With the increasing pace of liberalization and ferocity of competition in the corporate business world, it is mandatory for the firms to invest in research and development activities to sustain in the market. In most of the developing countries, scant attention has been paid to research and development activities. A survey indicates, that countries like Japan and United States Of America spend 2. 8 percent of their Gross National Product on R and D, while it is a mere 0. 9 percent of the Gross Domestic Product in the case of some Asian countries.
What role does research and development play in the industry and economy?
Why it is important for the developing countries to invest more on R and D?
In spite of the tax rebate offered by most of the governments for R and D, why industries don’t contribute much to indigenous research?
It becomes difficult for business organisations to compete in national and international markets as well, both on quality and cost fronts, primarily because of absence of strong base in science and technology. Third world nations are used to buying technology from developed nations, that make them dependent and technology starved. Limited resources is another problem faced by these business firms, the allocation of which becomes difficult owing to rising costs.
» Read more: What Is the Need to Formulate Research and Development Strategies?
