Research and development is an important process for business today. Consumer needs and wants are always changing and so it is vital for the business to meet these demands with R&D to hopefully exceed customer expectations. It is also important for businesses to keep with advances such technological transforms. Otherwise they will be left behind in the competition.

Factories are increasing day-by-day in Somaliland, and the best example is the one, which was inaugurated in Burao last month, and there are also other factories like, Hargeysa Plastic factory, which is doing good job, and other factories. Therefore, R&D is very important these days and relies on market research information. After the research the company has to have good confidence that the product is fit for sale before they produce it. If not, they will lose money due to the large cost of production. The product specifications vary depending on consumer needs, wants and competition from other firms.

Every business has to establish its own R&D Department, and the R&D Department is required to justify that research supported by the Trust will potentially bring benefits to the business/organization.

Improving the operational processes, developing new ones and developing new/improved products and services are part of the research and development commercial function. R&D should be looking at two areas, which are to:

A) Take as much care for the environment as possible.

B) Make use of materials in the most efficient way.

By doing this they must calculate their costs and make sure they can do the above without getting into debts from the costs they produce. The businesses and universities in every region in Somaliland have to build new relationships that would improve R&D outcomes. For Example, construction companies may have make collaboration with Gollis College, which offers Civil Engineering Programs. Such kind of relations will also save time and unwanted investment.

Apart from all the factors mentioned above the main factor that research and development relies on is budget. Depending on how much money the business can afford to invest in research and development depends on the company. For example it may not be able to afford much, it may have a rapidly changing market, it may already be advanced and a leader in its market or it may need a change of direction. Whatever it is the main generalization is “The more capital invested the more successful the final product/service will be”.

Research and development plays a big role in the survival of the business. It helps a product to sell and make profit which therefore aids the survival of the business. Businesses must be aware that research and development is very important and must carry it out if it wants to be pro-active.

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