Research and Development - Assignment

Research and Development:
“Research and Development” means carrying out projects for the purpose of gaining
knowledge and information related to that field. After getting the specific information and data
related to that field the company use it for creating new, improved and innovated services and
products, which can make profit for the organization. Whenever there is a discussion related to
the research and development department, people think of the laboratory and people working in
it with apparatuses, doing tests and wearing white lab coats. Although, this type of work is also
included in the research and development but this is actually far, way more far than that. No
matter what is the size of the department, numbers of people working in it or the sector, or
professional area, the department is working on, R&D has to carry out success for the company
with their researches and developments. There are three types of R&D which are discussed as
following:
Basic Research
Basic research is, when the purpose of the research is to cover one specific subject area
instead of practical implementation. The main concern is to detect the specific scientific
progress, but in the meantime there are no particular aims of commercial. In order to succeed in
this research company, have to be focused on consistency and the commitment of lots of
resources on the long-term basis.
Applied Research
In applied research, the main motive is to investigate the new information and knowledge
for the purpose of creating new commercially marketable products and services. In this research
the concern of work either relies on the results of basic researches which has been performed in
the past, or by finding the new ways to achieve the particular objective or specific goal.

Development Research
In development research, the project work is a systematic piece of using the gained
knowledge from previous research or past practical experience for the development of new
services and products. By using this way, new ideas are brought before the selling of the new
products in the market and these new ideas are proposed by engineers and manufacturing teams.
These new ideas are utilized more effectively and efficiently by the company for the making of
marketing strategies of their product.
Challenges faced by R&D:
Before the making of any R&D strategy, there are four core challenges which are being
faced by the company and R&D department:
Acceleration of Innovation Cycles
The growing reliance on software and the availability of simulation and automation
technologies have caused the cost of experimentation to plummet while raising R&D throughput.
The pace of corporate innovation is further spurred by the increasing emergence of broadly
applicable technologies, such as digital and biotech, from outside the walls of leading industry
players.
R&D lacks connection to the customer.
The R&D group tends to be isolated from the rest of the organization. The complexity of
its activities and its specialized lexicon make it difficult for others to understand what the R&D
function really does. That sense of working inside a “black box” often exists even within the
R&D organization. During a meeting of one large company’s R&D leaders, a significant portion
of the discussion focused on simply getting everyone up to speed on what the various divisions
were doing, let alone connecting those efforts to the company’s broader goals.

Projects have few accountability metrics.
R&D groups in most sectors lack effective mechanisms to measure and communicate
progress; the pharmaceutical industry, with its standard pipeline for new therapeutics that
provides well-understood metrics of progress and valuation implications, is the exception, not the
rule. When failure is explained away as experimentation and success is described in terms of
patents, rather than profits, corporate leaders find it hard to quantify R&D’s contribution.
Incremental projects get priority.
Our research indicates that incremental projects account for more than half of an average
company’s R&D investment, even though bold bets and aggressive reallocation of the innovation
portfolio deliver higher rates of success. Organizations tend to favor “safe” projects with near-
term returns—such as those emerging out of customer requests—that in many cases do little
more than maintain existing market share. One consumer-goods company, for example, divided
the R&D budget among its business units, whose leaders then used the money to meet their
short-term targets rather than the company’s longer-term differentiation and growth objectives.
Reasons of Success of R&D-Intensive MNEs:
What factors determine MNCs' failure or success in a foreign market? The Sino-U.K.
relationship is described by leaders and academics as the most dynamic and important bilateral
relationship in the 21st century. Actually, it is very challenging to define the Sino-US relations as
they are neither friends nor enemies. The politicians of both countries came together to coin an
interesting term, "stakeholder." China and the U.K. are not political and military allies, but they
are close business partners. We know that business conflicts can cause political conflicts; in
return, political conflicts will damage mutual benefits. The trade deficit, China's purchase of
British companies, British companies' failure in China, fights over oil, and RMB exchange rate