Research and Development is a process implemented by the companies or governmental organizations to innovate or improve its products and services. The Research and Development activity may involve both the basic research and applies research. Companies use this method either to innovate new products or to improve the effectiveness of the existing products. It may also aim at solving a specific issue regarding a product or service.
Research is important for trading because it provides powerful knowledge and insights, and leads to improvements to existing processes where efficiency can be increased and costs reduced. It also allows businesses to develop new products and services to allow it to survive and thrive in competitive markets.
As we’ve discussed, research is important to business growth and your ability to compete in a market. A business that can innovate and adopt new products and technologies as well as improve existing commodity bundles is more likely to succeed in the long run.
At a wider level, the benefits of market research extend into entire sectors as well as positively impact the wider economy. A sector that invests in market research will develop and achieve more, including providing real-world benefits to people. On a global level, spending on research and development has reached a record high of almost US$1.7 trillion. The United States and China lead the way in terms of research spending.