As entrepreneurs we want our ideas out of our head and in our hands as soon as possible. Many times, forfeiting the proper steps to ensure our ideas are the best they can be. Today we’ll discuss what research and development (R&D) is, and why it’s important for entrepreneurs to utilize.
What is R&D?
Business Dictionary defines Research and Development as a systematic activity that combines both basic and applied research aimed at discovering solutions to problems or creating new goods and knowledge. As a result of R&D, businesses and individuals may result in ownership of intellectual property such as patents.
Why is R&D Important?
R&D Can Lead to Innovation
“When a company or person conducts research and development, whether to create a new product or service or update an existing one, the desired end result is always innovation. Innovation can be defined as a new method, product or idea, so the successful application of research and development results in a new idea or product and therefore achieves innovation” (Investopedia). If not for the time taken to properly research and develop prototypes using student athletes, Phil Knight’s Nike would not exist, and the world would not know the importance of the air bubbles in the sole of a shoe.
R&D Can Save Time and Money
Upfront costs for research and development can prove costly, and as a result scares many entrepreneurs and businesses away. Viewing R&D as a tool necessary to the success and longevity of your business, and not just an unnecessary cost to doing business, will actually save you the time and money introducing to market a product not needed, or ready, will waste. R&D not only will save you from ill advised decisions, but can help a company follow or stay ahead of emerging market trends, keeping the company relevant (Investopedia).
Research and Development plays a significant role in the life of an entrepreneur. If time isn’t taken to properly flesh out the details of your idea, later using that information to mold and deliver a product that is the best it can be, you’re setting yourself up for failure. R&D helps get the kinks out, and can save you time, money, and wasted effort down the road.