R&D funding for companies

Research and development (R&D) is an activity that aims to produce new knowledge, know-how or new solutions. However, not all development is R&D – it can be identified by the following key features:

• Novelty value: The aim of R&D work is always to produce new knowledge or new results. If the work does not aim at this, it is not R&D.
• Creativity: R&D work is creative and innovative. It involves problem formulation and the development and testing of new ideas, concepts, and hypotheses.
• Uncertainty: R&D work involves uncertainty in terms of both the end result and the resources required. If success is a foregone conclusion, it is not R&D.
• Systematic: R&D work is systematic and goal-oriented. It is implemented on budget and its progress is monitored consistently.
• Reproducibility and portability: The results of the R&D work are documented and can be reused, transferred or replicated in other contexts.

Innovation refers to a new invention, which can be, for example, a product, service or operating method. 

Innovation can mean, for example:

• a new, unprecedented way of working
• new business model
• a new product or service that doesn't already exist
• a more efficient way to do the old thing
• Streamlining the process in a new way
• reform that makes our daily lives easier, or
• the result of the development work that improves the competitive advantage.

What is being developed in R&D?

• Products and services
• Technology and solutions
• production and operational processes
• business models
• Ways of entering the market

A good R&D project is related to the company's strategy, is based on a real market need, includes new learning and uncertainty, and aims for an internationally scalable competitive advantage. R&D is not a separate technical phase, but a way to develop new business. In addition, the project is systematic and well described, the risk level is justified in relation to the expected return, and  includes a preliminary plan
the utilisation and commercialisation of the results and  their resourcing, and it will be carried out by a competent team with sufficient capabilities. 

R&D is not a separate technical phase, but a way to develop new business.

Planned research or critical investigation aimed at the acquisition of new knowledge and skills for developing new products, processes or services or aimed at bringing about a significant improvement in existing products, processes or services.

This applies to any area or technology (including, but not limited to, digital industries and technologies, such as super-computing, quantum technologies, block chain technologies, artificial intelligence, cyber security, big data and cloud technologies).