A more thorough explanation:

Research and development (R&D) is the process of creating or improving products or services by discovering new technology or advancing existing technology. It is an effort made by a company or business enterprise to innovate and stay competitive in the market.

For example, a pharmaceutical company may invest in R&D to develop new drugs or improve existing ones. They may conduct experiments, clinical trials, and research to discover new compounds or improve the effectiveness of existing drugs. Another example is a technology company investing in R&D to develop new software or hardware products that are faster, more efficient, and more user-friendly than their competitors.

These examples illustrate how R&D is essential for companies to stay competitive and meet the changing needs of their customers. By investing in R&D, companies can create new products or improve existing ones, which can lead to increased profits and growth.