research and development team

Key Performance Indicators (Kpis) for Research and Development Teams

Unlock the power of key performance indicators (kpis) for research and development teams with our comprehensive guide. Explore key goal setting techniques and frameworks to drive success in your functional team with Lark's tailored solutions.

Research and development teams play a pivotal role in shaping a company’s future, driving breakthrough innovations and ensuring sustainable growth. The successful execution of these teams heavily relies on the effective measurement and management of their performance. This article aims to provide insights into the strategic utilization of KPIs to optimize the productivity and innovation capabilities of R&D teams, addressing the challenges and offering actionable solutions.

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Understanding key performance indicators (kpis)

The essence of kpis in research and development.

At its core, a Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. In the context of R&D teams, KPIs serve as quantifiable metrics that gauge the performance and progress of various research projects and the overall innovation initiatives. These metrics are meticulously chosen to align with the strategic goals of the organization and the specific objectives of the research and development endeavors.

Types of KPIs for Research and Development Teams

Innovation Rate : This KPI tracks the rate at which new ideas are being developed, providing insight into the team's innovativeness and creativity.

Research Efficiency: Measuring the efficiency of the research process, this KPI focuses on the time and resources required to translate concepts into tangible outcomes.

Development Cost: This KPI provides visibility into the overall cost associated with R&D efforts, aiding in budget control and resource allocation.

Patent Applications: Tracking the number of patents filed by the R&D team portrays their success in converting innovative ideas into protected intellectual property.

Benefits of key performance indicators (kpis) for research and development teams

The strategic incorporation of KPIs can yield a multitude of benefits for R&D teams, fostering a culture of continuous improvement and innovation, ultimately driving the organization towards sustainable growth and market leadership.

Enhanced Project Management and Tracking

By establishing relevant KPIs, R&D teams can effectively monitor the progress and performance of their projects, enabling proactive identification of bottlenecks and timely intervention to ensure project objectives are met within the stipulated timelines.

Improved Innovation and Ideation

KPIs play a crucial role in driving a balanced innovation portfolio by quantifying the success rates of various innovative initiatives, thereby encouraging a culture of ideation and risk-taking within the R&D teams.

Optimized Resource Utilization

By aligning KPIs with resource allocation strategies, R&D teams can gain insights into the utilization of resources, optimizing the allocation of funds and talent to maximize productivity and innovation outcomes.

Steps to implement key performance indicators (kpis) for research and development teams

Defining clear objectives and milestones.

Identify Strategic Objectives: Begin by aligning the KPIs with the overarching organizational goals, ensuring that they contribute to the fulfillment of the organization's mission.

Establish Measurable Milestones: Break down the objectives into specific, quantifiable milestones that can be tracked and measured effectively over time.

Selecting Relevant KPIs

Identify Key Areas for Measurement: Understand the critical aspects of R&D activities that require monitoring and identify the most relevant KPIs for each aspect to ensure comprehensive measurement.

Quantitative and Qualitative KPIs: Strive to strike a balance between quantitative KPIs, such as project completion rates, and qualitative KPIs, like customer satisfaction index, to capture the complete narrative of R&D performance.

Implementing Effective Tracking and Reporting Mechanisms

Choose KPI Tracking Tools: Invest in specialized tools and software capable of capturing, analyzing, and presenting KPI data in a meaningful and actionable manner to facilitate informed decision-making.

Real-Time Reporting: Implement systems for real-time tracking and reporting to ensure timely identification of performance trends and deviations.

Aligning KPIs with Organizational Strategy

Stakeholder Alignment: Ensure that the selected KPIs resonate with the broader organizational stakeholders and garner their support and commitment towards the common goals.

Incorporate Feedback Loops: Create mechanisms for periodic feedback and reviews to tweak and align KPIs based on the evolving organizational strategies and market dynamics.

Periodic Evaluation and Adjustment

Assess KPI Relevance: Regularly evaluate KPI relevance against the evolving business landscapes and reassess their alignment with the organizational objectives.

Continuous Improvement: Leverage the insights from KPI analysis to drive a culture of continuous improvement within the R&D teams, fostering innovation and adaptability.

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Common pitfalls and how to avoid them in research and development teams

Overemphasis on quantitative kpis.

Placing undue emphasis on quantitative KPIs may lead to oversight of crucial qualitative aspects of innovation and market readiness, potentially hampering the holistic evaluation of R&D outcomes.

Neglecting Qualitative Aspects

Focusing solely on quantitative KPIs might overshadow the broader qualitative aspects of research and development, such as customer engagement, brand perception, and long-term viability of innovations.

Inadequate Communication and Alignment

Lack of effective communication and alignment between the R&D teams and the organizational leadership can result in misalignment of KPIs with the strategic goals, hampering the overall performance evaluation.

Examples of key performance indicators (kpis) in research and development teams

Innovations patented.

Leveraging KPIs to monitor the rate of patent applications and successful grants can showcase the effectiveness of the R&D team in converting innovative ideas into tangible intellectual assets, contributing to the company’s competitive advantage.

Project completion rates

Tracking the on-time completion rates of key projects provides insights into the team's project management efficiency and adherence to timelines, highlighting areas for process improvement and optimization.

Research to market time

Measuring the time taken to progress from research ideation to market launch offers valuable insights into the team's agility and responsiveness to market demands, enabling continuous refinement of the innovation pipeline.

Tips for do's and dont's

People also ask (faq)

How to choose relevant kpis for r&d teams.

Identifying relevant KPIs for R&D teams necessitates a comprehensive understanding of the organization’s strategic objectives, the specific focus areas of the R&D activities, and the industry benchmarks. It involves engaging key stakeholders, leveraging best practices, and ensuring a balanced mix of quantitative and qualitative metrics.

What are the key challenges in implementing kpis for research and development?

The primary challenges in implementing KPIs for R&D teams often revolve around identifying the most relevant metrics, ensuring seamless data collection and analysis, fostering a data-driven culture, and aligning the KPIs with the dynamic nature of R&D activities and the broader organizational strategy.

How often should kpis be evaluated and revised?

KPIs should be evaluated and revised periodically, typically aligning with the broader organizational review cycles. However, for R&D KPIs, a more iterative approach might be beneficial, allowing for agility and adjustments in response to evolving project dynamics and industry trends.

Can kpis enhance collaboration in research and development teams?

Leveraging collaborative KPIs that emphasize cross-functional innovation, shared objectives, and collective success metrics can significantly enhance collaboration within R&D teams, aligning their efforts towards common goals and fostering a cohesive innovation ecosystem.

What are the qualitative kpis suitable for r&d teams?

Qualitative KPIs for R&D teams may encompass metrics such as customer satisfaction index, employee engagement scores, innovation culture index, and intellectual property generation rates, reflecting the broader impact of R&D activities on the organizational ecosystem.

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What is a Research and Development Manager?

Learn about the role of Research and Development Manager, what they do on a daily basis, and what it's like to be one.

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Definition of a Research and Development Manager

What does a research and development manager do, key responsibilities of a research and development manager.

• Leading and managing the R&D team, including hiring, training, and professional development of staff
• Developing and implementing R&D strategies and plans that align with the company's business objectives
• Overseeing the research and development of new products and technologies, as well as the enhancement of existing ones
• Managing the R&D budget, ensuring resources are allocated effectively and costs are controlled
• Collaborating with cross-functional teams, such as marketing, production, and quality assurance, to ensure project success
• Conducting market research and competitive analysis to identify trends and opportunities for innovation
• Establishing project timelines, milestones, and deliverables, and ensuring they are met
• Ensuring compliance with industry regulations and maintaining high standards of scientific and technical excellence
• Facilitating communication and collaboration between team members and with external partners or stakeholders
• Protecting intellectual property by filing patents and managing the organization's patent portfolio
• Evaluating the feasibility and potential commercial impact of R&D projects
• Reporting on R&D activities, progress, and outcomes to senior management and relevant stakeholders

Day to Day Activities for Research and Development Manager at Different Levels

Daily responsibilities for entry-level r&d managers.

