What is R&D?

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It is a widespread term which is used to explain the studies and activities which are made by the company to use science and technology in developing new products, processes and services in line with the working field of the company thereby employing scientists and engineers.

The main duty of R&D is to use the technological developments and constantly renew and increase the profitability of the company.

Innovative thought, change and development, having new technology are as important as production efficiency in competition, price, advertisement and marketing.

Nature of R&D and Mental Capital

It aims to do what is not known by anybody. Therefore, it is a risky study and it is executed on possibilities. R&D directors should be ready for a great quantity of unsuccessful results.

 Today, developing new technology, that is to say, creating mental capital is much more important and harder than creating monetary capital. The main role in developing mental capital, on the other hand, is played by R&D.

As you see, R&D creates a mental revolution. Therefore, it is a cultural change in the company. Well trained and well equipped personnel require a good action and operational planning as well as a good financial planning. Strategic, operational financial management is vital. 

The term R&D involves three activities; 

The fundamental research, applied research and experimental development.

Fundamental Research: Experimental or theoretical studies which do not have any special application or use in full view and are executed to obtain new information regarding particularly the fundamentals of case and observable facts.

Applied Research: Unique research executed to obtain new information. On the other hand, applied research primarily is aimed at a certain practical purpose and target.

Experimental Development: A systematic study which is directed to making use of the existing knowledge which is obtained from research and/or practical experience and producing new products or devices; establishing new processes, systems and services or substantially developing those already produced or established. 



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