Business owners are constantly searching for the best ways that can give them a competitive edge in the market. You may think that you’ve done it all, but in reality, there is still so much to learn from the most successful brands. If there is one thing they all have in common, that is their will to bring in new or improved offers to consumers. One way to accomplish this is through extensive research and development (R&D).
According to the National Science Foundation (NSF), there are three types of research and development: basic research, experimental development, and applied research. For most businesses, they do only basic research and applied research. When we skip the extensive experimental development part, we are not making the most out of our R&D efforts.
Many companies are intimidated by R&D since it can cost a considerable amount of money to invest in R&D alone. But there are other creative ideas to lower your expenses. One of which is to use quality but affordable materials for your R&D. These days, there are lots of tools and equipment that are readily available on the market. They can aid your R&D. For instance, a portable GNSS simulator is a cost-effective way to do repeatable testing of new products that one can easily control in the lab or out in the field.
But what are the other reasons you should consider R&D investing?
It develops unique or improved offers to consumers
One of the best reasons to invest in R&D is that you get to have that unique selling point. When it comes to R&D, one does not necessarily need to craft a whole new product or service from scratch. Improving an existing offer and innovate to create a better version of it. If your results are good, you will not improve your sales. This can end up attracting potential investors, thus a boost in business income.
It boosts brand awareness and reputation
When engaging in R&D activities, you’re most likely be partnering with other businesses or even a scientific institution. The collaboration itself is a gift, but it offers more benefits. This will help improve brand awareness and enhance your business reputation as such a connection is perceived to be a strong marketing tactic by the public.
You receive tax credits
One major advantage is that you can enjoy tax credits for conducting R&D. Of course, not all your expenses are accounted for. Your business should be able to meet the stated requirements, including a four-part test. You’ll also need to fill out the necessary forms to receive the tax credit.
You enjoy mixed funding
Last but not least, you get to have direct funding for business R&D. This can come from various sectors, including government agencies, private companies, institutions, and even some foundations. The kind of funding you can receive will depend on your R&D goals and objectives.
This only goes to show that R&D can be a crucial business strategy for both small and large businesses. Even if you don’t have what it takes to conduct this yourself, there are other ways you can do this, like outsourcing your R&D. But like any other business strategy, R&D is not for everyone. There are costs to pay and risks to take. Consider the perks and drawbacks, and you can better decide whether investing in R&D is worth it.
