In recent times, R&D has become more important to the development of a company. Diversified competition, the increased number of new companies, the integration of enabling technologies, as well as the demand towards sustainable solutions are recognized as being the main motives for businesses investing in R&D. These elements are a major factor in the development of a business. Therefore, we can see an overwhelming majority of companies making investments in R&D.
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“Research can lead to the development of services and products by way of new capabilities, efficiency, and ease of usage. It is often the case that research results in items that create a brand new trend. Generation X is always looking for the latest trends that will distinguish them from the rest. In this kind of environment, investing in R&D can help companies develop differentiated products and gain a advantage in the market.
Innovation has become a main goal for various industries. In the absence of innovation, businesses could fail in the face of competition or by using outdated products.
What are the effects of these variables on the company ? What are the main benefits of R&D to boost the performance of a company?
1.You have a strong Product differentiation/unique selling point
“L’Oreal worked with Withings to develop an IoT-based brush. The IoT isn’t only an added feature, it is an integral part of the USP for the item. In the same way, virtual try-ons are becoming a standard feature in the cosmetics industry. It’s made possible by the incorporation of augmented reality and AI.
With the increase in businesses operating in the same field It’s become increasingly hard to make a mark among the crowd. What makes Samsung stand out from the sea of Android phones? How can MacBook stand out from the sea of laptops? They are innovative. Even entrepreneurs and SMEs recognize that they must be competitive to get into the market, but to make a mark, they need to stand out.
2. This results in an increase in Revenue growth
R&D helps you develop a new product/service line. In addition, R&D is the key to creating your company’s IP assets that can be a fantastic source of revenue. “These times, companies aren’t solely using their intellectual property to stop competitors from entering their technology fields, but they are also using IP licensing to create a second revenue stream.
Companies such as Nokia have invested heavily in R&D and has provided an ongoing income stream. Nokia produced nearly $1.7 billion of IP licensing revenues, which comprised a license licensing deal in partnership with Daimler (Source). Nokia has patents for 3G, 4G and 5G. the company is expected to earn more income for automobile companies , as driverless vehicles and connected vehicles are expected to increase in the future.
3.You can improve your Brand Image
Many companies partner with universities and open research centers at universities. This aids in not only accelerating innovations but also creates an image in the public eye that builds confidence. The trust that is built not only creates an unwavering consumer base but also draws smart employees to the business. In the end, who would not want to be part of an innovative business?
4.You have a better chance of receiving funding
In today’s competitive marketplace, innovation is the only way for companies to stand out and attract money from the government and venture capitalists. Businesses can look for public-sector innovations grants for research and development as well as global financing and help to develop new ideas.
There are a variety of government programs to help financially in developing research in India and elsewhere. This funding could aid in the creation of prototypes, and help move forward with the development process of the product.
For instance, For example – (Promoting Innovations among individuals, start-ups as well as MSMEs). The program aims to assist entrepreneurs, startups, and MSMEs. Through this scheme, various levels of funding are obtained based on a variety of criteria.”Investors want to know how entrepreneurs differentiate their products or services from other products and services. This is the reason why strong R&D can be the basis for successful round of funding. That’s perhaps the reason companies that provide us with an analysis of the industry request us to follow the next startups that have high-quality R&D and innovative innovations.
“Companies can also use the Intellectual property generated through R&D as collateral while taking a loan from the bank.” Syal adds Syal.
5. Innovation across industries and the expansion of business
R&D teams are working to take advantage of techniques from parallel industries, thus cutting costs, increasing efficiency, and elevating the business to a new level.
“A number of innovations in the cannabis sector specifically w.r.t. devices and formulations is derived from the pharmaceutical industry.
Skincare and Dairy might seem to be completely separate butwe are seeing companies in the skincare industry using dairy industry innovation to create innovative and better products.
When businesses from various industries enter your industry They bring with them a distinct collection of knowledge that without good R&D is tough to beat. This is among the reasons that having a strong R&D is vital in the present times.
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