Research and development

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Research and development (R&D) refers to a wide range of activities by businesses, governments and academic institutions designed to gather knowledge and test new ideas.[1] This often leads to the development of new products or new ways of doing things.[2] R&D generally has three main activities.[3] These are: basic research, applied research and development.[3] Basic research is aimed at getting new knowledge with no immediate use or purpose in mind.[3] Applied research is just the opposite. It is research for a definite purpose or product.[3] Development has more to do with adding features to a product. Often, development is a process of eliminating all but the best idea to arrive at the best solution.[4] Basic and applied research costs are often written off as expenses while the costs of development are added to the cost of the product.[5] R&D often results in owning intellectual property such as patents.[5] In Europe, R&D is called research and technical/technological development (RTD).[2]

In 2015, Volkswagen was the world's leading spender in R&D[6]

References[change | change source]

  1. Rodney Michael. "What is Research and Development? - Definition, Methods & Examples". Study.com. Retrieved 11 October 2016. CS1 maint: discouraged parameter (link)
  2. 2.0 2.1 "Research And Development - R&D". Investopedia. Retrieved 11 October 2016. CS1 maint: discouraged parameter (link)
  3. 3.0 3.1 3.2 3.3 Bronwyn H. Hall (December 2006). "Research and Development" (PDF). Economics Laboratory, University of California; Berkeley. Retrieved 11 October 2016. CS1 maint: discouraged parameter (link)
  4. Bradford Goldense (16 September 2014). "What's The Difference Between Research and Development?". Machine Design. Penton. Retrieved 11 October 2016. CS1 maint: discouraged parameter (link)
  5. 5.0 5.1 "research and development (R&D)". Business Dictionary. WebFinance Inc. Archived from the original on 19 October 2016. Retrieved 11 October 2016. CS1 maint: discouraged parameter (link)
  6. "The top innovators and spenders". Strategy&. PwC. Retrieved 11 October 2016. CS1 maint: discouraged parameter (link)

Other websites[change | change source]