• Overseeing day-to-day research activities and experiments
• Collaborating with research staff and providing technical guidance
• Assisting in the development and testing of prototypes
• Documenting research findings and preparing reports
• Ensuring compliance with regulatory standards and safety protocols
• Participating in cross-functional meetings to align research with company objectives

Daily Responsibilities for Mid-Level R&D Managers

• Leading multiple research projects and coordinating with different departments
• Developing research strategies to achieve project milestones and deliverables
• Managing budgets and resources for R&D projects
• Implementing best practices and improving research methodologies
• Building relationships with external partners, such as universities and research institutions
• Contributing to the recruitment and training of research staff

Daily Responsibilities for Senior R&D Managers

• Setting the vision and long-term goals for the R&D department
• Aligning R&D activities with corporate strategy and market trends
• Leading the evaluation and prioritization of research projects
• Directing the allocation of substantial budgets and resources
• Fostering a culture of innovation and continuous improvement within the R&D team
• Engaging with senior stakeholders and contributing to executive-level decision-making

Types of Research and Development Managers

Product development manager, process development manager, research manager, technology development manager, innovation manager, regulatory affairs manager, what's it like to be a research and development manager , research and development manager work environment, research and development manager working conditions, how hard is it to be a research and development manager, is a research and development manager a good career path, faqs about research and development managers, how do research and development managers collaborate with other teams within a company, what are some common challenges faced by research and development managers, what does the typical career progression look like for research and development managers.

How To Become a Research and Development Manager in 2024

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Function Descriptions of the Research & Development Department

A company's research and development department plays an integral role in the life cycle of a product. While the department usually is separate from sales, production and other divisions, the functions of these areas are related and often require collaboration. A thorough understanding of the functions of the research and development department allows you to maximize those duties at your small business, even if you don't have a big department.

New Product Research

Before a new product is developed, a research and development department conducts a thorough study to support the project. The research phase includes determining product specifications, production costs and a production time line. The research also is likely to include an evaluation of the need for the product before the design begins to ensure it is a functional product that customers want to use.

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New Product Development

The research paves the way for the development phase. This is the time when the new product is actually developed based on the requirements and ideas created during the research phase. The developed product must meet the product guidelines and any regulatory specifications.

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Existing products of the company also fall under the scope of research and development. The department regularly evaluates the products offered by the company to ensure they are still functional. Potential changes or upgrades are considered. In some cases, the research and development department is asked to resolve a problem with an existing product that malfunctions or to find a new solution if the manufacturing process must change.

Quality Control Checks

In many companies, the research and development team handles the quality checks on products created by the company. The department has an intimate knowledge of the requirements and specifications of a particular project. This allows team members to ensure the products meet those standards so the company puts out quality products. If the company also has a quality assurance team, it may collaborate with research and development on quality checks.

Innovation and Staying Ahead of Treads

The research and development team aids the company in staying competitive with others in the industry. The department is able to research and analyze the products other businesses are creating, as well as the new trends within the industry. This research aids the department in developing and updating the products created by the company. The team helps direct the future of the company based on the information it provides and products it creates.

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There are many considerations in building a good R&D team. Questions like “how to do R&D for business?”, “Where do I hire R and D staffing?”, “What R and D services can I establish on my own?”, “Do I need to build an R and D building or several R&D centers?” may come up. To set up a good R&D team at affordable research and development costs , you need to:

• Understand what you can and cannot do on your own
• Know the R&D team structure you need
• How to implement research and development
• Consider R and D staffing offshore nearshore options

How to Structure a Research and Development Company

Determining how to structure a Research and Development (R&D) company and corresponding r&d centers is not easy and has several considerations. However, there are 2 general R&D team structure frameworks that most businesses and organizations use as a guide. The structure that you use should fit your business structure and R&D needs.

Separate Functional Form

R&D departments  manage R&D team and experts capable of executing the entire product development process for the individual department R&D project. This structure requires R and D teams with high levels of collaboration and expertise in the entire product development process for their assigned department to effectively function.

Product Line Form

For the second structure, each step in the R&D product development or improvement project is handled by separate departments. This enables businesses to outsource certain steps or functions in the R&D product development or improvement to third-party R&D service providers.

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How to Implement Research and Development and Build Good R&D Team

Think Big, and Plan Accordingly

Think globally, act locally. This means that implementing a good R&D team needs a global overarching vision with a corresponding action plan for acting locally. A good R&D team needs structures and processes that will be effective in developing and/or improving products for diverse markets, whether it be local or global.

Cultivate Problem Solving Approach and Business Awareness

Successful products developed or improved by the engineering R & D team are launched in future business strategies. The management team should plan for the impact of key industry drivers when making any decision.

It is also essential that R&D focuses on addressing consumer feedback and meeting consumer needs. This approach ensures that products developed by the engineering R & D team are relevant to the consumer base and adds value to the business.

Businesses should be able to plan, monitor, and adapt as technology evolves and grow. This will ensure that they can utilize new technology to improve their products or develop new products that meet consumer needs. This will also help keep the business relevant and continuously grow.

Clearly Define Goals and Objectives

Be strategic and in your decision making and distinguish your goals and objectives appropriately according to the level needed. Consider the company’s overall strategic vision and goals and integrate other internal and external insights and information in developing long-range business and R&D plans. 

Ensure that R&D plans and projects align with the company’s overall goals and business strategies. This ensures that the R&D team and its projects add value to the business and influence and enhance the business strategy. Define SMART goals and objectives. Ensure that the R&D team and strategic goals and objectives are specific, measurable, attainable, relevant, and time-bound. This ensures that your goals are clear and can be realized by the department.

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Integrate R and D Team in Cross-Functional Strategizing

R&D is not an isolated department but is part of a network of departments that support a business. The business must establish a shared viewpoint and understanding of its R&D portfolio and R&D centers. Everyone is now on the same page regarding the goals and objectives of the engineering R & D team. This also collectively builds commitment to the successful execution of their projects.

Include representatives and experts from different functions (R&D, manufacturing, sales, marketing, consumer assistance) when planning for R&D strategies or projects. This approach will help build and maintain the commitment to research of every department involved.

Establish and Maintain the Product Pipeline

Ensure that their R&D team and R&D centers have a smooth, consistent, and reliable flow of products and improvements. This reduces the risk of delays, overcharging, failed product launches, and problematic products. This shows that your R&D team is reliable, efficient, and effective in its workflow.

A streamlined product pipeline also helps balance the short-term and long-term interests and the technology strategy of the business. Over time, streamlining processes will help added value to the company.

Balance Focus with Experimentation

A successful R&D team can find the balance between core idea focus and experimentation. Experimentation allows for ideation and discovery of innovation; the eureka! moments that many aims for in R&D. On the flip side, focusing too much on core ideas can also lead to missed opportunities and stagnation. R&D cannot afford to focus resources more on exploration than idea development, or vice versa. A business should have a healthy balance of idea exploration and a focus on core ideas. 

A good R&D team should also strive for a balance between R&D projects with incremental product improvements and projects with potential for significant breakthroughs. This will lead to more sustainable R&D and business success. Always put focus and effort on projects that create value for the business.

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Evaluate R&D Project Quantitatively

Evaluating projects quantitatively ensure equitable or unbiased assessment of R&D projects. This ensures that there is transparency among individuals and business representatives involved. Quantitative evaluations measure the impact R&D project outputs on the business overall against their initial expected value at the start.

Quantitative evaluation of your R&D is also part of measuring its effectiveness. The effectiveness of an R and D team also factors in the efficiency of the departmental processes, product or improvement turnaround time, valuation of project output, cost-effectiveness, the achievement of set goals, and others.

Empower Members of R&D Team

A good R&D team is one that hires the professional best fit with the business needs and can provide them with opportunities for further professional growth and development. Creating a learning framework – individual and organizational learning – for your R&D team ensures that there is continuous learning among your R&D team. The learning framework can also incorporate measures to enable learning from other businesses and R&D organizations, as well as organizational post-product evaluations and audits.

