5 reasons why R&D is essential in the post COVID-19 environment

“There is only one thing stronger than all the armies of the world and that is an idea whose time has come.”  – Victor Hugo

The COVID-19 pandemic has highlighted the critical importance of innovation in helping companies accelerate out of recovery. In recent months, we have witnessed first-hand how companies are moving faster and taking bigger risks than ever before. This has brought the importance of R&D and its vital role in shaping the next normal into sharp focus. Catalyst Solutions outlines 5 reasons why R&D is essential in the post COVID-19 environment. 

• It is critical to staying competitive

A key factor to surviving in a post-covid world will be a company’s ability to differentiate itself from its competitors. Innovation, new products, and advanced technologies are vital to staying relevant and competitive in a fast-changing world. Businesses not willing or able to learn, grow, and adapt to our rapidly changing environment  will struggle to adapt to our new normal. 

• It can provide cash-strapped organisations with a boost

During a time of deep economic uncertainty and disruption to cash flow, R&D tax incentives like South Africa’s Section 11D Tax Incentive, are proving to be a valuable source of cash flow for those businesses focused on R&D and innovation.

• It will future-proof businesses
  

 Investing in innovation will help build and strengthen capabilities for the future and prepare businesses for future disruptions and uncertainties.

• Will be instrumental in economic recovery

R&D and innovation are critical levers in ensuring a sustainable and inclusive economic recovery. A knowledge and innovation-led economy is vital for future growth and will be instrumental in boosting economic competitiveness as well as the resilience of our production and manufacturing sectors. In fact, research shows that those companies who continued their R&D activity during the 2008 economic downturn were far better positioned to recover. 

• It is vital to finding solutions to new problems

The new and complex challenges we’re facing have pushed businesses across all sectors to pivot dramatically to meet the demands of living with coronavirus .R&D is the key to finding solutions to these new and previously uncharted problems. 

R&D no longer a nice to have

There’s no question that COVID has catalysed a significant shift in how consumers and businesses behave, creating a long-term  disruption that will shape our environment for years to come. This means R&D can no longer be viewed as a luxury but rather should form a vital part of an organisation’s DNA, especially if they want to remain competitive and set themselves apart. Looking ahead, one thing undoubtedly remains clear: Investing in R&D is investing in the future.