The Role of Research and Development Department in in the Pharmaceutical Industry

The Role of Research and Development Department in in the Pharmaceutical Industry

Introduction

Research is an attempt towards finding new knowledge with the hope that the results of this ultimately help in creating a new product or bring significant improvement in the existing product. Development is then consequently the next step which is actually the process of translation of the new knowledge into the creation of the product or of bringing improvements in the existing product for meeting the new and increasing needs of the market (Hajiheydari et.al, 2011). In other words, research is mainly the search for new ideas while development is turning those ideas into products that are saleable. Pharmaceutical industry like many other industries is found to be spending billions of dollars on research and development every year hoping to create products that can be sold in the future and bring profits. This department has a significant role to play in the pharmaceutical industry. The paper discusses the role of research and development department in the pharmaceutical industry and also discusses the financial reporting of the costs incurred in this relation.

Discussion

Role of research and development department in the pharmaceutical industry

Nearly all large pharmaceutical companies have a department of research and development. The purpose of the creation of such a department and its effective functioning is to develop treatments that more effective or drugs that may bring a speedy recovery with fewer side effects. While there may be effective treatments currently for most of the illnesses, there is always a likelihood that a better treatment may exist and that many illnesses will have a viable treatment or medication in the future. Apart from treatments and medications, pharmaceutical research and development can also lead to scientific breakthroughs of the kind that can result in the elimination of the illness. Although this may not often happen, yet without a research and development department, the benefits that are brought from it will not come. Good quality research and development is important for the long term success of the pharmaceutical industry (Howard, 2013).

The pharmaceutical industry is rapidly expanding and for ensuring the prosperity of this industry in the international market, the role of research and development is a significant one. The importance of research and development can also be understood from the fact that countries are divided into developed and underdeveloped to some extent on the basis of their spending in this area. It is also important due to the benefits that it offers in the form of stimulating economic growth and enhancing the profit of a company.

Pharmaceutical research and development takes into consideration all kind of illnesses, injuries and other medial ailments to look for treatments and medications that may be more effective than are currently in the market. They may also test of the safety of the products and about the possible side effects of a medication and they may test substances that may be helpful for a wide ...