R&D + Innovation

Question 1

The aim of R&D

Answer 1

Improve customer satisfaction by providing products that meet their changing needs in a profitable way

Question 2

Role of Competitiveness in R&D

Answer 2

R&D drives innovation which can be used to achieve a competitive edge or a first mover advantage.

Question 3

How R&D plays a role in improved profits?

Answer 3

R&D can lead to the discovery of new more efficient processes, reducing costs and ultimately, increasing profit margins.

Furthermore, innovative products can be sold at a premium price.

Question 4

How investing in R&D plays a role in staff recruitment and retention

Answer 4

Businesses that are known to be innovative often attract and retain highly-skilled professionals.

Question 5

2 drawbacks of R&D

Answer 5

• Expensive (often requiring specialist staff and other financial resources)
• High failure rate

Question 6

2 ways/features of product innovation

Answer 6

• The development of a new, redesigned goods or services (creative innovation)
• The inclusion of new components, materials or desirable functions into an existing product (adaptive innovation)

Question 7

1 crucial reason why successful R&D/innovative products is effective in meeting customer needs

Answer 7

R&D and innovative products can meet needs of which customers are not yet aware of.

Question 8

Define Intellectual Property Rights (IPRs)

Answer 8

A set of rights put in place to protect inventions, creative works and some specialized processes from being copied.

Question 9

Three main types of IPRs

Answer 9

• Copyrights
• Patents
• Trademarks

Question 10

Incremental innovation

Answer 10

This is the gradual, small-scale improvement of products/services/processes over time.

Question 11

Disruptive innovation

Answer 11

This is when a product becomes significantly changed for innovative reasons or a creation of an entirely new innovative product leading to a disruption in the existing market.