5 Reasons to Have a Strong R&D Team

In the present-day cutthroat business environment, being innovative is crucial to maintaining an edge in the market. Thriving companies recognize the need to continually create new products and services that cater to the ever-changing demands of their customers. Consequently, having a sturdy RnD team is essential, even for smaller organizations. Here are five persuasive grounds why you should channel resources into powerful R&D teams:

• Competition: To differentiate yourself in your industry, you must be innovative. An effective R and D center team ensures that you are always ahead of the game by delivering fresh and stimulating products that distinguish you from your competitors.
• Risk Minimization: A proficient R and department team can aid you in determining which products or services are worth investing in, saving you valuable resources. By conducting exhaustive research, they can ascertain whether there is a market demand for your next big idea before you commit to it.
• Independent Reviews: An RD team provides impartial evaluations of your products, giving you an accurate idea of their performance. This allows you to detect opportunities and make informed decisions before launching your products.
• Productivity: R&D teams also evaluate your business operations to discover more effective and cost-efficient ways of conducting business. This can help you save resources while enhancing productivity and profits.
• Marketing: RnD department teams can also assist you in marketing by proposing fresh and exciting ideas to reach your customers. By collaborating with your marketing team, they can help you develop targeted campaigns that resonate with your audience and drive sales.

Why a Good R&D Team is Crucial 

A great RD team makes a huge difference to a business. Not only does it help the business grow, but it also helps you stand out from your competition. Customers are not always loyal and they are always on the lookout for the next, bigger and better product they can use to fulfill their needs. R and D is the backbone of successful businesses around the globe and it is because it identifies customers’ needs before it becomes general knowledge.

There is a very good reason for multinational companies to spend 20% of their earnings on RD. It helps them stay ahead of the curve, and offer customers the most updated ideas before their competition!

RD not only allows a company to identify its customers’ needs but also helps with streamlining internal processes, which shows the bottom line at the end of the day.

Leading software companies around the globe are spending about 10 to 15% of their earnings on RandD to keep up with their competition. This does not just count for global corporations, R and D can be beneficial to small and medium businesses as well!

Calculating what you should spend on RD can be difficult, so it is wise to approach a consultant or outsourcing agency and ask them for assistance.

R n D is worth the spend and there is rarely a situation where you will find that the return on your spend is not worth it!

Outsourcing Research and Development (R&D): Where to Get Reliable R and D Services

A major cost-effective measure to establish R&D for your business is to outsource the entire process to an R&D service provider. An R&D service provider will be able to assist you with:

• Determining team size and structure
• Establish R&D strategy and plans
• R&D staffing recruitment and onboarding
• Guide on how to set up R&D lab or R and D facility
• R&D facility establishment

Partnering with an outsourcing R&D service provider will ensure that you can get the best possible Research and Development (R&D) facility and Research and Development teams that your business needs with minimal investment.

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Benefits of r&d.

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Research and Development Centers: What is Their Role in Innovation?

Yulia Borusiuk

Published: 15 Aug 2023

R and D centers

Research and development (R&D) teams are among the main drivers of innovation in a wide array of industries. The principle is quite simple – these are the teams that research a specific niche and develop something that fills the gap in this niche. R&D teams can be either  in-house or remote , but, in both cases, they are centered around proactiveness and a forward-looking approach. But how do R&D teams impact technological progress? What are the basics of their approach? How and why should you open an R&D center? Find answers to these questions in this article. 

What’s an R&D Center and what are its benefits?

An R&D center is a specialized tech unit dedicated to exploring, experimenting, and developing innovative solutions. Their primary purpose is transforming industries and shaping progress with various innovations. A software research and development center is also designed to conduct systematic research on software opportunities. It involves a team of progressive engineers whose task is to develop new products, improve existing ones, and research existing technologies to make the most of them for the good of their company. As a territory where developers can unleash their creativity, a research and development center brings many tangible benefits to IT companies. Let’s review them. 

A boost of innovation

Innovation is the core purpose of an R&D center. By investing in research and experimentation, digitized businesses can come up with software ideas that propel them ahead of the competition. Whether it concerns creating an innovative automation solution or a startup application that takes the market by storm, an R&D center is a good solution. These are the hubs for technology geeks where they can brainstorm, collaborate, and translate concepts into tangible applications. A research and development center is a great way to boost innovation both globally and at the company’s scale. 

Attraction for investors

Investors favor innovation-inclined companies. By presenting your organization as an R&D team with a forward-looking approach, you automatically become more attractive to potential investors. The key point here is to show a clear vision. R&D centers should articulate their long-term goals, showcasing how their innovative projects align with market demands and trends. If you manage to highlight the tangible benefits of your research for various industries, there will be people ready to invest in your organization and ideas. 

Strong potential for business growth

An R&D center can have a surprising impact on business efficiency. Even if a specific company is struggling to sustain the competition, a great R&D team can become a game-changer. A relevant innovation introduced at the right moment can immediately drive business growth. By being ahead of the curve, companies can improve their efficiency and profitability. Also, technological innovation is a great opportunity to attract new customers and expand into new markets. Even if the company is struggling to implement the promising idea properly, it can always raise money by selling the concept to other organizations. 

Better collaboration

R&D centers often bring together diverse experts from various fields, such as scientists, engineers, designers, and data analysts. In this case, great ideas can easily go beyond traditional software development. The collaboration between different professionals boosts progress and removes borders between different domains. Most IT companies work on traditional software solutions that provide specific functionality to specific professionals. With a research and development center, you can come up with an idea that provides unique value and responds to the challenges of many domains and teams. 

Improved product quality

An R&D team can help you uncover the optimal production method for the product. It can also come up with innovative testing methodologies ensuring that no issues will spoil the final result. A research and development center can cover your product’s compliance with various standards and its fit with the customer’s demands. As a result, you will deliver a product devoid of bugs and other issues ruining customer experience. 

Research and development centers: What are their tasks?

A research and development team (be it an  offshore  or in-house one) can handle a wide array of responsibilities. Typically, R&D team tasks are as follows:

• Analyzing industry gaps and demands
• Analyzing customer data
• Research and analysis of customer experience
• Market research and analysis
• Product tests
• Market tests
• Product research and development
• Implementing product updates
• Ensuring product quality control

How to build an R&D team

If you are considering building a team for your research and development center, a good idea is to start by going over some key questions  addressed by experts. The most important factors are the price, legal considerations, and, surely, the talent pool. A common approach is opening research and development centers in countries with a strong focus on IT offshoring. In this regard, Eastern Europe and LATAM prove to be one of the most popular destinations. 

An essential member of your R&D team must demonstrate the following qualities:

• Strong programming knowledge and experience
• Proficiency in various programming languages
• Comprehensive knowledge of data structures and databases.
• Skillful handling of cloud computing
• Proficiency in web development
• Extensive familiarity with integrated development environments
• Outstanding teamwork and collaboration skills
• Exceptional problem-solving capabilities
• Advanced analytical and critical thinking skills
• Profound planning and execution capabilities
• Excellent organizational proficiency
• Proven leadership skills

In conclusion

Launching R&D centers brings undeniable and wide-reaching benefits. They foster innovation and learning culture within organizations, driving the development of new products and services. R&D centers help businesses stay competitive, attract investors, and form strategic collaborations for long-term growth and leadership. A research and development center is a smart investment that is very likely to pay off if handled properly. The key point for doing everything the right way is hiring the right people. That’s where our team at nCube will come in handy. We can build your R&D center in Europe or Latin America, which includes the following services:

• Setting up your own R&D office in the tech hub of your choice
• Handle the team formation process
• Cover all operational routines 
• Support you in every aspect of launching your research and development center, from tax and accounting support to recruitment and team retention

Contact us  and let’s discuss your need for an R&D division. 

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Research Team Structure

• 4 minute read
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Table of Contents

A scientific research team is a group of individuals, working to complete a research project successfully. When run well, the research team members work closely, and have clearly defined roles. Every team member should know their role, and how it plays into the project as a whole. Ultimately, the principal investigator is responsible for every aspect of the project.

In this article, we’ll review research team roles and responsibilities, and the typical structure of a scientific research team. If you are forming a research team, or are part of one, this information can help you ensure smooth operations and effective teamwork.

Team Members

A group of individuals working toward a common goal: that’s what a research team is all about. In this case, the shared goal between team members is the successful research, data analysis, publication and dissemination of meaningful findings. There are key roles that must be laid out BEFORE the project is started, and the “CEO” of the team, namely the Principal Investigator, must provide all the resources and training necessary for the team to successfully complete its mission.

Every research team is structured differently. However, there are five key roles in each scientific research team.

