R&D
Business & Finance abbreviation · Management & Strategy
| Stands for | Research and development |
|---|---|
| Categories | Business & Finance |
R&D stands for Research and development, a management & strategy abbreviation.
Activities a company undertakes to create new products, processes or technologies, or to improve existing ones, ranging from basic research to engineering and prototyping. R&D spending is reported separately in financial statements and is a major cost in pharmaceuticals, technology and automotive manufacturing.
Example: R&D spending rose to 18 percent of revenue as the company expanded its chip design team.
Usage notes
Pronounced "R and D." Under US GAAP (ASC 730), most R&D costs are expensed as incurred, while IFRS (IAS 38) requires development costs to be capitalized once specific criteria are met. Many countries offer R&D tax credits to encourage the spending. R&D intensity, spending as a share of revenue, is a common comparison across companies.
Related abbreviations
More management & strategy abbreviations
- PEST – Political, economic, social and technological
- PESTLE – Political, economic, social, technological, legal and environmental
- PMF – Product-market fit
- QA – Quality assurance (software)
- QBR – Quarterly business review
- QC – Quality control
- RCA – Root cause analysis
- RFI – Request for information
- RFP – Request for proposal
- RFQ – Request for quotation
- RFT – Request for tender
- SAM – Serviceable addressable market