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5 Facts About R&D Software You Should Know

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R&D stands for research and development, and it’s one of the most important things that push the progress of technology. That’s because, with R&D departments, companies can analyze all the market circumstances and already existing tech to create a completely new product or service.

They’re like those mad scientists from the movies who tirelessly work on their innovative ideas. Yes, it involves a lot of expenses due to unpredictable results sometimes, but it’s always worth it in the end. Even if the number of resources spent on the software research and development department exceeds the plans, a unique product will pay for itself eventually. That’s why R&D software is so popular nowadays.

Read further to learn some interesting facts about it.

It’s Different From Software Development 

The difference between software research and development and common software development isn’t that clear. Most people don’t even know about it. And here’s why.

  • Development means the creation of a product. It may utilize already existing technologies and concepts or be 100% authentic.
  • R&D means scientifically analyzing existing technologies to discover new concepts.

Right, this doesn’t explain much, so let’s look at it from a different perspective. Typical software development is generally aimed at real customers and their demands. It won’t create unprofitable products just for the sake of it. R&D, on the other hand, is all about experimenting. Even if the knowledge is never used for profiting, it can still be considered helpful. It’s kind of working for the greater good.

However, in the IT sphere, both concepts’ boundaries sometimes closely interfere with each other. For example, in some cases, there is so little research in R&D that it’s almost typical software development. And sometimes, the usual development includes so much investigation and market analysis that it involves more research than R&D itself.

Yes, everything is complicated here. But having at least a basic understanding may help you prioritize particular processes and make better investments.

It Helps You Compete

If the product is unique, it’s much more profitable than one with tons of analogs. It’s a very simple but one of the most important rules in business. And it’s exactly what RND can help you with.

A true professional R&D software engineer is always able to research the market, existing products, and customer demands to come up with an innovative idea. Of course, it may involve the risks mentioned above. For example, the idea itself may turn out not to be that beneficial, even if it’s authentic. But that’s something business owners should always be aware of when investing in R&D.

Unfortunately, there’s no other way to develop something unique without risking huge expenses. That’s how innovations work. They always require tons of resources. But at the end of the day, they’re the reason we keep getting all the brilliant new technologies.

It Pushes the Progress

Speaking about innovations, it’s one of the best things R&D brings. Just look at our world today. Every single technology that we have today, including comfortable cars, smartphones, and the Internet, is the consequence of research and development.

At some point, humans needed powerful automated calculating machinery so that complex mathematical equations and predictions could be made. Or they needed a convenient way to travel from point A to point B. Or someone came up with the idea of an “imaginary” web that would connect all people in the world.

So, humans just researched what they had and what they wanted to have. They utilized existing knowledge and found ways to create new technologies that allowed new products to emerge. It’s the same with software research and development.

Female electronics engineer tests vehicle software with team
Female electronics engineer tests vehicle software with team | @thisisengineering/Unsplash

Just compare the programs we had decades ago to what we have now. Back then, a phone could only make calls to other people and had only the most basic software like a calendar, calculator, and notepad.

Nowadays, a smartphone can do everything, from recording in 4k to making fund market predictions and planning your fitness routine. And don’t forget that it was completely unimaginable until someone did some research and turned their ideas into reality.

It Is Available for Credit

Claiming a credit could be very convenient, especially when the budget is tight and every dollar matters. For example, progressive countries like the USA offer benefits to businesses that involve software R&D. A federal benefit of more than 10% of qualified expenses can be offered to a company that fits the qualification requirements.

The government also has some benefits for companies that sell innovative products and services but don’t make money just yet. It works in a simple way: if a business pays payroll taxes but doesn’t pay income taxes due to the lack of profits, it may receive as much as $250000 of the startup R&D credit.

What’s in it for the country? It allows their IT sector to develop much faster and makes the country more appealing to professionals worldwide. Also, it strengthens its position on the world market. Lastly, we can’t but mention its altruistic side, which includes investing in unprofitable technologies that will make the world a better place.

In some cases, the appearance of an innovative product or service creates a trend for similar technology on the market. It means that the other companies will try to analyze what makes your offer unique and why it’s beneficial and develop their own versions of it.

It may seem like a marketing disaster at first, but in reality, it’s better for both business and global progress.

Firstly, a company that creates the trend often has control of it. As the inventor of an authentic product, you can shape the market and push it in the direction you need. Even if the rivalry brings expenses at first, it will still be profitable in the long run if utilized wisely.

Secondly, the more competitors there are, the faster the tech will develop. It makes the market evolve faster, pushing progress and providing humanity with better and innovative products or services.

Summing Up

As you can see, RND is not only an essential part of the business but also the concept responsible for almost all the innovations in this world, especially in software. So, make sure to use research and development to your profits, but don’t forget about all the risks it brings.


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