1. What benefits does a company get by investing in R&D?

Why do
organizations make a distinction between basic research and applied
research? Describe three ways in which government can influence R&D.

Investment in research and development helps companies acquire knowledge and

understanding of the market, the customer needs, and products in developing new and
improving the current products and services to fit these to the needs and preferences.
Through R&D the company may boost sales and increase profitability because it allows
them to determine the improvements they can apply in the existing processes they have
where costs can be decreased due to increased efficiency. Also through R&D they can
survive, thrive, and be competitive in the markets.
Basic research is conducted by businesses for a generalized and complete
understanding of the fundamental aspects of a concept or phenomenon. While in order
to gain knowledge or understanding with a specific goal in mind, applied research is used.
It is used in determining and developing new products, policies, or operational processes.
In the conduct of R&D, the government takes a significant part to help the companies,
also for the economic growth and national security. The government supports directly
R&D financially through the financial aspect coming from the public funds help the
companies in their incurred costs. Moreover, the government also provides tax incentives
to companies that invest in R&D to encourage them also. supporting institutions such as
education and providing reliable infrastructure is also a way for the government to help
increase the firms' willingness to undertake new R&D projects.