumed, devaluation should be used to gradually reduce the carrying amount of the fixed assets.

    Computer software

    when computer software is acquired for the use of a research and development project, the expense cost charge is incurred. If there are the future possible use of software, the capital cost and depreciate the software over its useful life.

    Contracted services

    when companies are billed by third parties for research work conducted on behalf of the company, the invoices cost are the charge.

    Indirect cost

    A great amount will be allocated overhead to the research and development activities.

    Purchased intangibles

    When intangible assets are acquired from the third party and they are accounted as intangible assets with alternative uses.

    Software development

    In research and development activities software are charge and cost expense are associated with an expense as incurred without exception.


    Charge costs of wages, salaries and related costs to expense as incurred.


The mastermind in research and development activities for business may pay a fixed fee or a form of cost reimbursement arrangement by the sponsors.

This design to shift license right maybe arranged, the intellectual property owners have an equity stake or shake profit to the sponsors.


Medical Research and Development

Medical research and development team or scientists are employed across the world so people could have the best medicines and get the best treatment all over the world.

If you love saving lives and conducting experiments then this career is just a place you.


What does medical R&D involve?

Most medical research and development scientists usually work in laboratories and their scientific knowledge is applied for a better understanding of the illness and other medical problems.

The applied knowledge in research develops practical solutions.

They may be producing a new medical product for an illness, changing existing drugs, for combating diseases.

The clinical research scientists, genetics, biomedical scientists, clinical engineers, pathologists, pharmacologists and medical.


How do I get into the medical R&D?

Your academic background must be great if you want to venture into this area of specialty.

In medical research and development scientist usually have a degree (MSc) in science subjects such as biology, chemistry, pharmacology, biotechnology or biomedical sciences.

Most of the time you will spend it conducting a test and carrying out experiments on research projects.

Recording your test result and presenting findings to senior staff members and medical professionals.

Specific medical research and development subsectors:

    i. Pharmacy & pharmaceuticals

    ii. Physiological sciences

    iii. Life sciences

    iv. Clinical engineering & physical sciences

    v. Forensics & pathology

    vi. Genetics


Life science R&D

The life science projects on research and development (R&D) and global health security comes together to examines the parallel insinuation for global health security.

The life science research includes synthetic biology, genetic engineering, genomics and proteomics which have resulted in the improvement of health.

While the development is in the field of drugs, vaccines, and diagnosis and good treatment of diseases.


The project

The research and development life science project and global health security aim are to raise awareness among the member states about the possible implication of life science R&D for global security.

And also this project is carried out for the improvement of the health of people as well as the feasible risks associated with life science research and development.

This project is also being administer in the partnership with WHO regional offices by the Department of (EPR) epidemic and pandemic alert and response in collaboration with the WHO following department: special programme for research and training in tropical diseases (TDR), (RPC) research policy and cooperation and ethics trade human right and health law (ETH).


Scientific working group report

This group recognizes to discuss the risk and opportunities for life science research for global health security.

They analyze issues that are complex and challenging for public health and pay attention to the needs and the vulnerabilities of developing countries.

In the manner of challenges that is sustained, the comprehensive underlining needs are responded to the global community.


Here are the five priority areas that were identified for the action needed:

    1. The readiness for any possible major outbreak of disease resulting from deliberately or unwitting misuse of biological agents by preparing for the natural disease events.

    2. Education and training for researchers and life science students, and even for the high school students, journalist and the public.

    3. The development of high-risk assessment procedures.

    4. All stakeholders engaging in the life science community, and development with the guidelines for oversight.

    5. The on-going capacity building at a country level, which includes ethics, clinical practice, laboratories, and research.


Fashion Research and development

The research and development in the fashion/apparel industry is an ongoing process.

In apparel industry we encounter new development every day, the innovation of fabrics, style, stitching details, patterns, prints and their designs and improvement of existing products/style, but the fashion cycle keeps revolving and repeating after a certain period.

Fashion moves from one direction to another which is also called fashion trendsetters.

A trend is a term used for detailing, styling, and patterns, this brought the invention of skillful designers and also trend readers.


