How Companies Earn Money Through R&D Funding
R&D (Research & Development) is an activity of investigation that a business chooses to conduct which intent to discover new development for new products or to the existing procedures. It is one way of which business can experience growth by expanding their ideas and improve their operations and process. It is often associates in high technologies that many establishments spend much money in improving their products or goods.
Since it is associated in high technologies therefore it needs to cover any R&D funding, scientific research, in the areas of science and technology and social science. Most of R&D funding comes from two major sources, corporations (through research and development department) and government (through universities and specialized government agencies)
The R&D fund exists to support projects which have the potential to develop products and services with a competitive advantage in their target market. This will enable companies to increase employment through sustainable and substantially increased sales. It helps companies to achieve a demonstrable connection between R&D and the overall business objectives, a significant ongoing R&D budget and high quality facilities for R&D.
The motivation in funding for research is to yield added value to society and, in doing so, remain accountable to the taxpayer. The link between funding allocated and actual added value felt by society will inevitably turn out to be time-lagged and indirect it should nonetheless remain the ultimate rationale for public intervention in the field of science and technology. Public funding may follow three closely interrelated rationales in funding
- Support for scientific merit - the notion that basic research needs time to reveal its full potential and that the utility of scientific projects is by nature unknown, as are their results.
- Support the methods of business – commercialization of the application and adapting existing knowledge with a concrete social benefit.
- Loop to public needs – directly address to local needs for solution.
The teams of scientist from different countries who wish to combine their expertise in innovative approaches to questions that could not be answered by individual laboratories are provided with research grant. Its emphasis is placed on novel collaborations that bring together scientist preferably from different disciplines to focus on problems in the life science. There are two types of research grant the Young Investigators’ Grant and Program Grant.
Among other countries Israel R&D in relation to gross domestic product (GDP) is the highest intensity in the world. Israel boasts the highest number of scientist, technicians, and engineers.