1. Principal Investigator (PI):

this is the person ultimately responsible for the research and overall project. Their role is to ensure that the team members have the information, resources and training they need to conduct the research. They are also the final decision maker on any issues related to the project. Some projects have more than one PI, so the designated individuals are known as Co-Principal Investigators.

PIs are also typically responsible for writing proposals and grant requests, and selecting the team members. They report to their employer, the funding organization, and other key stakeholders, including all legal as well as academic regulations. The final product of the research is the article, and the PI oversees the writing and publishing of articles to disseminate findings.

2. Project or Research Director:

This is the individual who is in charge of the day-to-day functions of the research project, including protocol for how research and data collection activities are completed. The Research Director works very closely with the Principal Investigator, and both (or all, if there are multiple PIs) report on the research.

Specifically, this individual designs all guidelines, refines and redirects any protocol as needed, acts as the manager of the team in regards to time and budget, and evaluates the progress of the project. The Research Director also makes sure that the project is in compliance with all guidelines, including federal and institutional review board regulations. They also usually assist the PI in writing the research articles related to the project, and report directly to the PI.

3. Project Coordinator or Research Associate:

This individual, or often multiple individuals, carry out the research and data collection, as directed by the Research Director and/or the Principal Investigator. But their role is to also evaluate and assess the project protocol, and suggest any changes that might be needed.

Project Coordinators or Research Associates also need to be monitoring any experiments regarding compliance with regulations and protocols, and they often help in reporting the research. They report to the Principal Investigator, Research Director, and sometimes the Statistician (see below).

4. Research Assistant:

This individual, or individuals, perform the day-to-day tasks of the project, including collecting data, maintaining equipment, ordering supplies, general clerical work, etc. Typically, the research assistant has the least amount of experience among the team members. Research Assistants usually report to the Research Associate/Project Coordinator, and sometimes the Statistician.

5. Statistician:

This is the individual who analyzes any data collected during the project. Sometimes they just analyze and report the data, and other times they are more involved in the organization and analysis of the research throughout the entire study. Their primary role is to make sure that the project produces reliable and valid data, and significant data via analysis methodology, sample size, etc. The Statistician reports both to the Principal Investigator and the Research Director.

Research teams may include people with different roles, such as clinical research specialists, interns, student researchers, lab technicians, grant administrators, and general administrative support staff. As mentioned, every role should be clearly defined by the team’s Principal Investigator. Obviously, the more complex the project, the more team members may be required. In such cases, it may be necessary to appoint several Principal Administrators and Research Directors to the research team.

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The Value of Microsoft Teams for Research and Development

Alexandre cipriani.

• April 19, 2021

Today research and development is undergoing various transformations, shifting from traditional siloed operations to a collaborative mode of working. Now R&D teams are working jointly with partners, customers, industry specialists, and even competitors to accelerate innovation and drive better results. Given the nature of research and development initiatives, R&D teams require a secure collaboration platform for safe communication and teamwork.

In this article we cover key Microsoft Teams capabilities and how to use them for research and development.

Pace of innovation

Compliance and regulations, protection of highly classified information, knowledge management, sensitivity labels, information barriers, private and shared channels, secure meetings, centralized location for file storage, microsoft teams template for, files and tabs, governance policies, research and development collaboration challenges.

In today’s business environment organizations are seeking ways to accelerate their growth by adopting innovative technology and actively investing in research and development. The pace of modern innovation dictates new rules for R&D teams, forcing them to move from traditionally siloed mode to collaborative operations.

Research and development activities entail following compliance rules, good practice guidelines, and standards set up by governments. Therefore, R&D teams require a system for monitoring and ensuring regulatory compliance.

Due to the highly confidential nature of research and development work, collaboration with external stakeholders can raise information security concerns. In order to address this challenge, R&D teams require a collaboration platform that enables safe information sharing and prevents external parties from accessing sensitive content.

Research and development teams often reuse existing knowledge and data for new initiatives. Knowledge management is an important indicator of organizational efficiency and innovation. At the same time, in many companies, large amounts of high-value scientific data are stored in dispersed locations and systems , creating accessibility issues, affecting data integrity, and consequently, hindering knowledge management.

How Microsoft Teams empowers research and development teams

Secure collaboration.

When it comes to collaboration in research and development, one of the key concerns is protecting intellectual property and other confidential information. Due to multiple Microsoft Teams security features, your R&D teams can safely collaborate with both internal and external players.

There are two types of sensitivity labels in Microsoft Teams.

The first one is assigned to teams in your tenant. For example, when creating an R&D team, you can indicate that the team you’re creating is private. This way you ensure that guest users won’t be able to join the team.

Sensitivity labels can also be applied to your files. They let you classify and protect your data by encrypting and marking your content, protecting data in third-party apps and services, preventing external sharing and downloads, and more.

By enabling sensitivity labels, you can make sure your confidential data stays protected.

Learn more about sensitivity labels.

Information barriers prevent specific groups of people within an organization from communicating with one another. You may want to apply this policy if, for example, your research team is only allowed to call or chat with a product development team.

If your R&D team is collaborating with external members inside Teams, they can still collaborate privately in private channels . Moreover, you no longer need to invite guest members to the entire team. Instead, you can leverage shared channel capability. Your guest users will only be able to see conversations and have access to files shared, specifically in this channel.

Learn more about shared channels with Microsoft Teams templates.

To prevent external users from accessing your meetings in Microsoft Teams , you can leverage Lobby capability. You can enable/disable it in the Microsoft Teams admin center.

Your external users will be redirected to a virtual lobby where they will need to wait for admission. If you’re concerned about accidental leaks of information during video meetings, you may choose to disable the screen-sharing capability in the admin center.

Your research and development teams can use Microsoft Teams as a centralized database. Each new team comes with its own SharePoint document library that, with the right governance settings, can be accessed only by its members.

It’s a secure storage space where you can keep your scientific data and then access it at any time for reuse of knowledge.  

Additionally, your employees can work together on any file: co-author, add and track changes, as well leave comments and have discussions right in the document.

• Integrations

Your R&D teams may require additional tools for project, task, and employee management, design, and other use cases. With Microsoft Teams, you can integrate any native, third-party, or line-of-business application into Teams environment.

Here are some examples of apps that can be beneficial for your R&D teams:

Planner is a task management tool that allows you to create, categorize, label, and assign tasks, add checklists, attach files, and track the progress.

Your research and development teams can use Planner for project management. Additionally, you can assign tasks related to monitoring compliance with policies and regulations, conducting regular checks, etc.

You may want to use OneNote as a knowledge repository for your R&D teams. In OneNote, you can add documents, images, videos, pdfs, audio, emails, and other files.

Your team can have productive virtual brainstorming sessions with the Whiteboard app. Use it the same way as you would use a regular whiteboard. Besides, all team members can contribute in real-time.

Research and Development teams

One of the best practices for using Microsoft Teams is to create a separate team for each repetitive collaborative process. That can be project management, account management, product launch, different campaigns, deals, etc. Similarly, for each new research and development project your employees undertake, the best practice will be to create a dedicated team.

In this way, your team can have structured conversations dedicated exclusively to the project they are working on. In addition, they will have a separate document library that will be accessible only to the members of the team.

At the same time, creating a new team from scratch can be time-consuming. On top of that, you need to make sure there are strict governance rules in place so that all the data stored in the team stays protected.

This is where Microsoft Teams collaboration templates come in. You can create only one team for your R&D projects, build the required channels, add files and tabs with apps, owners, and members, and then use this original team as a template to create fully provisioned teams in just a few clicks.

You may also want to upload all your scientific data and R&D knowledge to the template. As a result, each time a new team is created from the template, all the files and folders will be automatically copied in the document library. Your teams will no longer need to look for documentation across different locations to reuse knowledge.

Additionally, you can establish strong governance policies to protect sensitive information during collaboration.

Let’s see how you can use R&D Project template for project management.

R&D Project template

You can structure your R&D project teams by creating channels that will cover all the steps of the research and development process. You can use the following channel names as examples:

• Product Design
• Product Trial
• Usage Trial

Upload all the documentation that can come in handy for your R&D teams. For instance, that can be all the previous research, work plans, guidelines, compliance rules and regulations, audit documentation, product order templates, protocols, etc.

You can also add apps that your research and development teams might use. For example, you can pre-build Planner with standard tasks for project management. You can also add any third-party app or line-of-business application.

