Imagination is more important than knowledge

Albert Einstein

Factors for Economic growth

material resources
Money Labor

With the development of economy knowledge is considered as 4th factor. Most of MNCs earn over 10-15% of their profit from generation of new knowledge.

Knowledge:
Active knowledge Passive knowledge

What is Research and Development?

Research and development, often called R&D, is a

phrase that means different things in different applications. In the world of business, research and development is the phase in a product's life that might be considered the product's 'conception'.

Research and Development. Phases:

Research phase. Development phase.

Engineering phase

Research and Development.

Research and development is an investment in a

company's future Companies that do not spend sufficiently in R&D are often said to be 'eating the seed corn'; That is, when their current product lines become outdated and overtaken by their competitors, they will not have viable successors in the pipeline.

How much is reasonable to spend on research and development?

Highly dependent both on the technology area

and how fast the market is moving. Two percent of company revenue, not profit, might be enough in a fairly sedate market, To keep up in rapidly changing markets, companies should expect to spend fifteen percent or more in research and development just to keep up with the rest of the pack.

Research and Development. Time Frame:

Older standards hold that research looked at least

five to ten years into the future, and development one to five years, Timeframes have shortened as the speed of technology has increased.

Research and Development. Funding:

It is always difficult, in times of tight money, to

justify spending significant sums on something that may not yield returns for another ten to fifteen years, if ever. But spending on research and development is vital to continued growth and prosperity, both for a company and for a country or world.

Research and Development. R and D

There is considerable debate over which is the 'R'

and which is the 'D' in research and development. Traditionally, research was broken into basic research and applied research, with basic research delving into basic scientific principles and applied research looking for ways to use the basic science to better human lives. More recently, there is very little truly basic research being done in the corporate world; it is mainly the province of academia, often with corporate or government funding support.

Basic (aka fundamental or pure ) research is driven by a scientist's curiosity or interest in a scientific question. The main motivation is to expand man's knowledge , not to create or invent something. There is no obvious commercial value to the discoveries that result from basic research.

Basic Research.
For example: basic science investigations probe for answers to questions such as: How did the universe begin? What are protons, neutrons, and electrons composed of? How do slime molds reproduce? What is the specific genetic code of the fruit fly?

Basic Research ..
Most scientists believe that a basic, fundamental

understanding of all branches of science is needed in order for progress to take place. basic research lays down the foundation for the applied science that follows. If basic work is done first, then applied spin-offs often eventually result from this research.

What is Applied Research?

Applied research is designed to solve practical problems of the modern world, rather than to aqcquire knowledge for knowledge's sake. One might say that the goal of the applied scientist is to improve the human condition .

Applied Research.
For example: Applied researchers may investigate ways to: improve agricultural crop production treat or cure a specific disease improve the energy efficiency of homes, offices, or modes of transportation

Applied Research.
Some scientists feel that the time has come for a

shift in emphasis away from purely basic research and toward applied science. This trend, they feel, is necessitated by the problems resulting from global overpopulation, pollution, and the overuse of the earth's natural resources.

What Is Research and Development Management?

Research and development management involves

overseeing and controlling the research and development department of a given company.

Research and Development Management

Research and development is the process of

developing new ideas in order to patent, market or sell those ideas. Research and development exists in many industries but is most common in the technology industry and the drug industry where there is a consistent need for newer, better and more innovative projects and where more extensive research and work must be done to make those products a functional reality.

 Number of different things that go into research

and development management, depending on the industry and the type of project being done. One of the main components of research and development management involves overseeing, managing and allocating the budget assigned to given research projects. R&D managers must ensure that funds are allocated only to products likely to produce a good return-on-investment (ROI)

R & D Management
R&D management is the process and techniques used to control the amount of money and effort invested in research and development (R&D) projects. The primary concepts used in R&D management include: - oversight committees, - Cost accounting -project management -product life cycle management.

 The first aspect of R&D management is to

determine which projects to pursue. As part of an R&D management system, project management processes are used to create a time line, schedule resources and set milestones. A clearly defined project is much more likely to be successfully completed than one with fuzzy requirements and no deadlines. Using a project management plan results in a higher quality output in a shorter time frame.

R&D Strategies
The costs associated with research and

development have a huge effect on strategy selection. Selection of R&D project is crucial for success.

Selection of R&D project

Factors need to be considered include:
Innovativeness Profitability Must fit into strategic business of the

Organisation Market need, demand projections Life of the project Availability of raw materials Existing and potential players Legal and environmental issues IPR issues Possible areas of obtaining IPR

R&D Project management

Once the R&D project is selected and resource

allocated its success will depend upon the efficient execution. For this a number of project management method/tools are used like: - PERT and CPM techniques - Management by Objectives (MBO) Computer Softwares MS Project are available for this purpose

The project planning process consists of the following:

Setting the project start date Setting the project completion date Selecting the project methodology or project life cycle to be used Determining the scope of the project in terms of the phases of the selected project methodology or project life cycle Identifying or selecting the project review methods to be used Identifying any predetermined interim milestone or other critical dates which must be met. Listing tasks, by project phase, in the order in which they might be accomplished. Estimating the personnel necessary to accomplish each task Estimating the personnel available to accomplish each task Determining skill level necessary to perform each task Determining task dependencies - Which tasks can be done in parallel - Which tasks require the completion of other tasks before they can start Project control or review points Performing project cost estimation and cost-benefit analysis

PERT
PERT stands for Program Evaluation and Review

Technique. The numbered circles represent tasks or milestones in a project. The arrows show the sequence of these tasks. The time to do a task is shown near the arrow. The critical path in the chart at the left is drawn with red arrows. PERT charts display task dependencies, showing which tasks need to be done before others can be started.

Sample PERT Chart

CPM Chart
PERT charts are also called Critical Path

Management (CPM) or Critical Path Analysis (CPA) charts. The PERT chart on the left places the time to do a task, starting date, and ending date inside the task box. The horizontal axis has time in months and the vertical axis shows who will be doing the work.

Example of PERT/CPM

Work Breakdown Structure (WBS) charts

A Work Breakdown Structure (WBS) chart is a

hierarchical breakdown of a project into successive levels. Each level contains more detail. This Work Breakdown Structure (WBS) chart numbers each task for easy identification. It also includes the hours needed to complete each task and the total cost of the task.

Management by Objectives (MBO)

Management by objectives (MBO) is a systematic and

organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. MBO is a good management tool for Research and development, particularly when one /or more R&D teams from same Organisation /or multiple Organisations are involved