The phrase research and develoment (also R&D) has a special commercial significance apart from its conventional coupling of scientific research and technological development.It refers to future-oriented, longer-term activities in science or technology, using similar techniques to scientifc research without predetermined outcomes and with broad forecasts of commercial yield.
A long-term commitment to research and development guarantees continuous improvements in performance and efficiency, cost optimization and a prolonged life for existing products .Companies also develop new, competitive products on an ongoing basis to meet market and customer requirements.This process gives rise to a large profit.