Definition: Research & Development (R&D) is the process of discovering and developing new products and services. It helps companies invent innovative products & services. 

Example: Before releasing their innovative mobile app payments solution, the startup had spent two years on R&D to evaluate its feasibility, explore technology & understand their target market.

Business Insight: Investing time and money in R&D is essential for startups and SMEs to create a product that is competitive in the marketplace with enduring value. Pharmaceuticals, semiconductor and software/technology companies tend to spend the most on R&D.