Evans School Policy Analysis & Research Group (EPAR)

Research and development (R&D) is work that pertains to innovation, introduction, and improvement of products and processes. The R&D process for new products and services often takes years and large investments to come to fruition, and funders face the risk that some investments may fail to generate returns to investors or benefits to users. Thus, estimates of the costs, risk, and potential returns to R&D projects all influence funders’ decisions around where to invest.

Research and development (R&D) is work that pertains to innovation, introduction, and improvement of products and processes. The R&D process for new products and services often takes years and large investments to come to fruition, and funders face the risk that some investments may fail to generate returns to investors or benefits to users. Thus, estimates of the costs, risk, and potential returns to R&D projects all influence funders’ decisions around where to invest.