5.6 Research and development Flashcards
Research and development (R&D)
The scientific research and technical development of new products and processes.
Why is research and development important?
- competitive advantage
- intellectual property rights
- high, premium prices
- publicity
Limitations of research and development:
- doesn’t always lead to invention or discovery
- expensive
- inventions do not always lead to successful innovative products
- ethical issues
Types of innovation:
- product
- process
- positioning
- paradigm
Innovation
The process of commercially pioneering new ideas and creations in the production process.
Product (type of innovation)
New creations or development of existing products.
Process (type of innovation)
Changes in the way production or delivery takes place.
Positioning (type of innovation)
Changing the context of a product.
Paradigm (type of innovation)
Distinctive change in what a business does or in the nature of goods/services available.
Adaptive creativity
Category of incremental innovation that adjusts or develops something that already exists.
Innovative creativity
Creating something that is new.
Patent
Legal right to be the sole producer and seller of an invention for a certain period of time.
