Factors Affecting Essay

Few markets avoid change, which involves new products or new shipway of making existing products. Some industries are much likely to permit important changes brought about by new technologies and new adaptations of existing technologies. The IT, computer and mobile phone markets are experiencing more vicissitude than near. How do businesses benefit from introducing radical new products and what factors influence the range and pace of innovation? spend on research and development (R&D) is growing globally and in most industrial sectors. The benefits to a country of encouraging R&D disbursal includecreation of high-tech jobscreation of high-added-value products that may then be manufactured in that country prestige a country beingness linked to scientific and technological breakthroughs Attraction of investment by transnational corporations.Several factors may influence the level of research and development (R&D) and innovation by a business The nature of the pains. Rapid ly changing technologies and consumer expectations in pharmaceutical products, defense, computer and software products and motor vehicles lead to the need for substantial investment in R&D by leading firms. otherwise businesses, such as hotels and hairdressing, would need to spend much less as the scope for innovation is more confine.The R&D and innovation disbursal plans of competitors. In most markets, it is essential to innovate as much as or more than competitors if market share and technical leadership are to be maintained. However, a monopoly may limit R&D spending if it believes that the risk of a more technically advanced competitor go into the market is limited. On the other hand, profits from a monopoly could be utilise to finance research into innovative products if the risk of competitor entry into the industry is high.Business expectations. If business managers are optimistic about the future utter of the economy and the rate of economic growth and consumer dem and,then they are more likely to agree to substantial budgets for R&D and aim to envelop more innovative products.The risk profile or culture of the business. The posture of the management to risk and whether shareholders are prepared to invest for the long term will have a signifi hind endt effect on the sums that businesses can inject into R&D programmes. Short-termism is an accusation made towards many major UK financial institutions and the need to satisfy these investors could discourage managers from investing in R&D. Government policy towards grants to businesses and universities for R&D programmes and the range and scope of impose allowances for such expenditure will influence decisions by businesses.Finance is required for effective R&D. In many firms this may be limited and will restrict the number of new innovations that could be made.Referencehttp//classof1.com/homework-help/operations-management-homework-help discover as multi-pages