Jamnalal Bajaj Institute of Management

White Paper on R & D

By
Santosh Chavan 14-F-212
Swapnil Rupaye 14-F-325

What is White Paper?

A white paper is an informational document issued by a company to
promote or highlight the features of a solution, product or service.
White papers are sales and marketing documents used to entice or persuade
potential customers to learn more about or purchase a particular product,
service, technology or methodology.

What is R & D?
Research and Development (R&D is a general term for activities in
connection with corporate or governmental innovation.
R&D is a component of Innovation and is situated at the front end of the
Innovation lifecycle.
There are two primary models, with an R&D department being either
staffed by engineers and tasked with directly developing new products, or
staffed with industrial scientists and tasked with applied research in
scientific or technological fields which may facilitate future product
development.

Cycle of Research & Development

Best practice in R & D

Understand customer & market needs

Culture of innovation-vision, leadership & support
Open innovation-collaboration or partnership model
Intellectual property-Management and protection

R & D in Pharmaceuticals
Research basic experimental research
Identification of possible chemical compounds
Theoretical mechanisms
Development exploitation of discoveries
Mainly private sector
Proof of concept i.e. patents
Safety testing of drugs
Delivery mechanism i.e. how to administer a drug

R & D in Business

Critical for marketing

Competition has made R&D important
Consumer trend, needs, demands
No guarantee that higher spending on R&D will lead to:
1. High profits
2. Greater market share
3. More creativity
4. Better products and services

Government incentives &

priority areas
Allows companies 150% deduction on expenditure
Aim is to make firms more internationally competitive
priority areas

Information & telecommunication technology

Biotechnology
Food sector
Nanotechnology

Innovation in consumer goods

firms
R&D is often associated with high-tech firms that are on the cutting edge
of new technology
Many established consumer goods companies spend large sums of money
on improving old products
E.g. Gillette spends quite a bit on R&D each year in ongoing attempts to
design a more effective shaver
On average most companies spend only a small part of their revenue on
R&D. however pharmaceuticals, software and semiconductor companies
spend quite a more

Why is R&D important?

Crucial to survival
Fast changing environment
Continuous technology change
Competition
Changing consumer preferences

Who are the key players

Companies
Governments e.g. CSIR
Universities

R&D Continuum

low

Product tangibility

high

Survival Triangle
The company delivers consumers with a succession of presents
great software in fabulous hardware in beautiful packaging
ensuring optimum quality at desired functionality keeping costprice balance.

Profit Time curve

With focus on R&D, Companies are able to

keep progressive profit time curve

R&D operational activities

Basic research
Work of general nature intended t apply to broad range of uses or to new
knowledge about an area
Applied research
Work involving basic knowledge for the solution of a problem
Development
The application of known facts and theory to solve a particular problem
through exploratory study
Technical service
Cost and performance improvements to existing products, processes or
systems.

Integrating R&D to overall

business strategy
R&D should not be independent of business strategy
R&D is part of the business support infrastructure
Provide support of existing businesses by keeping them competitive and
supporting efficiencies
Drive new businesses and opportunities e.g. 3Ms discovery of temporary
adhesive led to creation of post it notes
Broaden and deepen technological capability for long term benefits

Strategic management of R&D

R&D expenditure across

industries
Industry

Pharmaceuticals

15

Aerospace

Automotive

Chemicals

Electrical & electronics

Food

1.5

General manufacturing

Computers

12

R&D opportunities in various sub sectors in

India

Bibliography
https://data.gov.in/keywords/rd-expenditure
http://www.csir.res.in/
http://auto.economictimes.indiatimes.com/autologue/union-budget-2016-wha
t-s-in-it-for-the-manufacturing-industry/1371
http://www.iaea.org/inis/collection/NCLCollectionStore/_Public/41/069/4
1069996.pdf