What are the main differences between the organization and f

What are the main differences between the organization and funding of R&D programs and system development programs

Solution

Before we understand the difference in funding we should understand the primary function of R&D .

Basically the main fucntionis of R&D is to develop new products or discover and create new knowledge about scientific and technological topics for the purpose of uncovering and enabling development of valuable new products, processes, and services.

New product design and development is more often than not a crucial factor in the survival of a company. In an industry that is changing fast, firms must continually revise their design and range of products.Hence, R&D plays a very critical role in growth of organizations therefore , funding of this unit is based on return of investments but is also different from system development programs

System development programs are usually funded for either development of systems for clients (external customers) or inhouse for increasing productivity .

Funding of both these units majorly depends on business objectives and strategy of the organization

Funding also depends and varies with industry .