Basic Research versus Applied Development

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in the literature. The most obvious output for development is the “package”

sold to customers. The contents of this package depend on the firm’s busi-ness. On the other hand, it is difficult to describe an incidence of research.

Research is generally defined as the stage before development.

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additions to a product in line with the demands coming from customers.

Deep-rooted innovations, innovations that create new markets and real growth for the future of an organization, do not follow normal company routines. The initial findings obtained from an ongoing IRI (International Research Institute) study show that great discoveries often come up as a result of complex projects and are usually obtained as a product of proj-ects that have been repeatedly undermined and revitalized.

Organizations satisfy the conditions set by their customers, but there is often a need for a considerable lead-time to respond to customer prob-lems in time and find solutions for them. This is why R & D and mar-keting work mostly on the same problems, in parallel not in series. The staging models of an innovation process are meant to show a reason as to what came up during the innovation in the best way. Not all customer problems can be solved and not all technology can be implemented al-ways. However, the core idea is that incremental and deep-rooted innova-tions are different. At the end, only the unified powers of all the key func-tions of a firm, marketing, R & D, and procedures should be consolidated to satisfy customers. The National Science Foundation (NSF) divides re-search into three classes.

Basic research: According to NSF’s definition, the purpose of basic re-search is to have broad knowledge and understanding about the subject being worked on, rather than its practical use. To take industrial goals into account, NSF modifies this definition to show that basic research causes scientific knowledge to advance “without a distinct commercial purpose, although such researches are within the current or potential interest areas of the company to which reporting is made.”

Applied research: Applied research is directed towards understanding and gaining the knowledge that is necessary to identify the requirements of a special or known need that can be encountered. In industry, applied research involves the investments that manage the discovery of new scien-tific knowledge with special commercial goals for products and processes.

Development: It is the systematic use of the knowledge obtained from research towards the production of useful materials, instruments, systems, and methods including prototypes, process development and design (Man-agement of Technological Man(Man-agement, 1999: 133-135).

Wheelwright and Clark define research and high-level development projects as acquisition of new know-how and invention of new science.

Such projects are usually separated from the development organization.

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The development projects are governed by more or less defined products that have different degrees of innovation. According to Mortino, R & D can be divided into four different stages.

Table 7.1. Four Stages of R & D 1 Basic Research

2 Basic Research-Development

3 Applied Research-Development (Prototype/Plot, Plant)

4 Experimental Research-Development (Commercial Development)

The goal of basic research is to enhance understanding of some inci-dences. The key point in this type of research is that it alone does not seek a product or process. Applied research relates to understanding of an inci-dent, but there is more than innovation of a product or process in applied research. Manufacturability, reliability, and customer convenience are the most important issues at the prototype/plot (plant) stage. At this stage, the product is still not ready for large scale production; the stage only defines the possibilities of manufacturing in line with customer needs.

The remaining tasks at the commercial development stage are in de-signing. Technological uncertainties should have been resolved before this stage and they focus on costs/revenues (Karlsson et al., 2004: 179-180). A study on the technological innovations of industrial companies in Thailand defines classification of R & D. Research and experimental development in industries is defined as creative work performed on a systematic basis to create new or developed products, processes, and services or other ap-plications. R & D can be differentiated from other activities for being an important asset of innovation and providing solutions to the uncertainties and problems used in technological and scientific methods.

7.2.1. Basic Research

Basic research is experimental or theoretical preliminary work to create new knowledge based on visible events without any special usage or application.

Applied research is an original investigation to create new knowledge. It is governed by finding new ways of achieving some predetermined specific goals or certain possible uses for the basic research findings. It is a

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atic work that uses the existing knowledge obtained from practical experi-ence and research that is governed by the production of new materials, prod-ucts, and devices that are supplied by new processes, systems, and services.

Another approach depicting basic research and applied development calls for evaluating them by dividing them into certain groups with respect to their scopes and objectives to facilitate application of R & D projects.

7.2.2. Basic Research and Development (R & D)

This is the R & D of ideas that have never been implemented before as a new product, material, and method. They are R & D activities where in-ventions and new concepts are created. They usually involve the strategic research and development activities of governments and are implemented by entities such as universities and scientific and technical research insti-tutes. They are almost never implemented at the business level. The inven-tion of Teflon material is an example.

7.2.3. Applied R & D

This is the R & D of the applications that will create a difference in its full sense and in its own right as a new product, material, or method. ABS brakes

Table 7.2. What R & D Is and What It Is Not

What R & D is What R & D is not

Developing prototypes Scientific, technical, and information services

Setting up pilot plants Routine trials and standardizations Trial production Patent and license works not related

to any R & D work

Drawings and designs directly Data collecting goal involving market related to R & D research

Technical activities for materializing Works based on feasibility and plans new products and processes after

converting to the manufacturing unit

Material production and industrial Education, training and after-sales services engineering directly associated with

developed products or processes, or developing new products

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in vehicles, mobile phones, and Walkmans are examples. Applied R & D is the activities performed by the firms that are leaders in the world market.

7.2.4. Experimental R & D

These are the most common R & D activities. Their purpose is to cap-ture distinction by further developing the existing products, materials, and methods. According to the definition of the Scientific and Technological Research Council of Turkey (STRCT), it is the R & D of the products

“that show technological differences in their essence in terms of their ma-terials, parts and functions when compared to the previous generation of the product.” The R & D activities to be conducted by subject matter ex-perts (SMEs) should be of this class. The SMEs who have newly started their R & D should set up their structural R & D organizations in this way.

The plastic pedal groups and headlights close to daylight in cars and plas-tics used in household furniture are examples of these (Altınay, 2000: 2).