Research and Development

What Is Research and Development (R&D)?

Research and development (R&D) includes activities that companies undertake to innovate and
introduce new products and services. It is often the first stage in the development process. The goal is
typically to take new products and services to market and add to the company's bottom line.

Types of Research and Development

Basic research

Basic Research means “experimental or theoretical work undertaken primarily to acquire new scientific
or technical knowledge without a specific practical application in view”. Some examples of basic
research are:

 Formulation and development of a new therapeutic and innovative drugs.

 Biomedical research, basic biology research.
 Bench scale research, formulation analysis.
 Clinical research.
 Development of an innovative medical device or technologies.

Applied Research

Applied Research means “work undertaken in order to gain scientific or technical knowledge and
directed towards a specific practical application”. Applied research is usually undertaken either to
determine possible uses for the findings of basic research or to determine new methods or ways of
creating practical applications. Some examples of applied research are:

 Applied research is a form of systematic inquiry involving the practical application of science. It
assesses and uses some part of the research accumulated theories, knowledge, methods and
techniques.
 Drug delivery, biotechnology, process technology.
 Product and process development.
 Utilization of new technologies, new material for allowing the product development to be able
to influence the disease.

Experimental Development

Experimental Development means “work undertaken which draws on scientific or technical knowledge

or practical experience for the purpose of achieving technological advancement and which is directed at
producing new, or improving existing, materials.

 Further design and development of products e.g. drugs, cosmetics, medical devices.
 Development of advanced functionalities and applications.
  Product and process improvement and enhancement.
 Design of experiments and tests to define the research or the problem.
 Innovation in pharmaceutical experimentation.
 Improving yield, quality and productivity
 Further advancement in clinical pharmacology and experimental medicine

Why you should invest in Research and Development?

1. R&D as Advantage in Marketing Strategy

Research and development works to create innovative product, new product line or add
features and the one who will make these changes known in the market is the marketing
department. With this, companies can create strong marketing impact to the consumers that
can help the productivity of the product or in the business itself.

BASIC RESEARCH AND DEVELOPMENT PROCESS

Foster Ideas

Focus Ideas

Develop Ideas

Prototypes and Trials

Regulatory Marketing & Product Development Activities

Foster Ideas

This where the research team will do the brainstorming and discuss the issues or new ideas in
their products as the first step of research.

Focus Ideas

The team now will locate ideas with best potential. And at this point also the team may assess
the originality of the new idea and how it can be developed.

Develop Ideas

In this step, the ideas with best potential are already thoroughly researched and now will be
narrowed down and the process of turning it into a marketable product may begin.
Prototypes and Trials

The researcher here can now work with the product developers to understand and have an
agreement on how it will be turned into an actual product. So this is where prototypes or first
samples are made and a trial is must to test its accuracy.

Regulatory Marketing & Product Development Activities

This is where the product will need to meet the criteria for approvals and launching. And the
marketing department may start their preparations and strategies oh how they will market to
the consumer the new product or features as the sales, pricing and distribution are also
discussed.

Launch

The final step is the introduction and releasing of the product in the market but the evaluation
will still continue at this stage and may lead to redesigning if necessary.

2. Development of new products

It is essential to generate profits to provide new value for customers as well as to continue
the existence of the company.

Maintenance and enhancement of existing products

 Existing products must be maintained to ensure that they can be produced for
specification.
 Enhancement gives extra features on the product --- giving it extra features, improving
its features and appearance or making it cheaper to produce.

However, research and development is more important to some companies than to others.

3. Leaps in Market Participation

Market participation offers significant opportunities to draw new customers and to encourage repeat
purchases. They can create new products and services through research and development, and can also
innovate existing products and services to fulfill the needs and wants that customers are looking for.
Effective strategies, procedures and advertisements are the result of research and development that will
allow the company to have an advantage over everyone else in the market especially those with the
same nature of business. Research may be expensive but it will allow the company to respond to the
new mainstream goods in the present and to foresee the products that will probably sell to people in
the future, it will also provide insights that will lead to company improvements and also to identify in
what aspect they can provide competitive products and services without further raising their production
costs. With that, customer’s interest will be captured that can lead to a significant leap in the market
participation and sales.

One example of innovation is the iPhone series of Apple Inc. Its success is largely due to its existence as a
series itself. Instead of developing an independent products, they regularly improve the existing model
of the iPhone and releases its improvements in a stylized manner, generating excitement and increasing
sales with every new model to be announced.  

Submitted by:
Dery, Jessieca
Labrador, Christine Joy
Raymundo, Eirah
Tabuloc, Kyla

BSA-3B