Science and Research: frontiers of new investment
Knowledge, as we know, is valuable. It encompasses everything from history to education to invention and the development of society. And the big drivers of knowledge today are science and technology, moving us ever faster to the future. So it stands to reason that investing in this sector has good benefits; we are never going to stop questioning and learning, and the more we know the more we will drive innovation in our lives and in our economies.
In countries where education systems are strong and financial markets sophisticated, the effect of technology on productivity continues to drive invention, progression and investment. Patents, green technology, energy, medical advancement, robotics, transport and lifestyles are constantly adjusting to new inventions – and as a result keep stock markets buoyant. And funding research and development across several such fields of endeavour plays a critical part in building wealth across an entire economy.
The benefits of investing in science and research
- The spill-over of ideas to emerging markets creates a valuable free flow of ideas and collaboration across borders, building immense value into the expansion and sharing of new knowledge…and the product potential that can be derived from this.
- Research and Development (R&D) covers a host of ideas, inventions and products. It is a key endeavour that always seeks knowledge to develop, design, and enhance products, services, technologies, or processes.
- Along with creating new products and adding features to old ones, investing in research and development connects a company’s strategy and business plan with purpose to marketing campaigns, as well as enhancing cost reduction.
- Research and development is an important driver of economic growth as it spurs innovation, invention, and progress. R&D can add so much value to a company, that a company can be sold on that aspect alone.
- Initially, investment may be risky, but it can also help lead to breakthroughs that could potentially drive excellent returns. Today, R&D dominates industry sectors such as biotech, pharmaceuticals, and information and computer technology.
- Scientific research refers to any new practice or thinking that will result in a new product or new features for an existing product. This basic research can offer immense to society when uses and derivatives can actually change people’s lives.
- R&D is often seen as a way to gain competitive advantage. If efforts lead to improved business processes such as cutting costs or increasing productivity, it is easier to outpace competitors.
- In some countries they even offer tax deductions for companies who open up research and development departments, spending money, creating jobs, and training employees.
- Ideas are valuable if they can be presented as tangibly possible and viable. Many entrepreneurs and small businesses have made large sums of money in a short time by selling good ideas to established firms who have the resources to bring those ideas to life. Innovation based on solid science and research is vital to the continued survival of many businesses, keeping companies relevant and ahead of market trends.
- R&D strategies present companies with the opportunity to create effective marketing strategies around releasing a new product or an existing product with new features. People love new things – intriguing inventions, gadgets that improve time factors and life in general – and this in turn drives new marketing innovations. There is a buzz around product invention and development that reflects an upward trend on stock markets.
- Companies stand to gain greater profits through adroitly applied research and development; innovations gained through research can work to reduce costs through more efficient production processes or more efficient products, thus adding to the bottom line.
- In a nutshell, investment in science, innovation and technology is essential for economic development and social progress.
Reasons to invest in science
Science introduces concepts which enable society to make more useful interpretation of the world. Science is the keeper and customiser of ideas and concepts – practices that give impetus to industry, financial processes, services, medicine, food production, education…there is an endless list wherein science plays a major role.
Every aspect of scientific enterprise – whether training, laboratories, conferences, papers, patents, journalism, and a myriad of other related endeavours – involves a large number of qualified workers. Each cent invested in science generally returns to society in the form products and services with accumulated value, improving both production processes and working standards. Bottom line: investing in science creates jobs; high-level well-paying jobs across the entire chain of concept, manufacturing, and production.
Foster Wealth: steering business, driving wealth
At Foster Wealth innovation, agility and in-depth market acumen are our daily fare. The volatility of markets, unexpected events and fluctuating values continually take us to new levels of interest and possibility. Constant re-assessment and evaluation are how we keep ahead of the curve – but our hard work, professionalism, attention to detail and personal attention are the hallmarks of our business and will never change.
Find out more about us at: www.fosterwealth.co.za