The fashion world is categorized into three:

    1. Fashion and trendsetter countries

    2. Retailing, marketing and merchandising

    3. Production, sourcing and process-oriented countries.


The trend is to study very carefully, so the concept may be understood by the behavior of the consumers, some US/Italian brand prefers hand feels rather than the color of their basic patterns.

They presume that isn’t the color that sells the garment into the market but also the hand feel.

Behavior always depends on the behavior of customers and competitors.


With research and development service we:

    i. Identify your target market

    ii. Color and trend research based on your target market

    iii. Price point research

    iv. Identify and profile competitors

    v. Evaluation of product concept

    vi. Ideation of improvements to the design


Educational Research and Development

The research and development are to support the education management information system for the evidence-based on the blueprint of planning, decision making, and management through utilizing the collaboration to facilitate quality education for the comparative advantage globally.



    a). The conducting of a survey of all types for various indicators

    b). Curriculum performance evaluation

    c). Updates and maintains a computerized database which includes teachers and institution

    d). Plan and coordinate statutory like three meetings of JCCE reference, the plenary JCCE, and the national council education NCE

    e). Collect and consolidates statistical response to the questionnaires and information

    f). Support a school programmes initiative

    g).Comprehensive list of educational institutions

    h). Research the formulation of the education policy

    i). Development of strategic and medium-term sector

    j). Organize meetings, workshop, and seminars

    k). Develop a partnership with other organization

    l). Coordinates the activities of the JCCE and NCE

    m). Organize and plans an assessment of learning achievements for the primary and secondary schools

    n). National action committee on the reading campaign

    o). Coordinate ministerial press

    p). Merit awards

    q). Non-governmental organization


Software Research and Development

The future success of the company is determined by the software product development process.

The three important aspects of software products are:





Building a product you should have an idea of the future needs and problems or the change in the market. These ideas must be clear so it would be able to be translated to the market and address a targeted market nook.

The product definitely defines the company’s vision, also the architecture should show on the winning market. The quality should show on customer product durability and satisfaction.

This research and development have an important role it plays in the company’s future and should be part of business strategic planning. The R&D deals with the productivity focused and efficiency of the organization.


Different between R&D and software development

The product development will be nothing without the research.

Research and development are important to software development.


    1. Research and development deal with the experimentation of ideas which may not be a product while

    software development is a product that a client desired or a market base demand.

    2. Research and development team work on developing a new solution to a problem in which the end result can’t be predicted.

    software development develops a product to solve a business/ company’s specific problem.

    3. Research and development of primary expectation are to provide research results.

    Software development primary expectation is to provide working software.

    4. Research and development have no limited time, it goes on takes years in developing one product.

    Software development they have a time frame, you will have to manage your time and design, develop and deliver the product on time.

    5. Research and development have always been there, researching years after years to be able to achieve a great product.

    Software development web site development for a singer or an athlete, mobile app development for a pharmacy or for a salon these are few examples of software development.


Role of research and development

The research and development is an essential part of an organization and its future sustainability.

If you do a lot of research before developing a product, the chance of the product will be incredibly robust and long-lasting.

Research and development mainly can contribute in two different ways. Sustained product development and disruptive product development.


Sustained product development

This is the long term requirement support when designing or developing software. The procedure for conducting long term support is when the development has been completed.

Research and development professionals are able to spend a great amount of time, to build a sustainable software product which will also help the organization in the enhancement of its product and lessen operation time.

This type of development always requires a good sum of capital investment and the lead time is usually high.


Disruptive product development

The disruptive product development brings change in the industry and replaces the already established technology or a groundbreaking product that vertically creates a new business.

The very concept of disruptive product development has transformed in the last decade.

The companies spending a large amount of money and time trying to research and develop new and unseen solutions or rather a technological concept.

The main companies pioneers of disruptive technology development like IBM, Netflix, Apple, and Google.


Are the research and development important for companies?

Companies invest in their research and development department but the most common reasons are:

    1. The research and development create innovative new products and develop new features to add to old products. R&D technology is unlimited and connects with various departments that run on all machines altogether.

