Research and development (R&D) is an often-neglected area of business. If it’s being overlooked by your company, you could be missing out on a huge range of benefits that can really help you grow.
In-house R&D is an essential function for many organisations as it allows you to create new products and services and thrive in competitive markets. It leads to improvements to existing processes where efficiency can be increased and costs reduced. It offers powerful knowledge and insights, plus launching new offerings or improving existing ones means your business remains competitive and profits where rivals who don’t innovate may struggle to keep up.
What sectors benefit most from R&D?
Research and development occurs across a wide range of sectors and industries, and in companies of all sizes. Remember, R&D isn't something only big corporations can do. Small businesses can carry out R&D to compete in and lead the market too. Industries that rely heavily on R&D include pharmaceuticals, life sciences, automotive, food and drink, and digital technology. It also plays a major role in the construction industry, in particular in manufacturing and engineering.
So what can R&D do for my business?
It offers product differentiation
R&D often leads to a new type of product or service, and you can gain a competitive advantage by performing in a way that your rivals cannot easily replicate. If your R&D efforts lead to improved business processes - cutting costs or increasing productivity - this makes it easier for you to outperform your competitors.
You’ll have a unique selling point
R&D can help you develop unique products and services, giving your organisation a real USP. Unique products and services launched after successful R&D projects can bring real financial benefits to your business through new or enhanced income streams. It can also attract potential new investors to your business.
You can apply for grants and claim tax relief
Carrying out R&D obviously has cost implications, but it also offers opportunities to apply for public sector research and development grants. If you’re researching and developing in the science and technology sphere, you can claim R&D tax relief to reduce your company's tax bill. Tax relief can even be claimed on unsuccessful projects.
It gives you a competitive edge
Through your R&D efforts, you can develop an advantage over your competitors and establish yourself as market leaders. The development of new ideas, services and products can also generate new intellectual property for your business, potentially giving you a further financial windfall.
Collaborating with other organisations can be a key element of an R&D project, and it’s often crucial to achieving success. Collaboration between your business and other enterprises allows for the transfer of skills and access to facilities, expertise and new ideas that might otherwise be out of reach. Engaging in R&D also helps you strengthen your brand and your reputation. If you're collaborating with a trusted, reputable partner or a respected institution, the commercial success of any resulting products or services can benefit from their involvement.
Innovation is central to life at Ascensor, and our ongoing commitment to R&D enhances the services we provide to clients. We’ve set up an innovation team and dedicate more than 250 hours every month to investigating new technologies.
Ascensor’s head of creative, Imran Ahmed, said: “Our clients operate in fast-paced industries with challenges coming from all angles. Being able to help them iterate, innovate and pivot faster than any other agency requires a deep repository of research and development with commercial execution.
“The Ascensor team are fully immersed in technology before they become trends and ultimately mainstream. By doing so, we’re able to benefit our clients by being ‘research-ready’, with the knowledge and practical demos to help facilitate their business.”
Get in touch with the award-winning Ascensor team to find out how our R&D keeps us ahead of the game and benefits the businesses we work with.