Operations Management
Research and Development
1.8 Research and Development (R&D)
Innovation is essential for business growth. Research and Development (R&D) refers to activities that focus on creating new products, improving existing products, and developing new production processes.
Pure Research
Focuses on gaining new scientific knowledge without immediate commercial application. Aims to expand understanding and may lead to future technological breakthroughs.
Applied Research
Focuses on solving practical problems and developing specific products.
Importance of R&D: Encourages innovation, improves product quality, creates competitive advantage, helps businesses adapt to technological changes, opens new market opportunities. However, R&D involves risks because research projects may fail or take years to generate profits.