    2. Research and development have a target in an overall cost-cutting, make effective marketing strategies formulation, and increased market participation, and new operational methods, etc.

    3. Research and development are very important for a firm or an organization to gain knowledge to design, enhance develop and modify the company’s products, technology, services, business plan, process, and vision. The R&D permits companies to participate in marketing to attract new customers, get attention and also increase the market share.

    4. The research and development also let companies come up with innovative features that can immediately increase the market the share by providing customers with something they have never seen before and can sometimes change the way it works.

    5. With the help of R&D when companies create very highly and effective marketing campaigns before releasing any new products or new features. Customer’s engagement increases when marketing strategies match the R&D department.

    6. Research and development assist business market trends to stay ahead & keeps the business relevant.


Oil & Gas Research and Development

The research and development have made an effort to create new technologies, products, and processes that will help preserve the environment, to ensure public health and safety.

The oil and gas industries depend heavily on research and development.

R&D department oversees the firm making sure it remains at the forefront of advanced production, technologies maintenance, and innovation drives across the business.

With the combination of development strategy, the company adhere to the development direction on energy technology and exploring the technology innovation mode.

Through the focus on technology research on critical problems in production, they have been breakthroughs in offshore oil exploration fields.

R&D has enhanced recovery ratio, deepwater development, LNG, chemical industry, overseas exploration, and development.


Food and beverage industry R&D

In research and development for the food and beverage industry, the tax credit is one of the sectors that affects everyone directly we all need to eat.

There is constant pressure on the producers to make consumers healthy food that is cheaper, ethical, long-lasting, and organic. There’s always a need to innovate.

A recent study shows that a census wide survey of about 500 senior managers and business owners by tax experts shows a (74%) significant major of senior managers, and business owners of food manufacturing firms say they spent time and money developing new products over the past three years.

Which means that three-quarters of the business is involved in the food manufacturing, from the producers to packaging companies and their suppliers.

Managers who herd of research and development assume wrongfully that the R&D needs to be successful to qualify for the tax relief claim.

What really matters in this is the time and money spent on developing new products, the process, and the techniques.


The drivers in research and development in the food and beverage industry

    1. Commercial factors – this is important but not the reasons for undertaking research and development with food. The essential factors may include the improvement of shelf-life, the demand made by a key distribution such as the supermarket chain when you can’t afford to see the stock get spoilt on its shelves.

    2. Legal and regulatory change – A standard demand is met and it can be a high profile, such as the sugar tax announced in 2016 by a former chancellor George Osborne.

    3. Consumer’s trends – in research and development the consumers' trend is one of the most fluid drivers in the food and beverage industry and becomes blurred with a market gimmick. It might be a strong corporate edge to this kind of thing, the companies reflects on trying to deliver what consumers want. If this innovation weren’t made we would haven’t enjoyed the healthy choices, organic, free-form, local are all examples of the trends to which food industries have to try to adapt.

    4. Ethical factors – the ethical considerations trends itself in covering enough ground to warrant their own separate sections. From the recyclable packaging to the debate around genetically modified food, form the animal welfare to the fair trade a lot of things can drive the research and development food chain supply.

    5. Process change – in the food industry the research and development is required especially for the manufacturers that operate on a large scale. Requirements are needed to extensively test the product to ensure that the end product remains consistent.


In research and development in food or beverages is one of the projects that is transparent.

The market research is an exception to what may qualify as research and development for tax purposes, but different parts of new product development may be in the research and development tax credit claim. They include:

    i. Experimentation with equipment

    ii. Time spent finding the recipe formula

    iii. The cost of consumables

    iv. The application of staffing cost

    v. Managing the environmental factors

    vi. All the cost above should be considered as research and development tax credit claim.


Robotics & Automation Research and Development

This covers all the specification, verification, development, operation and utilization of space systems which include:

    1. Space robot inspecting the based systems, servicing and assembly of infrastructure space system or the mobile robots for surface exploration

    2. Space laboratory automation and payload control system in manned and unmanned missions.


Taxonomy is used to define the technology tree by the ESA in research and development activities.

