5/9/24, 11:09 Research & Development | R&D Definition, Process & Examples - Lesson | Study.

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Research & Development | R&D Definition, Process & Examples

Contributors: Nathan Mahr, Rodney Michael, Steven Scalia

Learn about the research and development process. Understand what R&D stands for, identify the activities of
the research and development process, and see examples.

Table of Contents

 What is R&D in Business?

 Research and Development Process

 Research and Development Examples

 Lesson Summary

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What is R&D in Business?

R&D, which stands for research and development, refers to the activities aimed at gathering new
knowledge. The main purpose of R&D is to expand the frontiers of human understanding and
improve society as a whole. R&D activities may be performed by business, governmental, and
academic institutions. The process of R&D can be thought of as a systematic way of expanding
knowledge and identifying and solving problems. This process is important in business because it
helps organizations to improve their products or services and to find new ways to compete in the
marketplace through innovation.
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For organizations within some industries, such as the pharmaceutical and aerospace industries, the
R&D process is critical to their success and one of the only ways to stay ahead of the competition.
While R&D may lead to new products and services, this is not always the case. In some cases, R&D
leads to no new product or service but may still be important for the organization, such as when
the knowledge gained helps the organization to improve its manufacturing process or reduce
costs.

The R&D process typically begins with a problem or challenge that needs to be addressed. Once a
problem is identified, businesses will conduct research to find possible solutions. After researching
possible solutions, businesses will develop a plan to implement the best solution. Finally,
businesses will test the solution to make sure it is effective.

There are many different methods that businesses can use to conduct research and develop
solutions. Some common methods include surveys, interviews, focus groups, customer feedback,
field trials, and experimentation. Each of these methods has its own strengths and weaknesses, so
businesses must choose the method or combination of methods that are best suited to their
needs.

Research and Development Process

There are three main categories that hold the activities within the research and development
process known as pure research, applied research, and development activities. Each of these
plays a vital role in the eventual outcome of the R&D process, and all are generally necessary for
major innovations to occur.

Pure Research
Pure research, also known as basic research, is an important early step in the research and
development process. It is defined as an activity that seeks to increase scientific knowledge without
any immediate application or use in mind. It is directed at understanding what something is or how
it works. This type of research is often conducted by universities, government agencies, or private
businesses. It is important to note that even though there may not be an immediate use for the
knowledge gained from pure research, it can still have a significant impact on society. For example,
the development of the internet began as pure research that was conducted by the U.S. military.

One of the most important aspects of pure research is that it is curiosity-driven. This means that
the researcher is driven by a desire to understand something, even if there is no immediate
application for it. The focus of pure research is usually on theory and understanding, rather than
on practical applications.

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Applied Research
The next category of activities within the research and development process is applied research.
This type of research is conducted with a specific application in mind. Unlike pure research, which
is curiosity-driven, applied research is driven by the need to solve a specific problem. It uses the
knowledge gained from pure research to develop new products, processes, or services.

Applied research is often conducted by businesses, government agencies, and other organizations
that need to solve specific problems. For example, a pharmaceutical company may conduct applied
research to develop a new drug to treat a disease. Or a government agency may conduct applied
research to develop a new technology to improve the efficiency of its operations. Applied research
is important because it leads to the development of new products or processes.

Development Activities
The final category of activities within the research and development process is development
activities. Development activities are typically centered around improving existing products and
processes rather than creating new ones. Development activities may include redesigning a
product to make it more user-friendly, developing a new manufacturing process to improve
efficiency, or improving the packaging of a product. Development activities are important because
they can lead to significant improvements in products and processes. They may use the knowledge
gained from applied research and pure research to make these improvements.

Research and Development Examples

It can be helpful to work through some examples of research and development in order to develop
a nuanced understanding of the concept.

Example 1
Restone, Inc. is conducting a research study to determine the best strategies to persuade
customers to buy their newly released water filters. They have set up a focus group and are testing
different marketing messages on the participants. This research will help them to determine the
most effective way to market their product. This is an example of applied research which uses
existing information, methods, knowledge, and techniques to solve practical problems. In other
words, we already know what a water filter is and how it works. Redstone Inc. now needs to find a
way to turn that knowledge into a marketable product. They are doing this by conducting applied
research.

Example 2

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An airplane manufacturer is developing a new aircraft. In order to do this, it is conducting extensive

research on the aerodynamics of flight. This research is important in order to develop a safe and
efficient aircraft. This is an example of pure research. The airplane manufacturer is not trying to
solve a specific problem. Instead, employees there are trying to gain a better understanding of how
flight works. This understanding will eventually be used to develop new products, but the focus of
the research is on understanding, not on application.

