Research and development is organized efforts to increase scientific knowledge or product innovation & may involve:
1.Basic Research :advances knowledge about a subject without near-term expectations of commercial applications. (e.g. 科學家發現光纖傳導性高)
2.Applied Research :achieves commercial applications. (商人develope光纖作為傳data既工具)
3.Development : converts results of applied research into commercial applications.(PCCW個人6MB寬頻)
As every product has it own product-line cycle, it must decline in certain period. To maintain the market share, profit and reputation; a corporation must have a R&D department. It is used for keeping innovation. Further more, many scholars found that the product-line cycle for most product will become shorter and shorter. Cash cow and Star can no longer dominate the market for decades. R&D department will become one of the critical successful factor of most corporation.