The Risk of Neglecting R&D Until It’s Too Late
At Radium, our advances allow you to access your R&D tax incentives far sooner than you otherwise would be able to. The question is: what difference does this make? While most companies rely on other areas of their business to drive success – like marketing, management and operations – far too many of them neglect R&D. Often when companies decide to explore or devote resources to R&D, it’s too late to take advantage of the opportunities that existed in the marketplace.
Effective R&D is vital to the sustainability & longevity of lots of businesses. It can help you maintain a competitive edge over your rivals within the global market, while forecasting and devising strategies in the face of large industry changes. Introducing breakthrough products and services into the market can act as a fantastic catalyst for speeding up the growth of your organisation. This is especially true for the target markets within our modern economy, whereby consumers constantly demand innovative, exciting and effective solutions to problems they didn’t know existed.
This is why companies in the pharmaceutical, chemical, automotive, telecommunications, entertainment and audiovisual industries (to name just a few) invest vast amounts of capital in staying ahead of the curve. The problem with R&D is that the return on your investment can often take time to materialise. This is also why, by the time a company has realised that it has neglected R&D in the face of being taken over by competition, it’s often too late to regain the ground that they’ve conceded.
A great example of this is Nokia. Do you remember a time back in the very late 90s/early 2000s when everyone seemed to own the sturdy, reliable brick-of-a-phone that was the Nokia 3210? If you were in high school or university at the time, you probably spent far too much time playing Snake, when you should have been studying. Nokia’s R&D department produced a product that perfectly suited the market at the time of its release in 1999.
Robust, reliable and affordable, it dominated the emerging global phone market and made Nokia one of the most profitable companies in the world. Now ask yourself another question: how many people do you know who own a Nokia phone today? The problem was that Nokia didn’t capitalise on their success by investing in their R&D to the extent that they should have. They got complacent and thought that they were invincible. This meant that by the time the iPhone was released in 2007, Nokia was so far behind the 8-ball that they were never able to recover their market share.
It was a quite spectacular fall from grace. In 2007, the company had a staggering 49.4% share of the global mobile phone market. Fast forward a decade and they rank as the ninth phone company in the world, owning a market share of just 1%. The world – and smartphone technology – had moved on without them. Other, more forward-thinking companies like Samsung, Google and Huawei have been able to use their R&D to continually compete with Apple in the smartphone space, but without R&D, Nokia was not been able to do the same.
The Nokia story is just one of many whereby companies that neglected their R&D have been blown out of the water by competitors and lost their market share. The moral of the story is that we live in a dynamic world, with people, preferences, laws and technologies changing and shaping the way we live. R&D takes this landscape into account, to prepare companies for such changes and avoid unexpected surprises and shifts in market share from more proactive competitors.
What you can be sure of is that if you don’t invest enough in R&D, you won’t be able to keep up. You need to have the infrastructure and funding in place to be able to react to changes in your market in a quick and agile fashion.
At Radium, our advances can give you faster access to your R&D tax incentive funding. Having to wait until your tax return is processed, (which could be a matter of months) could hand your competitors a crucial advantage that you’re never able to get back.
If you want to avoid the same fate as Nokia, get in touch with us today to find out how we can grant you to access your R&D tax incentive funding without the potentially disastrous delay.