Research and Product Development - Essay Example

Research and Product Development Advantages and disadvantages of companies collaborating in research and product development Companies and industries require innovative ideas to promote profits, and sales and this can be achieved through extensive research into the market in order to improve productivity. To meet these demands, companies are sometimes forced to collaborate in carrying out research in order to share ideas and findings from the market in to implement change. With these collaboration various benefits can be accrued, for example, advanced innovation, which brings about new products that benefit the society like medical devices and techniques.

The collaboration also fosters division of labor and the cumulative input is necessary to sponsor the bigger research projects (Gmelin & Seuring, 2014). On the other side, the collaboration could be disadvantageous to either both or one of the companies. A one sided effort is an example of how one of the companies could be disadvantaged in the collaboration, with only one company ripping all the benefits at the expense of the other. Cultural differences between the companies can also affect the whole process to the extent that the research goal is not met hence both companies losing out.

Ganging up on one company An industry can gang up on one company that comes up with new technology because of market competition. The industry may feel that the introduction of a new technology on the market would reduce their customer base that would reduce their profits. Therefore, companies may come together and gang up against the new company with the new technology to deny it market access and availability. The ganging up by the industry may cause the company with the new technology to allow it to be more open for the market due to aggressiveness.

The new technology may stand the gang up and create profits and awareness for the new company (McKelvey, 2013).ReferencesGmelin, H., & Seuring, S. (2014). Determinants of a sustainable new product development. Journal of Cleaner Production, 69, 1-9.Top of FormMcKelvey, M., & Lassen, A. H. (2013). How Entrepreneurs do What they do: Case Studies in Knowledge Intensive Entrepreneurship. Cheltenham: Edward Elgar Publishing. Bottom of Form