1. Productivity and Product Differentiation:
Firms gain a competitive advantage by performing in some way that their competition cannot easily replicate.
2. Leaps in Market Participation:
Market participation refers to the ability to attract new customers and win customer interest.
3. Tax Breaks:
The federal government has allowed businesses to use up to 20 percent of their R&D; expenses as tax deductions.
4. Unique selling point – R&D can help you develop unique products and services.
5. Reputation - engaging in R&D can help you strengthen your brand and reputation.
6. Long term income - once a product has been developed it can generate a strong stream of profits for many years.
7. Ongoing research also leads to new opportunities - researchers cannot always anticipate what the results of their research will be.
8. Buyouts and Mergers:
Many entrepreneurs and small businesses have made a large sum of money in a short time by selling good ideas to established firms with many resources. Buyouts are particularly common with Internet companies, but they can be seen wherever there is a lot of incentive to innovate.
9. Costs:
One way a small business can reduce the cost of manufacturing a product is to use R&D
