Research and development (R&D) is an integral part of growth for most businesses. In some fields, like chemical manufacturing, it can be the deciding factor between success and stagnation. Learn what chemical R&D is and why it matters so much.
What Is R&D?
R&D is a lot like how it sounds: businesses research ideas for new products, and then they make plans to develop those ideas into tangible goods and services. Depending on your industry, R&D might be an occasional effort or an ongoing one.
How Does R&D Work in the Chemical Industry?
R&D in the chemical industry has changed over the last several decades. In the old days, companies could develop one primary creation, known as the hero product, like nylon, and rely on that to drive sales for many years. Think of all the products that contain nylon today! Nowadays, it’s much rarer for chemical companies to develop these kinds of groundbreaking products, so R&D becomes a continual search for improvement.
How Does R&D Serve Chemical Manufacturers?
To stay competitive, chemical manufacturers need new goods and services to provide customers. Having a unique compound can put your company in high demand as a development partner. The same is true for chemical applications. However, if you’re not investing in R&D, how will you discover these new ways to offer products to customers? You won’t.
How To Develop an R&D Strategy
If you’re just now putting together an R&D strategy, don’t panic. It’s never too late to get in the game. Part of the reason is because R&D tends to work better for people who make smart investments, not lots of them. While companies with large budgets may be able to complete tons of projects simultaneously, they may not have a clear idea of how to use each one. Focus on your company’s strengths and go from there. You can also look at tips for improving your chemical R&D strategy.
The Bottom Line
Now that you know what chemical R&D is and why it matters, it’s time to take action. Start by assessing your company’s growth goals and current product offerings. Talk to your clients and ask them what goods and services they want to see from you, then start researching.