When your original team is ready, you can use it to create your R&D Project template. During the template creation process, you can configure governance policies that answer your organization’s needs.

You can set up  naming policies for your template. In this way, all R&D teams based on this template will follow the same naming rules.

By implementing an approval workflow , you will ensure that before creating a new team from the template users will have to submit an approval request.

You can also set up  audience targeting  so that only specific groups of users could see your templates. For instance, only employees who work in the research and development department.

Moreover, you may want to enforce team privacy for your Research and Development Project template to protect sensitive information shared in R&D teams.

Learn more  about Microsoft Teams Collaboration templates governance policies.

Interested in exploring Microsoft Teams templates for research and development projects? Then schedule a demo  with us to find a solution tailored for your use cases.

Spend less time managing Teams and more time collaborating

Read related blog posts, how government institutions can benefit from microsoft teams, how nonprofit organizations can benefit from microsoft teams, how to use microsoft teams for engineering, microsoft teams for retail: transforming employee experience, how microsoft teams helps your it department, how microsoft teams can be beneficial for finance professionals.

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The present-focused, future-ready R&D organization

Across engineered industries, the explosion in software has increased product complexity by an order of magnitude. Along with rapidly evolving technologies, fast-changing consumer preferences, accelerated product cycles, and the practical realities of globalized operations and markets, R&D departments are under unprecedented strain. As product variation grows and product portfolios expand, updating existing products compounds the already heavy load R&D organizations bear.

Yet amid these 21st-century challenges, R&D units are still following 20th-century models of organization—models not designed for today’s need for speed and the expanding web of interdependencies among all of the moving parts. The traditional component-based approach to R&D is no longer sensible in an era when digital and electronic systems are so thoroughly integrated with hardware. Still many companies struggle to shift toward an approach that focuses more on the function the customer wants, rather than the components that make the desired function work.

There is no one right way to organize R&D. But there are certain fundamentals that can help R&D organizations in advanced industries act more responsively and meet the burgeoning challenges they face today. From our work with clients and our extensive research, we’ve distilled a set of core design principles for R&D organizations and identified the important ones. By following these principles, companies can help their R&D organization serve as engines of innovation for outpacing competitors. And they can foster the agility organizations need in supporting collaboration among remote, distributed teams—as has become more important than ever in response to unpredictable external events.

A growing mismatch between design and function

Determining the right structure for the R&D organization has never been easy. The division of responsibility is a balancing act between the project-management organization and the R&D line organization, with inevitable trade–offs. Today’s R&D teams don’t have the luxury of following a sequential, piece-by-piece approach in which finished, designed components are handed off to testing at the end. Moreover, the teams need to be appropriately protected from the external and internal disruptions that the broader organization experiences, which today come with greater frequency.

As they’ve grown organically, many R&D organizations continue to operate with the same structures and processes they’ve used for years. Despite (or perhaps because of) the increasing inadequacy of those structures and processes, organizations don’t follow them consistently. Pet projects are often hard to kill, even long after their diminished promise becomes apparent. And because research effectiveness is hard to measure—and companies often don’t understand R&D costs or ways of working—the black-box image persists without challenge.

Thus, adhering to an existing structure isn’t enough: the shifting demands, the sheer volume of work and the growing complexity (much of it the result of software integration) make it incumbent on R&D organizations to reappraise their design. Instead, they can create new mechanisms to provide the coordination, transparency, governance, and risk protection R&D needs in the digital era.

A set of winning design principles

In the ideal R&D organization, responsibilities are clearly established, and interfaces between and among teams (internal and external) are seamless and transparent. These requirements, although not new, have become even more important of late, particularly when more teams are working remotely. R&D organizations that fulfill them can better meet further requirements—managing complexity actively and efficiently while staying focused on the future, and also maintaining the tools and capabilities for adapting to change.

Clearly delineate responsibilities for systems and end-to-end work

Historically, the R&D function has been organized according to field of expertise, components, or location, which has the effect of creating silos. Product properties are defined at the start of the development process, without being analyzed according to larger internal systems or user functions. Little attention is given to thinking in terms of the overarching goals customers want to achieve, or to the growing interdependencies as software and digital functions have pervaded almost every engineered product.

Many of the complications R&D organizations encounter today are the result of organizational interfaces that don’t match the product, along with a lack of transparency between groups. Take, for example, a feature such as lane-assistance for vehicles. Developing further advances in this function depends on a high level of coordination among teams developing steering systems, brake systems, and electrical systems. But too often that coordination occurs only late in design, perhaps even the final testing phase, by which point addressing problems becomes expensive and time-consuming. R&D organizations are more effective when they shift their orientation from components to user function, while keeping platform development stable to ensure a core of commonly used modules.

With such a shift, assigning end-to-end responsibility for functionality has become imperative. Companies can assign responsibility for the complete product, as well as for the individual system layers, under the “V” model shown in Exhibit 1, which imposes oversight as ideas progress from concept through to market release, series development, and finally upgrades.

The process moves from left to right. Under “Conception,” individual systems and their associated software are defined to fit customer demands and budget. Through early testing in the development process, issues and challenges become apparent early on. The right side of the V comprises testing and integration, which are conducted along the system layers. By breaking a product’s properties into requirements for systems and functions, the activities become transparent to everyone involved in development.

This approach enables iterative handshakes—more frequent interactions between concept owners and developers. Teams work together to translate properties into functional requirements. The approach also establishes dedicated responsibilities for complex functions and keeps the development process transparent. To coordinate and manage the interaction points, automotive companies tend to introduce central units that manage the whole integration process along the different development steps. These departments can be seen as a “stable backbone” within a dynamic development process, which helps improve planning for milestones and facilitates early failure detection. One machinery company, for example, set up quarterly integration meetings to align on priorities; the one to two days team members spend planning together gets them aligned for the next quarter’s work.

Perhaps the biggest benefit to assigning end-to-end responsibility is that it enables R&D to manage the interfaces and different development cycles between hardware and software development. Functionality owners coordinate the development of complex and interdependent components and features, creating technical guidelines and specifications that support consistency. They effectively safeguard the implementation and validate that the solution fulfills its requirements over its entire lifecycle.

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Keep functional interfaces across work sites to a minimum.

Companies can most effectively conceive of interfaces in terms of R&D’s geographic footprint—a balance taking into account which activities are performed where, and how the locations must interact. Minimizing functional interfaces across multiple sites and avoiding duplication of similar work are both important as well. Furthermore, to be cost-effective, location design can identify best-cost country sourcing for repetitive tasks, keeping in mind end-to-end responsibilities.

Dividing projects up among sites is usually less ideal, as people who work together in the same place tend to work more efficiently: earlier research found that with each additional development site for a given software product, productivity fell by about 14 percent (Exhibit 2.) Just the difference between one site and three sites amounts to a 37 percent decline in productivity.

Minimizing the number of handovers between sites—and making those that remain as smooth as possible—also helps. Distance between sites is not what matters; without the right management practices, a site across the city can seem as distant to employees as one clear across the country. But virtual teams can be as efficient as co-located teams, as long as the tools supporting the virtual work are utilized properly, communication is adapted accordingly, and everyone can participate on an equal basis.

R&D leaders can consider future roles and competencies when thinking about the physical design of the department. Where should the development of next-generation products start? How could a transition to new products be built for sites currently focused on legacy products? How will cost and availability figure into the overall network structure? The answers form a long-term site strategy that can help avert a talent crunch.

The right footprint model also builds in a detailed understanding of local requirements, such as interactions with suppliers, local regulations, and internally, the interdependencies with other departments or components. The sophistication of the design work, and the degree of conceptual work that will be done in a particular location, will inform the kind of competencies and technologies that will be needed. For example, one white-goods manufacturer carried out almost all development in its home market, later building a few local development centers in key markets to help adjust the products for local preferences, such as for refrigerator and freezer sizes, configurations, and color schemes.

Synchronize software and hardware development

Complexity in all its forms has increased markedly—product variations alone have exploded over the past two to three decades, driven largely by the rise of embedded software and digital capabilities.

But R&D protocols often fail to account for the unique challenges of managing the development of integrated software and hardware. Software and hardware development follow different development cycles and require different approaches to project steering. And when digital features or components aren’t explicitly considered in milestone planning, integration problems and delays are almost inevitable.

