As society keeps moving forward at an increasing pace it’s important to understand just how fast research and development has to be to have an impact on the global scale of things. The fact of the matter is that there are companies that have invested vast funding into research and development and that they are experiencing a tremendous amount of growth at an incredible pace. Therefore, looking at some of the fortune 500 companies it is understandable that research and development is something that is not only wanted within a business but also something that is needed in today’s economic climate.
Investing in the R&D departments can be a huge benefit for both your private and academic sectors and the bottom line is that in the end, everyone will benefit from it. The climate of the market has been saturated with certain jobs for a while now and the only way to make new jobs for the said market is to have your skilled and unskilled workers bridge the gap between the old jobs and the new ones that pop up in the market. This is easily done when a business invests in its R&D department. Another interesting result is that businesses that invest in their research and development usually get a rate of return from 10% all the way up to 30% even though the high numbers are usually rare.
The question is then how does research impact on the business and the society as a whole. Well, when it comes to the end product of research which is knowledge, the generation of new methods of approaching problems with new solutions or just opening new ways to dealing with issues is just staggering. Research alone is responsible for innovations that help companies and businesses develop new methods of dealing with their issues, which in turn boosts their productivity and their net gain.
What About a Small and Medium Business?
While research and development usually boils-down to how much money and resources can be invested into them, the benefit does not have to be only possible to big companies. Small companies can also have a big boon in their business and economics as outsourcing their research can bring them new ways to maximize profits and lower costs.
For instance, let’s say a small business invests into researching the market for substitute materials for their products. They find a market that will be a perfect substitution for their more expansive material and they start replacing their old materials with the new one. The end game here is that they would be lowering costs of their products as they are spending less money on getting their resources which in turn will let them sell more products as they have now become a competitive brand on the market due to their lower price.
In short, research is a detrimental part of the success of many businesses, it is only natural to conclude after that that if you can invest resources into research as a business that you will have a net gain from it and that it should be done 100% of the time.