9 Benefits Of Research And Development To An Organisation

 

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