What is research and development (R&D)?
Q: What is research and development (R&D)?
A: R&D refers to a wide range of activities by businesses, governments and academic institutions designed to gather knowledge and test new ideas, often leading to the development of new products or new ways of doing things.
Q: How many main activities does R&D generally have?
A: R&D generally has three main activities: basic research, applied research and development.
Q: What is basic research?
A: Basic research is aimed at getting new knowledge with no immediate use or purpose in mind.
Q: What is applied research?
A: Applied research is research for a definite purpose or product.
Q: What is development?
A: Development has more to do with adding features to a product. Often, development is a process of eliminating all but the best idea to arrive at the best solution.
Q: How are basic and applied research costs managed?
A: Basic and applied research costs are often written off as expenses.
Q: Does R&D often lead to ownership of intellectual property?
A: Yes, R&D often results in owning intellectual property such as patents.
