Research and development (R&D) isn't something only big corporations can do. Small businesses can leverage R&D to compete on and lead the market too.
If you have an innovative idea for a new product or service, here are seven ways R&D can help you bring it to life:
1. Unique selling point – R&D can help you develop unique products and services. These don't always have to be entirely new. R&D can drive product improvement or innovation within the existing business offering. Here are some tips on researching new product and service ideas.
2. Income – unique products and services resulting from successful R&D projects can bring financial benefits to the business. This is usually through generating new or enhanced income streams, but R&D can also attract potential new investors to your business. Read about equity finance and joint ventures and business partnerships.
3. Funding – doing R&D can have cost implications for small business. However, R&D can also offer many opportunities for businesses to seek public-sector innovation, research and development grants or even EU funding for innovation.
4. Tax relief – you can claim R&D tax relief to reduce your company's tax bill or, alternatively, choose to receive a tax credit instead by way of a cash sum paid by HM Revenue and Customs. Only qualifying R&D expenditure will be considered for tax relief purposes – see Research and Development (R&D) tax reliefs.
5. Competitive edge - through R&D, you can develop an advantage over your competitors and establish yourself as leaders in the market. Development of new products and services can also generate new intellectual property for your business which could further benefit you financially. Read about protecting intellectual property.
6. Collaboration – collaboration can be a key element of any R&D project, and is often crucial to achieving success. Collaboration can take place between your business and another enterprise, university or college. It allows for the transfer of skills and knowledge, and access to facilities, expertise and potentially new ideas that would otherwise be out of reach of your business. See how to work with UK universities and colleges.
7. Reputation - engaging in R&D can help you strengthen your brand and reputation. If you’re collaborating with a trusted, reputable partner or a strong scientific institution, the commercial success of resulting products and services can benefit from their involvement. Find out what makes for a successful brand - see branding – the key ingredients.
If you have an R&D project in mind, which is innovative, addresses a technical challenge and is likely to result in commercially viable products or services, you may be able to get support from Invest Northern Ireland. Call Invest NI Helpline on Tel 0800 181 44 22 to speak to their innovation advisers about your R&D project.