Limiting budget allocated to R&D department would help company to reduce risk of developing products for which there is little or no demand.
Research and development (R&D), also referred to as research and technical development (RTD) in Europe, is a set of creative activities carried out by businesses or governments to create new services or products or to enhance those already on the market. The initial stage in the development of a potential new service or production method is research and development. R&D activities vary from institution to institution, with the two main models of an R&D department being either staffed by engineers and charged with directly developing new products, or staffed by industrial scientists and charged with conducting applied research in scientific or technological fields, which may aid in the development of future products. However, R&D is essential for capturing higher market shares through the commercialization of innovative products.
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