1. Research and Development (R&D)
Starter
Discussion points pg 11

2. Lesson Objectives All students will understand Most students will
The concept of innovation and R&D
Most students will
be able to apply these to different business contexts
Some students will
Evaluate the importance of innovation and R&D in maintaining competitiveness
Progress Arrow

3. R&D
Leads to innovative and attractive new products for the marketplace.
Innovation can also be applied to new production techniques.
Note – do not confuse R&D with Market Research!

4. Task
Which industries do you think invests most in R&D?
Why?

5. Biggest spenders on R&D
Consider table 3.1 pg 12

6. Why do firms invest in R&D
To gain a competitive advantage
To become more efficient and lower costs
Increase market power
To extend the product life cycle
For each of the above consider how investing in R&D could achieve this

7. The Product Life Cycle (use fig3.1pg14)

8. The role of state funding
Do you think the government should subsidise business investment into R&D?
Hwk – investigate levels of state funding into different sectors R&D

9. The role of state funding for R&D
Innovation is crucial to economic growth.
Innovation leads to benefits for consumers, increased profits and wages, possibly increasing exports and creating jobs.
Large UK businesses are entitled to 11% corporation tax relief on their R&D spending. Smaller businesses (less than 500 employees) receive 26% relief on R&D spending.

10. Plenary
Plan out an answer to exam question pg 15
Progress Arrow