Aimnova
DashboardMy LearningStudy Plan

Stay in the loop

Study tips, product updates, and early access to new features.

Aimnova

AI-powered IB study platform with personalised plans, instant feedback, and examiner-style marking.

IB Subjects

  • IB Diploma
  • All IB Subjects
  • IB ESS
  • IB Business Management
  • Grade Calculator
  • Exam Timetable 2026
  • ESS Predictions
  • BM Predictions

Study Resources

  • Free Study Notes
  • Revision Guide
  • Flashcards
  • ESS Question Bank
  • BM Question Bank
  • Mock Exams
  • Exam Skills
  • Command Terms

Company

  • Features
  • Pricing
  • About Us
  • Blog
  • Contact
  • Terms
  • Privacy
  • Cookies

© 2026 Aimnova. All rights reserved.

Made with 💜 for IB students worldwide

NotesBusiness ManagementTopic 5.8Research and development
Back to Business Management Topics
5.8.11 min read

Research and development

IB Business Management • Unit 5

Smart study tools

Turn reading into results

Move beyond passive notes. Answer real exam questions, get AI feedback, and build the skills that earn top marks.

Get Started Free

🔬 Research and Development (R&D)

Definition: R&D is the systematic investigation aimed at developing new products, improving existing products, or finding more efficient production methods.

Why invest in R&D?

  • Develop innovative products that create competitive advantage
  • Improve existing products to maintain market share
  • Find more efficient production methods (lower costs)
  • Patents create barriers to entry
  • Essential in fast-changing industries (tech, pharmaceuticals)

Risks of R&D

  • Very expensive with no guaranteed return
  • Long time horizons — years before products reach market
  • Competitors may innovate faster
  • High failure rate

Related Business Management Topics

Continue learning with these related topics from the same unit:

5.1.1What is operations management?
5.1.2Business sectors in operations
5.2.1Job, batch and flow production
5.2.2Cellular manufacturing
View all Business Management topics

Improve your exam technique

Command terms, paper structure, and mark-scheme tips for Business Management

IB Exam Questions on Research and development

Practice with IB-style questions filtered to Topic 5.8.1. Get instant AI feedback on every answer.

Practice Topic 5.8.1 QuestionsBrowse All Business Management Topics

How Research and development Appears in IB Exams

Examiners use specific command terms when asking about this topic. Here's what to expect:

Define

Give the precise meaning of key terms related to Research and development.

AO1
Describe

Give a detailed account of processes or features in Research and development.

AO2
Explain

Give reasons WHY — cause and effect within Research and development.

AO3
Evaluate

Weigh strengths AND limitations of approaches in Research and development.

AO3
Discuss

Present arguments FOR and AGAINST with a balanced conclusion.

AO3

See the full IB Command Terms guide →

Previous
5.7.2Contingency planning
Next
Management information systems5.9.1

Don’t just read about Research and development — practice it

Apply what you learned with real exam-style questions. AI feedback shows exactly how to improve your answers.

Practice NowView All Business Management Topics