Why do companies invest in R&D

Companies’ like to invest in R&D because they want to grow by developing new product. It’s hard to survey and shine to remain in competitive world with existing product and technology.

Imagine a world in which phones looks the same as they did in the 1990s. Over the years, manufacturers have researched, developed and brought into market phones with new features, everything from shape, colour and aesthetic to high definitions to attract customers to upgrade. R&D is the major role in those up-gradations. In the mean while the World mobile market leaders like Nokia, BlackBerry faced more problems to survive and died in India because of Smart phone manufacturers like Samsung, Apple.

Short-term investors often view expense as a drag on profits for many companies, in part it is hard to measure the long-term impact of individual R&D Investment. Dr. Anne Marie Knott, developed a Research Quotient (RQ) to give companies a uniform metric for estimating return on R&D. Through his proven methodology can tell companies the increase in revenue and market value they can expect from an increase in R&D spending.