Research and development are some of the most important aspects of any business. There is a reason why it is so heavily invested in every field, in every industry. Not only is R&D a huge component, but the money also invested into it grows every year. R&D in the UK makes up for 1.6% of total GDP, and in the USA R&D makes up for 2.78% of GDP. These may seem small, until you consider that the UK’s GDP was 2.829 trillion USD in 2019 and the USA GDP was 21.43 trillion USD. In comparison, Egypt’s GDP is 303.1 billion USD.
Investment in research and development isn’t just smart business sense, it’s fundamental to business and society as a whole. All businesses must invest in their own R&D, and the sooner they start, the better off they will be amongst their competitors, especially on the international stage against big giants like China, the USA, and Japan, who collectively spend the largest percentage on R&D in the world.
The Importance of Research and Development
The primary purpose of research and development is that is allows businesses insight that gives them a competitive edge. This edge can put them at the front and center of options for customers and clients alike.
Business growth is often facilitated by R&D, as the research you conduct works to improve your operations, your productivity, and your output. As a result, you find better ways to provide the services that you offer, for less, thus boosting your profit margins.
The R&D Models
There are several types of R&D because, of course, there are multiple aspects of your business that will require ongoing investment and improvement. At the end of the day, however, there are essentially three types of R&D:
1. Research Without a Pre-Established Purpose
This is an ongoing method used to stay on top of imperative topics, such as tech or even your customer base. Your goal here isn’t to discover a specific answer but rather to stay on top of information and trends as they change.
2. Research With an Established Purpose
The second method is there for those looking to start a new technology or product, for example. You have a specific, established purpose that you have people working to solve. This could be to find a product that solves X problem, or it could be a new technology that works to improve productivity in your supply chain.
3. Investment in a Third Party for Research Purposes
You can also outsource or even buy a third party for knowledge acquisition. If there is a research company that works specifically within your field, you can either hire them or acquire them and expand your R&D efforts this way.
How to Invest in Research and Development
Research and development are not something solely exclusive to governments, governmental agencies, and large businesses. From the smallest of local businesses to up-and-coming giants, every business must invest in research and development. This isn’t something that can be added to later, rather R&D must be built into the very framework of your business model.
To do this, you have a few avenues ahead:
Become a Researcher
To do something right, you need to do it yourself, is the way the saying goes. This isn’t always true, but in the business world, the benefits of becoming a researcher yourself are massive. You can become a true business leader, not just as a manager or executive, but in thought. You don’t need to take time off to earn that doctorate, either. You can now complete an online DBA and establish yourself as one of the most prominent thinkers in your field.
What a Doctorate Degree in Business Administration does for you is it helps you build the skills to design and deliver impactful research. This improves your ability to solve even the most complex business problems and also helps you develop your expertise in your field through your own research project.
Hire Innovative Thinkers
Research and development needs more than effort, it needs innovation. That is why when it comes to expanding your R&D efforts, you will want to bring in diverse, innovative thinkers. You don’t need more people who think like you, especially if you have earned a doctorate and have invested in yourself as a professional researcher. Rather, you need different thinkers. Those who come from different backgrounds, those whose area of specialty are different than yours, and most notably, those with innovative solutions to the problems that you currently have.
Invest in Research Infrastructures
In order to create smart solutions, you need the right data. If there is currently no easy means to get the data you need, you will need to invest in the right infrastructure to do it. This could be a part of your product development, or it could be part of a wider understanding. Suppose you are attempting to create a solution to air pollution, for example. In that case, you will need to be able to measure air quality in areas with your invention and in areas without your invention, to compare results.
The same applies to market research.
Investing in these infrastructures will allow you to curate better solutions for your problems, since they allow you to extract information that you specifically need.
How to Offset the Costs
R&D often comes with high costs, but these costs can be offset in several ways. Being a researcher yourself, for example, can allow you to research and develop several conclusions on your own, and therefore offset the costs of hiring a full team.
The first place to look is with tax credits. Sustainable development is of key interest to many governments and businesses. There may be tax credits available to help you offset your R&D costs this way, as well as other grants and prizes to be won, depending on the research in question. Outsourcing is another great way to offset the costs of R&D.
Whatever approach you take, your business needs research and development to expand and take your Egyptian business to the world stage.
