Research and Development (R&D)

Research & Development, also known as R&D, is the part of a firm responsible for researching and innovating into new technologies, products and production methods. Investing in R&D is one of the key ways that a company can keep itself up-to-date with the modern world and to keen ahead of the curve with regards to competitors.

The amount a company spends each year on R&D will vary considerably from different sectors with biotech, technology and pharmaceutical companies tending to spend the most

Free Resources

To continue learning and advancing your career, check out these additional helpful WSO resources:

• Retained Earnings
• Fraud Triangle
• Accounts Receivable Turnover Ratio
• Marginal Cost Formula
• Nash Equilibrium