quick question
Discussion
Depends on the company surely - something like a pharmaceutical company will spend perhaps 20% of its profit on R+D, therefore it will have a medical director and thus sits at primary level. A company manufacturing more traditional products like furniture will hardly need to spend any more on R+D, so it has less influence on business direction and will not need such a senior member to head the department.
wadgebeast said:
Depends on the company surely - something like a pharmaceutical company will spend perhaps 20% of its profit on R+D, therefore it will have a medical director and thus sits at primary level. A company manufacturing more traditional products like furniture will hardly need to spend any more on R+D, so it has less influence on business direction and will not need such a senior member to head the department.
Or it can be integral throughout the entire business, i.e. the same engineers do R&D on a specific project.As has been said, need more info to answer the question.
If the R & D Department directly earns your company money, i.e. you are selling the R & D as a service then it is a primary or core process.
If as, with most businesses, the R & D Department is there to bring new products / services to market. It costs your business money and it is a secondary process there to support the core processes, similar to HR & Finance Departments.
If as, with most businesses, the R & D Department is there to bring new products / services to market. It costs your business money and it is a secondary process there to support the core processes, similar to HR & Finance Departments.
12joe340 said:
apparently primary is something like chopping trees down secondary is things like manufacturing stuff from raw materials and tertiary is things like marketing.
R+D still too broad to fit into one of these categories. It's a function, a bit like accountancy. Some firms are big enough to have their own accountants, some so small they hire one out when needed. Some firms are so large that the only thing they do is accountancy. It's the same with R+D.
outlaw biker said:
Isn't there some sort of tax incentive/government allowance for having an R&D dept?
Yes, we got about £350,000 back from the government this year for R&D costs. About 24% of some salaries for the year, plus the same amount for prototype materials, temporary staff, and other costs relating to last year This year so far the R&D provision is £240,000.
Hopefully by this time next year, we'll generate some actual sales.
Edited by vixen1700 on Thursday 13th November 23:25
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