As essential as synchronizing development may be, it isn’t easy. In automotive, for example, map software generally takes about a year to develop, with frequent updates, while apps or innovative vehicle-control features (such as autopilot) may be updated monthly, with ongoing development and improvement. Contrast these cycle times with the hardware that runs navigation systems (which take two to three years to design and build), vehicle platforms (about seven years in the making) and basic vehicle components, such as heating systems and airbags—mature components that typically have a 10-year lifespan.

With such wide disparities in cycle times, transparency becomes crucial. The lack of it is a problem not only in concept development, but in delaying product launches as well. For complex functions, such as lane assistance, R&D units may have limited ability to measure how mature the product really is. When changes are made, teams may therefore fail to assess the implications on other features currently in development. Beyond cost overruns, delays, and risks to product integrity, poorly managed complexity invariably leads to finger-pointing among system teams as well as conflict between R&D and the project-management team.

R&D organizations have two options for managing the complexities of synching software and hardware development.

• Embedding software development within existing departments. This approach promotes integrated development—but in practice, processes are often designed from a hardware point of view, and software complexity is not managed effectively.
• Keeping development separate but coordinated. With this arrangement, individual technology components don’t get short shrift. The onus is on leaders to establish synchronization points to identify potential conflicts that would require escalation to senior management.

The approach to take is generally determined by the nature of the product, as well as the organization’s experience with software—bearing in mind that complexity will likely grow. Increasingly, services are developed not only within the engineering department but also within IT, creating still more interfaces and responsibilities, with implications for organization design.

Strike a balance between old and new technologies

When it comes to developing new technologies, R&D managers have three choices: segregate them completely in a separate unit; include them in the R&D organization, but keep them separate; or integrate them fully into the core R&D organization (Exhibit 3).

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Segregating the current and new technologies has its advantages. Unfettered by standard processes, separated units are free to realize their full potential. The R&D organization keeps budgets separate and shields the new technology from the noise of existing projects.

But this option can be a hard sell to management, as creating a new unit can be costly, labor-intensive, and harder to absorb into the existing structure. Beyond the break-in time to adapt to existing products and processes, segregation also limits the broader organization’s ability to transfer capabilities and knowledge, particularly given that cutting-edge technologies call for special (at times rare) expertise and training time for employees.

Short of total separation, there are essentially two ways to include new technology development within the R&D organization. Integrating new technologies fully into the existing organization helps transfer knowledge, and lets the new part of the organization tap into existing capabilities and processes, all of which helps in reaching scale faster. However, in this arrangement, there are risks—new technologies could be prematurely quashed by senior management, or if developed according to current methodologies, could yield less-than-optimal results.

An R&D makeover to sustain market leadership

A global production-equipment manufacturer had long viewed its R&D organization as a crucial source of competitive advantage. But the company’s rapid growth and increasingly complex product portfolio meant that more products were being developed in parallel. That led to even greater specialization among engineers and more technical interdependencies across modules. As the number of engineers and management layers grew, so did the number and complexity of interfaces, threatening the company’s rapid growth.

Historically, R&D groups had been organized in two types of departments.

• System functions, which handled the functionalities that met system specs and customer requirements, such as for productivity and machine precision.
• Engineering functions, encompassing specialties such as electronics, mechanics, software, and environmental controls.

These functions were required for developing the system modules and the system architecture needed for the integrity of the assembled machine.

Cutting complexity

As a first step in redesigning the R&D organization, R&D leaders made system function leaders responsible for tangible and testable machine modules. System leaders’ reports were given responsibility for the respective submodules. In that way, every production module and submodule would have a clear owner with end-to-end responsibility, from new-product introduction to third-line field-service support. Whereas before, each engineer worked on multiple products, under the new system each now works on only one business line and handles only one submodule at a time (Exhibit).

System-function departments are now primarily business-line dedicated. Each system function has a central architecture team that promotes commonality in the system modules’ roadmaps and the maximum reuse of module elements among business lines.

Engineering-function teams (such as software teams) are largely dedicated to modules or submodules. Leaders have the authority to deliver their technical roadmap with more stable, focused, and experienced people. Within each engineering function is a central architecture department that’s responsible for system design and standards (the left side of the V in Exhibit 1 in the main text) and for setting guardrails for module design and development. This structure also ensures integrity in the final product.

Responsive and future-ready

To maintain system integrity, shared platforms, and innovation- and knowledge-sharing across business lines, the company established several central teams. To manage competence (and continue building needed skills), the organization developed a taxonomy of critical competencies, assigned to VPs and managers and governed through an annual planning cycle.

The stable, multidisciplinary teams that characterize the new design have created a solid foundation for piloting and scaling agile ways of working in the product development teams. Since the launch of the new organization, more than 2,000 engineers have migrated to agile methods. But engineers aren’t the only ones working in new ways. By forging and executing the redesign as a team, R&D leaders have developed adaptive muscle, with the ability to adjust their organization to fast-changing requirements and environments.

Most often, the best bet is a happy medium, in which new technologies are assigned to a separate team but explored within the current R&D organization (see sidebar, “An R&D makeover to sustain market leadership”).

The right approach is also a function of the situation and the culture. Consider the electric powertrain in the automotive industry—the different manufacturers offer a sample of all of the archetypes.

To be future-ready, adopt new ways of working

The traditional waterfall development model that some organizations still follow is so protracted that products can be obsolete by the time they are released. Long development times become impracticable when businesses factor in the out-of-sync cycle times of software and hardware components. In addition, a siloed and fragmented organizational structure makes it hard to respond nimbly to new process requirements.

Fast-changing customer demands and rapidly evolving technologies have increased the premium for enterprises and their R&D organizations to be adaptable, flexible, and future-oriented. And the coordination, integration, and speed needed in R&D today call for new ways of working. These include agile methods that enable fast iterations and cross-functional, flexible teams that ensure that the concerns of all relevant stakeholders—people from different functional units, as well as the different engineering teams, project managers, and customer representatives—are addressed. For example, a team working on autonomous driving would include not only software engineers but also hardware engineers from the steering, brake-system, and overall car-design teams, as well as those working on user interface design.

To foster a future orientation within the R&D function, companies can adopt certain design features and practices, in particular those structures that promote agility:

• A flat organization in which teams are granted full responsibility to design solutions. This creates a strong sense of ownership among individuals
• End-to-end, cross-functional teams whose talent is drawn from all the relevant and traditional R&D functions. Often, teams are supported by individuals outside of R&D, such as marketing managers or customer representatives. Team membership is stable and changes only when projects are finished or strategic priorities change
• Pools of experts (both internal and external) that support projects with the talent they need
• Resource allocation that is flexible, shifting as needs change
• More co-location time for teams, wherever possible
• Role descriptions and rewards that align with the new organizational structure and targets

These practices usually suggest that the company might consider changing certain roles in the organization—particularly in light of the widespread need for more architects, as leaders are charged with empowering teams to foster innovation more than ever before. In fact, an automotive manufacturer saw its leadership transformation as a driving force for putting in place its new R&D organization.

A further question we are hearing is: how does all of this work in a remote working environment? The bulk of these practices can be implemented in a digitally enabled organization if co-location is not an option, with priority for practical matters such ensuring teams have sufficient bandwidth to connect as often as needed. Clear roles and targets will be especially important as well, as will an emphasis on empowering teams and individuals.

With ever-expanding product portfolios—from more product variation to additional software embedded in engineered products—R&D organizations tell us they are struggling to keep up pace. That makes the shift from a traditional, component-based approach to a functional all the more essential.

Change isn’t easy for this traditionally black-box area of the organization. Engineers themselves struggle with how to reengineer their own work processes, often not knowing where to start. To determine the right blueprint, it helps to step back and reflect on current performance and future needs by asking a few central questions:

• Do we have a clear way of addressing the complexity that comes from interfaces?
• How are we handling interdependencies between systems? Is complexity increasing, and if so, are we well set up for the future demands?
• Do we have what it takes to adapt to a larger proportion of software development in our R&D?
• Are we sufficiently agile and flexible to adjust our focus based on changing demand? Could we handle more frequent changes in demand?
• How prepared are we for future technologies? Do we have the right structure in place to acquire and scale them?
• Do we have sufficiently clear roles, interfaces, and end-to-end responsibilities within R&D between teams and sites and to other departments?