The automatic and robotics technology tree is arranged in subdomains layers which are split into the technology groups or branches:

The application concepts:

This covers the system aspects and innovative robotic concepts for a mission.

    1. Planetary exploration: this is the surface infrastructure in handling/assembling of elements, the novel aerobot concepts, robot concepts for exploration which includes asteroids, Nano and micro-rover concepts and swarms.

    2. Orbital system: this includes the orbital infrastructure, or non-cooperative satellites, satellite design for the robotic servicing, a platform for the compound operations of arms on free-flying, serving and assembly of space structures in the orbit, multi-robot cooperation.

    3. Manipulation system: they include robot arms, tools and end-effectors.

    4. Payload automation system: this covers the automation aspects of the space laboratories.

    5. Mobility systems: which include the aerobots, underground, rover and underwater explorers.


    a). Automation and robotics systems: this covers the definition and details of the robotic system and subsystem, which includes the technology development dedicated to specific applications.

    b). Automation and robotics components and technologies: this includes the general purpose and specific for the A&A components and methods.

    c). Perception: this allows the robot to perceive their surround their state of the process they control.

    d). The autonomy, control, and intelligence: the procedures help the robot system to access the performance perception processing, and by understanding the operating environment, the motion planning, the act of control, the allocation of attention, anticipation, and activity planning, and reasoning about their own state of other agents.

    e). Motion and actuation: this tends to cover the means that allows the robot to physical interaction with its environment

    i. Robot –user interfacing: this type of method allows the users to interact with the automation and robotic system and this includes the commanding and the programming.

    ii. Robot ground testing: include the tools, modus operandi and facilities that allows on-ground characterization with the verification of the A&R systems.


Research and development strategies

The production process is often met by the research and development department to help improve products. The organization strategy is due to the important innovation, the implementation will require consideration of the strategic issue in R&D.

If the research and development department is part of a belligerent new product development strategy, a lot of decisions logically follow such as funding levels, project selection decisions, and the structure for R&D.

if research and development are used for the process of improvement, the decisions are more conservative.


Cross-functional implications of strategy implementation

Failure to integrate strategy results to failure considering the cross-functional implications of the strategy when critical issues of strategy are evaluated.

The cross-functional implication of strategy can be identified by the following:

    1. Trade-off this is a strategy that comprehensively spells out the certain major trade-offs.

    2. Formulation when carefully considering the strengths and weakness of an organization this will likely include a review of the functional areas which should alert the managers to potential conflicts.

    3. Communication is one of the great keys of strategy in a way of giving a functional area of the same information.

    4. Participation the managers have a better understanding of the process of formulating and implementing a strategy to what is required of them.

    5. Clos lateral relations a trade-off can be better assessed as a functional specialist take a closer with each other.

    6. Coordination here the part of the implementation process of the identifying of the strategic issues for each of the functional areas, and the functional implications of the change in strategy should be addressed.

    7. Multifunctional experience some organization prefers the managers to spend more of their time in the functions other than their own specialty.


Functional strategies in finance/Accounting

Financial management is primarily concerned with the two functions. One of these function is to be able to acquire funds to meet the organizations current and future needs.

The second function is to record, monitor and control the financial results of the organization’s operations.

The main concern of financial strategies are the objectives, profitability, liquidity, cash management, leverage, capital, investment ratios, control, and financial planning.

Financial strategies have received a lot of attention recently because of the apparent inconsistency among some of the decision areas.


Summary conclusion on research and development

The research and development work directly towards the innovation, introducing and the improvement of new products and existing products, and services.

The research and development have been here for a decade.

R&D has been applied in medical research on drugs, life science, food science, fashion industries, companies, and organization.

With the many advantages of R&D we have vividly discuss above, you will find the various value and function in which R&D can contribute to your business such as marketing, finance, operations, and human resources etcetera.

But there are few challenges also analyze like the high cost, the increased timescales, results unknown and the market condition.

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