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Topic 5.8BM HL5 flashcards

Research and development (HL only)

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Card 1 of 55.8.1
Question

What is R&D?

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All Flashcards in Topic 5.8

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5.8.15 cards

Card 1definition
Question

What is R&D?

Answer

Research and development — systematic investigation to develop new products, improve existing ones, or find more efficient methods.

💡 Hint

New/improved products + methods

Card 2concept
Question

R&D links to: PLC, finance, competitive advantage, ___

Answer

Innovation — R&D drives the product development stage of the PLC.

💡 Hint

Innovation

Card 3concept
Question

Four reasons to invest in R&D?

Answer

Innovative products (competitive advantage), improve existing products, lower costs, patents create barriers to entry.

💡 Hint

Innovation + improve + costs + patents

Card 4concept
Question

Three risks of R&D?

Answer

Very expensive, no guaranteed return, long time horizons, competitors may innovate faster, high failure rate.

💡 Hint

Expensive + slow + failure

Card 5concept
Question

R&D is essential in fast-changing industries like ___

Answer

Tech and pharmaceuticals — innovate or die.

💡 Hint

Tech + pharma

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