There is no master formula for making this shift—nor could there be, given the differences across industries and from organization to organization—but certain principles prevail. Abiding by the principles outlined here can provide a blueprint needed for integration at the right points, and the much-needed transparency across R&D. If R&D is the company’s engine of innovation, its own transformation is more than a matter of securing market share, it’s about being built for a fast-changing present in order to secure the future.

Anne Hidma is an associate partner in McKinsey’s Amsterdam office, where Vendla Sandström is a consultant, and Sebastian Küchleris a partner in the Munich office.

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Why You Should Invest in Research and Development (R&D)

Research and development (R&D) is the part of a company's operations that seeks knowledge to develop, design, and enhance its products, services, technologies, or processes. Along with creating new products and adding features to old ones, investing in research and development connects various parts of a company's strategy and business plan.

According to the latest Business Enterprise Research and Development survey by the National Center for Science and Engineering and the U.S. Census Bureau, businesses spent $32.5 billion to support their R&D activities in 2020.

Here are some reasons your business should invest in research and development.

Key Takeaways

• Research and development (R&D) is an essential driver of economic growth as it spurs innovation, invention, and progress.
• R&D spending can lead to breakthroughs that can drive profits and well-being for consumers.
• Today, R&D is present in nearly every business sector as companies jockey for position in their respective markets.
• Smaller firms engaged in R&D can offset some of these costs and attract investors thanks to a federal tax break.

Investing in Research and Development (R&D)

The Internal Revenue Service's definition of research and development is investigative activities that a person or business chooses to do with the desired result of a discovery that will create an entirely new product, product line, or service.

However, the activities don't only need to be for disovering new products or services—this is only for tax purposes.

R&D isn’t just about creating new products; it can be used to strengthen an existing product or service with additional features.

Research refers to any new science or thinking that will result in a new product or new features for an existing product. Research can be broken down into either basic research or applied research. Basic research seeks to delve into scientific principles from an academic standpoint, while applied research aims to use that basic research in a real-world setting.

The development portion refers to the actual application of the new science or thinking so that a new or increasingly better product or service can begin to take shape.

Research and development is essentially the first step in developing a new product, but product development is not exclusively research and development. An offshoot of R&D, product development can refer to the entire product life cycle , from conception to sale to renovation to retirement.

R&D Offers Productivity, Product Differentiation

Firms gain a competitive advantage by performing in some way that their rivals cannot easily replicate. If R&D efforts lead to an improved type of business process—cutting marginal costs or increasing marginal productivity—it is easier to outpace competitors.

R&D often leads to a new type of product or service—for example, without research and development, cell phones or other mobile devices would never have been created. The internet, and even how people live today, would be completely different if businesses had not conducted R&D in the past.

Research results give businesses a means to find issues people have and ways to address them, and development allows companies to find unique and different ways to fix the problems.

This leads to many different product and service variations, which gives consumers choices and keeps the markets competitive. Some examples of companies that carry out R&D activities are auto manufacturers, software creators, cutting-edge tech companies, and pharmaceutical firms.

The R&D Tax Credit

In 1981, the IRS started offering tax breaks for companies to spend money and hire employees for research and development. Qualifying companies include startups and other small ventures with qualified research expenses. Such expenses can be used to offset tax liabilities , along with an impressive 20-year carry-forward provision for the credit.

Many entrepreneurs and small businesses have made a large sum of money in a short time by selling good ideas to established firms with many resources. Buyouts are particularly common with online companies, but they can be seen wherever there is a lot of incentive to innovate.

Research and development can help your ideas or business become more attractive to investors and other companies looking to expand.

Advertising and Marketing R&D Benefits

Advertising is full of claims about revolutionary new techniques or never-before-seen products and technologies. Consumers demand new and improved products, sometimes simply because they are new. R&D departments can act as advertising wings in the right market.

R&D strategies let companies create highly effective marketing strategies around releasing a new or existing product with new features. A company can create marketing campaigns to match innovative products and market participation.

What Are the Reasons for R&D?

Research and development keep your business competitive. Without R&D, you risk losing your competitive advantage and falling behind other companies researching and developing new products in your industry.

Why Is R&D Important for Startups?

R&D is essential because it helps you keep your business momentum going. New products and services help you attract more customers, make sales, and give you something to talk about with your investors.

What Factors are Essential in Successful R&D?

Successful research and development depend on many factors, but the most important is a strong interest from your customer base and investors. If you spend money and time researching and developing something no one wants, it's being wasted.

Increased market participation, cost management benefits, advancements in marketing abilities, and trend-matching are all reasons companies invest in R&D. R&D can help a company follow or stay ahead of market trends and keep the company relevant.

Although resources must be allocated to R&D, the innovations gained through this research can actually work to reduce costs through more efficient production processes or more efficient products. R&D efforts can also reduce corporate income tax, thanks to the deductions and credits they generate.

National Center for Science and Engineering. " Businesses Invested $32.5 Billion in Assets to Support Their R&D Activities in the United States in 2020 ."

Tax Foundation. " Reviewing the Federal Tax Treatment of Research & Development Expenses ."

Internal Revenue Service. " About Form 6765, Credit for Increasing Research Activities ."

Internal Revenue Service. " Instructions for Form 3800 (2022) ," Page 2.

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How to help r&d teams succeed at your organization.

Organizations led by strong innovation and R&D teams focused on strategic initiatives stay ahead of the competition. This focus on strategy gets the right products to market at the right time , helping claim first mover advantage and maximize revenue and profit potential.

When a company has a culture of R&D, great ideas bubble to the top and the team keeps working on the next best thing.

Forbes Technology Council members – CTOs, CIOs and executives who offer first hand insight on tech and business – weighed in with 16 tips for helping promote a culture of research and development (R&D) for your team.

Here are six tips to promote a successful and effective R&D culture within your organization:

1. Clearly define your goals and metrics

Typically, strategy is developed at the executive level. To increase the changes of the strategy being realized, it needs to be communicated down to the people who execute on it. Like other groups, R&D teams require a line of site to what the strategy is and how their work supports it.

Executive leadership can start by setting clear goals and outlining what success looks like. Once the organization is aligned around the goals, R&D needs a mechanism to communicate progress from the bottom up. The R&D team also needs to leverage the right tools to help accomplish set goals.

Performance metrics based on accurate, real-time data collected in the course of day-to-day work and made visible in an easy-to-consume visual format helps R&D teams to see the strategic contribution of their work. It helps keep individuals on the team engaged, motivated, and focused on what really matters to the company. It also makes it much easier for leadership to see progress.

2. Balance focus and exploration

It is critical to get the balance right between focus and idea exploration. Exploring ideas is essential to discovering new-to-market or new-to-world innovations. Exploring ideas and concepts that are closely related – or, conversely, exploring seemingly unrelated concepts – can lead to those “eureka!” moments. But there is a danger of spending too much time exploring and not enough resources on developing top ideas.

On the flipside, if there is too narrow of a tunnel of focus, opportunities staring you in the face may be missed. And there is risk in focusing too much on your core, especially in today's disruptive business world. There needs to be a healthy balance between idea exploration and focusing on selected core idea(s).

3. Give your team room to experiment

Strategic goals are necessary. But talented people need room to explore, be creative, and play outside the sandbox with their ideas to develop solutions that meet customer needs and solve problems.

There are a wide variety of ways to give talented people room to ideate, innovate and maximize their creativity. Above all, the company culture should empower people to experiment and to contribute their best. Failure should always be an option – as long as it is a learning experience.

Systems and tools that encourage openness and real-time collaboration (while still protecting sensitive intellectual property) can help, especially when they surface historical learnings and facilitate knowledge discovery (example: new applications using existing technology). Idea campaigns, innovation labs or idea marathon weeks can also help spur innovation in unlikely ways.

4. Involve R&D in Ggo-to-market discussions

Don't let a disconnect between the Go-to-Market (GTM) team and the R&D team(s) result in wasted efforts. This disconnect can negatively impact the potential of the innovation, waste time and money on innovation failures, and demotivate everyone involved.

By “marrying” the teams, R&D can tell GTM what they can do, and GTM can inform when and where they should do it, setting up the innovation to seize the biggest market share.

