Question

Question: Suppose you want to develop an entirely new product, which requires enhancement of your creative skills. You have two option: your own R&D and coordination with some other research active company. What will you prefer and why? You are required to give at least three reasons ?

Answer 1

I would prefer coordinating with some other research active company because -

1. It helps to increase creativity when diverse research from different companies come together to work. They can pool their research in order to arrive at something new.

2. It also reduces risk as two companies are contributing to the R&D effort so that if they are not able to reach any conclusion, the amount of money wasted will be half per firm.

3. It also leads to adoption of best practices by both the companies by learning about the relative advantages of each other.