Research and development (R&D)
Research and development (R&D) is a valuable tool for growing and improving your business. R&D involves researching your market and your customer needs and developing new and improved products and services to fit these needs. Businesses that have an R&D strategy have a greater chance of success than businesses that don't. An R&D strategy can lead to innovation and increased productivity and can boost your business's competitive advantage.
Developing an R&D strategy
Your R&D strategy depends on the size of your business. In small businesses, R&D tends to focus more on product improvement because of budget and cost limitations. Larger businesses may be able to dedicate more time and resources to R&D to introduce new products as well as improve existing ones. The benefits of R&D are often long-term, so it's important to remember that your investment in it may not result in short-term profits. As well as product development and improvement, R&D can help you develop more efficient processes and new ways of delivering services.
Spending more time and money on R&D does not guarantee it will be successful. The key to successful R&D is extensive market research to identify the needs and desires of your customers. You will need to revisit this research regularly as customer preferences frequently change.
Find out more about researching customers.
Innovation in your business
R&D can lead to innovations in your business. These may be in terms of new products and services, improved processes and new ways to interact with your customers. These innovations can result in greater profits and lower costs. Innovation is also a useful way to grow your business.
Find out about innovation grants and support.
Support for R&D
Once new and improved products have been developed through R&D, businesses often seek to commercialise them so they can be sold on the market. In Queensland, there are a number of support services available to help businesses and researchers commercialise their products, including:
- the Entrepreneurs' program supports businesses who are interested in R&D with a range of programs designed to stimulate innovation
Australian businesses conducting R&D may also be eligible for a tax offset. Find out more about R&D tax incentives, including what you need to do to be eligible.
- Last reviewed: 25 Jul 2019
- Last updated: 23 Jun 2016