Connecting these cross-functional teams can be difficult, especially in a large enterprise. An automated Enterprise Innovation Management (EIM) software system can greatly increase the impact of shared insights and reduce the time required for cross-functional team members to provide input on shared deliverables. It can also streamline review and approval processes, helping the two teams to accelerate an innovation to market.

5. Focus on business awareness and problem solving

Aligning the technical people developing innovative technologies with customer demand and business direction can be challenging.

Keeping the end-consumer in mind — their changing needs, their problems — and how you can help will ensure your innovations are in demand. Embedding this mindset into the day-to-day life of R&D teams will help the right ideas, inventions, and innovations bubble to the top for maximum market impact.  

6. Empower people

Creating a culture that focuses on innovation aligns the right teams and strategies, enabling cross-functional communication, decision making and knowledge sharing . It empowers people to do what they do best is possible. It just takes some planning, structure, the right tools and a lot of creativity.

With full transparency to strategic direction, R&D and business value, product and portfolio decisions, and innovation plans, Accolade connects the organization and empowers all teams to be strategic and agile when responding to marketplace change and to delivering new products. Accolade is your complete enterprise innovation management product.

Learn more about building a culture for innovation with these additional resources: 

• Listen to building a culture of innovation with Cris Beswick part one and part two
• Download the Innovation Blockers Report
• Read how to how to choose the right enterprise innovation management system

Subscribe and be the first to know about innovation management and product development insights.

Paul Heller

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Learn more about the backgrounds, scientific pursuits and personal interests of members of our R&D team. These individuals are committed to pursuing Bristol Myers Squibb’s goal of discovering, developing and delivering transformational medicines to patients.

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2025 University Recruiting – Discovery Chemistry, Process Research, and Chemical Biology Intern

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Job Description

The Future Talent Program features internships that last up to 12 weeks and include working on one or more specially designed projects. These opportunities in our Research & Development Division can provide you with great development and a chance to see if we are the right company for your long-term goals.

Our company’s Research Lab’s Discovery and Process Research Departments across multiple geographies are seeking summer interns with a passion for scientific research, strong academic performance, communication skills, and the ability to work on cross-functional teams. We offer opportunities in our state-of-the-art science laboratories to solve fundamental synthetic or biological problems relevant to drug discovery and development, while functioning as fully integrated members of the company project teams.

Discovery Chemistry and Process Research (Boston, MA; Rahway, NJ: West Point, PA; South San Francisco, CA)

The candidates will work alongside company scientists in an organic synthesis laboratory to invent novel biologically active compounds and chemical reactions relevant to the synthesis of drug-like molecules (e. g. small molecules, cyclic peptides, and bioconjugates). Day-to-day research for the intern will focus on solving key challenges in reaction design utilizing the latest advances in organic synthesis. In addition to the discovery and development of synthetic routes to potential drug candidates, interns may focus/engage in bio- and chemocatalysis screening and development, laboratory automation, flow chemistry, labeled compound synthesis, and data science and informatics.

Chemical Biology (Rahway, NJ; Cambridge, MA)

Our company’s Chemical Biology (comprising of chemistry, proteomics, and cell pharmacology) focuses on providing novel, high-quality targets and expanding confidence on molecular mechanism of action for our key assets. Candidates will leverage their chemical and biological expertise to solve complex biological problems while working in both chemistry and biology laboratory spaces. The internship will provide an opportunity to gain firsthand knowledge on how our Research & Development Division uses key technologies to create a synergistic toolbox for early discovery and beyond.

The interns will participate in departmental and project team meetings to provide a broad perspective on the drug discovery or development process in the pharmaceutical industry. Interns will also gain skillsets via exposure to practical aspects and day-to-day problems of pharmaceutical research. Interns will be responsible for and trained in methods for accurate electronic notebook recording and safe laboratory practices. In addition, they will have an opportunity to present their research results in both oral and written formats.

**Please note when applying for this position, the candidate must have consent from PI. If the candidate is selected for an interview, the applicant must be prepared to submit letters of recommendation and a brief research statement and a copy of transcripts.

Required Education & Experience:

Candidates must be currently enrolled sophomore, junior, or senior students pursuing a Bachelor’s degree in Chemistry or Chemical Biology; OR a currently enrolled graduate student pursuing a Master’s or Ph.D. in Chemistry or Chemical Biology .

Candidates must have completed at least two years of studies toward a bachelor’s degree by June 2025.

Candidates must be available to work full-time for approximately 11-12 weeks from May – August 2025.

Preferred Experience & Skills:

Candidates should have a significant interest in organic chemistry or chemical biology in industry

Candidates should have basic laboratory skills and previous research experience that includes the use of various experimental techniques, electronic notebook recording,

Candidates should have a GPA of 3.0 or higher

Under New York City, Colorado State, Washington State, and California State law, the Company is required to provide a reasonable estimate of the salary range for this job. Final determinations with respect to salary will take into account a number of factors, which may include, but not be limited to the primary work location and the chosen candidate’s relevant skills, experience, and education.

Expected salary range:

$39,600.00-$105,500.00

Employees working in roles that the Company determines require routine collaboration with external stakeholders, such as customer-facing commercial, or research-based roles, will be expected to comply not only with Company policy but also with policies established by such external stakeholders (for example, a requirement to be vaccinated against COVID-19 in order to access a facility or meet with stakeholders). Please understand that, as permitted by applicable law, if you have not been vaccinated against COVID-19 and an essential function of your job is to call on external stakeholders who require vaccination to enter their premises or engage in face-to-face meetings, then your employment may pose an undue burden to business operations, in which case you may not be offered employment, or your employment could be terminated. Please also note that, where permitted by applicable law, the Company reserves the right to require COVID-19 vaccinations for positions, such as in Global Employee Health, where the Company determines in its discretion that the nature of the role presents an increased risk of disease transmission.

Current Employees apply HERE ( https://wd5.myworkday.com/msd/d/task/1422$6687.htmld )

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Our company is committed to inclusion, ensuring that candidates can engage in a hiring process that exhibits their true capabilities. Please click here ( https://survey.sogosurvey.com/r/aCdfqL ) if you need an accommodation during the application or hiring process.

We are an Equal Opportunity Employer, committed to fostering an inclusive and diverse workplace. All qualified applicants will receive consideration for employment without regard to race, color, age, religion, sex, sexual orientation, gender identity, national origin, protected veteran status, or disability status, or other applicable legally protected characteristics. For more information about personal rights under the U.S. Equal Opportunity Employment laws, visit:

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We are proud to be a company that embraces the value of bringing diverse, talented, and committed people together. The fastest way to breakthrough innovation is when diverse ideas come together in an inclusive environment. We encourage our colleagues to respectfully challenge one another’s thinking and approach problems collectively.

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U.S. Hybrid Work Model

Effective September 5, 2023, employees in office-based positions in the U.S. will be working a Hybrid work consisting of three total days on-site per week, generally Tuesday, Wednesday and either Monday or Thursday, although the specific days may vary by site or organization, with Friday designated as a remote-working day, unless business critical tasks require an on-site presence. This Hybrid work model does not apply to, and daily in-person attendance is required for, field-based positions; facility-based, manufacturing-based, or research-based positions where the work to be performed is located at a Company site; positions covered by a collective-bargaining agreement (unless the agreement provides for hybrid work); or any other position for which the Company has determined the job requirements cannot be reasonably met working remotely. Please note, this Hybrid work model guidance also does not apply to roles that have been designated as "remote".

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Merck & Co., Inc., Rahway, NJ, USA, also known as Merck Sharp & Dohme LLC, Rahway, NJ, USA, does not accept unsolicited assistance from search firms for employment opportunities. All CVs / resumes submitted by search firms to any employee at our company without a valid written search agreement in place for this position will be deemed the sole property of our company. No fee will be paid in the event a candidate is hired by our company as a result of an agency referral where no pre-existing agreement is in place. Where agency agreements are in place, introductions are position specific. Please, no phone calls or emails.

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Job Posting End Date: 10/28/2024

A job posting is effective until 11:59:59PM on the day BEFORE the listed job posting end date. Please ensure you apply to a job posting no later than the day BEFORE the job posting end date.

Requisition ID: R310899