The activities that are classified as Research & Development differ from company to company, but there are two primary models. In one model, the primary function of a Research & Development group is to develop new products; in the other model, the primary function of a Research & Development group is to discover and create new knowledge about scientific and technological topics for the purpose of uncovering and enabling development of valuable new products, processes, and services.

Research & Development

Under both models, Research & Development differs from the vast majority of a company's activities which are intended to yield nearly immediate profit or immediate improvements in operations and involve little uncertainty as to the return on investment.

 

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