Example 3
A national space agency is developing a new spacecraft. In order to do this, employees there are
conducting research on the effects of radiation on human tissue. This research will help them to
develop a spacecraft that is safe for astronauts to use. This is an example of applied research. The
space agency is trying to solve a specific problem (how to protect astronauts from radiation) by
conducting research. This research will eventually be used to develop a new product (a safe
spacecraft).

Lesson Summary
Research and development (R&D) refers to a variety of processes and activities aimed at
gathering new knowledge. A variety of organizations such as business, governmental, and
academic institutions use R&D to improve their products, processes, or services as well as to create
new innovations. R&D can be divided into three components or categories known as pure
research (basic research), applied research, and development activities. Pure research is
focused on developing an understanding of what something is or how it works. It is exploratory in
nature and is often conducted in academic or government settings. For example, a scientist may
conduct pure research to understand the effects of radiation on human tissue.

Applied research is focused on solving specific or practical problems. It often takes place in
business settings. For example, a company might conduct applied research to determine the most
effective marketing strategy for their new product. Development activities are typically focused on
improving existing products and processes. All three of these components of R&D play significant
roles in the development of new innovations and the improvement of existing products and
processes. While the knowledge derived from R&D may sometimes lead to new products or
processes, this is not always the case.

Video Transcript

Definition: Research & Development

Let's begin with a question that has an obvious answer. What's the difference between a wall
phone (circa 1907) and an iPhone 5? A couple of things come to mind: email, digital photos,
Internet, Wi-Fi, GPS, texting, and mobile conversations. But, the real question is: How did we get
from the wall phone to the iPhone 5? The answer is, of course, research and development (R&D).
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Let's take a closer look at the concept. Research and development refers to a wide range of
business, governmental, and academic activities designed to gather new knowledge. Sometimes,
the new knowledge leads to new products or processes, and sometimes it doesn't. The purpose of
R&D is to expand the frontiers of human understanding and to improve our society as a whole. In
other words, to supply the innovations that took us from the wall phone to the iPhone 5. R&D
activities can be subdivided into three categories: pure research, applied research, and
development activities.

Pure Research
Pure (or basic) research is directed at understanding what something is or how it works. There is
no immediate expectation of a short-term payoff. Basically, pure research is an attempt to satisfy
our curiosity about something unknown. Hopefully, there will be marketable products further
down the line, but there is no guarantee. For example, a federal agency recently announced a $70
million dollar research program to develop brain implants to help people with brain injuries and
disorders. The initial research is to be directed at learning how the medical issues are reflected in
brain activity. If that can be determined, then perhaps advanced medical technology can be
invented. But first, they have to find out more about how the brain works.

Applied Research
Applied research can be thought of as a second step in the research process. It uses existing
information, methods, knowledge, and techniques to solve practical problems. In other words, we
already know what something is and how it works. Now we need to find a way to turn that
knowledge into a marketable product, or to solve some other problem. For example, NASA's space
shuttle program involved solving problems that no one had addressed previously and required the
creation of new technologies. Other companies and federal agencies used the knowledge gained
from NASA to develop their own new products. For example, each year NASA publishes a list of
commercial products that were developed from their basic research. It includes things such as
firefighting gear, improved radial tires, enriched baby food, and many other common household
items.

Development Activities
Development activities are usually directed at improving existing products and processes rather
than creating new ones. A quick look at the website of any motorcycle manufacturer will reveal
numerous improvements in that year's models. For example, the Harley-Davidson Sportster model
for 2014 received major brake system improvements. Similarly, the Yamaha FJR for 2013 was given
new traction control, cruise control, and digital displays. All of these changes required revisions of
the product designs and production processes.

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5/9/24, 11:09 Research & Development | R&D Definition, Process & Examples - Lesson | Study.com

Lesson Summary
Research and development is about knowledge and product innovations. Pure research tries to
understand what something is and how it works. It is the pursuit of knowledge without an
expectation of an immediate reward. In contrast, applied research uses existing knowledge to
create new products or processes. The third component of R&D, development activities, pursues
improvements in existing products and processes.

FAQs Activities

What is R&D and why is it important?

R&D refers to a variety of processes and activities aimed at gathering new knowledge. A variety
of organizations such as business, governmental, and academic institutions use R&D to
develop and improve new products, processes, or services. R&D is important because it is a
key part of innovation and the development of new ideas.

What is an example of R&D?

One example of R&D would be a pharmaceutical company testing a new drug. The company
would first conduct research to see if the drug is effective and safe. If the research shows that
the drug is effective and safe, the company would then develop a plan to mass-produce and
market the drug.

What does R&D mean?

R&D stands for Research and Development. It is a term used to describe a variety of processes
and activities aimed at gathering new knowledge, developing new products or services, or
improving existing ones.

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