Are R&D and Innovation synonymous concepts?

To put it briefly, R&D is not synonymous with innovation. The good news is that the majority of individuals concur that R&D and innovation are distinct concepts; however, the precise distinctions remain a matter of debate.

Some theories: that R+D is an early-stage component of innovation, an umbrella-term for commercializing findings and discoveries. Or, that R+D is a long-term play but innovation can be put into action, across a variety of business needs, in the near term. In the contemporary, outcomes-driven marketplace, both R&D and innovation are undergoing transformation, as evidenced by the variety of definitions. This inquiry is particularly pertinent for digital enterprises that are perpetually under gargantuan pressure to develop innovative solutions. However, this demand for innovation is present in every industry. However, they have devised short-term innovation initiatives that are entirely distinct from R&D in recent years. What is that that gives?

• Introduction: The universal truth of a good product (the notion that a good product will sell regardless of the circumstances) is no longer a given, according to one school of thought. Whether it’s enhanced customer service, appearing to “do the right thing” on a moral issue, or a multitude of other tangible and ethereal metrics, organizations must now strive for success that transcends products and technologies. No longer makes a quality product guarantee a prosperous enterprise. Academic theory posits that the primary objectives of R&D in the majority of organizations are threefold:

1. Acquiring a foundational understanding: This frequently necessitates the investigation of technologies whose practical application or intrinsic value is unknown but which have the potential to significantly affect an industry. Although allocated a small portion of the total budget, this funding is strategic and does not anticipate significant growth or development in the near future.
2. Providing assistance to operational domains such as manufacturing, business administration, and customer satisfaction. Functions, such as identifying upcoming trends or strengths and vulnerabilities that enable the organization to generate new business opportunities, are more tangible and essential. This is not necessarily an ongoing project; rather, it may be concentrated on a particular time period or industry.
3. Developing and deploying innovative technologies: The potential output of this R&D arm is limitless. This area of R&D is frequently perceived by businesses as an investment rather than a necessary operating expense, particularly for short-term initiatives that are simpler to quantify and appraise.

Although innovation can still originate from any source, this multipurpose view of R+D suggests that when organizations acknowledge and pursue all three objectives, R+D may be more directly associated with an innovative result.

Look at : Innovations in Pharmaceutical Sciences

• Financial R&D: Given that R&D serves multiple objectives, it is unsurprising that some organizations frequently disregard it as a discretionary expense. Recent research, however, demonstrates that R&D is critical for digital companies in particular. R&D is an essential and crucial operational expense because, without it, the vast majority of digital companies would cease to exist. Today, economic success is determined less by a single product and more by the ever-elusive innovation, which is the convergence of ideas, strategies, software, and algorithms. These endeavors necessitate R&D.
• Finance for innovation: If the need to develop superior or more innovative solutions motivates R&D, then the value is the driving force behind innovation. While R&D may yield significant or intriguing discoveries, it can appear unnecessary in the absence of a value-adding process, despite our consensus that it is vital.

Thus, genuine innovation is not merely a product that is “better”; rather, it is one that provides the consumer with new value. One approach entails reallocating a portion of R&D expenditures: allocate 15% of your existing R&D budget towards a business-oriented R&D process that seeks to enhance value propositions, be it by developing scalable business models or value-added products for customers. An additional method of financing innovation is to adopt the mindset of a startup: cease “cost cutting,” which signifies impending adversity. Instead, reallocate substantial marketing budgets and funds previously allocated to insignificant “innovations” towards research and development.

• Establishing an inverse relationship between R&D and innovation: While innovation cannot be guaranteed by R+D, it can be advantageous to implement a sustainable business model in order to extract innovation from R+D. Intel, for example, integrates substantial investments in research and development with a distinct business model that capitalizes on the discoveries made during R&D. Two aspects of Intel’s business are the focus of this “tick tock” model: microarchitecture processes and manufacturing technology.

Conclusion:

Therefore, it could be argued that innovation with a favorable market impact necessitates the assumption of both market and technical risk. In contrast, conventional R&D places exclusive emphasis on technical risk, delegating market risk management to other organizational divisions.

Rather than attributing innovation solely to continuous R&D, it might be more accurate to redefine the term “innovation” as the product of invention (facilitated by R&D) combined with a business model and customer value.

Lingaya’s Vidyapeeth, the best college in Delhi NCR, champions a pragmatic approach to Research, Development, and Innovation. Our commitment to excellence defines a dynamic learning environment for students.

From

Dr. Swapnila Roy

                                                                             Associate Dean(R &D)

                                                             Lingaya’s Vidyapeeth, Faridabad