What Makes R&D Difficult?

The genesis of every groundbreaking invention is a great idea.

But pulling together the skills, expertise and resources needed to develop, test and deploy the idea can prove challenging. In addition, research and development (R&D) projects have long gestation periods before the product gets to market and sales revenue starts rolling in. Depending on the project, commercial success may not achieve its full potential for 20 years or more. This kind of timeline and uncertainty limits the number of traditional financing sources interested in funding pre-market projects.

There's also a level of risk and uncertainty about R&D projects and their likely outcomes. The exploration of new ideas involves charting uncharted territory. Not all projects will succeed, technically and/or commercially, but experience has taught governments around the world that even projects that have limited or even no commercial success can generate some economic, social or environmental benefits.

Investing in R&D makes sense, for without measured risk, innovation and all the benefits it generates would cease to exist. That's why governments play an important role in supporting the development of great ideas.