The US is a nation defined by success, something echoed in its ever-advancing business landscape. Historically, the US became an economic powerhouse in a vanishingly small amount of time, testament to the ingenuity and entrepreneurialism of its denizens.
But success isn’t a guarantee – and rather than being granted, it is earned. As recent economic difficulties have shown, the economic landscape can be a hostile one, though this can also be true in times of relative financial security. All of this is to say that a successful business cannot rest on its laurels with regard to said success. But what is the way forward for existing businesses? And why is research and development (R&D) such an important piece of the puzzle?
The Definition and Scope of Research and Development
Research and development is exactly as it sounds; a business devotes time, money, staff and resources to innovation and iteration, in service of the business’ continued development and success. On the surface level, this might mean the design and engineering of new prospective products to sell – but the process of research and development is far wider- and deeper-reaching than this.
Depending on the conceit of the organization, R&D can be far more fundamental. Science and engineering divisions may be hard at work inventing new systems or making new discoveries, for example. Similarly, R&D can be fundamentally less tangible; a tech startup might be designing new digital toolsets or applications, and not necessarily according to new technological innovation. Analysis and market research are also vital, as businesses discover what customers want and iterate those wants into new products or services.
Innovation as a Competitive Advantage
But why is R&D so important to a business? If a business is doing well, it is doing well; its products and services are working for consumers, as reflected in robust reporting and figures. But success now is not success in the future.
Other businesses will eventually release a competitive product or service (or even render your product obsolete with a new invention) that ultimately wicks profits away altogether. R&D is vital for keeping up with the breakneck pace of modern business – and can even give your business the upper hand if you innovate over your competitors.
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Fueling Research and Development
R&D doesn’t happen in a vacuum, though. Not only do you need talented team members to provide the brainpower for proper development, but also the money and resources to kit them out with the things they need. Creating accounts with suppliers like RS Americas is key for facilitating the flow of tools and materials; equally, it is important to pay for access to digital analytics services and cloud collaboration systems to give your team the best possible working environment in which to thrive.
Finding the money to fuel all this can be difficult, particularly for a business with limited cashflow opportunities. Investment is vital for longevity, though, making the seeking of funding or additional investment a shrewd move for businesses.
