subject: R&d To Steer Innovation Among Smes [print this page] In order to stay competitive and scale up the growth ladder, SMEs need to constantly innovate and improve their product lines. However, this can be achieved by undertaking wide range of R&D activities. From helping companies to enhance their production, evaluate efficiency and improve margins, raising investments to strengthen R&D base holds several benefits for small businesses.
Benefits of robust R&D facilities
Initiating in-house R&D programmes can help small companies to bring about major improvements in their product or service offerings, thereby enabling them to compete with their overseas counterparts in this rapidly globalising business environment. With the help of advanced R&D facilities, SMEs can also emerge successful in catering to the diverse needs of a specific industry and create new or modified products and processes.
Creating basic and applied R&D models will not only help SMEs to roll out superior quality products and offer excellent services, but it also goes a long way in propelling firms to design a more efficient and cost-effective way to continue their operations, said Mohan Raj, proprietor of Zode Pharmaceuticals, Bengaluru-based SME pharma company.
Although most SMEs are aware of the benefits of having a robust R&D facility, some still fail to strengthen their base due to financial constraints, lack of adequate resources as well as technical and skilled manpower.
Due to lack of funding and proper coordination between various departments, SMEs often fail to develop a strong R&D base. Inadequate access to technological tools or absence of the right technology also hinder successful undertaking of R&D activities among small firms, said Riddhiman Basu, technical analyst at Nilhard Corporation, a small-sized IT firm in Kolkata.
Given the benefits of a robust R&D facility, small firms cannot take the risk of cutting down expenses on developing their research base as that will only stunt their growth and limit their future business prospects.
