What is the definition of A Research & Development (R&D)?

Research & Development, also known as R&D, is the part of a firm responsible for researching and innovating into new technologies, products and production methods. Investing in R&D is one of the key ways that a company can keep itself up-to-date with the modern world and to keen ahead of the curve with regards to competitors.

The amount a company spends each year on R&D will vary considerably from different sectors with biotech, technology and pharmaceutical companies tending to spend the most.